SBI launches Kavach Personal Loan for Covid-19 patients

The State Bank of India (SBI) has launched a collateral-free loan called Kavach Personal Loan. The loan covers expenses of COVID treatment of self and family members of the customer, the bank said in a press release.

Under this scheme, customers can avail loans up to Rs 5 lakh at an effective interest rate of 8.5% per annum for 60 months which is inclusive of three months moratorium.

"This unique product is being offered under the collateral-free personal loan category. Reimbursement of expenses already incurred for COVID related medical expenses shall also be provided under the scheme," the press release stated.


Dinesh Khara, Chairman, SBI said, "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."