Things to know about SBI’s Kavach before availing it for covid
Amid the current pandemic situation, State Bank of India (SBI) is offering a loan for covid-19 treatment at the lowest interest rate. SBI has launched a collateral-free loan offer to those having an account in any of the SBI branches and need money to meet medical expenses related to covid-19 treatment of self and family members on or after 1 April.
The loan is offered to salaried and non-salaried persons, and pensioners. Thus, to get the loan amount sanctioned, any of these SBI customers will be required to submit a covid positive report.
They can avail of a minimum loan of ₹25,000 and a maximum of ₹5 lakh as per their eligibility. The bank will sanction the loan depending on requirements such as CIBIL score and the loan repayment capacity of the borrower. However, this will further depend on the bank’s internal policy.
The rate of interest levied by SBI for Kavach personal loan is kept at 8.5% per annum; this rate is currently set on the lower side. Normally, the interest rates are on the higher side for unsecured personal loans, i.e., loans sanctioned without collateral.
Currently, personal loans offered by SBI for a tenure of five years draw a rate of interest between 9.6% and 13.85%. The loanee also needs to pay a processing fee of 1.5% of the loan amount (minimum ₹1,000 and maximum ₹15,000) plus goods and services tax.
To avail Kavach personal loan, customers can visit any of the nearest SBI branches. By visiting the bank branch and duly completing all formalities, documentation, KYC (know your customer), etc., they can get the loan sanctioned.
If you are a mobile banking user, you can also get it through the digital channel. The loan usually gets pre-approved through SBI’s YONO app and you get the loan amount instantaneously.
Reimbursement facility is also available through the branch channel. This means the loan scheme also provides reimbursement for the amount that has already been incurred by you towards the treatment of covid-19. Besides, Kavach loan will be over and above existing loans, if any.
While opting for a Kavach personal loan, SBI customers are not required to pay any processing fee, security deposit, pre-payment penalty or foreclosure charges.
