SBI Education Loan 2022: Eligibility, Documents, Interest Rate, Benefits & Features
SBI Education Loan Scheme | SBI Bank Education Loan | SBI Education Loan Interest Rate | How to take SBI Education Loan? , How to take an education loan from SBI?
State Bank of India is a multinational public sector bank, affiliated with the body of financial services body. State Bank of India offers a wide range of education loans with special interest rates starting from 8.15% p.a. Under which any student of India can get SBI Education Loan through a simple process.
The flexible repayment tenure of the loan includes a moratorium period after the completion of the course. Because, there is no penalty charge for prepayment of the loan, which can be done at any time during the loan tenure.
SBI Education Loan Available with various options, education loan by SBI covers not only the tuition fee but also the fees for other features like course, book, etc. Therefore, along with vocational courses, one can also get loans for studying vocational courses.
Here all the necessary facts related to SBI Education Loan like eligibility, interest rate, documents, maximum loan amount, etc. are included which helps in getting an education loan.
SBI Education Loan
State Bank of India i.e. SBI is the most famous bank in India as well as being at the forefront of providing education loans. Because- its interest rate starts from 8.15% per annum which is better than the interest rate of any bank.
SBI Education Loan remains the first choice of students for education loans for higher studies in India or abroad. Because, it includes low-interest rate, easy repayment option, moratorium period, income tax benefits, interest rate concession for female students, and many more.
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SBI offers loans ranging from Rs 10 lakh to Rs 1.5 crore to students for higher education at very low-interest rates and simple documentation. Which is most useful in the form of financial assistance for vocational courses and professional courses. There are no penalty charges for prepayment of this loan, hence the payment can be made at any time during the loan tenure.
Highlights of SBI Education Loan
| Subjects | SBI EDUCATION LOAN |
| the profit | for Indian students |
| margin | Nil on Rs.4 lakh Margin above Rs.4 lakh 5% It is decided by the bank. |
| minimum amount | 50 thousand |
| maximum amount | 30 lakhs (up to 1.5 crores in special cases) |
| minimum interest rate | 8.15 % |
| maximum interest rate | 10.25 % |
| Official Website | https://sbi.co.in/ |
SBI Education Loan Scheme
Various types of loans are provided under the Indian Education Loan Scheme. The major components of which are as follows:
- SBI Student Loan Scheme
- scholar loan
- Loan Scheme for Study Abroad
- skill loan
- Take Over of Education Loans
- Dr. Ambedkar Interest Subsidy Scheme for studying abroad
The most prominent of these are described in detail below about the education loan scheme. Which helps in selecting the type of loan.
SBI Education Loan Scheme
Students who have successfully secured admission in any university or college in India or abroad can avail SBI education loan. Applicants can get financial assistance up to Rs 20 lakh under this loan scheme. The terms and conditions of this plan are as follows:
- Interest Rate: 8.15% to 8.65%
- Processing fee:
- For loans up to Rs 20 lakh: No fee
- Processing fee for loans above Rs 20 lakh: Rs 10,000 plus fees
- Collateral:
- For loans up to Rs.7.5 lakhs: No Collateral
- For loans above 7.5 lakhs: Tangible collateral
- Loan Tenure: 15 years after the completion of the course and 12 months repayment leave
- Eligibility: Indian Citizen
SBI Scholar Loan Scheme
SBI offers an opportunity to secure admission in several premier institutes like IITs, IIMs, NITs, etc. through education loans up to a maximum of Rs 40 lakhs. Under SBI Education Loan, payment of college, hostel, library, travel expenses, etc. can be done easily. More information related to this scheme is available below.
- Interest Rate: 6.85% to 8.15%
- Processing Fee: Nil
- Collateral: Required only for List A and List C colleges
- Loan Tenure: 15 years after the completion of the course and 12 months repayment leave
- Eligibility: Indian citizens selected through entrance test/selection processes
SBI Global Ad-Vantage Scheme
- Interest Rate: 8.15% to 8.65%
- Processing Fee: Rs.10,000 per application
- Collateral: Tangible Collateral as Security
- Loan tenure: 15 years
- Eligibility: Indian Citizen
SBI Kaushal Loan Scheme
- Interest Rate: 8.15%
- Collateral: none
- Loan Tenure: Up to 7 years
- Eligibility: Indian Citizen
SBI Takeover of Education Loan Scheme
- Interest Rate: 8.15% to 8.65%Processing Fee: Nil
- Collateral: Minimum 100% of the value of the loan offered
- Loan tenure:: 15 years
- Eligibility: Loan switchovers for Indian citizens are timely and regular EMIs are being paid.
Features of SBI Education Loan
- There is no fee while applying for SBI Education Loan.
- There is a processing fee of Rs 10,000 while applying for SBI Global Ad-Vantage Scheme.
- Loan up to 10 lakhs for education in India and education loan up to 1.5 crores in special cases.
- There is a concession of 0.50% in the interest rate for students.
- Students with a minimum age of 16 years and a maximum of 35 years of age can apply for an SBI education loan.
- Along with the concession for girls, SBI gets a 0.50% concession.
- 0.50% concession for students availing SBI Loan Raksha or any other policy in favor of the Bank.
- Minimum 1 year and maximum 15 years are given for repayment of education loan.
- If the full interest is deposited before the repayment starts, the EMIs are determined on the basis of the principal amount only.
For what purposes SBI education loan can be taken?
SBI Education Loan can be taken for the following purposes for higher education in India or abroad.
- Certificate course from ITI
- computer certificate course
- engineering diploma
- data entry operator course
- Nursing and Teacher Training or B.Ed
- Agriculture Diploma
- animal treatment
- Degree or Diploma in aeronautics, pilot training, shipping conducted by recognized regulatory bodies for the purpose of employment in India or abroad
- Vocational courses are run by any Government Organization or Department Courses conducted by State Skill Missions, State Skill Corporations, or National Skill Development Corporation.
- Exams, Library Fees, Lab Fees, etc.
- Purchase of books, equipment, uniforms, etc.
- to study abroad
- Undergraduate + Postgraduate
- engineering course
All the fields mentioned above are valid for education loans.
How much education loan can I take from SBI Bank?
According to the different provisions of the government, SBI provides loans under different schemes. According to the State Bank, the general education loan provides loans up to 50 thousand and a maximum of 10 lakhs while the loan amount for study abroad is up to 20 lakhs. According to the SBI condition, only up to 7.5 lakh education loans can be obtained without guarantee. But for the higher amount, a guarantor is required.
In other circumstances, to avail the facility of loan up to Rs.1.5 crore, various types of documents are required along with the guarantor which the bank approves.
- education loan:- loan amount
- Minimum amount:- Rs.50,000 (or less)
- 10 lakh rupees to study in India
- 20 lakh rupees for study abroad
- In other cases up to Rs.1.5 lakh.
SBI Education Loan Interest Rate
The interest rate of SBI education loans varies according to the scheme. But in the normal case, the interest rate starts from 8.15%. But it would be totally wrong to say what will be the interest in your situation. Because- the interest rate depends on the discretion of the bank and your requirement along with the profile.
The minimum and maximum SBI education loan interest rates are as follows:
- Loan Status:- Interest Rate
- Minimum:- 8.15%
- Maximum:- 10.25% (as determined by the bank)
But the rate of interest under the scheme can be as follows:
| 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% |
In other cases,
loan limit---- interest rate
up to Rs.1.5 lakh-----8.15%
Rs. up to 7.5 lakh ----8.65%
Above Rs.7.5 Lakh ------8.65%
SBI Education Loan Subsidy
SBI education loan subsidy is applicable to you if you belong to the following groups:
- Schemes by Government of India for SBI Education Loan Subsidy
- Interest Subsidy for Education Loan on Padho Pardesh Scheme
- Interest Subsidy on Dr. Ambedkar Central Sector Scheme
- Subsidy on Educational Loans for Foreign Studies for Other Backward Classes (OBC) and Economically Backward Classes (EBC)
- On student belonging to religious minority communities with a maximum family income of Rs 4.5 lakh or less
- For students belonging to Other Backward Classes (OBC) and Economically Backward Classes (EBC)
- Whose family income is Rs 6 lakh for OBC and Rs 2 lakh for EBC
effect of subsidy
- Students are not required to pay the interest earned during the moratorium period.
Eligibility for SBI Bank Education Loan
- It is mandatory to be an Indian citizen to take an education loan from SBI Bank.
- There should be confirmation of admission to recognized educational institutions in India or abroad.
- Applicant should have Graduation / Post Graduation Degree or PG Diploma.
- Reserve Bank of India has not set any age limit for the loan. But some banks keep their terms and conditions.
- Age should be between 16 to 35 for an SBI education loan.
- A guarantor is required for an education loan from SBI Bank.
- The loan of the applicant is not outstanding in any other bank
Documents Required for SBI Educational Loan
Documents required to get an education loan to study in India:
- Duly filled application form with affixed photograph.
- 2 passport-size photographs.
- Graduation, High School Certificate or Marksheet
- signature proof
- Income proof of parent or guardian
apart from this:
- Age proof:
- Aadhar Card
- voter id
- Passport
- copy of the driving license
- any one of these
- Identity proof:
- voter id
- Aadhar Card
- driving license
- copy of passport
- any one of the following
- Residence proof:
- Copy of student / guarantor / ration card / gas book / electricity bill /bill and 6 months bank statement
- Income Proof:
- Parent/Guardian's Latest Salary Form
- 6 months bank statement
- ITR details of parents for 2 years
- parent's property document
- Guarantor related details like:
- Documentation for immovable property, FD, etc., if the collateral is required.
- certificate of income of the guarantor
Documents required to get a loan for study abroad:
- Duly filled and signed application form with affixed photograph.
- 2 passport-size photographs.
- KYC documents containing ID, residence, and age proof.
- A copy of the details of final examination passing marks or certificates
- Proof of admission to university and course
- course cost schedule
- A copy of the scholarship letter if you have received a scholarship
- Bank account details of the borrower, parent, or guardian for the last six months.
- Income tax assessment of parents for last 2 years.
- For collateralized loans, details of security offered
- Report on mortgage capacity etc.
Guarantor (Collateral) for SBI Education Loan
Especially for studies abroad, if you are taking an education loan from a government bank, it is always advisable to take a collateral loan for these reasons.
Anyone can hire a guarantor in relation to the loan. But the amount above 7.5 requires a guarantee (property), as shown below.
loan amount - Guarantee-
up to Rs 4 lakh-- no guarantee needed
4 lakh to 7.5 lakh rupees-- No collateral is required, but a third-party guarantee is required. For example, parents, mother-in-law, father-in-law, etc.
For amounts above 7.5 lakhs-- Guarantee is mandatory eg: Residential Property, HDFC Bank Fixed Deposit, LIC/NSC/KVP
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Processing fee on SBI Education Loan
Education loan with low interest and low processing fee is possible only with public sector banks. Hence, SBI is the better and most popular one in this regard.
The processing fee of the loan is as follows:
Types of Fees:- fee
processing fee:- 10,000 is fixed
government fee:- depending on the bank
Stamp duty and other statutory charges:- according to state laws
Other Fees (Lawyers and Appraisers):- Up to Rs.7,500
How to Apply for SBI Education Loan
There are two ways to apply for an education loan from the State Bank of India. If the branch of SBI is near in your situation, then you can get the loan passed offline i.e. from the branch. If the branch is not near then you can apply online.
Follow the below steps to apply offline or online
How to Apply Online for SBI Education Loan?
- First of all visit the official website of SBI Bank.
- After visiting the home page, go to the Loan section
- In the next step, select the type of loan and click on apply
- After that
- Select any one of Student Loan Scheme, Scholar Loan, Study Abroad Loan or Skill Loan and click on the option to apply
- After that again click on the option of Apply Now.
- Fill in all the information asked in the application form carefully and click on submit button.
- In this way, the application will be done easily.
How to apply for SBI Education Loan offline?
- Visit your nearest bank branch to avail SBI Education Loan
- Obtain an SBI education loan form from a bank branch.
- Fill in all the information asked in the application form carefully.
- After that attach all the required documents with the application form.
- Submit the application form to the bank official.
- The verification of the information provided by you will be done by the bank.
- After the verification is complete, the loan amount will be transferred to your bank account.
1 Comments
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