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  • SBI Education Loan

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    State Bank of India is an Indian multinational financial services company that was founded in 1921. State Bank of India has an operational presence of over 14,000 branches in India serving millions of happy customers. The bank has a much diversified portfolio that includes services in personal banking, business banking and international banking services.

    SBI Education Loan is of three categories – for studies in India and abroad, for studies in premier Indian institutions and loan for pursuing vocational education and training.

    Features of SBI Education Loan:

    Purpose:

    SBI Student Loan scheme is offered to Indian nations for pursuing higher studies in India or at a foreign institution. SBI Scholar Loan scheme is offered to students who have secured admissions in premier Indian institutions. A separate loan scheme is offered for pursuing vocational education and training in India.

    Expenses Considered for SBI Education Loan:

    The following expenses are covered for both the student loan scheme and loan for vocational education.

    • Tuition and course fee
    • Examination, library and laboratory fees
    • Caution deposit
    • Cost of books, equipment and other instruments.

    The following expenses are considered only for the student loan scheme and not for the vocational training loan.

    • Cost of a two wheeler up to Rs.50,000
    • Travel expenses and passage money for abroad studies
    • Caution deposit, building fund and other refundable deposit which amounts up to 10% of the tuition fees for the entire semester
    • Any other expenses required to complete the coursework like study tours, thesis, project etc.

    Amount of Education Loan:

    • SBI Student Loan Scheme
    • A maximum of Rs.10 lakhs is offered for studies in India. For studies abroad, a maximum of Rs.30 lakhs is offered as loan.
    • SBI Scholar Loan Scheme
    Category of the educational institution Maximum Loan Limit Maximum Loan Limit
    Without Security With Security
    List A Ra.20 lakhs Rs.30 lakhs
    List C Rs.7.5 lakhs Rs.30 lakhs
    • Loan Scheme for Vocational Education and Training: For courses of period up to 6 months, loans up to Rs. 50,000 are provided. A maximum of Rs.1 lakh is provided as loan for courses of duration above 6 months.

    Interest Rates:

    • SBI Student Loan Scheme
    Loan Amount Rate of Interest
    Up to Rs.4 lakhs 3.50% above base rate
    Above Rs.4 lakhs and up to Rs.7.5 lakhs 3.75% above base rate
    Above Rs.7.50 lakhs 1.75% above base rate

    The base rate is fixed at 9.85%. Do make an enquiry with the bank about the prevailing base rates. A concession of 0.50% is provided for girl students and a 1% concession is offered for full tenure of loan, if the interest is serviced promptly during moratorium and course period.

    • SBI Scholar Loan scheme
    Type of Institution Interest Rate per annum
    List AA 25 bps above base rate (10.10% at present)
    List A 25 bps above base rate (10.10% at present)
    List B For unsecured loan up to Rs.20 lakhs, 50 bps above base rate (10.35% at present)
    List C 175 bps above base rate (11.60% at present)

    For list B institutions, the interest rate is 25 bps if the collateral security provided is equal to or greater than the loan amount or if the applicant’s work experience is greater than two years. Do contact the bank for a comprehensive classification of the educational institutions as per the type AA, A, B or C.

    • SBI Loan for Vocational Education and Training: The rate of interest is fixed at 3.50% above the base rate of 9.85%

    Processing Fee:

    No processing fee is charged for SBI education loans.

    Repayment Tenure:

    • SBI Student Loans
    Maximum Loan Amount Repayment Period
    Up to Rs.4 lakhs Up to 10 years
    Above Rs.4 lakhs to up to Rs.7.5 lakhs Up to 10 years
    Above Rs.7.5 lakhs Up to 12 years
    • SBI Scholar Education Loan
    • The maximum repayment tenure is 12 years. The repayment period starts after 6 months of course completion.
    • SBI Loan for Vocational Education and Training: For courses of duration up to 1 year, the repayment period can be up to 3 years. For courses of duration above 1 year, the repayment period can extend up to 5 years.

    Security:

    • SBI Student Education Loan
    Loan Amount Security
    Up to Rs.4 lakh Parent or guardian as co-borrower
    Above Rs.4 lakhs and to Rs.7.50 lakhs Parent or guardian as co-borrower and collateral security in the form of a third party guarantee
    Above Rs.7.50 lakhs Parent or guardian as co-borrower and tangible collateral security
    • SBI Scholar Loan Scheme
    • Tangible collateral security of full value is to be provided and parent or guardian should sign up as co-borrower only to avail extra loan amount for list A and list C institutions. Loans can be availed without security also under the scholar scheme.
    • SBI Loan for Vocational Education and Training

    No collateral or third party guarantee is taken. But, parents or guardian will have to execute the loan documents as co-borrower.

    Margin:

    For SBI Student Loan Scheme, there is no margin for loans up to Rs.4 lakhs. For loans above Rs.4 lakhs, the margin is 5% for studies in India and 15% for studies abroad.

    Eligible Courses:

    • SBI Student Education Loan
    • For studies in India, graduation and post-graduation technical courses (degree and diploma) conducted by colleges approved by UGC, AICTE, IMC and the government of India are covered. Also, teacher training, nursing courses and other diploma courses like pilot training, shipping etc. as approved by the concerned regulatory authority are covered under the loan. For studies abroad, job-oriented professional graduate and post-graduate courses like MCA, MBA, MS, courses conducted by CIMA – London, CPA – USA are approved for loan.
    • SBI Scholar Loan Scheme
    • Regular full-time degree and diploma courses for which the student is granted an admission through merit based admission process or entrance test is covered under the loan. Also, full time executive management courses like PGPX are approved for loan.
    • SBI Vocational Education and Training Loan

    Vocational courses and skill development courses of duration 2 months to 3 years run by a government department or an organization supported by National Skill Development Corporation leading to a recognized Government organization are approved for the loan.

    List of Approved Educational Institutions:

    • For the SBI Student Scheme, educational institutions in India recognized by UGC/AICTE/IMC and government of India are approved. Reputed foreign institutions abroad, CIMA and CPA courses are also approved for loan.
    • SBI Scholar Loan scheme is provided for education in 93 premier Indian institutions. Contact the bank for the list of institutions that fall under the elite category.
    • Vocational, skill development courses offered by the government or an organization certified by the government is approved for loan under the SBI Vocational Education and training loan category.

    Documentation required:

    The following documents are to be submitted to complete the application process.

    • Letter of admission
    • Duly filled and signed loan application form
    • 2 recent passport size photographs
    • Statement of cost of study
    • PAN Card, AADHAR card of student and parent/guardian
    • Proof of identity and proof of residence
    • IT returns or IT assessment order of previous two years of the co-borrower
    • Statement of assets and liabilities of parent/guardian
    • Proof of income of parent/guardian

    Eligibility:

    The applicant should be an Indian national and should have secured an admission in a recognized educational institution. For SBI Scholar scheme, the student should have secured an admission in one of the 93 premier Indian institutions. Similarly, for Vocational Education loan, the student should have obtained an admission in a government certified training institute.

    Central Government Interest Subsidy Scheme for Educational Loans:

    The interest subsidy scheme has been announced by the MOHRD for providing interest on educational loans during moratorium for professional courses in India for students from economically weaker sections with gross annual parental income up to Rs.4.50 lakhs.

    Some of the important features of this scheme are listed below.

    • This scheme is applicable only for recognized technical and professional course study in India.
    • The subsidy is provided for a period of 12 months after completion of course or six months after getting the job, whichever is earlier.
    • The interest subsidy is not available to students who discontinue the course mid-stream or who are expelled from the university.
    • The disbursement of interest subsidy claims to banks will be on half-yearly or yearly basis.

    SBI Education Loan FAQs:

    1. What documents do I have to submit to avail the interest subsidy?
    2. In addition to the necessary loan documents, an income certificate issued by Income Certifying Authority designated by the State Government is required.
    3. Can my spouse sign up as a co-applicant for my education loan?
    4. Yes. Married applicants can designate their spouse as co-applicant.
    5. How will the SBI education loan be disbursed?
    6. The loan amount will be disbursed directly to the educational institution or the vendor as and when there is requirement.
    7. What educational documents do I have to submit during application?
    8. You might be asked to submit the HSC and SSLC certificates in addition to the degree mark sheet.
    9. Is insurance cover necessary for SBI education loan?
    10. Yes. Insurance covering the life of the borrower with the policy assigned in favour of SBI is mandatory while applying for education loan.

    News About SBI Education Loan

    • SBI Revises Education Loan Interest Rates

      SBI updated its education loan interest rates, along with home loan, car loan and personal loan interest rates with effect from 1st May, 2016. SBI Student Loan up to a limit of Rs.7.5 lakh are being offered at a 9.15% 1 year MCLR rate with a 2.00% spread and an effective interest rate of 11.15% for a reset period of 1 year. While for a student loan above Rs.7.5 lakh, the MCLR is 9.15% with a 1.70% spread and an effective interest rate of 10.85% for a year. Girl students can avail concession in interest up to 0.50%.

      SBI also revised its scholar loan offering 9.15% MCLR for Categories List AA, A, B at a spread of 0.40%, 0.50% and 0.80% respectively and effective interest rates at 9.55%, 9.65% and 9.95% respectively.

      19 August 2016

    • A new education loan “SBI Global Ed-Vantage” introduced by State Bank of India.

      State Bank of India has launched the “SBI Global Ed-Vantage” scheme to offer loans to students for overseas education. This education loan scheme provides financial assistance to students planning to complete their studies at any top global institution. The loan amount sanctioned by SBI starts from Rs. 20 lakhs to up to Rs. 1.5 crores, with a margin ranging from 20% to up to 80%. The interest rate offered on this education loan is 1.70% over the base rate of SBI, which totals to 11% per annum. The repayment tenure offered is up to 15 years after the course has been completed. Collateral security has to be provided by the borrower, equal to the loan amount availed. State Bank of India offers a moratorium period of up to 6 months to begin the repayment of the education loan. Women borrowers and SBI Life Rinn Raksha scheme holders can also get a concession of 0.50% on the interest rate for the SBI Global Ed-Vantage education loan.

      2 May 2016

    • SBI Extends Offer for One-Time Settlement of Education Loan

      SBI has come up with an offer to education loan borrowers for a one-time settlement of their dues. Those who have availed up to Rs. 4,00,000 education loan can avail this offer. Borrowers can be eligible for up to 100% concession in rate of interest and 90% concession on the loan amount borrowed from the Bank. If the student who has availed the loan has passed away, then the Bank will waive the loan amount borrowed and the interest accumulated on the same. This offer expires on April 30th, 2016.

      6 April 2016

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    SBI Education Loan Reviews

  • Page 1 of 8 1 2 3 4 5
    • SBI Education Loan
      "Excellent Service"
      STATE BANK OF INDIA
      0.5 4.5/5 "Excellent!"
      The experience with them has been very good and the loan amount which they had provided has been satisfactory as well. The interest rate with them has been less when compared with the market rate. Their customer support and their staffs had also been responsive as well.
      Was this review helpful? 0
      , chennai
      Reviewed on Nov 15, 2018
    • SBI Education Loan
      "Very Good Service"
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      It was a wonderful experience i had with them and the process in getting this loan has been good. The loan amount which they had provided has been good and whatever charges which they had taken has been conveyed on prior. There has been a good response from their staffs as well.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 13, 2018
    • SBI Education Loan
      "Good service"
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      I have taken an education loan with SBI and my experience was good, the loan amount was for Rs 3 lacs with nominal interest rate when compared to others. Customer service was good with SBI and they responded on time. The tenure period for this loan is 4 years.
      Was this review helpful? 0
      , new delhi
      Reviewed on Oct 31, 2018
    • SBI Education Loan
      "Good service"
      STATE BANK OF INDIA
      0.5 3.0/5 "Satisfactory"
      It has been a very good experience i had with this loan and the loan amount which they had provided has been sufficient. There has not been much hassles faced with them so far and the interest rate has also been nominal. There has not been any hassles faced with the banking services of them.
      Was this review helpful? 1
      , bangalore
      Reviewed on Oct 31, 2018
    • SBI Education Loan
      "BETTER"
      STATE BANK OF INDIA
      0.5 2.0/5 "Expected more"
      I have applied for education loan by the year 2012 also i have been sanctioned with sufficient amount of loan added on that the process is quick and simple to get the loan. The rate of interest is higher in this loan also there are hidden charges applicable in this loan.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Oct 15, 2018
    • SBI Education Loan
      "GOOD"
      STATE BANK OF INDIA
      0.5 4.5/5 "Excellent!"
      I am holding the education loan with the STATE BANK OF INDIA from last more than 3 years. The rate of interest is higher in this loan when compared to the others. The loan amount is sufficient and within the same day it got approved. The duration is for 5 years.
      Was this review helpful? 3
      , chennai
      Reviewed on Oct 12, 2018
    • SBI Education Loan
      "Not satisfied"
      STATE BANK OF INDIA
      0.5 2.5/5 "Just OK"
      I have taken an education loan with SBI and my experience was not good, they did not give any subsidy for this loan. I have closed this loan within 3-4 years as the customer support was not up to the mark. The loan amount was for Rs 1.25 lacs with 11.5% as interest rate.
      Was this review helpful? 3
      , bangalore
      Reviewed on Oct 11, 2018
    • SBI Education Loan
      "Not satisfied with the service"
      STATE BANK OF INDIA
      0.5 1.0/5 "Really Bad"
      My personal experience with them has not been good where after applying for this loan it took nearly a year for getting this loan disbursed. It has been a hassle with their support system where not responsive and it has taken more time with their process. Other than that the loan amount has been fine and the interest rate also had been also good.
      Was this review helpful? 1
      , mumbai
      Reviewed on Oct 06, 2018
    • SBI Education Loan
      "Happy banking "
      STATE BANK OF INDIA
      0.5 3.5/5 "Pretty good"
      I took an education loan from SBI during 2016, and the services were smooth except I had to visit central loan processing branch for the approval. Interest rates were as promised. Once there was the cut down in interest rate with the govt regulations and the reflection was pretty quick.
      Was this review helpful? 8
      , bangalore
      Reviewed on Sep 12, 2018
    • SBI Education Loan
      "Good service"
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      I have taken an Education loan with SBI and my loan experience was good, the loan amount was for Rs 4 lakhs with nominal interest rate when compared to others. Customer service was good and they followed up on time. The tenure period for this loan is for 5 years.
      Was this review helpful? 22
      , kolkata
      Reviewed on Aug 07, 2018
    • SBI Education Loan
      "Average Service"
      STATE BANK OF INDIA
      0.5 3.0/5 "Satisfactory"
      I have taken an educational loan from the SBI for 20 Lacs, there was a delay in processing the loan due to the paperwork and verification and the interest rare was also comparatively high 12.5%. I closed the loan completely. They need to speed up the application and processing.
      Was this review helpful? 11
      , hyderabad
      Reviewed on Aug 04, 2018
    • SBI Education Loan
      "Easy to get a loan from SBI"
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      I haven't call their phone banking customer care service. The response from the branch was average. The interest rates were very less. I have applied the loan amount of Rs. 15 lakhs and they have reduced the interest rate upto 8.8%. I have chose the option to pay for 15 years. I haven't calculate the EMI amount. They are providing loan depends on the college where we choose without any collateral.
      Was this review helpful? 14
      , chennai
      Reviewed on Jul 26, 2018
    • SBI Education Loan
      "Thank you for providing the loan. "
      STATE BANK OF INDIA
      0.5 5.0/5 "Blown Away!"
      The banking people answered me in a prompt way. I have applied for a loan amount of Rs. 2 lakhs and they have offered me a interest rate of 13%. Its easy to get a loan from SBI bank. I have to pay the EMI of Rs. 7000. I have to pay the EMI for 96 months. I can pre-closure the loan also but I dont talk to them on that.. Its totally hassle free services offered by SBI.
      Was this review helpful? 8
      , ahmedabad
      Reviewed on Jul 23, 2018
    • SBI Education Loan
      "Good service"
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      The process in getting the loan had been very good and there has not been any issues faced. The interest rate with them had been a little on the lower end. The loan amount which they had provided had been good and overall it had been a very good experience with this educational loan.
      Was this review helpful? 4
      , bangalore
      Reviewed on Jul 17, 2018
    • SBI Education Loan
      "Good experience"
      STATE BANK OF INDIA
      0.5 5.0/5 "Blown Away!"
      My education loan was taken with SBI 6 years back. The loan amount was 4 laksh an the interest rate was satisfactory . The tnrue period was 4 years . I had a very hassle free process here .The customer service and responses was up to the mark. They have sanctioned the loan with the committed time.
      Was this review helpful? 6
      , bangalore
      Reviewed on Jul 17, 2018
    • SBI Education Loan
      "Average"
      STATE BANK OF INDIA
      0.5 3.0/5 "Satisfactory"
      My saving account was taken with SBI 3 years back. I hold visa card and the daily withdrawal limit was 50,000. Their customer service and responsiveness wasn't up to the mark .There is no 24/7 helpline number. Here 3000 is the minimum balance to maintain the account. The rate of interest and charges are good ,
      Was this review helpful? 3
      , hyderabad
      Reviewed on Jul 13, 2018
    • SBI Education Loan
      "Good Service"
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      I have taken an educational loan from the SBI for 2.4 lacs, It is closed . The Application process was very slow and we got the amount we needed. It was a good experience in availing educational loan from the state bank of India.
      Was this review helpful? 4
      , bangalore
      Reviewed on Jul 11, 2018
    • SBI Education Loan
      "Poor Service"
      STATE BANK OF INDIA
      0.5 1.0/5 "Really Bad"
      I've taken an educational loan from the State Bank Of India for 5 lacs, the huge crowd at the branches is a mess. Mismanagement, bad attitude of the employees again makes the transactions much more difficult. It took almost one year to process the loan and the staff are not responsive as well.
      Was this review helpful? 3
      , bangalore
      Reviewed on Jul 11, 2018
    • SBI Education Loan
      "Worst interest rates"
      STATE BANK OF INDIA
      0.5 1.0/5 "Really Bad"
      I have taken a loan from SBI during the year 2010. If i want to take loan means, then i have to give some money to the people like a bribe to get a application from them. I fought a lot to get loan. I directly contacted the regional Manager of my area then only it got processed. It is a long application process where it took more than 10 to 15 page. I have applied a loan of 3.20 lakhs but they have provided only Rs. 2.40 lakhs. The interest rates are too much high it was 14%. Totally i have paid around 3.80 lakhs finally.
      Was this review helpful? 4
      , thane
      Reviewed on Jul 02, 2018
    • SBI Education Loan
      "Good "
      STATE BANK OF INDIA
      0.5 5.0/5 "Blown Away!"
      I have closed the educational loan with the State bank of India and the rate of interest is around 9%. I would like to say that the charges are very nominal one for me with the State bank of India till now. I am happy with them till now.
      Was this review helpful? 2
      , vadodara
      Reviewed on Jun 28, 2018
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