State Bank of India (SBI) has introduced a collateral-free offering scheme called ‘Kavach Personal Loan’ to provide financial assistance to its customers to manage the COVID-19 treatment-related expenses.
- Under the term loan, the customers could avail collateral-free personal loan ranging from Rs 25,000 to Rs 5 lakh at an interest rate of 8.5 percent per annum for 60 months which is inclusive of 3 months moratorium.
- The loan covers expenses of COVID-19 treatment of self and family members of the customer who are found COVID-19 Positive on or after April 1, 2021
- The scheme also has no processing fee and the loan has to be repaid in 57 EMIs (equated monthly instalments), including interest charged during Moratorium.
i.Reimbursement of expenses already incurred for COVID-19 related medical expenses will also be provided under the scheme.
ii.This loan was a part of the COVID-19 loan book being created by banks as per RBI’s COVID-19 relief measures.
Recent Related News:
On April 26, 2021, SBI Mutual Fund launched SBI Nifty Next 50 Index Fund, an open-ended index scheme. It is the second index fund of SBI Mutual Fund as it already has the SBI Nifty Index Fund under the Exchange Traded Fund (ETF) category.
About State Bank of India(SBI):
Establishment – 1st July 1955
Headquarters – Mumbai, Maharashtra
Chairman – Dinesh Kumar Khara
Tagline – The Banker to Every Indian