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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 10 1 2 3 4 5
  • SBI Education Loan
    "Process is very easy if we provide proper documents"
    STATE BANK OF INDIA
    0.5 2.0/5 "Expected more"
    The interest rate of SBI bank is very high even for the educational loan. They have provided the loan for students with some concession. The loan got sanctioned the loan within a week. Since i have studied in NIT, they have approached the student for the loan and its a scholarship school. They gave this loan only for the merit students. In 2017, i have closed the loan.
    Was this review helpful? 2
    , chennai
    Reviewed on Jun 08, 2019
  • SBI
    SBI Education Loan
    "Good for education purpose"
    STATE BANK OF INDIA
    0.5 5.0/5 "Blown Away!"
    I took education loan for my son, when he started carrier in IIT campus I submitted the application and filled the form within the time of 10 days the loan got sanctioned. SBI gave me 9% of interest for the loan principal of Rs. 1.75 lakhs, I am very fine with them.
    Was this review helpful? 1
    , amravati
    Reviewed on Jun 08, 2019
  • SBI Education Loan
    "Good"
    STATE BANK OF INDIA
    0.5 5.0/5 "Blown Away!"
    I was taken an Education loan in SBI bank before eight years ago, the loan amount was sufficient when taken a loan. The process was all smooth and the disbursement was on time. Charges was nominal at that time. The rate of interest and fee was nominal. The service was good and supportive.
    Was this review helpful? 3
    , coimbatore
    Reviewed on May 20, 2019
  • SBI Education Loan
    "BETTER"
    STATE BANK OF INDIA
    0.5 3.5/5 "Pretty good"
    I have previously taken the educational loan with the STATE BANK OF INDIA where the customer support is not good also the online banking is not good with this bank There are charges applicable with this bank it is which is not good and it is not nominal.
    Was this review helpful? 5
    , new delhi
    Reviewed on May 18, 2019
  • SBI Education Loan
    "Best service"
    STATE BANK OF INDIA
    0.5 4.5/5 "Excellent!"
    I had taken the educational loan with the State bank of India since from past 5 years bank, The loan amount they have given to me was sufficient, the rate of interest they have charged me i felt was high they have charged me up to 11.45% which was high comparing to other bank, after course completion they have charged me up to 10.45% as i was existing account holder of their bank, now i have successfully closed this account.
    Was this review helpful? 3
    , mumbai
    Reviewed on May 04, 2019
  • SBI Education Loan
    "Average Service"
    STATE BANK OF INDIA
    0.5 3.0/5 "Satisfactory"
    The experience i had in getting my Educational loan from STATE BANK OF INDIA has not been a great experience. The process was all smooth and the disbursement was on time, but after that there has been a lot of hassles. I had not visit them often and i could not check the status of the loan. Their customer support response has also not been good.
    Was this review helpful? 2
    , bangalore
    Reviewed on May 03, 2019
  • SBI Education Loan
    "AVERAGE"
    STATE BANK OF INDIA
    0.5 3.0/5 "Satisfactory"
    I have been using the educational loan with the STATE BANK OF INDIA since from last two years the loan amount given with this was good but the documentation process was hassle process where more documents asked. The rate of interest was higher.
    Was this review helpful? 1
    , bangalore
    Reviewed on Apr 30, 2019
  • SBI Education Loan
    "Good choice for the education"
    STATE BANK OF INDIA
    0.5 4.0/5 "Great!"
    Long back I taken the education loan of Rs. 1.3 lakh there is no particular tenure period. Anyway I have paid my emi and got the NOC on time and the interest was very attractive for education purpose. The process was convenient to take and repay it.
    Was this review helpful? 4
    , delhi
    Reviewed on Apr 29, 2019
  • SBI Education Loan
    "Good service"
    STATE BANK OF INDIA
    0.5 3.0/5 "Satisfactory"
    I had taken an Educational Loan from STATE BANK OF INDIA a long time back and the experience had been good. The process in getting the loan did not took much time. The loan amount has been as per the expectations, and the interest rate with them had been nominal. The services from the branch and the response has been pretty good.
    Was this review helpful? 2
    , new delhi
    Reviewed on Apr 25, 2019
  • SBI Education Loan
    "Very Good Service"
    STATE BANK OF INDIA
    0.5 4.0/5 "Great!"
    I had taken an Educational Loan from STATE BANK OF INDIA a long time back and the experience had been good. The process in getting the loan did not took much time. The loan amount has been as per the expectations, and the interest rate with them had been nominal. The services from the branch and the response has been pretty good.
    Was this review helpful? 3
    , new delhi
    Reviewed on Apr 24, 2019
  • SBI Education Loan
    "Best in the market"
    STATE BANK OF INDIA
    0.5 4.0/5 "Great!"
    Still my SBI education loan is active condition, I took initial days of my college. It has lots of paper work and they taken long time for sanctioning the amount. I took the loan for 7 years, that point of time the process was not simple, but they gave me the best interest in the market. I don't want to pay the interest while studying, later on the interest will be calculated.
    Was this review helpful? 8
    , gurgaon
    Reviewed on Apr 10, 2019
  • SBI Education Loan
    "Discount in the Interest "
    STATE BANK OF INDIA
    0.5 4.0/5 "Great!"
    For my education , I took a loan amount of more than 1.5 lakh from SBI . In SBI getting any details and information from branch people is very difficult . Thank god . Some how they reduced my interest rate .Because of that , I completely paid my education loan .
    Was this review helpful? 3
    , new delhi
    Reviewed on Apr 09, 2019
  • SBI Education Loan
    "Good overall"
    STATE BANK OF INDIA
    0.5 4.0/5 "Great!"
    I had taken an educational loan with State Bank of India. The customer support is good and there are no hassles in the process. The documents was taken on time and there has been no hassles till date. The rate of interest and processing fees is also good.
    Was this review helpful? 4
    , bangalore
    Reviewed on Apr 07, 2019
  • SBI Education Loan
    "Average service"
    STATE BANK OF INDIA
    0.5 3.0/5 "Satisfactory"
    My eduction loan was taken with State bank of India previously,they have given me good opportunities,and the loan amount which they have given me was good,the rate of interest they have charged me was 13% which was nominal.Now i have successfully closed this loan in this January.
    Was this review helpful? 5
    , bangalore
    Reviewed on Mar 26, 2019
  • SBI Education Loan
    "GOOD"
    STATE BANK OF INDIA
    0.5 4.0/5 "Great!"
    I have taken the education loan with the STATE BANK OF INDIA the documentation process was simple and i got the loan within days but the approval got delayed. I get the loan amount for each of the semester. They have offered the satisfactory loan amount.
    Was this review helpful? 6
    , new delhi
    Reviewed on Mar 09, 2019
  • SBI Education Loan
    "Needs to improve on customer service"
    STATE BANK OF INDIA
    0.5 4.0/5 "Great!"
    My experience was average with SBI for Education loan, the loan amount was sufficient and the rate of interest was nominal when compared to others. Customer service was not up to the mark with this bank. Tenure period for this loan is for 5 years.
    Was this review helpful? 8
    , noida
    Reviewed on Feb 26, 2019
  • SBI Education Loan
    "GOOD"
    STATE BANK OF INDIA
    0.5 5.0/5 "Blown Away!"
    I have taken the EDUCATION loan for the master with the STATE BANK OF INDIA and i have closed it before 6 years. The documentation process was simple and easy to get the loan i got the loan amount for every year. The rate of interest is 10.5% and at the time of closing it is 9.5% with this bank.
    Was this review helpful? 5
    , bangalore
    Reviewed on Feb 25, 2019
  • SBI Education Loan
    "Good in all"
    STATE BANK OF INDIA
    0.5 5.0/5 "Blown Away!"
    I had no hassles to get the educational loan from State Bank of India. The process was fine and the documentation is also easy for me. The rate of interest and the processing charges are nominal and that is the reason I have chosen this bank. I have also closed the loan.
    Was this review helpful? 2
    , jaipur
    Reviewed on Feb 24, 2019
  • SBI Education Loan
    "Good service"
    STATE BANK OF INDIA
    0.5 4.0/5 "Great!"
    I had a Educational loan in State Bank of India and its been completed. It was a good experience. I have paid the monthly installments and the interest rate is comparatively less than the market price. There was a proper service from the customer service. I am not sure about the processing fee.
    Was this review helpful? 2
    , pune
    Reviewed on Feb 23, 2019
  • SBI Education Loan
    "Best Service"
    STATE BANK OF INDIA
    0.5 5.0/5 "Blown Away!"
    I have taken Education loan with SBI and my experience was good, the loan amount was sufficient and the rate of interest was nominal when compared to others. Customer service was good and they responded on time. Tenure period for this loan is for 4 years.
    Was this review helpful? 4
    , vadodara
    Reviewed on Feb 21, 2019
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