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In view of the hardships faced by the customers of the Bank due to the spread of Covid
19, a special personal loan “KAVACH” has been introduced by SBI. This will be available through the branch as well as through YONO (as a pre-approved variant) platform for the existing customers to take care of their immediate liquidity requirements with relaxed assessment norms and at a lower rate of interest. The scheme is available to salaried persons, pensioners, and other customers. Minimum CIBIL score of 700 is mandatory.

The purpose of the loan is to meet treatment expenses of self/family members (spouse, children, grandchildren, father/mother and parents) who are affected with Covid-19 on or after April 1, 2021.

For Salaried Customers with net monthly income above Rs.15000, loan can be availed 6 times of their Net monthly income.

  • Minimum Rs.25,000/-
  • Maximum Rs.5,00,000/-
  • Age: 25 – 58 years

Pension account holders of age not more than 70 years can also avail loan as much as 6 times of their Net monthly pension.

  • Minimum Rs.25,000/-
  • Maximum Rs.5,00,000/-

Other customers maintaining Savings Bank/Current Account with SBI can avail loan up to three times of Total Relationship Value with the Bank subject to :

  • Minimum Rs.25,000/-
  • Maximum Rs.3,00,000/-
  • Age: 25 – 65 years

Total Relationship Value calculated by the bank should be at least Rs.25000. In addition, such accounts must have an average monthly deposit of at least Rs 15,000 for the last six months.

  • Interest rate – 8.5%
  • Loan term will be 5 years with a moratorium of 3 months
  • KYC documents should be submitted and Covid positive report of self/family member not more than 15 days.
  • Reimbursement of bills or expenses for Covid treatment of self/family member will be provided only for loans availed through the branch, subject to the submission of claim within 30 days of payment of the same.

The attraction of this loan is that there is no processing charge. Similarly, there is no prepaid penalty as well.

GREG RAKOZY SBI

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