Kavach personal loan can be availed by salaried and non-salaried individuals alike.
There is no collateral requirement for the loan.
Up to Rs 5 lakh can be availed under the scheme at 8.5 percent interest.
After SBI announced the Kavach loan scheme last week, the largest lender in the country announced further details about the loan scheme. The scheme is a collateral-free loan system for the treatment of COVID-19 patients, for a corpus of up to Rs 5 lakhs.
Who is Eligible?
The loan can be availed by both salaried and non-salaried individuals. The loan can also be taken by pensioners or their family members. The only requirement for availing the loan is that a family member or the individual must have tested positive for COVID-19 on or after April 21, 2021.
The loan will cover any reimbursement of expenses already incurred for COVID-19 related treatment and will be over and above any other existing loans.
What is Loan Amount, Interest?
The loan can be sanctioned for any amount between Rs 25,000 and Rs 5 lakh, depending on eligibility. No collateral will be needed regardless of the corpus of the loan. The tenure of the loan will be 60 months (five years) with a loan moratorium of three months. The interest rate for this loan will be fixed at 8.5 percent.
How to Apply?
Individuals can head to the nearest SBI branch with a COVID-19 positive test result to apply for the loan. The loan under the scheme is pre-approved under SBI's integrated digital banking platform YONO. There will be no collateral required to secure the loan. You will have to provide all the relevant documents.
What about Fees?
SBI has ensured that there will be no surcharges associated with this scheme. As a result, the Kavach personal loan will be available without any processing fee. The bank has also waived foreclosure charges and pre-payment penalty on the loan.
(Edited by : Shoma)