• SBI Education Loan

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    Overview:

    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

    Without Security

    With Security

    List AA

    Rs.30 Lakhs

    NA

    List A

    Ra.20 lakhs

    Rs.30 lakhs

    List B

    Rs.20 lakhs

    NA

    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 7 1 2 3 4 5
    • SBI Education Loan
      "Need to improve on ROI and services"
      STATE BANK OF INDIA
      0.5 2.0/5 "Expected more"
      I have taken my educational loan from State Bank of India. The process is too long and the take too much of documentation. I had taken a loan for four lakhs. I had to submit my home documents worth 13 Lakhs. The rate of interest is very high as well. I am repaying eight lakhs for the the loan amount of four lakhs.
      Was this review helpful? 0
      , mumbai
      Reviewed on Feb 22, 2018
    • SBI Education Loan
      "Hassle free"
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      I closed my education loan from SBI bank, the process was smooth, but for the loan repayment they wont send any notification. Therefore I got a late payment fee, they need to improve notification part, The interest rate was good because I got it from my college and I closed the loan through online it was excellent.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Feb 09, 2018
    • SBI Education Loan
      "Recommedable bank"
      STATE BANK OF INDIA
      0.5 5.0/5 "Blown Away!"
      I have taken an education loan from SBI. the approved loan amount was 4 lakhs with a rate of interest of 11%. After completing my education they gave me 1 year of time. In total i got 5 years and due to some subsidiary i got the interest waived off. I can recommend this policy either.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 29, 2018
    • SBI Education Loan
      "Good service"
      STATE BANK OF INDIA
      0.5 5.0/5 "Blown Away!"
      I got the educational loan around 8 years ago from STATE BANK OF INDIA. The service was good with the STATE BANK OF INDIA and they gave me prompt response in regards to my educational loan. The rate of interest was on higher side when compared with other banks.,
      Was this review helpful? 0
      , noida
      Reviewed on Jan 18, 2018
    • SBI Education Loan
      "Average service"
      STATE BANK OF INDIA
      0.5 1.0/5 "Really Bad"
      I had a educational loan with State bank of India ,the rate of interest they quoted me was fine. The customer support was good. The documents procedure is very much simple,it was a good experience that I had with State bank of India educational loan department.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 10, 2018
    • SBI Education Loan
      "Good service"
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      The educational loan has been approved by the State bank of India around a 3 years ago. The customer support is average with the State bank of India. The loan maintenance and the bank executives are good with the State bank of India. The rate of interest and the charges are very low with STATE BANK OF INDIA educational loan.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 09, 2018
    • SBI Education Loan
      "Good experience"
      STATE BANK OF INDIA
      0.5 5.0/5 "Blown Away!"
      My education loan was taken with SBI 3 years back. The loan amount was 3.80,000. The Interest rate was 9.25% which is average in the market. The loan process was smooth and hassle free.There is no processing fee here . My overall experience was good.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 08, 2018
    • SBI Education Loan
      "Procedure is Long"
      STATE BANK OF INDIA
      0.5 2.0/5 "Expected more"
      They gave me Loan after good amount of verification. Hassle was there for sure. I had to roam and had to keep in touch with them all the way. It took me almost 1 month for getting that Loan. The repayment options with them is quite easy and made my education happen.
      Was this review helpful? 0
      , navi mumbai
      Reviewed on Jan 05, 2018
    • SBI Education Loan
      "Best service"
      STATE BANK OF INDIA
      0.5 5.0/5 "Blown Away!"
      I have got the Educational loan from the state bank of India on 2005 and I paying back the loan still . I have got the loan amount of Rs,12,00,000 from the state bank. The rate of interest and the charges are average with the state bank of India, I would say it is low at present.
      Was this review helpful? 4
      , bangalore
      Reviewed on Dec 28, 2017
    • SBI Education Loan
      "Excellent service"
      STATE BANK OF INDIA
      0.5 4.5/5 "Excellent!"
      I have a running educational loan with State bank of India ,the service was very good. The documents part was very easy the staffs where friendly. The rate of interest offered by State bank of India was fine compared to others it was a good experience with State bank of India educational loan service.
      Was this review helpful? 3
      , mumbai
      Reviewed on Dec 22, 2017
    • SBI Education Loan
      "GOOD SERVICE"
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      I have taken a educational loan from State bank of India ,the customer service was very awesome rate of interest they offered me was fine compared to others in the market. The documents have been collected from the branch directly it was been eight years I have taken the loan from State bank of India.
      Was this review helpful? 4
      , kolkata
      Reviewed on Dec 06, 2017
    • SBI Education Loan
      "GOOD"
      STATE BANK OF INDIA
      0.5 5.0/5 "Blown Away!"
      I had good experience with the STATE BANK OF INDIA for the education loan i took .The bank gave me a full approval on the amount i asked for . the money got disbursed in 15 to 20 workingh days .the rate of interest was 13.5% the bank provided and processing was zero . the bank gave a option of pre closure and part payment . it was a good customer service i received form the sate bank of India for the loan process .
      Was this review helpful? 6
      , new delhi
      Reviewed on Nov 29, 2017
    • SBI Education Loan
      "Best"
      STATE BANK OF INDIA
      0.5 5.0/5 "Blown Away!"
      I am having the educational loan with the State bank of India and the response is good . They have disbursed the loan amount within four days of time and I really dont have any issues with them till now. Rate of interest is also good one with them.
      Was this review helpful? 0
      , noida
      Reviewed on Nov 22, 2017
    • SBI Education Loan
      "Average service"
      STATE BANK OF INDIA
      0.5 3.0/5 "Satisfactory"
      I got the SBI educational loan around 7 years ago. The service was quite good, The rate of interest is very high with the educational when compared with others. The required loan amount has been given and I am satisfied with it. I would say it is an average service.
      Was this review helpful? 2
      , bangalore
      Reviewed on Nov 22, 2017
    • SBI Education Loan
      "Worst service"
      STATE BANK OF INDIA
      0.5 1.0/5 "Really Bad"
      The service was fine abroad limit is less than the local limit ,the interest rate was little high compare to other banks in the market , they dont have a limited information they wont allow to pay the repayment very soon also that time interest rate 13.75 which was high lot of fluctuations in interest rate. They need to improve their service with online facilities also the customer service was not as I expected from SBI.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 21, 2017
    • SBI Education Loan
      "Interest rate should be reduced"
      STATE BANK OF INDIA
      0.5 3.0/5 "Satisfactory"
      My education loan was running with SBI, they gave me the loan around Rs. 2 lakhs. SBI gave me the nominal interest even for the education loan it was disappointing. They disbursed the amount on time. But it would be great if they reduce the interest rate for the education loan.
      Was this review helpful? 1
      , bangalore
      Reviewed on Nov 16, 2017
    • SBI Education Loan
      "Good service"
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      The educational loan service was good with State bank of India. They helped me to get the required loan amount. This loan has the tenure of 3yeras. The customer support is good with State bank of India . The rate of interest and the charges are nominal with State bank of India.
      Was this review helpful? 3
      , bangalore
      Reviewed on Nov 15, 2017
    • SBI Education Loan
      "Good "
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      I am having the educational loan with the State bank of India , since 2012. I would like to say that the customer service is not yet experienced and I used to interact with their branch only. I am happy with the State bank of India till now.
      Was this review helpful? 1
      , noida
      Reviewed on Nov 15, 2017
    • SBI Education Loan
      "Average"
      STATE BANK OF INDIA
      0.5 2.0/5 "Expected more"
      Initially my dad took the educational loan for me and now it is transferred to my name. It is with the State Bank of India. Again the problem comes with the rate of interest. The least rate I got was 11% and now it is 13.5%. It would be better if there is a better service.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Nov 11, 2017
    • SBI Education Loan
      "Worst experience"
      STATE BANK OF INDIA
      0.5 1.0/5 "Really Bad"
      I have taken a education loan from State bank of India.That was a worst experience. The disbursed amount was 1.5 lakhs.The given rate of interest was 15%. The tenure is for 14 years.But with in 10 years i have completed the the loan. And i completed the loan with 2 or 3 payments with the rate of interest.
      Was this review helpful? 3
      , sedam
      Reviewed on Nov 08, 2017
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