The State Bank of India (SBI) launched a collateral-free loan scheme called the ‘KAVACH Personal Loan' for the families affected by COVID-19. According to a statement shared by the country's top lender on Tuesday, June 15, the personal loan scheme has the lowest rate of interest and is especially aimed at families struggling financially due to the COVID-19 pandemic. The bank stated that the reimbursement of the expenses already incurred for COVID-19 related medical expenses will also be provided under the scheme. (Also Read: ICICI Prudential Launches Retirement Plan With Guaranteed Returns: Check Features )
SBI Kavach Personal Loan: Who Can Avail?
According to the bank, the scheme is for salaried and non-salaried customers along with the pensioners and their family members who tested CVID-19 positive on or after April 1, 2021
SBI Kavach Personal Loan: Documents required for availing the loan:
- The COVID- positive report of the customers who are looking to avail the personal loan
- According to SBI, no collateral is required to be submitted to avail loan from the bank
SBI Kavach: Loan amount
- The loan amount starts at Rs. 25,000 upto Rs. 5 lacs as per the eligibility
- The loan will be over and above the existing loans, if any, according to SBI
SBI Kavach Personal Loan's Interest rate: The bank offers this loan at 8.5 per cent.
SBI Kavach Personal Loan's tenure: The tenure is 60 months (including the moratorium of three months)
Where to apply for SBI Kavach?
- State Bank of India's branch
- Pre-approved through YONO mobile app
Processing fee – The loan can be availed with zero processing fee. SBI has waived-off the foreclosure charges and the pre-payment penalty for customers.
According to SBI, the processing fee, security, pre-payment penalty, as well as foreclosure charges for this loan are nil.
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