Education loan from SBI
Education loan from SBI – Since decades, The State Bank of India, popular as SBI is one of the top education loan providers in India. Aspirants can avail loans for pursuing higher studies in India and abroad every year as SBI grants loans to students who secure admissions in several recognised universities worldwide with no extra processing fee. The SBI Education Loan can be availed from all the SBI branches in metro/urban areas as well as those having personal banking divisions. Typically, aspirants who take up regular full-time Degree/ Diploma courses offered in reputed institutes become eligible to obtain loans for their further education. Careers360 brings forth the details of how to obtain a student education loan from SBI- one of the most illustrious banks providing education loan to students.
Types of education loan of SBI
The State Bank of India provides four types of SBI education loan to prospective students, namely,
- Scholar Loan
- Global Ed-Vantage
- Student Loan
- Skill Loan
Each loan type varies in terms of Loan amount, Courses covered, Repayment period, Rate of Interest, Documents required, and Concession (if applicable).
Loan Limit & Institution Code^^
Rate of Interest
List AA - Rs.35 lacs
Regular full time Degree/ Diploma Courses through entrance test/ selection process.* Full-time Executive Management Courses like PGPX
List A-Rs.20 lacs
IIMs & IITs - 8.60%
List B-Rs.20 lacs
NITs - 8.75%
List- C- Rs. 7.5 lacs
Others - 9.75%
Rs.20 lacs – Rs. 1.5 Cr
Regular UG/ PG/ Ph.D courses in all disciplines offered by foreign Institutes in USA, UK, Canada, Australia, Europe, Singapore, Japan, Hong Kong and New Zealand.
Minimum Loan Amount: Rs.5000;
10.25% (>Rs. 7.5 Lacs)
Indian Study- Degree from UGC/ AICTE/IMC/Govt. Approved Institutions
Regular Degree/ Diploma Courses from top institutions
State/Central govt approved Teacher training/ Nursing courses
Studies Abroad- MCA, MBA, MS, etc offered by universities
Courses by CIMA - London, CPA-- USA etc.
Rs. 5000 – Rs. 1,50,000
For courses run by ITIs, Polytechnics, National Skill Development Corporation
Certificate/diploma/degree issued by such organization as per National Skill Qualification Framework (NSQF)
* For obtaining the Scholar Loan- No Certificate/Part time courses would be entertained.
^^ Refer to PDF provided below to know the institution code details.
Click here to check SBI scholar loan scheme - List of approved institutions
Education loan from SBI: Special Concession
SBI provides special concessions pertaining to the interest rates of two types of education loans. The bank allows 0.50% additional concession in interest for female students and 0.50% concession for students availing of SBI Rinn Raksha or any other existing policy assigned in favour of SBI for releasing the Global Ed-Vantage and Student Loans.
Education loan from SBI: Repayment
The policy of SBI education loan repayment including the interest rates differs amongst the SBI education loan kinds. While the Scholar Loan demands repayment in 15 years, after the course completion + 12 months, the Global Ed-Vantage (Study Abroad) Loan requires a candidate to repay through EMI upto 15 years. There are two repayment conditions for repaying the Student Loan; firstly repayment will commence one year after completion of the course (Studies in India - maximum Rs. 10 lacs) and secondly, 15 years after the commencement of repayment (Studies Abroad - maximum Rs. 20 lacs). Last, but not the least, the Skill Loan needs to be repaid in three years for an amount upto Rs 50,000. Amount ranging from Rs 50,000 to Rs 1 lakh should be repaid in five years and repayment must be made in seven years for loan amount above Rs. 1 lakh.
What are the expenses covered by SBI education loan?
SBI provides education loan to students who wish to study both in India and Abroad. The expenses covered in all types of student loans are:
- Tuition fee payable to the university/college/hostel
- Examination/ Library/Laboratory fees
- Caution deposit/ refundable deposit/
- Travel expenses/expenses on exchange programmes
- Purchase of computer/laptop
- Any other expenses related to education
Eligibility to get education loan from SBI
The foremost eligibility for obtaining the SBI education loan 2018 is to be a citizen of India. The other criteria are mentioned below-
- The candidate must have obtained admission in any of the recognised universities in the world.
- The candidate must have obtained admission to one of the following courses:
- Job oriented professional degree courses
- Job oriented professional diploma courses
- Job oriented technical degree courses
- Courses conducted by CPA (Certified Public Accountant) in USA and CIMA (Chartered Institute of Management Accountants) – London
Documents play a vital role in obtaining a loan from SBI, for that matter, any Government or Private Banks. Applicants should be meticulous while collecting the official and academic papers. For a better understanding, aspirants can go through the list of required documents-
- Complete application form
- Two passport size photographs
- Proof of admission from the university
- Statement of cost of study
- Academic Records- 10th Result, 12th Result, Graduation Result- Semester-wise, entrance exam result through which admission is being taken (e.g. GMAT, GRE, TOEFL, etc.)
- PAN card of the candidate
- Proof of Identity (any one) - Valid Passport / Driving License / Voters ID card / Aadhar card
- Proof of Residence/Address - Valid Passport / Driving License / Voters ID card / Electricity Bill / Telephone Bill
- Student/ co-borrower/ guarantor’s bank account statement for the last six months\
- Statement of assets and liabilities of student/ co-borrower/ guarantor
- Student/ co-borrower/ guarantor’s proof of income
- Security needed to take education loan from SBI
Security needed to take education loan from SBI
If the candidate is taking a student loan up to four lakhs, the only security needed is the parent or guardian as the co-borrower. If the loan amount is between 4 lakhs and 7.5 lakhs, the candidate must provide parent or guardian as the co-borrower and collateral security in the form of the details of the Gross Annual Income of the parent or guardian. If the candidate is applying for an education loan above 7.5 lakhs, the parent or guardian must be the co-borrower and the candidate must show tangible collateral security.
SBI Loan: Processing Fee
SBI charges ‘zero’ processing fee for some of the education loans. Mention must be made of the ‘SBI Scholar Loan’ scheme that offers 100 per cent financing with NO processing fee. For providing the ‘SBI Student Loan’ scheme, the bank does not demand any processing/upfront charges as well. It is only for the ‘Global Ed-Vantage’ scheme they charge Rs. 10,000/- per application as the processing fee.
EMI Generation of SBI
The interest during the moratorium period and course period are added to the principal amount and repayment are fixed in Equated Monthly Installments (EMI). If the full interest is serviced before the commencement of repayment; EMI is fixed based on principal amount only.
SBI Education Loan Customer Care
For further assistance, aspirants seeking SBI education loan can connect with the customer care of the loan department. Call SBI's 24X7 helpline number i.e. 1800 11 2211 (toll-free), 1800 425 3800 (toll-free) or 080-26599990. Toll-free numbers are accessible from all landlines and mobile phones across the country.
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