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  • SBI Education Loan

    SBI Education Loan
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    Promised Interest Rate

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    Responsiveness

    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.

      19th 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.

      2nd 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.

      6th April 2016

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    SBI Education Loan Reviews

  • Page 1 of 5 1 2 3 4 5
    • SBI Education Loan
      "Worst bank for an Education Loan"
      STATE BANK OF INDIA
      0.5 1.0/5 "Really Bad"
      I had applied to SBI for an education loan for my studies abroad. I had applied 3 months in advance, but they took a very long time to complete the process. I was promised that upto 80% of the loan would be covered by the bank, but finally after 3 months they approved only 57% of the loan amount.
      Was this review helpful? 1
      , thane
      Reviewed on May 24, 2017
    • SBI Education Loan
      "Disappointed service"
      STATE BANK OF INDIA
      0.5 1.0/5 "Really Bad"
      SBI charged me like a local financier on my education loan. I had taken an education loan for10 lakhs but the amount credited was only Rs. 9.5 lakhs they have taken other extra charges on my loan. Initially I applied for this loan for an interest rate of 12% but suddenly they increased for 18%. After receiving my loan completion letter only I came to know they have debited certain charges also the interest rate offered is 18% it is extremely high.
      Was this review helpful? 18
      , chennai
      Reviewed on Mar 29, 2017
    • SBI Education Loan
      "Better"
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      At present I had taken an educational loan from State bank of India and when I took this loan interest rate was around 14.5% and now its 13.5%. The total capital amount is around 1 lakh Rupees and their customer service is good one with them, also I have got the account through my friends referral, also they are providing every information in the first approach itself. Charges are some what lesser and the rate of interest is huge with them.
      Was this review helpful? 13
      , coimbatore
      Reviewed on Mar 21, 2017
    • SBI Education Loan
      "Easy process"
      STATE BANK OF INDIA
      0.5 4.5/5 "Excellent!"
      SBI helped my providing a educational loan for my daughter. It was a easy process to get the loan and they have given me good tenure and the interest rate and charges is also normal. The services was customer friendly as I got the funds with ease.
      Was this review helpful? 18
      , ahmedabad
      Reviewed on Feb 03, 2017
    • SBI Education Loan
      "Poor Education Loan Service"
      STATE BANK OF INDIA
      0.5 0.5/5 "Unacceptable"
      Education loan is only for business purpose there isn't any help from the bank if a student belongs to lower middle class whose father is earning 15-16k. They will reject your application before you apply even if you ask for a student loan of 4 lakh rupees.My entire family have bank accounts in SBI and we have our savings and fixed deposits too. But it's of no use. They will behave with you as if you have a criminal background. Almost all branch managers are egoistic.
      Was this review helpful? 34
      , mumbai
      Reviewed on Jan 26, 2017
    • SBI Education Loan
      "Educational loan"
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      SBI educational loan is ok, noting specific , they have to work on customer service and how to reach their customers. There was a person who introduced me to SBI and through him I had taken a educational loan and it was very much successful. No collateral security was asked.
      Was this review helpful? 17
      , bangalore
      Reviewed on Dec 21, 2016
    • SBI Education Loan
      "Educational loan"
      STATE BANK OF INDIA
      0.5 3.0/5 "Satisfactory"
      Long time ago , I had taken an educational loan from SBI. They took around a month's time to process the loan. There was a long delay in processing the loan majorly because of my collateral security I have submitted my property documents after analyzing that they were able to fund the loan quickly.
      Was this review helpful? 25
      , hyderabad
      Reviewed on Sep 14, 2016
    • SBI Education Loan
      "Average "
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      The service offered by SBI was good in the initial stage.My repayment started from 2012 and at that time I was in search of job.I started to pay for education loan taken from Oct2015 but within that they have transferred the payment collection details to reliance and they were rushing me to make the full payment.
      Was this review helpful? 34
      , kolkata
      Reviewed on Jul 30, 2016
    • SBI Education Loan
      "Good rates but less response"
      STATE BANK OF INDIA
      0.5 3.0/5 "Satisfactory"
      My experience with SBI bank was not good,they are working on the old pattern as we have to visit the bank several time for the document but they are good with the interest rate and processing fee for education loan. The maximum time they use to three working days. Repayment can be done in 84 month after completing the education.
      Was this review helpful? 23
      , dehradun
      Reviewed on May 31, 2016
    • SBI Education Loan
      "Good loan quotes!"
      STATE BANK OF INDIA
      0.5 3.0/5 "Satisfactory"
      In the year 2009, I have taken the Educational loan from State Bank of India. My father signed as a co applicant for this loan process and there is no collateral required for this loan. The first installment started in the year 2012 and the interest rate offered by them was normal when compared to others.
      Was this review helpful? 29
      , bangalore
      Reviewed on May 30, 2016
    • SBI Education Loan
      "Good experience but can be improved"
      STATE BANK OF INDIA
      0.5 2.0/5 "Expected more"
      SBI has to work on their communication with respect to Educational loan. They are very good in communicating with the customer in a proper manner related to the rates and charges..People can certainly rely on the service of SBI Bank as the rates available are very less.
      Was this review helpful? 19
      , raipur
      Reviewed on May 28, 2016
    • SBI Education Loan
      "Encourage students"
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      I have closed the education loan with State Bank of India and the interest rate is around 11.0%. I got the loan amount within two months of time from the day when I applied. Response is good with them and I have not found any issue, also the documentation process were huge.
      Was this review helpful? 11
      , chennai
      Reviewed on May 14, 2016
    • SBI Education Loan
      "No service "
      STATE BANK OF INDIA
      0.5 1.0/5 "Really Bad"
      They have taken around 2months to complete the process of education loan with SBI Bank.The interest rate applied was very high with SBI related to education loan.They apply charges around 400-500Rs for the education loan.I may not recommend the service to others.
      Was this review helpful? 24
      , new delhi
      Reviewed on Apr 16, 2016
    • SBI Education Loan
      "Hassle free experience"
      STATE BANK OF INDIA
      0.5 5.0/5 "Blown Away!"
      I had taken an Educational loan from SBI bank. Since my father was a customer, the paperwork was minimal and the processing was done in almost 48 hours. The interest rate offered was 7% which is affordable . The loan amount was Rs.1.20 Lakhs and I got the disbursal in just 2 days.
      Was this review helpful? 23
      , bangalore
      Reviewed on Mar 28, 2016
    • SBI Education Loan
      "Best bank for education loan"
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      The experience was very good related to the education loan process with SBI Bank.They complete the process within 20working days when the documents are very clean.They don't take much time.In case of documentation delay from the customer the time taken was long.
      Was this review helpful? 12
      , hyderabad
      Reviewed on Mar 28, 2016
    • SBI Education Loan
      "Pretty good"
      STATE BANK OF INDIA
      0.5 5.0/5 "Blown Away!"
      I had taken an educational loan with State Bank of India in 2008. Its getting over this year. They are good to bank with and have easy and flexible rates. The customer service and responsiveness was also pretty good. Its a recommendable loan for students who are looking for affordable higher education.
      Was this review helpful? 12
      , new delhi
      Reviewed on Mar 28, 2016
    • SBI Education Loan
      "Useful in times of need !"
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      The Educational loan came in timely and was offered at excellent rates since the loan was from State Bank of India and they had an extra promotional offer going on at the time. There were no hidden charges. Only tiny concern was the late information of the late payment charges.
      Was this review helpful? 10
      , kochi
      Reviewed on Mar 14, 2016
    • SBI Education Loan
      "Best and reliable"
      STATE BANK OF INDIA
      0.5 5.0/5 "Blown Away!"
      I have taken Education loan from this bank. After completion of education they have extended my loan which helped me to settle in this duration, they have given me option to increase my EMI and they allowed me for partial payments which helped me to close my loan quickly
      Was this review helpful? 27
      , visakhapatnam
      Reviewed on Feb 20, 2016
    • SBI Education Loan
      "Better !!!"
      STATE BANK OF INDIA
      0.5 4.0/5 "Great!"
      I took the education loan with sbi bank . They took one month to disburse the loan amount but my exception was in one week. Interest rate charged was 12.5%. They gave one year time to repay the amount after finishing the education. It would be good if they be professional with the customers.
      Was this review helpful? 7
      , indore
      Reviewed on Feb 20, 2016
    • SBI Education Loan
      "Fine"
      STATE BANK OF INDIA
      0.5 3.0/5 "Satisfactory"
      I had closed the educational loan with the State Bank of India and the interest rate was around 14%. The services were okay with them and the responsiveness was hectic with them. For each and everything I need to roam to their branch like even for the small request. Approval process also can be done through the home branch only.
      Was this review helpful? 13
      , chennai
      Reviewed on Feb 10, 2016
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