SBI Education Loan

The zeal to pursue desired education must not go in vain, especially due to financial hurdles. In order to seek quality education, one is bound to pay the fee demanded by the institution but often times candidates are unable to do so due to a lack of funds. In such cases, education loans act as a knight in shining armour. One such prestigious loan is the SBI Education Loan. Available with various alternatives, the education loan by SBI covers ample other attributes than just the tuition fee. If you are exploring some education loans, then this blog will surely help you.

SBI Education Loans

Everyone is eager to spend a lot of money on education in order to live a rich life in the future. SBI, being one of the largest education loan providers, understands students’ requirements and provides highly competitive education loans with lower interest rates. With SBI education loans, many students are able to gain admission to renowned universities and institutions in India and overseas each year.

Advantages of SBI Education Loan

Some of the benefits of applying for an educational loan with SBI are listed below:

• Interest rates are low.
• There are no hidden expenditures or administrative fees.
• There are fewer forms to fill out and no processing costs.
• For up to 4 lakhs, no security is required.
• For female students, there is a 0.50 % discount.

SBI Education Loan Interest Rate

Before we hop on to our journey of SBI Education Loans, let us take a quick glance at the popular schemes by SBI, their interest rate and the maximum loan amount SBI provides under these schemes: 

Schemes	Maximum Loan Amount	Applicable Interest Rate
SBI Global Ed-Vantage Scheme	INR 1.5 Crore	9.55%
SBI Student Loan Scheme	INR 20 Lakh	9.55%
SBI Student Scholar Scheme	INR 40 Lakh	7.45% to 8.75%
SBI Take Over Education Loan	INR 1.5 Crore	9.55%

Global Ed-Vantage Scheme 

This scheme by SBI is one of the famous education loans for abroad studies that you can avail. It covers courses like Regular Graduate, Post Graduate, and Doctorate Courses in the field of candidates’ choice. The countries available under this scheme are- the United Kingdom, United States, Europe, Canada, Australia, Japan, Hong Kong, Singapore, and New Zealand. The loan amount ranges from INR 20 Lakh to 1.5 Crore. This valuable SBI Education loan will cover your cost for tuition fees, hostel fees, library fees, travel expenses, etc. 

Student Loan Scheme 

The applicants who have successfully secured admission to any university or college in India or abroad can avail this SBI education loan. The applicants can avail financial assistance up to INR 20 Lakh. Applicants have a handful of 15 years after 12 months of holiday period* of their course in which they have to return the amount.  

*The 12-month repayment holiday period is a leverage given to an applicant for finding a suitable source of income. 

Scholar Loan Scheme 

India is home to a variety of premier institutions like IITs, IIMs, NITs etc. SBI gives an opportunity to the students of securing admission in the above-mentioned institutions through their support maximum of INR 40 Lakh. The loan is flexible for programs like full-time Regular Degree, and Diploma courses as well as full-time Executive Management courses like PGPX and other PG courses. The SBI education will include the fee to be paid for the college, hostel, Library, travel expenses etc. 

Also Read: Education Loan for MBA

SBI Education Loan College List

The following are the colleges in India for which you can avail this loan:

• IIM Ahmedabad
• IIM Bangalore
• IIM Calcutta
• IIT Bombay
• IIT Madras
• IIT Roorkee
• Indian School of Business, Hyderabad
• Birla Institute of Technology and Sciences, Pilani

Download the PDF to check out more institutions in India for which you can avail SBI Education Loan

SBI Education Loan Eligibility and Details

The following are the details and eligibility criteria for an SBI education loan:

SBI Student Loan Scheme

• Interest rate: 8.65% p.a.
• For loans up to Rs.20 lakh: Nil
• Processing fee for loans above Rs.20 lakh: Rs.10,000 plus applicable taxes

Collateral:

• For loans up to Rs.7.5 lakh: None
• For loans above Rs.7.5 lakh: Tangible collateral
• Loan Tenure: 15 years after the course ends plus a repayment holiday of 12 months
• Eligibility: Indian nationals

SBI Scholar Loan Scheme

• Interest rate: 8.65% p.a.
• Processing Fee: Nil
• Collateral: Required only for List A and List C colleges
• Loan Tenure: 15 years after the course ends plus 12 months
• Eligibility: Indian national who is selected through entrance tests/selection processes

SBI Skill Loan Scheme

• Interest Rate: 8.15%
• Collateral: None
• Loan Tenure: Up to seven years
• Eligibility: Indian nationals
• Loan amount: Rs.5,000 – Rs.1.5 lakh

SBI Takeover of Education Loan Scheme

• Interest Rate: 8.65%
• Processing Fee: Nil
• Collateral: Minimum 100% of the proposed loan’s value
• Loan Tenure: 15 years
• Eligibility: Indian nationals who are majors at the loan switchover time with regular Equated Monthly Instalments (EMIs) being paid

SBI Education Loan Essential Documents 

All the applicants who wish to avail the SBI Education Loan have to present a few documents. Mentioned below are the important documents required for an education loan: 

Student’s or Applicant’s Documents

The students who will be applying for the loan will have to present the following documents:

• Identify Proof
• Address Proof 
• Admission letter from the university or college as proof of admission
• Academic Transcripts (10th,12th, Entrance Examination etc.)
• Passport Sized Photograph
• Passport 
• Statement of the loan account for 1 year (If the loan is taken from any other lender)

Co-Applicant’s or Parent’s Documents

The guardian or a co-applicant along with the candidate has to submit the followingm documnts:

• Identity Proof 
• A valid proof of the address
• Passport Size Photographs
• 1 year’s statement of a loan account, only if the loan is taken from another party.

Also Read: ICICI Education Loan

How to Apply?

You can apply for an SBI education loan either online or offline:

1. Offline:
   • Walk into your nearest SBI branch with all the necessary documents.
   • Fill in and submit the application form that you can obtain from there.
2. Online:
   • Visit the SBI official website.
   • Navigate to the section on Education Loans.
   • Choose your preferred loan option.
   • Click on “Apply Now”.
   • You will be redirected to the Vidya Lakshmi website.
   • Register yourself by entering all your details.
   • Finally, apply for a loan.
   • A bank representative will get in touch with you.
3. SBI Scholar Loans: Available in select campuses or mapped branches.

SBI Study Abroad Loan Scheme

• Interest Rate: 8.65% (floating)
• Processing Fees: Rs.10,000 per application.
• Collateral: Tangible collateral security
• Loan Tenure: 15 years
• Minimum Loan Amount: Rs.7.50 lakh or above
• Maximum Loan Amount: Rs.1.5 crore
• Eligibility: Indian nationals who are majors at the loan switchover time with regular EMIs being paid.

You can check the monetary aspects of your education loan using the SBI education loan calculator.

Subsidy Schemes on SBI Education Loan

SBI offers education loan interest subsidy plans to meritorious students, allowing them to save money while continuing their studies. The following are some of these schemes:

1. Interest Subsidy Central Scheme for Economically Weaker Sections: The annual gross parental or family income should be less than Rs.4.50 lakh. This applies to courses in India’s approved professional and technical educational establishments. The subsidy is available during the EMI moratorium period.
2. Padho Pardesh is a state in India: This programme gives interest-free loans to minority students who pursue higher education abroad. This applies to Master’s, M.Phil., and PhD students.
3. Dr Bhimrao Ambedkar Scheme for the Central Sector: This is for interest subsidies on educational loans for students from Economically Backward Castes (EBCs) and other backward castes studying abroad (OBCs).

Must Read: Types of Education Loans for Indian Students

SBI Education Repayment Rules

The SBI education loan policy programme contains a six-month moratorium period for courses that last longer than that. There is no need to make any payments during this time. Repayment of your SBI Education loan commences six months after course completion for both the SBI Student Loan Scheme and the SBI Global Edvantage Scheme.

Most private banks and NBFCs require at least a partial payment of interest while your studies abroad are still underway. No such thing as a moratorium period exists.

How Leverage Edu can help you with Student Loan?  

Being a leading Ed-tech in the market, we understand the diverse circumstances which students are likely to go through. Thus, we are ready to help students in seeking education loans. Through our exclusive tie-up with the leading names in the banking sector like ICICI, Axis, HDFC Credential, Avanse Financial Services, Auxilo Finserve Pvt Ltd. etc we will help you secure education loans at low-interest rates. Our experts are here to negotiate the best interest rates in the market for you!

FAQs

This was everything you need to know about SBI education loans. If you aspire to study abroad and are facing hindrances due to financial difficulties then Leverage Edu can help you with that. Get in touch with our experts and make your dream career a reality!