SBI Education Loan

With offering around four variants of education loans, State Bank of India is one of the most sought-after banks to offer education loans for studies in India and abroad.

Due to custom-made Education Loans for India and Abroad, students get a variety of options to choose from. Rate of interest acts as a key factor for attracting borrowers. The mean rate of interest for the loan amount less than INR 4 Lacs is 11.74%, for loan amount between INR 4 to 7.5 Lacs is 12.29% and for loan amount exceeding INR 7.50 Lacs is 11.7% (This data is curated from research work by Geetha Rani).

What makes you eligible for SBI Education Loan?

• Indian National. Student must be a citizen of India or a holder of Indian passport
• 10+2 qualified. One must have cleared 10+2 from a recognized board of institutions.

The general eligibility criteria is mentioned above. There are some more requirements depending upon the type of loan offered.

SBI Education Loan Concessions

There are variety of concessions offered by State Bank of India to lure borrowers for education loan schemes. Some of these concessions are mentioned below:

How can you apply for SBI Education Loan?

SBI Education loan application form can be available online or offline at Bank branches.

For Online:

If a person is applying for the loan through official website then he can follow the below given procedure:

• Visit the official website
• Click on SBI Education Loan
• Now select the particular loan scheme you want to apply for
• Click on Apply Online
• Fill up the form with all the necessary details
• Upload the signature, photograph other documents required
• Submit the Form
• Take the print out of application form
• After that visit the nearby SBI Bank for the further proceedings

For Offline:

For offline procedure, student can visit the bank and ask for application form for education loan. The bank representative will then be able to guide you with all necessary details and information about margin money, interest rates, and eligibility criteria about the suitable loan for you.

We have curated some important aspects of variety of SBI Education Loan for India and Abroad along with the government scheme offered by the bank.

1. SBI Student Loan Scheme

The loan is offered for studies in both India and abroad. Maximum amount of loan offered in India is Rs. 10 Lacs and for abroad is Rs. 30 Lacs.

SBI Student Loan Scheme Rate of interest:

Listed below is the interest on educational loans offered on SBI education loan.

Quick Facts about SBI Student Loan Scheme

Additional Facts to Know

• The amount deposited by the applicant will be appropriated by the bank if the loan is not availed within 4 months of the loan sanction.
• In case a candidate is married then spouse/parents/Parent-in-laws can be considered as co borrower.
• There will be no margin money for loan amount less than Rs.4 Lakhs
• The repayment period for SBI Student Loan scheme is up to INR 7.5 lakh is 10 years and for a higher amount is 12 years.

Expenses covered under SBI Student Loan Scheme

• College Fee
• Hostel Fee
• Examination Fee
• Purchase of Books, Equipment, Uniform or Computer
• Travel Expenses for abroad studies
• Cost of Two wheeler (Maximum of Rs.50000).
• Cost of other activities like study tours, project work, etc.

Courses Covered Under SBI Student Loan Scheme

In India

Almost every undergraduate and post graduate course has been included in this scheme. Technical or Professional Courses approved by AICTE/UGC. Degree and diploma courses approved by the Govt. Teacher Training, Nursery courses, pilot training, aeronautical, shipping courses which are approved by respective authorized departments.

In Abroad

• Job Oriented, Technical/Professional, and UG/PG/Diploma courses.
• Courses approved by CIMA in London and CPA in USA.

2. Scholar Loan Scheme

The loan is offered for students aspiring for higher studies from a selected list of 105 premier Indian institutes. SBI offers 100% finance facility under this loan.

Rate of interest for SBI Student Scholar Loan

Quick Facts about SBI Scholar Loan Scheme

Additional Facts to remember

• No Margin required; 100% finance available
• This loan can be easily sanctioned in various 5000 branches across designated campuses.
• Repayment of loan is upto 12 years and plus 6 months repayment holidays.
• Repayment will be started after completion of course.

Expenses covered under SBI Student Scholar Loan Scheme

• College Fee
• Hostel Fee
• Library + Laboratory Fee
• Books and Equipment
• Caution Deposit/Building Funds/Refundable Deposits – Doesn’t exceed 10% of entire tuition fee
• Travel expenses
• Laptop Purchase
• Other expenditure related to course – Up to Rs.1 Lakh

Courses Covered in SBI Student Scholar Loan

• Regular Full Time Degree and Diploma Courses under which admissions are given through admission test or selection process.
• Full Time Executive management courses like PGPX are also covered
• It doesn’t cover certificate and part time courses.

Note: List of colleges that fall under List AA, List A, List B and List C are mentioned towards the end of the article

3. SBI Loan for Vocational Education and Training

This is a term loan provided for securing vocational education or training in India where admission is already secured.

Rate of interest

The interest rate is 3.65% above the Base rate of 9.70% which makes the interest rate 13.35% p.a.

Additional Facts about SBI for Vocational Education and Training

• No Margin money required
• 100% Financing
• No Processing fee will be charged
• No third party guarantee required
• Repayment will be started after 6 months of completion of course
• Repayment period for 1 year course is 3 years and above 1 year is 5 years

Expenses covered under SBI for Vocational Education and Training

• Tuition Fee/Course Fee
• Examination Fee
• Library/Lab Fee
• Caution Deposit
• Books/Equipment/Instrument
• Other Expenses related to courses

4. SBI Global Ed-Vantage Scheme

The recently launched student loan scheme, Global Ed-Vantage is to offer student loan for overseas education. This scheme provides financial assistance to students who are planning to complete their studies from top global institutions like Harvard, Stanford, and MIT.

Quick facts about SBI Global Ed-Vantage Scheme

Additional Facts about SBI Global Ed-Vantage Scheme

• Loan amount available is from Rs. 20 lakhs to 1.5 crores.
• Processing fee is 10,000 per application.
• Scholarship and assistantship are included in margin
• Margin to be brought in on year-on-year basis as and when disbursements are made on a pro-rata basis.
• Tangible collateral security is required.
• Collateral security by third party are also accepted.
• Repayment starts 6 months after the completion of course
• Repayment period is of 15 years.
• There will be concession of .5% in interest for girls

Countries covered in this Loan scheme

USA, UK, Australia, Canada, Japan, Europe Hong Kong, New Zealand and Singapore

5. SBI Skill Loan Scheme

The bank offers Skill Loan Scheme for students who aspire to gain knowledge and specialized training in one specific field.

Rate of Interest

Rate of interest is 3.90% above MCLR and presently it is 13.05%.

Additional Benefits of SBI Skill Loan Scheme

Concession of 1% is provided for full tenure of the loan, if the interest charged is serviced promptly as and when applied during the period of moratorium and including during the period of the course.

What is SBI Education Loan Subsidy?

Central Government of India offered the scheme for economically weaker section for subsidy on education loan interest.

The scheme is formulated by Ministry of Human Resource Department, this interest subsidy provides a lower interest on education loan during suspension period for professional courses in India. 

Additional Facts about CSIS

• Available for economically weaker sections of the society
• Gross annual parents’ income is less than INR 4.50 Lacs
• Repayment of the loan has to be done after 12 months of course completion or 6 months after getting job, whichever is earlier

Applicability of Scheme

• This scheme is applicable for technical and professional courses
• This scheme is applicable for the govt. recognized institutes for courses after class 12^th
• Under IBA education loan scheme the maximum loan limit is Rs. 10 Lakhs

Eligibility for Subsidy

• The subsidy is provided for the course of study and moratorium period which is 1 year after course completion or 6 months after getting job (whichever is earlier).
• After both period the loan amount will be paid in accordance to education loan scheme.

Nodal Bank

This will be implemented through Canara Bank.

Scheme Applicable Year

• This scheme is implement 2009 – 2010 in academic year from April 1, 2009
• Loan disbursed after April 1, 2009 irrespective of date of sanction shall only be covered under the scheme
• In case of loans sanctioned prior to April 1, 2009, for the courses beginning prior to academic year 2009-10, the interest subsidy is available to the extent of disbursements made after April 1, 2009

SBI Education Loan Concession

SBI provides concession on interest rate in various schemes under certain conditions. We have listed out all the scheme with the concession and its eligibility below:

SBI Student Loan Scheme

• 0.50% for girl students
• 1% for full tenure if interest is serviced promptly and when applied during Moratorium period which includes course duration

SBI Scholar Scheme

For List B – Institutes other than NITs

• 0.25%, If the collateral security is greater than or equal to the loan amount.
• 0.25%, if student has work experience of more than 2 years.

For List C – Institutes other than NITs

• 1% for full tenure if interest is serviced promptly and when applied during Moratorium period which includes course duration.

SBI Skill Loan Scheme

• 1% for full tenure if interest is serviced promptly and when applied during Moratorium period which includes course duration.

SBI Global Ed-Vantage Scheme

• 0.50% for the students availing SBI Rinn Shiksha or any other life insurance policy from SBI
• 0.50% for girl students

What Factors makes it easy to avail SBI Education Loan?

There are various factors that come into consideration when a bank scrutinizes your application for an Education Loan. Some of these factors are:

• Borrower and Co-Borrower must be Indian National
• NRIs are only eligible if they have Indian citizenship and are in possession of Indian Passport
• Borrowers must have a strong academic background
• Having a good credit score gives an undue advantage. (It is obvious that the borrower might not have a credit score, hence credit score of co applicant will be considered)
• Co Borrower must be a member from immediate family
• Academic and financial background of the co- applicant
• SBI must be able to find a good chance of placement and job prospect in an applicant so that he/ she can repay the Loan
• The institute and course are also considered equally important

What Factors makes it difficult to avail SBI Education Loan?

If there are factors that can make availing SBI Education Loan a cake walk, there are some factors that might not work in your favour. Some of them are mentioned below:

• If borrower fails to prove their or the co-borrower’s nationality to be Indian
• The Bank favors when the co-borrower is an immediate family member with a good economic background.
• If your parents belong to the medium income group, you might call for third party guarantor approved by bank (with a good credit score)
• The institution and course earns an advantage, hence, you must be wise while choosing your course and institution as it may work in your favour or against
• Lack of any document or false claim may lead to disqualification for the SBI Education Loan
• The background check on the borrower and co-borrower must go as per the applicants claim to avoid any difficulties in availing SBI Education Loan

Confused about calculating EMI? Have a look

Worried about how EMI is generated? The accured interest during moratorium period along with course period is fixed in equated monthly instalments (EMIs)

In case, the full interest is serviced before the commencement of repayment term, the EMI is fixed based on principle amount only.

EMI (Equated Monthly Installments) can be calculated by using the formula given below

• EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
• Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan

Why SBI? How is it Beneficial?

State Bank of India have acclaimed to be the largest lender in Education Loan. The loan it offers might not be very distinctive in nature but there are some key benefits that compliment the SBI Education Loan.

• No Margin upto loan amount of INR 4 Lacs
• 0.50% concession in interest for girl students under SBI Education Loan Scheme and SBI Global Ed-Vantage Scheme
• 1% concession if the interest is serviced promptly by the borrower as and when applied during moratorium period (including course duration)
• 0.25% concession for work experience under SBI Scholar Loan Scheme
• Top Up loan facility available for students who wish to study further and needs financial aid. 

SBI Top-up Loan 

Top Up Loan or Second Loan is permitted within the overall limit to pursue a professional/ technical course in India or abroad. This facility is available on the clause that further studies are commenced during the moratorium period of the first loan and subject to the second loan being allowed with the security requirements as applicable to the aggregate loan limit. Post the second loan, the moratorium period will be extended for the duration of the second course and repayment will commence one year after the completion of the second course, or 6 months after taking up the job (whichever is earlier).

SBI Takeover Loan

Takeover Loans are those where you switch a bank for takeover loan.

Features

• Quantum of Loan upto INR 1.5 crores can be considered
• Repayment term upto 15 years
• Zero Processing Fee
• Facility to avail top-up loan for further studies
• EMIs can be paid through Net Banking/ Cheques/ Mobile Banking

Rate of Interest

Quantum of Finance

• Minimum loan amount: INR 10 Lacs
• Maximum loan amount: INR 1.5 Crore

Eligibility

• It should be a first-time takeover
• The student should be a major while applying for takeover
• Loan amount should have been fully disbursed at the time of takeover
• Repayments should have been commenced

Security

Collateral security should be 100% equivalent to the value of loan amount proposed

SBI v/s Axis Bank: Key differences

SBI and Axis bank, two of the most preferred banks running in the race of providing education loan with best features possible. SBI is government-owned bank whereas Axis Bank falls under private sector.  Here under, we have discussed the differences these banks have on a single parameter.

List of Institutes that fall under List AA, List A, List B, and List C of SBI Student Scholar Loan Scheme

Colleges in List AA Category

Colleges in List A Category

Colleges under List B Category

Colleges under list C Category:

FAQs

Q. What is Margin Money?

Answer: Margin money is the amount which you have to pay from your own and the rest amount is paid by the bank.

In case of Student loan scheme the margin money will be considered when you loan amount is above Rs.4 lakhs. Below table shows the details:

Q. What are the documents Required while applying for the loan?

Answer: Hi, below are the listed documents which you have to produce while applying for the Eduction loans at SBI

• Letter of Admission
• Completely filled Loan Application Form
• 2 passport size photographs
• Statement of cost of study
• PAN card of the parent, student or legal guardian
• Aadhar Card of the student and parent or guardian
• Identity proof which may be a copy of Driving License or Passport or Aadhar Card
• Residence Proof which may be copy of Driving License or Passport or Electricity Bill or Telephone bill
• Student/co-borrower’s/Guarantor’s bank account statement of the last 6 months
• IT Returns or IT Assessment Order of the last 2 years of parent or guardian or another co-borrower
• Brief Assets and Liabilities Statement of parent or guardian or another co-borrower
• Income proof which can be the salary slip or Form 16 of the parent or guardian
• And other educational documents listed by the bank for SBI Student scheme.

Q. What is holiday Period?

Answer: A holiday period is the maximum time which is provided to a student before the repayment of the principal loan in EMIs.

In case a student starts working immediately after completion of course then he will not enjoy the holiday period.

Q. What is Moratorium Period?

Answer: A moratorium period is the time duration when the borrower is required to pay the EMIs.

Q. I want SBI Education loan for Studying in IIM? For which loan I should apply?

Answer: Hi, if you want to study in IIMs then you can apply for the SBI Scholar loans. The bank will give you loan depending upon which IIM you are studying in. They have categorized IIMs into two categories AA and A.

• If you are taking admission in any of the IIM in AA category then you can get loan upto Rs.35 lakhs with any other security required.
• If you are taking admission in any of the IIM falling in A category then you can get loan of maximum Rs. 20 lakhs and it can be extend up to Rs.30 Lakhs if co-borrower also show any tangible security of the loan value.

Q. If I want to study in NIT. For this which loan I can apply?

Answer: Hi, if you want to apply for education loan for studying into NIT then you also can apply for SBI Scholar loan. Under this scheme all the NITs fall under B and C Category colleges.

• For B Category, you can get the loan of Rs.20 lakhs.
• For C Category, you can get loan of Rs. 7.5Lakhs and can be extended upto 30 Lakhs if any tangible security equivalent of loan amount is submitted to the bank.

Q. What is security does one needs to provide while securing loan?

Answer: 

• In most of the cases there is no need of security required for availing loan. But once the amount of loan is above the described amount then the person has to provide the tangible collateral security for the above loan amount.
• The security can a property papers, gold, vehicle, bonds, National saving certificates etc.

Cases when Security Required in various loan:

• In Student Loan - For loan amount above Rs.7.5 lakhs, a tangible security as well as the parents guarantee is required.
• In Scholar Loan - For loan amount above the prescribed amount the tangible security is required.

Q. Is there any concession for girl students in interest?

Answer: Yes, SBI provides a concession for the girl students in various loan schemes. In Student loan scheme and Global Ed-Vantage Scheme, girl students can avail 0.50% concession in interest.

Contact Details

Contact Number: 1800 425 3800, 1800 11 2211,  080-26599990