SBI customer? Get loan up to Rs 5 lakh for Covid-19 treatment – Check Details

The loan will also cover the reimbursement of medical expenses related to Covid-19 already incurred by the borrower.

The State Bank of India (SBI) has launched a loan offer for those who hold a bank account with it and need money to meet medical expenses related to the treatment of Covid-19. The SBI KAVACH Personal Loan Program is only for Covid-19 treatment of self or family members who are found to be Covid-19 positive on or after 01.04.2021. It is important to note that the loan will also cover the reimbursement of medical expenses related to Covid-19 already incurred by the borrower.

The loan can be used by the bank’s customers who can be salaried, self-employed or retired. There will be no collateral to qualify for the bank loan.

The personal loan is currently available at 8.5% per annum for an amount up to Rs. 5,000,000. The term of the loan is 5 years which includes a three month moratorium. For the 60-month loan, the amount must be repaid in 57 EMIs, including interest charged during the moratorium.

The minimum loan amount that can be availed is Rs 25,000, while the maximum is 5 lakh depending on the eligibility of the borrower. There are no processing fees, no security deposit, no prepayment penalty and no foreclosure fees when using the loan.

The repayment facility is also available through the branch channel and the loan will be in addition to existing loans where applicable.

The loan is available at SBI branches as well as through the digital channel (pre-approved through YONO). One can avail pre-approved personal loans instantly at their convenience 24×7 through the YONO app with just a few clicks.

In the event that one needs to apply for an SBI loan to cover medical expenses arising from Covid-19 treatment in hospital, it is best to repay the loan as soon as possible. Try not to run the loan for the entire 60 month term, but instead plan to repay the amount early to avoid paying interest for a long term.

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