SBI Student Loan Scheme | SBI Education Loan

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SBI Student Loan Scheme | SBI Education Loan

The country’s largest lender, State Bank of India (SBI) provides several types of educational loans to students who are Indian Nationals to pursue higher studies in India and abroad. SBI offers the following types of education loans.

1. Student loan scheme

2. Scholar loan scheme

3. Skill loan scheme

4. Interest subsidy scheme

5. Takeover of education loan

6. Global Ed-Vantage scheme

In this article, I will tell you all details like eligibility, duration, security, repayment that you need to know about SBI Student loan scheme.

SBI Student Loan Scheme

SBI student loan scheme is a term loan given to students who are Indian Nationals for higher education in India or abroad where admission has been secured. The repayment period of this education loan is up to 15 years after the course period plus 12 months of repayment holiday. SBI will not charge any processing or upfront charges on this education loan.

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Eligibility for SBI Student Loan Scheme

SBI Student Loan is issued to Indian Nationals for pursuing higher education in India or abroad where admission has been secured.

Documents required for SBI Student Loan Scheme

1. Letter of admission.

2. Completely filled in Loan Application Form.

3. 2 passport size photographs.

4. Statement of cost of study.

5. PAN card of the student and parent or guardian.

6. Aadhaar card of the student and parent or guardian.

7. Proof of identity: Any photo identity such as Driving Licence, Passport, Aadhaar card etc.

8. Proof of residence (Driving Licence or Passport or Electricity bill or Telephone bill).

9. Bank account statement for last six months of student/co-borrower/ guarantor's bank account.

10. Proof of income: Salary slips or Form 16 of parent or guardian or other co-borrower.

11. A brief statement of assets and liabilities of parent or guardian or other co-borrower.

12. IT return or IT assessment order of previous 2 years of parent or guardian or other co-borrower (if IT Payee).

Loan Amount under SBI Student Loan Scheme

1. For studies in India - maximum Rs. 10 lacs. Higher loan limit for studies in India are considered on case-to-case basis.

2. For studies abroad - maximum Rs. 20 lacs. Higher loan limit for studies abroad are considered under SBI Global Ed-Vantage Scheme.

Rate of Interest for SBI Student Loan

SBI Student Loan Scheme
Loan Limit	1 year MCLR	Spread	Effective Interest Rate	Reset Period
Loan amount upto Rs 7.5 Lacs	7.95%	2.00%	9.95%	1 year
Loan amount above Rs 7.5 Lacs	7.95%	2.75%	10.70%	1 year
Concession	0.50% concession for girl students
Further Concession	1% concession, if interest is serviced promptly as and when applied during the moratorium period, including course duration

Courses covered under SBI Student Loan Scheme

Studies in India

1. Graduation, post-graduation, regular technical & professional diploma or degree courses conducted by colleges or universities which are approved by UGC/ AICTE/IMC/Govt. Etc.

2. Regular degree or diploma courses like pilot training, aeronautical, shipping etc. approved by Director General of Civil Aviation/Shipping/ concerned regulatory authority.

3. Regular degree or diploma courses conducted by autonomous institutions like IIT, IIM etc.

4. Teacher training or nursing courses approved by central government or the state government.

Studies abroad

1. Job oriented professional or technical graduation degree courses or post graduation degree and diploma courses like MCA, MBA, MS, etc offered by reputed universities.

2. Courses conducted by CIMA (Chartered Institute of Management Accountants) - London, CPA (Certified Public Accountant) in USA etc.

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Expenses covered under SBI Student Loan Scheme

1. Fees payable to college/school/hostel.

2. Examination/library/laboratory fees.

3. Purchase of books/equipment/instruments/uniforms/computers- essential for completion of the course (maximum 20% of the total tuition fees payable for completion of the course).

4. Caution deposit/building fund/refundable deposit (maximum 10% of tuition fees for the entire course).

5. Travel expenses/passage money for studies abroad.

6. Cost of a Two-wheeler upto Rs. 50,000/-.

7. Any other expenses like study tours, project work etc.

Security for SBI Student Loan

Particular	Security
Upto Rs. 7.5 Lacs:	Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee
Above Rs. 7.5 Lacs:	Parent/ Guardian as co-borrower and tangible collateral security

In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law.

Repayment of SBI Student Loan

1. Repayment of SBI student loan will commence one year after completion of course.

2. Loan to be repaid in 15 years after the commencement of repayment.

3. If a second loan is also taken for higher studies later, to repay the combined loan amount in 15 years after completion of second course.

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SBI Student Loan Scheme | SBI Education Loan