Mumbai, Jun 11 (IANS): The State Bank of India (SBI) has launched a collateral-free unique loan offering -- 'Kavach Personal Loan' -- for Covid patients.

The loan covers expenses of Covid treatment of the customer and his/her family members.

Under this scheme, customers can avail loans up to Rs 5 lakh at an effective interest rate of 8.5 per cent per annum for 60 months which is inclusive of three months moratorium, said an SBI statement.

This unique product is being offered under the collateral-free personal loan category and comes at the cheapest rate of interest under this segment. Reimbursement of expenses already incurred for Covid-related medical expenses shall also be provided under the scheme, it said.

SBI Chairman Dinesh Khara said: "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 endeavour at SBI to work towards creating financial solutions for customers suiting their requirements."

In these trying times, the SBI is committed towards taking care of customers' financial emergency for Covid treatment and other personal expenses in order to effectively overcome the Covid battle, said the statement.

This loan product will also be part of the Covid loan book being created by banks as per the RBI's Covid relief measures.