State Bank of India (SBI) has launched collateral-free “Kavach Personal Loan” to enable its customers to meet medical expenses of self and family members for Covid treatment.
Under this scheme, customers can avail loans up to ₹5 lakhs at an effective interest rate of 8.5 per cent per annum for 60 months, which is inclusive of three months moratorium, India’s largest bank said in a statement.
The loan will also cover reimbursement of Covid related medical expenses already incurred.
Dinesh Khara, Chairman, SBI said, “We believe this new scheme will offer much-needed financial assistance to the people to manage Covid treatment-related expenses without any hassle.”
Khara observed that with this strategic loan scheme, the bank’s aim is to provide access to monetary assistance – especially in this difficult situation for all those who unfortunately got affected by Covid.
The bank said this loan product will also be part of the Covid loan book being created by banks as per the Reserve Bank of India's Covid relief measures.