Following RBI's COVID relief measures, State Bank of India (SBI) on Friday launched a collateral-free loan offer called ‘Kavach Personal Loan’.
India's largest bank, in a statement, said the loan covers expenses of COVID treatment of self and family members of a customer.
Under this scheme, customers can avail loans up to Rs 5 lakh at an effective interest rate of 8.5 percent per annum for 60 months, which is inclusive of three months' moratorium.
SBI said this product is being offered under the collateral-free personal loan category and comes at the cheapest interest rate under this segment.
According to the bank, reimbursement of expenses already incurred for COVID-related medical expenses will also be provided under the scheme.
Dinesh Khara, Chairman of SBI, said, “We are happy to introduce SBI Kavach Personal Loan scheme to help people affected in the wake of COVID-19 crisis. We believe this new scheme will offer much-needed financial assistance to the people to manage the COVID treatment-related expenses without any hassle."
"With this strategic loan scheme, our aim is to provide access to monetary assistance – especially in this difficult situation for all those who unfortunately got affected by COVID. It's our constant endeavor at SBI to work towards creating financial solutions for customers suiting their requirements.”
SBI said this loan product is part of RBI's COVID relief measures, under which COVID loan books are being created by the banks.
First Published: IST