The State Bank of India has introduced a collateral-free loan called ‘Kavach Personal Loan’ for its customers facing financial stress due to COVID treatment-related expenditures. Under the scheme, it is providing collateral-free personal loans of up to Rs 5 lakh at an 8.5% annual interest rate, aimed at helping customers meet medical expenses of themselves and family members for COVID-19 treatment.
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 ‘Kavach Personal Loan’ will also be part of the COVID-19 loan book being created by banks in line with RBI’s COVID relief measures.