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SBI launches kavach personal loan for Covid patients. Check interest rate and other details

Reimbursement of expenses already incurred for COVID-19 related medical expenses shall also be provided under the scheme, SBI said.

June 11, 2021 / 04:24 PM IST
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The State Bank of India (SBI) on June 11 launched the ‘kavach personal loan’ scheme for COVID-19 patients. As per the scheme, the state-run lender is offering collateral free personal loans up to Rs 5 lakh at annual interest rate of 8.5 percent.

The collateral free personal loans are aimed at enabling customers to meet medical expenses of self and family members for COVID-19 treatment, the SBI said.

The scheme, launched by SBI Chairman Dinesh Khara, will allow customers to "avail  loans up to Rs 5 lakh at an effective interest rate of 8.5 percent per annum for 60 months which is inclusive of three months moratorium", said a statement issued by the bank.

Also Read | PSU banks offering personal loans up to Rs 5 lakh; check interest rates and other details

Loans under the kavach scheme are being offered "under the collateral-free personal loan category and comes at the cheapest rate of interest under this segment", SBI said.

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COVID-19 Vaccine

Frequently Asked Questions

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How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

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Reimbursement of expenses already incurred for COVID-19 related medical expenses shall also be provided under the scheme, the bank clarified.

"With this strategic loan scheme, our aim is to provide access to monetary assistance – especially in this difficult situation for all those who unfortunately got affected by COVID. It's our constant endeavor at SBI to work towards creating financial solutions for customers suiting their requirements," Khara said.

This loan product will also be part of the COVID-19 loan book being created by banks as per RBI's COVID relief measures, the statement issued by SBI further added.
Moneycontrol News
first published: Jun 11, 2021 04:02 pm

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