Things to know about SBI Kavach Personal Loan Scheme

June 14, 2021 Finance Talk Valli Sarvani No comments

Unlike the first wave of COVID-19, the second wave impacted many people. Several people realized that it is not as easy as they think to deal with the condition. Many of them are struggling to deal with post-COVID effects after their recovery.

Healthcare costs rose, and several people are facing financial hardships. In this situation, many banks offer loans to help their customers.

State Bank of India (SBI), the largest commercial bank, is one among them. It announced a new loan product for its customers, Kavach Personal Loan Scheme.

Here are few things to know about Kavach Personal loan facility:

SBI customers can avail this personal loan for their COVID treatment or their family members. Anyone tested COVID-19 positive on or after April 1, 2021, can borrow money under the scheme.
Both salaried and non-salaried can utilize this personal loan. Even pensioners can use it.
Normally personal loans have a higher interest rate as they are unsecured. But, unlike other personal loans, the loan has a lower interest rate. SBI offers Kavach personal loan at the rate of 8.5 per cent per annum.
The bank offers a moratorium period of three months for the borrowers. They have to pay interest on the loan during this period.
The repayment tenure is five years, including the moratorium period.
There is no processing fee, pre-payment penalty, or foreclosure charge on this loan.
The minimum loan amount sanctioned under the scheme is ₹25,000, while the maximum is ₹5 lakhs, based on the eligibility of the borrower.
Existing loans do not affect the loan as this loan is offered on top of the existing loan if any.
SBI customers can apply for the Kavach personal loan at the bank branch. Or they can digitally apply through the Yono app. Those who already spent money for the treatment of COVID-19 can also use the loan to reimburse the amount.

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