SBI Kavach Personal Loan

SBI Kavach Loan Eligibility & Required Documents

1. Salaried, non-salaried individuals, and pensioners can apply for this loan.
2. Covid positive report is required to be submitted in order to avail this loan scheme.

Relief Measures under the SBI COVID-19 Moratorium

The relief measures which have been extended for customers by SBI can be summed up as follows:

1. A customer can choose to opt out of the moratorium program as per his or her convenience as the moratorium is not compulsory.

1. If a customer opts for the moratorium, the bank will not ask for the EMI payments which are due till 31 August 2020.
2. The loan repayment period will be extended for the customer depending on the moratorium period which is availed by the customer.
3. SBI is also offering its customers the facility to get the amount refunded for EMIs which have already been paid. However, this facility will be subject to the discretion of the bank.

SBI Kavach Loan Moratorium Eligibility Guidelines

The eligibility criteria for the SBI Personal EMI Moratorium are as follows:

1. All the SBI Personal Loan customers who have availed a loan before 1 March 2020 are eligible for the EMI moratorium.
2. The bank will also consider other cases wherein there have been overdues on EMI payments prior to 1 March 2020. However, in such cases, the decision will be taken by the bank in regard to the offering to the moratorium.

Example for EMI Moratorium

As per the directives of the Reserve Bank of India (RBI), the EMI moratorium will accrue interest on the outstanding loan amount for the entire period. Let us take an example to understand how it is going to affect you if you opt for the moratorium:

Discussed below are two scenarios on the basis of the following information:

1. Loan amount - Rs.5 lakh
2. Rate of interest - 12% p.a.
3. Actual loan repayment period - 5 years or 60 months
4. Number of EMIs already paid - 10 months

1. Remaining loan repayment tenure - 50 months
2. Moratorium availed for 6 months (1 March 2020 to 31 August 2020)

Scenario - 1

When you do not avail the Personal Loan EMI Moratorium

1. Total interest to be paid on the loan amount - Rs.1,67,333

1. Total amount which needs to be paid to close the loan - Rs.6,67,333

Scenario - 2

When you avail the Personal Loan EMI Moratorium

1. Total interest to be paid on the outstanding loan amount - Rs.1,67,333
2. Accrued interest amount for the moratorium period - Rs.47,778

1. Total amount which needs to be paid to close the loan - Rs.7,15,111

From the above example, you can see that in case the moratorium is availed for a period of 6 months, the additional interest amount that you will have to pay is Rs.47,778.

Steps to Apply for SBI Kavach EMI Moratorium

To apply for the SBI Personal Loan EMI Moratorium, a customer can follow any one of the following methods:

1) Offline:

Call the customer care numbers of SBI and inform the executive about your requirement. The call should be made from the registered mobile number. Alternatively, you can visit the nearest branch office and submit a request as per Annexure - I.

2) Online:

You can visit the official website of SBI and choose the option to avail the EMI moratorium in relation to your loan account. You will be required to authenticate the same by using your registered mobile phone number and generating an OTP.

Alternatively, you can also avail the moratorium option by sending an SMS reply. For standing instruction (SI), you can send to VMN. For NACH, you can reply with to VMN, wherein 'XXXX' is the last 4 digits of your loan account. The SMS has to be sent within 5 days from the date of receipt of the SMS from the bank.

It is clear that when you avail the EMI moratorium, you will have to pay a significant amount of additional interest. If you are able to make the payments as per the usual loan repayment schedule, try to avoid the moratorium as it will save you a lot of money. However, if you feel that you have a cash crunch and the cash flow is disrupted, you can consider availing the moratorium for EMI payments.

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