The State Bank of India (SBI) has introduced 'kavach personal loan' scheme for COVID-19 patients on June 11th. The state-run institution is granting collateral free personal loans amounting to Rs 5 lakh at an annual interest rate of 8.5 percent under the plan.
It must be noted that SBI offers agriculture loans to farmers for various purposes.
According to the SBI, the collateral-free personal loans are intended to help borrowers cover medical expenses for themselves and family members undergoing COVID-19 treatment.
Customers would be able to "acquire loans up to Rs 5 lakh at an effective interest rate of 8.5 percent per annum for 60 months, inclusive of three months moratorium," according to a statement released by SBI Chairman Dinesh Khara.
As per SBI, loans under the kavach scheme are issued "under the collateral-free personal loan category and come at the lowest rate of interest in this segment."
The bank explained that the scheme will cover reimbursement of fees previously incurred for COVID-19-related medical bills.
"Our goal with this strategic loan scheme is to provide monetary support to all people who have been affected by COVID, especially in this tough situation. At SBI, we are constantly striving to provide financial solutions that meet the needs of our customers "Khara remarked.
This loan product will also be included in the COVID-19 loan book developed by banks in response to the RBI's COVID relief measures, according to SBI's announcement.
For more details visit your nearest SBI branch.
