The State Bank of India (SBI) has launched a collateral-free loan called Kavach Personal Loan for its customers facing financial stress on account of COVID treatment-related expenses. . The loan covers expenses of COVID treatment of self and family members of the customer, the bank said in a press release.
The loan covers expenses of COVID treatment of self and family members of the customer. Under this scheme, customers can avail loans up to ₹5 lakh at an effective interest rate of 8.5% per annum for 60 months which is inclusive of three months moratorium.
Reimbursement of expenses already incurred for COVID-related medical expenses will also be provided under the scheme.
Dinesh Khara, Chairman, SBI said, “We believe this new scheme will offer much-needed financial assistance to the people to manage the COVID treatment-related expenses without any hassle.”
This loan product will also be part of the COVID loan book being created by banks as per RBI's COVID relief measures, SBI said.