Here is some beneficial information for those looking to apply for an SBI Education Loan for domestic or international courses.
SBI Education Loan Interest Rates
SBI offers students education loans within India and Abroad. To avail, SBI Education Loan here is some important information that one should know –
- The utmost SBI Education Loan amount offered by the bank is INR 10 for India and 20 Lacs and abroad.
- The education loan is extended with no margin on loan amount up to INR 4 Lacs.
- The SBI Student Loan Scheme repayment period is 15 years
- Base rate fixed by SBI is 9.05% on which the interest rate is charged as per RBI guidelines.
- The SBI bank charges 10.55% interest for loan amount up to INR 7.50 lacs. 10.80% for the loan amounting above INR 7.50 Lacs
- The Reset Period for Education Loan is 1 year.
- The Rate of Interest will be different for each education loan scheme.
SBI Education Loan Eligibility
- The student needs to be an Indian citizen or a holder of an Indian passport.
- The applicant needs to be 10+2 qualified from a recognized board of institutions
- Admission needs to be in a Premier Universities/top global institutes through the Entrance Test/Selection process.
- Applicants of SBI Education Loan must have a creditworthy cosigner/ co-borrower. This helps in increasing the chances of getting a loan.
SBI Education Loan Details
|For India||INR 10 Lacs|
|For Abroad||20 Lacs|
|Margin (For loan above INR 4 Lacs)|
|Up to INR 4 Lacs:||Nil|
|Above INR 4 Lacs:||INR 5000|
|Up to 7.50 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee|
Above INR 7.50 Lacs: Tangible security along with parents as co-borrower
|Starts After 1 year of course completion or 6 months after getting the job. Repay within 15 years. In a scenario where a second loan is availed for higher studies later then the person can repay within 15 years after completion of the second course.|
The fee is payable to College or University, Hostel charges.
Travel Expenses or passage money for those that are headed abroad.
Cost of a two-wheeler capped at ₹ 50,000.
Examination, Library, and Laboratory Fee.
Any other expenses required to complete the course like study tour, etc.
Books, instruments, uniforms, capped at 20% of total tuition fees.
Personal Computers or Laptops if required.
Caution deposit, building fund, refundable deposit supported by institution bills. As long as it is less than 10% of the total tuition fee for the course.
|The accrued interest during moratorium and course period is added to the principal amount and repayment EMI is fixed.|
If interest is paid off within the moratorium period then EMI is fixed based on the principal amount only.
SBI Education Loan Documents Required
- Admission letter with all essential details
- Attested copies of age proof, residence proof and birth date
- Self-attested passport size photograph
- Copies of qualifying courses
- Income proof and/or copy of income tax return file
- Details of collateral security along with government approved valuation certificate (if any)
- Bank account statement of the applicant.
- Copy of passport and visa for abroad courses
SBI Education Loan Scheme
Given below is the list of SBI Loan Scheme available along with their interest rate.
1. SBI Student Loan Scheme
Available for up to ₹ 7.50 Lakh at 1Y MCLR + 2.00% Spread. Also, a 0.50% concession in the interest rate for girls. A loan above ₹ 7.50 Lakh has an interest rate of 1Y MCLR + 2.25% spread. In such a case a 0.50% concession for students availing of SBI Rinn Raksha or other policy in favour of the bank.
2. SBI Scholar Loan Scheme
The loan has AA list institutes with the rate of interest being 1Y MCLR + 0.20% spread. This is further followed by A, B and C list institutes.
- A list institutes – All IIMs & IITs with interest rate of 1Y MCLR + 0.35% spread. Other Institutes in this category have an interest rate of 1Y MCLR + 0.50% spread.
- B list institutes – This includes All NITs with an interest rate of 1Y MCLR + 0.50% spread. Other Institutes in this category have an interest rate of 1Y MCLR + 1.00% spread.
- C list institutes – This includes All NITs with an interest rate of 1Y MCLR + 0.50% spread. Other Institutes in this category have an interest rate of 1Y MCLR + 1.50% spread.
3. SBI Skill Loan Scheme
This scheme has an interest rate of 1Y MCLR + 1.50% spread.
4. SBI Global Ed-Vantage Scheme
This scheme has an interest rate of 1Y MCLR + 2.25% spread. Within this scheme concession for girls as well as policies favouring SBI will get 0.50% concession each
5. SBI Takeover Of Collateralised Education Loans Scheme
This scheme has an interest rate of 1Y MCLR + 1.50% spread. Within this scheme, 0.50% concession is available in the interest rate for girls.
SBI Education Loan for Domestic and International Courses
SBI Education Loan for Domestic Courses is available for students pursuing graduation, post-graduation. This includes students opting for regular technical and professional Degree or Diploma courses provided by colleges or universities. Only criteria being the institution has to be approved by UGC, AICTE, IMC, Government. The loan can also be availed if autonomous institutions like IIT, IIM, etc conduct the degree or diploma courses.
Education Loan for Domestic Courses is also available for students pursuing teacher training or Nursing courses. These courses have to be approved by the Central Government or the State Government. Aeronautical, pilot training, shipping degree or diploma courses will also get approval for the loan. To do so these courses need to be approved by Director General of Civil Aviation/Shipping, or concerned regulatory authority.
SBI Education Loan for international Courses is available for students Graduation, Post Graduation and Diploma courses. These courses should be professional and Job oriented, technical like MCA, MBA, MS, etc. The course should be pursued from a reputed university.