SBI Career Loan

Features and Benefits of SBI Career Loan

The features and benefits of SBI Career Loan are as follows:

1. Loan Amount - SBI offers borrowers a maximum loan amount of Rs.3 lakh under the SBI Career Loan scheme.
2. Nature of Loan - The SBI Career Loan is a term loan where applicant is the primary borrower, while spouses, parents or guardians are allowed to be co-borrowers.
3. Loan Repayment - The borrower of the loan can make the loan repayment in 36 EMIs (Equated Monthly Instalments). Maximum moratorium of one year post the course completion to start repayment.
4. Loan Security - You can provide the bank, land or building, LIC Policies, Government or Public sector bonds/RBI Relief Bonds, NSCs or Bank deposits as loan security towards the SBI Career Loan.
5. Loan Margin - The SBI Career Loan's margin depends on the type of security towards the loan:
   1. LIC Policies - 10% loan margin on the surrender value of the policies.
   2. Land or building - 20%
   3. Bonds such as Government or Public sector bonds, NSCs, RBI Relief Bonds, bank deposits - 10% on the security's face value.

SBI Career Loan Interest Rates

Under the SBI Career Loan scheme, the following interest rates are charged depending on the type of security:

1. Bank's STDRs or TDRs - 1% over the interest rate charged on deposits.
2. Government or public sector bonds or RBI Relief Bonds, LIC Policy, etc. - 4.25% over 1 year MCLT (AT present, it is 13.40% per annum).
3. Land or building - 4.50% over 1 year MCLR, which at present is 13.65% per annum.

Charges:

Borrowers of the SBI Career Loan are levied a processing fee of 0.50% of the loan amount plus Service Tax, if applicable.

Early prepayment of loan does not attract any penalty fee from the borrower.

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