The State Bank of India (SBI) has launched an unsecured loan program called ‘KAVACH personal loan’ for families affected by COVID-19. According to a statement shared by the country’s leading lender on Tuesday, June 15, the personal loan program has the lowest interest rate and is particularly aimed at families in financial difficulty due to the COVID-19 pandemic. The bank said reimbursement for expenses already incurred for medical expenses related to COVID-19 will also be provided under the program. (Read also: ICICI Prudential Launches Retirement Plan With Guaranteed Returns: Check Features)
SBI Kavach personal loan: who can benefit from it?
According to the bank, the program is aimed at salaried and non-salaried customers as well as retirees and their family members who tested positive for CVID-19 as of April 1, 2021.
SBI Kavach personal loan: Documents required to benefit from the loan:
- The COVID- positive report of clients seeking to avail of the personal loan
- According to SBI, no collateral is required to benefit from the bank loan
SBI Kavach: Loan amount
- Loan amount starts at Rs. 25,000 up to Rs. 5 lakes depending on eligibility
- The loan will be in addition to existing loans, if applicable, according to SBI
SBI Kavach personal loan interest rate: The bank offers this loan at 8.5%.
Duration of SBI Kavach personal loan: The duration is 60 months (including the three-month moratorium)
Where to apply to SBI Kavach?
- State Bank of India branch
- Pre-approved via the YONO mobile app
Processing Fee – The loan can be used without a processing fee. SBI waived foreclosure charges and the prepayment penalty for customers.
According to SBI, the processing fee, security, prepayment penalty, and foreclosure fee for this loan are zero.