SBI Education Loans

State Bank of India is one of the most prolific and well known banks in India, being a multinational financial services and banking company. The State Bank of India is a government-owned entity, owing to which it is serious about the promotion of education around the country, as well as for its customers abroad. In the age where private banks are flourishing, SBI has a wide range of attractive education loan schemes for domestic students, foreign bound students, and students of vocational courses. These loans and schemes come with attractive interest rates that focus on the students first and foremost.
Currently, SBI offers:

1. Scholar Loan

2. Global Ed-Vantage Loan

3. Student Loan

4. Skill Loan

5. Take-Over Education Loan

SBI Education Loan Interest Rates

Let’s now talk about the interest rates of these loans. However, first let us look into the MCLR rates.

• MCLR for 1 month is 8.10%

• MCLR rate for 3 months is 8.15%

• MCLR rate for 6 months is 8.30%

• MCLR rate for 1 year is 8.40%

• MCLR rate for 2 years is 8.55%

• MCLR rate for 6 years is 8.65%

Now that we know about the MCLR rates, let us now focus on rates of interest on various educational loans.

Education Loan Scheme	Interest Rate
SBI Student Loan Scheme	Upto Rs. 7.5 lakhs- 8.40+2% (1 year MCLR+spread). It offers 0.5% interest concession for girl students. Above Rs. 7.5 lakhs- 8.40+2.25% (1 year MCLR+spread). It offers 0.5% interest concession for girl students. Additionally, there is also a 0.5% concession for students insured under SBI Rinn Raksha or other similar policies of the bank.
SBI Scholar Loan Scheme	AA-list institutes: 8.40%+0.20% (1 year MCLR+spread) A-list institutes: All IIMs and IITs: 8.40%+0.35% Other institutes: 8.40%+0.50% B-list institutes: All NITs: 8.40%+0.50% Other institutes: 8.40%+1.00% C-list institutes: All NITs: 8.40%+0.50% Other institutes: 8.40%+1.50%
Part-time courses	Upto Rs. 7.5 lakhs- 8.40+2%. It offers 0.5% interest concession for girl students. Above Rs. 7.5 lakhs- 8.40+2.25%. It offers 0.5% interest concession for girl students.
SBI Skill Loan Scheme	8.40+1.50%
SBI Global Ed-Vantage Scheme	8.40+2.25%  It offers 0.5% interest concession for girl students. Additionally, there is also a 0.5% concession for students insured under SBI Rinn Raksha or other similar policies of the bank.
SBI Takeover of Educational Loans	8.40%+2.25% It offers 0.5% interest concession for girl students.

Types of SBI Education Loans

SBI SCHOLAR LOAN

This loan scheme is ideal if you wish to pursue higher education in some of the premiere education institutes of the country. Its salient features are: 

• No Processing Fee

• 100% Financing

• Loan sanction is fast, thanks to the presence of more than 5000 branches around the country, including dedicated campus branches

• The repayment period is up to 15 years after course completion, with 12 months of repayment holiday 

Eligibility

• The candidate needs to be an Indian National

• The candidate must already have secured admission to the professional or technical course at select premiere institutions.

Courses Covered
This loan covers a wide range of courses but has some exceptions.

• It covers: Full time executive management courses such as PGPX and regular full time diploma and degree courses

• It does not cover: part time and certificate courses

Expenses Covered

• Fees payable to educational institutions

• Fees for exams and lab and library access

• Purchase of equipment, books, and instruments

• Money spent on building funds, caution deposit, and refundable deposits, duly supported by the bills and receipts of the institution. These amounts should not exceed 10% of what the course costs in total

• Travel expenses and expenses on an exchange program

• Purchase of a computer or a laptop

• Any other education-related costs or expenses

Loan Amount and Security

List Category	Maximum loan limit
	No security collateral needed apart from requirement of parent/guardian as a co-borrower	Tangible collaterals needed (of full value) along with the requirement of parents/guardians being co-borrowers
AA List	Rs. 40 lakhs
A List	Rs. 20 lakhs	Rs. 30 lakhs
B List	Rs. 20 lakhs
C List	Rs. 7.5 lakhs	Rs. 30 lakhs

Repayment

• The borrower can repay within 15 years+12 months after course completion.

• In case the borrower takes a second educational loan for higher studies, he/she can pay the combined loan amount of the first and second loan 15 years after the completion of the second course.

EMI Generation

• The accrued interest for the course period and the moratorium period is added to the principal amount, and repayment can be made in EMIs.

• If the full interest is paid before the commencement of loan repayment, the EMI shall be fixed based on the loan’s principal amount only.

Documents Needed for the Loan

For Student Applicants

• Any one proof of identity: PAN card/Voter ID/Driver’s licence

• Any one proof of address/residence: copy of recent telephone bill/water bill/electricity bill/gas bill/adhar card/passport/driving license

• Passport

• All academic records: Class 10 result/Class 12 result/Graduation result/Result of entrance exam to the institution

• Proof of admission to the educational institution

• Schedule of costs or Statement of expenses

• 2 passport-sized photos

• If borrower has existing loan(s) from other banks, then one needs to furnish the loan a/c statement of the last one year

For Co-Applicants

• Any one proof of identity: PAN card/Voter ID/Driver’s licence

• Any one Proof of address/residence: copy of recent telephone bill/water bill/electricity bill/gas bill/adhar card/passport/driving license

• 2 passport-sized photos

• If borrower has existing loan(s) from other banks, then one needs to furnish the loan a/c statement of the last one year

For Salaried Co-Applicant or Guarantor

• Salary slips of the last 3 months

• Copy of Form 16 for the last 2 years/copy of  IT returns for the last 2 years (acknowledged by the IT department)

• 6 months’ bank account statement of salary account

For self-employed co-applicant or guarantor

• Business address proof, if applicable

• Income tax return records, if applicable

• TDS certificate/Form 16A, if applicable

• Professional qualification documents (applicable for doctors, CA, and other professionals)

• Last 6 months’ bank account statement

All documents of all categories need to be self-attested.

SBI Global Ed-Vantage Scheme

Features

This loan scheme is ideal if you wish to pursue higher education in some of the premiere educational institutions outside India. Its salient features are:

1. Faster online process

2. Attractive interest rates

3. Higher loan amounts - of Rs. 20 lakhs to Rs. 1.5 crore

4. Easy repayment option of EMIs for a long tenure of 15 years

5. Early loan approval

6. Tax benefit under section 80E

Eligible Courses for Studying Abroad

Courses include graduate, post graduate, and doctoral courses in any discipline in countries such as:

• USA

• UK

• Canada

• Australia

• Europe

• Singapore

• Japan

• Hong Kong

• New Zealand 

Eligible Expenses

• Fees payable to the educational institution

• Fees for exams and lab and library access

• Travel expenses and passage money

• Purchase of equipment, books and instruments, computer, uniform, etc. at a reasonable cost, given these are required for course completion

• Money spent on building funds, caution deposit, and refundable deposits, duly supported by bills and receipts of the institution. These amounts should not exceed 10% of what the course costs in total

• Premiums of the Rinn Raksha scheme

Quantum of Finance

• The minimum loan amount is Rs. 20 lakhs

• The maximum loan amount is Rs. 1.5 crores

Margin

• Scholarship and assistance shall  be included in the margin

• Margin is to be introduced on a yearly basis, as and when there are disbursements on the basis of pro rata.

Processing Fee

Per application, the processing fee is Rs. 10000.
Rate of interest

• Rate of interest is for the term period+moratorium period

• You’ll find this information above in the Interest Rates table

Security

• The borrower needs to provide tangible collateral as security

• Collateral security offered by a third party other than parents is accepted as well

Repayment and the Repayment Holiday

• Interest accrued during moratorium is added to the principal amount and repayment of the loan through fixed EMI is allowed

• Repayment shall start 6 months after course completion

• The borrower has a maximum repayment time of 15 years after course completion

Documents Needed

For Student Applicants

• Any one proof of identity: PAN card/Voter ID/Driver’s licence

• Any one proof of address/residence: copy of recent telephone bill/water bill/electricity bill/gas bill/adhar card/passport/driving license

• Passport

• All academic records: Class 10 result/Class 12 result/Graduation result/Result of entrance exam to the institution

• Proof of admission to the educational institution

• Schedule of costs or Statement of expenses

• 2 passport-sized photos

• If borrower has existing loan(s) from other banks, then one needs to furnish the loan a/c statement of the last one year

For Co-Applicants

• Any one proof of identity: PAN card/Voter ID/Driver’s licence

• Any one Proof of address/residence: copy of recent telephone bill/water bill/electricity bill/gas bill/adhar card/passport/driving license

• 2 passport-sized photos

• If borrower has existing loan(s) from other banks, then one needs to furnish the loan a/c statement of the last one year

For Salaried Co-Applicant or Guarantor

• Salary slips of the last 3 months

• Copy of Form 16 for the last 2 years/copy of  IT returns for the last 2 years (acknowledged by the IT department)

• 6 months’ bank account statement of salary account

For self-employed co-applicant or guarantor

• Business address proof, if applicable

• Income tax return records, if applicable

• TDS certificate/Form 16A, if applicable

• Professional qualification documents (applicable for doctors, CA, and other professionals)

• Last 6 months’ bank account statement

All documents of all categories need to be self-attested.

SBI STUDENT LOAN SCHEME

The scheme’s salient features are: 

• Repayment can be done within 15 years after course completion (plus 12 months of repayment holiday).

• No upfront charges/processing fees on educational loans.

Eligibility

The term loan is granted to Indian nationals who wish to study abroad, given admission to the educational institution has already been granted.

Courses Covered
Courses Covered in India 

• Graduation, post graduation, professional degree, technical degree, and diploma courses offered by colleges and universities that are approved by the UGC, AICTE, IMC, or the Government

• Diploma and regular degree courses that are provided by autonomous bodies

• Vocational training courses that are Government-approved

• Regular diploma and degree courses like pilot training, aeronauticals, shipping etc. have to be approved by the concerned regulatory authority

Courses Covered Abroad   

• Professional courses, job-oriented course/technical graduation degree courses/post graduation degree courses, and diploma courses

• Courses that are offered by CIMA, London and CPA, USA

Eligible Expenses

• Fees payable to the educational institution

• Fees for exams and lab and library access

• Travel expenses and passage money

• Purchase of equipment, books and instruments, computer, uniform, etc. at a reasonable cost, given these are required for course completion

• Money spent on building funds, caution deposit, and refundable deposits, duly supported by bills and receipts of the institution. These amounts should not exceed 10% of what the course costs in total

• Cost of a 2-wheeler - up to Rs. 50000

• Other expenses that are needed for course completion

Loan Amount

• Maximum of Rs. 10 lakhs for studies in India
  Higher loan limits are decided on a case-to-case basis

• Maximum of Rs. 20 lakhs for studies abroad
  Higher loan limits are considered under the SBI Global Ed-Vantage Scheme

Security

• For loans of upto Rs. 7.5 lakhs, only the parents or guardians can be co-borrowers or guarantors. There is no option for collaterals or third party guarantee.

• For loans above 7.5 lakhs, parents or guardians can be the co-borrowers and provide tangible collateral security as well.

Margin

• Till Rs. 4 lakhs: Nil

• More than Rs. 4 lakhs: 5% for studying in India and 15% for studying abroad

Repayment and the Repayment Holiday

• Repayment shall start 1 year after course completion

• The loan is to be repaid within 15 years after course completion

• In case a second educational loan is taken, the borrower can repay the loan amount of both courses within 15 years after completion of the second course.

EMI Generation

• The accrued interest for the course period and the moratorium period is added to the principal amount, and repayment can be made in EMIs.

• If the full interest is paid before the commencement of loan repayment, the EMI shall be fixed based on the loan’s principal amount only.

Documents Needed

For Student Applicants

• Any one proof of identity: PAN card/Voter ID/Driver’s licence

• Any one proof of address/residence: copy of recent telephone bill/water bill/electricity bill/gas bill/adhar card/passport/driving license

• Passport

• All academic records: Class 10 result/Class 12 result/Graduation result/Result of entrance exam to the institution

• Proof of admission to the educational institution

• Schedule of costs or Statement of expenses

• 2 passport-sized photos

• If borrower has existing loan(s) from other banks, then one needs to furnish the loan a/c statement of the last one year

For Co-Applicants

• Any one proof of identity: PAN card/Voter ID/Driver’s licence

• Any one Proof of address/residence: copy of recent telephone bill/water bill/electricity bill/gas bill/adhar card/passport/driving license

• 2 passport-sized photos

• If borrower has existing loan(s) from other banks, then one needs to furnish the loan a/c statement of the last one year

For Salaried Co-Applicant or Guarantor

• Salary slips of the last 3 months

• Copy of Form 16 for the last 2 years/copy of  IT returns for the last 2 years (acknowledged by the IT department)

• 6 months’ bank account statement of salary account

For self-employed co-applicant or guarantor

• Business address proof, if applicable

• Income tax return records, if applicable

• TDS certificate/Form 16A, if applicable

• Professional qualification documents (applicable for doctors, CA, and other professionals)

• Last 6 months’ bank account statement

All documents of all categories need to be self-attested.

SBI SKILL LOAN SCHEME

This term loan is granted to Indian citizens or Indian nationals who are currently pursuing skill development courses in India. The loan is disbursed within a maximum of 6 working days after the supporting documents and filled in application form are received. There are no processing fees involved, and there is no margin either.

Institution and Course Eligibility

• Training institutes and courses

• Schools that are recognized by State and Central Boards of Education 

• Colleges affiliated to recognized universities that offer degree or diploma courses

• No minimum course duration

Expenses Covered

• Course and tuition fees

• Library, lab, and exam fees

• Caution Deposits

• Purchase of books and other items necessary for course completion

Loan Amount

Minimum loan amount: Rs. 5000
Maximum loan amount: Rs. 1,50,000

Moratorium period

• If course is of or less than one year, the moratorium period is 6 months from course completion.

• If course duration is more than one year, the moratorium period is 12 months from course completion.

Repayment Tenure

• The repayment period is up to 3 years for loan amounts of up to Rs. 50,000

• The repayment period is up to 5 years if the loan amount is between Rs. 50,000 and Rs. 1,00,000

• The repayment period is up to 7 years if the loan amount is more than Rs. 1,00,000

Security

• No collateral or third party guarantees are taken

• Parents/guardian/spouse can be co-applicants

Documents Needed

• The filled in application form

• Marksheets of the latest school board exam

• Proof of admission

• Schedule of expenses for the course

• 2 passport-sized photos

• PAN card of the applicant and co-applicants

• Aadhar card of the applicant and co-applicants

• Bank account statement of the borrower for the last six months

• IT assessment order or IT return statement of the last two years of the co-borrower, if an IT assessee

• A statement of the co-borrower’s assets and liabilities

• Proof of income

SBI TAKEOVER OF EDUCATION LOANS

This scheme is ideal for those who wish to reduce the EMIs of their high-cost education loans by switching over the loan to SBI.

Special Features

1. The educational loan can be for up to Rs. 1.5 crores, starting at a minimum of Rs. 10 lakhs

2. Competitive interest rates

3. Flexible repayment tenure of up to 15 years

Benefits

1. It reduces the monthly payment obligation

2. EMIs can be paid through mobile banking, cheques, and net banking

3. There is no processing fee involved

4. There are no hidden charges

5. The facility to get a top-up loan for additional studies is made available

Eligibility

• The loan needs to be a fresh takeover

• The student borrower needs to be enrolled in a course at the time of the switchover

• The loan needs to be fully disbursed at takeover

• Repayment should have already been started with regular EMIs

Quantum of Finance

• Minimum - Rs. 10 lakhs

• Maximum - Rs. 1.5 crores

• The outstanding loan amount is catered to

Security
The collateral security acceptable should be 100% of the loan amount.

Documents Needed

• The filled in application form

• Marksheets of the latest school board exam

• Proof of admission

• Schedule of expenses for the course

• 2 passport-sized photos

• PAN card of the applicant and co-applicants

• Aadhar card of the applicant and co-applicants

• Bank account statement of the borrower for the last six months

• IT assessment order or IT return statement of the last two years of the co-borrower, if an IT assessee

• A statement of the co-borrower’s assets and liabilities

• Proof of income

How to Apply for SBI Education Loan

One can get an SBI education loan from all its branches at urban and metro areas, as well as the branches that have personal banking services or facilities.
If you wish to apply online, you can do so easily. Go to this link. Here you can see the five types of education loan schemes from the SBI. Click on the one you deem suitable. For example, if you click on the Scholar Loan, for instance, you’ll see that an ‘Apply Now Online’ link appears on the top right. Click on it, fill in all the details, and submit the form. SBI representatives will contact you soon to take the process forward.

FAQs

Q. How is EMI calculated?
A. EMI includes both the principal amount and interest. The EMI depends on your loan term. In case of a shorter loan period, the EMI will be higher, and if the loan period is longer, the EMIs will be less.
Q. Are there processing fees or additional charges?
A. There are no such processing fees or additional charges.
Q. How are repayments determined when there is a moratorium period?
A. If there is an outstanding interest for the moratorium time period, it will be added to the total loan amount when the repayment commences. The EMI will then be determined based on this amount.

NEWS

Revision in Service Charges
The State Bank of India has announced a revision on its IMPS charges with effect from 1/8/19. You can view the details of this change over here. With this update, customers can actually save money, as there shall be no charge for INB and MBS services from 1/8/19. Additionally, there shall be no charges whatsoever when the IMPS charges are up to Rs. 1000.