SBI Kavach Personal Loan Scheme for COVID Expenses

21 Sep 2021 7 min read
Personal Loan: SBI Kavach Personal Loan Scheme for COVID Expenses

You must know that SBI is among the country’s largest lenders. And to keep with its position SBI has launched a collateral-free unique loan known as ‘Kavach Personal Loan’ that helps to cover the expenses of COVID-19 treatment of the individuals. State Bank of India Personal Loan offers up to Rs. 5 lakhs at an interest rate of 8.5% p.a. for 5 years of repayment tenure. Including which the bank also provides 3 months moratorium which includes 60 months.   

State Bank of India also provides reimbursement of expenses that have already increased in COVID-19 related medical expenses under this scheme.  

Eligibility Criteria and Documents required for SBI Kavach Personal Loan  

  • Applicants availing SBI Kavach Personal Loan for the loan amount of Rs. 25,000 up to Rs. 5 lakhs as per the eligibility check.  
  • There is no collateral required to be submitted to avail of the loan from the State Bank of India.  

Documents required for SBI Kavach Personal Loan 

  • COVID Positive report of the customers who are looking to avail SBI Kavach Personal Loan.  
  • The loan process will be over and above the existing loans if any. 

SBI Kavach Personal Loan Interest Rate and Tenure  

  • SBI offers the loan amount to the customers at a low-interest rate of 8.5%.  
  • Loan tenure is offered up to 60 months (including a moratorium of 3 months).  

Including SBI Kavach Personal Loan, here are some other types of SBI Personal Loan offered by the State Bank of India such as SBI Xpress Credit, SBI Quick Personal Loan, SBI Pension Loan, and more.  

Other types of SBI Personal Loan offered to the individuals  

SBI Xpress Credit  

  • Xpress Credit personal loan is offered to salaried employees who have salary accounts with SBI.  
  • The individuals can get up to a maximum of Rs. 20 lakhs as the loan amount.  
  • The maximum repayment option is offered up to 6 years.  
  • SBI Personal Loan interest rate for salary account holders varies between 10.60% up to 13.85% p.a.  
  • 1.50% of the loan amount, minimum of Rs. 1000 including GST and a maximum of Rs. 15,000 + GST.  

SBI Quick Personal Loan  

  • SBI Personal Loan is offered to the salaried employees who do not maintain on SBI Salary account.  
  • The applicants can get up to a maximum of Rs. 20 lakhs.  
  • The interest rate offered to the individuals at 10.85% up to 12.85% p.a.  
  • Processing fees must be 1.50% of the loan amount (min. of Rs. 1,000 and max. of Rs. 15,000) including GST. 

SBI Pension Loan  

  • When the user avail for SBI Personal Loan for defence personnel, Central and State Government, and Family Pensioners. 
  • The applicant’s maximum age criteria is of 76 years. 
  • Applicant should have maintained Pension account with SBI.  
  • The maximum loan amount for the applicant should be Rs. 14 lakhs for defence and Central & State Government Pensioners. In the case of Family pensioners, the loan amount should be Rs. 5 lakhs. The loan amount eligibility depends on the borrower’s age, pension income, age, repayment tenure, and other eligible factors.  
  • The maximum repayment tenure is offered up to 84 months for Defence Pensioners and 60 months for Family Pensioners as well as Central & State Government Pensioners.  
  • The interest rate is offered to the individuals should be a minimum of 9.75% up to 10.25% p.a.  
  • State Bank of India offers the amount of 50% concession in the processing fee for SBI Pension Loan through its branches.  

SBI Personal Loan details  

Here are some details of SBI Personal Loan such as interest rate, loan amount, repayment tenure for availing the loan, processing fees, and other details are as under:  

Interest Rate 

Starting at 9.60% p.a. 

Minimum loan amount 

Rs. 25,000 for Term Loans and Rs. 5 Lakhs Overdraft Loans 

Maximum loan amount 

Rs. 20 Lakhs for Term Loans as well as for Overdraft Loans 

Repayment  tenure 

6 months to 6 years 

Processing fee 

1.50% of the loan amount (Minimum of Rs.1,000 & Maximum of Rs. 15000) including GST 

Prepayment charges  

Nil, if the account is closed from the proceeds of a new loan account under the same scheme. 3% in other cases. 

Minimum income required 

Rs. 15,000 

Age criteria   

21 years to 58 years  

Bottom Line  

Borrowing loan from SBI has certain benefits, occurred by the individuals whether they are in defence or family pensioners. But when covid strikes, there could be a lot of mental and financial issues faced by individuals. In that case, an individual may get help through Afinoz. For such a scenario, the best personal loan could help an individual likewise, SBI Kavach Personal Loan. This lender offers the personal loan in India as a collateral-free loan with comparatively low interest and without any charges or prepayment/foreclosure penalties is a boon.  

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