SBI KAVACH Personal Loan Scheme – Rs 5 lakh Collateral-Free Loan – How To Apply?

The country’s leading lender State Bank of India (SBI) in order to help its customers in this grim hour has come up with a personal loan product especially for Covid 19 patients or for meeting medical expenditure incurred in the treatment of Covid.   

For Covid treatment of self or family member who is found Covid Positive on or after 01.04.2021

The new loan product coined as Kavach Personal loan can be availed by bank’s customers who have contracted Covid 19 infection or can also borrow this loan for the Covid treatment of his or her family members.

Typically being unsecured loan in nature i.e. without being backed by any collateral, the personal loan interest rate is generally on a higher side. 

Tenure of the loan: 5 years that is inclusive of 3-month moratorium   

Loan Amount

Minimum: Rs. 25,000 & Maximum: Rs. 5 Lakhs as per eligibility

Reimbursement facility also available through branch channel

The loan will be over and above the existing loans, if any

Loan Tenure

60 months (including 3 months moratorium)

Loan to be repaid in 57 EMIs, including interest charged during Moratorium

Rate of interest (Fixed)

8.50% at present (minimum 100 bps lower than a similar unsecured product of the Bank)

Repayment Mode

Standing Instruction (SI) on the Salary/ Pension/ SB/CA account


Channel: Branch channel

Digital channel (Pre-approved through YONO)

Target Group: Customers of the Bank such as Salaried, non-salaried as well as to Pensioners

Loan facility: Term Loan

Disbursement: Credit to Salary/ Pension/ SB account of the customer

CIC (CIBIL CV Score): As per Bank’s internal policy

Processing fee: NIL

Security: NIL

Pre-payment Penalty: NIL

Foreclosure Charges: NIL

Eligibility: For Covid treatment of self or family member who is diagnosed with Covid 19 on or after April 1, 2021, Targeted group: The bank’s targeted group for the product includes bank’s customers who may be salaried, non -salaried, and even pensioners. 

Repayment schedule: Repayment of the principal and interest amount has to be made in 57 EMIs and that also includes the interest amount charged during the moratorium period.

The interest rate on the Kavach personal loan: It is the lowest personal loan offering at the rate of 8.5 percent per annum. 

Features Channel: Branch channel; Digital channel (Pre-approved through YONO). Target Group: Customers of the Bank such as Salaried, non-Salaried

Under this scheme, customers can avail of loans up to Rs 5 lakh at an effective interest rate of 8.5% per annum for 60 months

The State Bank of India (SBI) on June 11 launched the ‘kavach personal loan’ scheme for COVID-19 patients. As per the scheme

The borrowers do not need to pledge any asset as security while applying for the loans under the SBI Kavach Personal Loan plan.

The SBI KAVACH Personal Loan Scheme is only for the Covid-19 treatment of self or family members who are found Covid-19 positive on

SBI launches ‘Kavach’ personal loan scheme of up to Rs 5 lakh for COVID patients · The scheme will enable buyers avail loans of up to 5 lakh

The loan will help customers meet medical expenses for Covid treatment. State Bank of India (SBI) has launched collateral-free “Kavach Personal

SBI’s ‘Kavach Personal Loan‘ Scheme Launched For Covid Patients. All You Need to Know.