The loan will also cover reimbursement of Covid-19 related medical expenses already incurred by the borrower.
The State Bank of India (SBI) has launched a loan offer for those who are holding a bank account with them and need money to meet medical expenses related to the treatment of Covid-19. The SBI KAVACH Personal Loan Scheme is only for the Covid-19 treatment of self or family members who are found Covid-19 positive on or after 01.04.2021. Importantly, the loan will also cover reimbursement of Covid-19 related medical expenses already incurred by the borrower.
The loan can be availed by the bank customers who could be Salaried, non-Salaried or Pensioners. There will not be any collateral to avail the loan from the bank.
The personal loan is available currently at 8.5 per cent per annum for an amount up to Rs. 5 lakh. The tenure of the loan is 5 years which is inclusive of three months moratorium. For the 60-month loan, the amount has to be repaid in 57 EMIs, including interest charged during Moratorium.
The minimum loan amount that can be availed is Rs 25,000, while the maximum is 5 lakh as per eligibility of the borrower. There is no processing fee, no security deposit, no pre-payment penalty and no foreclosure charges while availing the loan.
The Reimbursement facility is also available through branch channel and the loan will be over and above the existing loans, if any.
The loan is available at the SBI branches as well as through the Digital channel (Pre-approved through YONO). One can avail Pre-approved Personal loans instantly at their convenience on 24×7 basis through YONO app in a few click.
In case, one need to apply for SBI loan to meet medical cost arising out of Covid-19 treatment in hospital, it is better to repay the loan as early as possible. Try not to run the loan for the entire duration of 60 months rather make a plan to prepay the amount early-on to avoid paying interest for a long duration.