To mitigate financial distress amid the second wave of coronavirus pandemic, the State Bank of India (SBI) has recently unveiled a new personal loan plan — Kavach Personal Loan. Under this scheme, an individual can take loans starting from Rs 25,000 to up to Rs 5 lakh to “cover expenses of COVID-19 treatment of self and family members,” the lender said. The loan will collateral-free.
What are the types of insurance available in India?
Insurance in India can be broadly divided into three categories:
As the name suggests, life insurance is insurance on your life. You buy life insurance to make sure your dependents are financially secured in the event of your untimely demise. Life insurance is particularly important if you are the sole breadwinner for your family or if your family is heavily reliant on your income. Under life insurance, the policyholder’s family is financially compensated in case the policyholder expires during the term of the policy.
Health insurance is bought to cover medical costs for expensive treatments. Different types of health insurance policies cover an array of diseases and ailments. You can buy a generic health insurance policy as well as policies for specific diseases. The premium paid towards a health insurance policy usually covers treatment, hospitalization and medication costs.
In today’s world, a car insurance is an important policy for every car owner. This insurance protects you against any untoward incident like accidents. Some policies also compensate for damages to your car during natural calamities like floods or earthquakes. It also covers third-party liability where you have to pay damages to other vehicle owners.
All you need to know about SBI Kavach Personal Loan
India’s largest lender is offering a collateral-free loan at the lowest interest rates for coronavirus treatments. The loan amount will be ranging from Rs 25,000 to Rs 5 lakh depending on the eligibility.
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Interest and other charges
The loan under Kavach Personal Loan will have an interest rate of 8.5 per cent per annum. There will be no processing fee for availing loans. The bank has also waived-off the foreclosure charges and pre-payment penalty for customers.
Tenure and Loan Moratorium
Apart from lowest interest rate in the market, SBI Kavach Personal Loan will offer a flexible tenure of 5 years. The borrower will also get three months of loan moratorium. “This unique product is being offered under the collateral-free personal loan category and comes at the cheapest rate of interest under this segment,” the bank said.
Who can apply?
This scheme is for salaried as well as non-salaried customers along with pensioners and their family members. Those who have been found Covid-19 positive on or after April 1, 2021, can apply for SBI Kavach Personal Loan.
Documents required for availing the loan: The report of Covid-19 test of customers who are applying for loan is a must. The individual does not need to submit any collateral to avail this personal loan from the bank, SBI said.
Where to apply for this loan:
Customers can visit the nearest SBI branch to check the eligibility and loan amount. SBI users can also book it through YONO mobile banking application.
The loan will be credit to the Salary or pension or SB account of the customer.