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
Features
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.
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