SBI Education Loan In India 2023, Abroad, Interest, Eligibility

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Are you in search of an SBI education loan? Then you land on the right page. Here you will understand the SBI Education Loan in detail and in simple language.

Education loans are very important for doing higher studies, especially for those who are not able to pay high tuition fees and other miscellaneous charges. For those who are not capable, banks are liable to grant loans under Priority Sector Lending as per guidelines issued by the Reserve Bank of India.

Education loans not exceeding Rs. 20 lakhs are considered Priority Sector Lending as per Master Directions: Priority Sector Lending (PSL) – Targets and Classification (Updated as of October 20, 2022) by the RBI. Education is a basic and fundamental right for everyone. This initiative has been taken under the Right to Education.

So, if you want to become a doctor, highly skilled engineer, lawyer, or anything else as per your wish, you can easily fulfil your dreams with an education loan. Almost every bank has this product in its retail loans bucket, and the SBI Education Loan comes with so many features and facilities for students who want to pursue higher studies in India or abroad. We will also cover other banks education loans and comparisons on our website, Bankpedia, so don’t forget to bookmark the site.

Now, let’s get started.

Eligibility Criteria for SBI Education Loan

Age criteria

Age should be between 16 and 35 years of age. Co-applicant is mandatory for all full-time programs – co-applicant could be parent/guardian

A very basic eligibility criteria for an SBI education loan is that you must be an Indian citizen.

Educational qualification requirements

At least 60% marks in 10th, 12th grade or Graduation from any recognized board or university in India.

Courses eligible for studies in India

  1. Graduation, Post-graduation including regular technical and professional Degree/Diploma courses conducted by colleges/universities approved by UGC/ AICTE/IMC/Govt. etc Regular Degree/ Diploma Courses conducted by autonomous institutions like IIT, IIM etc
  2. Teacher training/ Nursing courses approved by Central government or the State Government
  3. Regular Degree/Diploma Courses like Aeronautical, pilot training, shipping etc. approved by Director General of Civil Aviation/Shipping/ concerned regulatory authority.

Courses eligible for studies Abroad

  1. Job oriented professional/ technical Graduation Degree courses/ Post Graduation Degree and Diploma courses like MCA, MBA, MS, etc offered by reputed universities.
  2. Courses conducted by CIMA (Chartered Institute of Management Accountants) – London, CPA (Certified Public Accountant) in USA etc.

Eligible Expenses covered under SBI Education Loan

  1. Fees payable to college/school/hostel
  2. Examination/Library/Laboratory fees
  3. Purchase of Books/Equipment/Instruments/Uniforms, Purchase of computers- essential for completion of the course (maximum 20% of the total tuition fees payable for completion of the course).
  4. Caution Deposit/Building Fund/Refundable Deposit (maximum 10% of tuition fees for the entire course).
  5. Travel Expenses/Passage money for studies abroad.
  6. Cost of a Two-wheeler upto Rs. 50,000/-
  7. Any other expenses required to complete the course like study tours, project work etc.

Types of SBI Education Loans

1. SBI Student Loan Scheme

A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured.

2. SBI Scholar Loans (Including  TAKEOVER and PART-TIME COURSES for select institutes)

Loan for pursuing higher education in Select Premier Institutions like IITs, IIMs , NITs etc. of the country

3. SBI Skill loan scheme

A term loan granted to Indian Nationals for pursuing Skill development courses in India.

4. Studies Abroad SBI Education Loan

Regular Graduate Degree/Post-Graduate Degree/Diploma/Certificate/Doctorate Courses in any discipline offered by foreign Institutes/Universities in USA, UK, Canada, Australia, Singapore, Japan, Hong Kong, New Zealand and Europe [Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, United Kingdom] will be covered under the scheme.

5. Takeover Of Education Loans

With SBI Take-over of Education Loans, you can switch your existing high cost Education Loan to SBI and reduce your monthly EMIs.

6. SBI Global ED-Vantage Scheme

Loans will be granted to deserving/ meritorious students for pursuing full-time regular courses in foreign colleges/ universities.

7. Shaurya Education Loan

Education Loan for wards of DSP/ICGSP Officers in all Ranks for Studies in India & Abroad.

Maximum Loan amount of SBI Education Loan

Sr noSBI Education Loan SchemeMaximum Loan Amt
1Student Loan SchemeRs. 50.00 lakhs
2Scholar Loans SchemeRs. 40.00 lakhs
3Skill Loan SchemeRs. 1.50 lakhs
4Studies AbroadRs. 1.50 crores
5Takeover of Education loansRs. 1.50 crores
6Global ED-Vantage SchemeRs. 1.50 crores
7Shaurya SBI Education LoanRs. 1.50 crores

SBI Education Loan Interest Rates 2023

Sr noSBI Education Loan SchemeMinimum Interest RateMax. Interest Rate
1Student Loan Scheme*11.15%11.15%
2Scholar Loans Scheme8.55%10.05%
3Skill Loan Scheme10.65%10.65%
4Studies Abroad*11.15%11.15%
5Takeover of Education loans*11.15%11.15%
6Global ED-Vantage Scheme*11.15%11.15%
7Shaurya SBI Education Loan*11.15%11.15%
Interest Rates as on 18th March 2023. Data taken from SBI Official Website

Note:

* Girls Students have special concession of 0.50%

Further 0.50% concession in SBI Education Loan – Student Loan Scheme, Global ED-Vantage, Takeover of Education Loan and Shaurya Education loan, if student availing SBI Rinn Raksha or any other existing life insurance policy assigned in favour of SBI Bank.

Repayment Terms

Sr noSBI Education Loan SchemeRepayment Period
1Student Loan Schemeup to 15 years after Course Period + 12 months of repayment holiday (moratorium)
2Scholar Loans Schemeup to 15 years after Course Period + 12 months of repayment holiday (moratorium)
3Skill Loan Schemefrom 3 years to 7 years
4Studies Abroad*up to 15 years after Course Period + 6 months of repayment holiday (moratorium)
5Takeover of Education loans*Existing repayment period + 12 months of moratorium
6Global ED-Vantage Scheme*up to 15 years after Course Period + 6 months of repayment holiday (moratorium)
7Shaurya SBI Education Loan*up to 15 years after Course Period + 6 months or 1 year after getting job, whichever is earlier
Data taken from SBI Official Website

Documents required for SBI Education Loan

  1. Mark sheet of 10th, 12th, Graduation (if applicable), Entrance Exam Result
  2. Proof of admission to course [ Offer Letter/ Admission Letter/ ID card if available]
  3. Schedule of expenses for course
  4. Copies of letter conferring scholarship, free-ship, etc.
  5. Gap certificate, if applicable (self-declaration from student for gap in studies)
  6. Passport size photographs of Student / Parent / Co-borrower / Guarantor (1copy each)
  7. Asset-Liability Statement of Co-applicant / Guarantor (Applicable for loans above Rs 7.50 lacs)
  8. For Salaried Persons
    • Latest Salary Slip
    • Form 16 OR latest IT Return (ITR V)
  9. For other than Salaried Person:
    • Business address proof (if applicable)
    • Latest IT Returns (if applicable)
  10. Bank Account Statement for the last six months of Parent / Guardian/ Guarantor
  11. Copy of Sale Deed and other documents of title to property in respect of immovable property offered as collateral security / Photocopy of Liquid Security offered as collateral
  12. Permanent Account Number (PAN) of Student / Parent / Co-borrower / Guarantor
  13. AADHAAR (mandatory, if eligible under various interest subsidy schemes of GOI)
  14. Passport (mandatory for Studies Abroad)
  15. Submission of OVD

Charges, Margin and Security

Processing Charges

  • Loans upto Rs. 20 lacs : NIL
  • Loans above Rs. 20 lacs: Rs. 10,000 (plus taxes)

Margin Amount Required

  • Up to Rs 4 Lacs – Nil
  • Above Rs 4 Lacs – 5% for studies in India, 15% for studies in abroad

Security Required

  • Up to Rs. 7.50 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee
  • Above Rs. 7.50 Lacs: Parents/ Guardian as co-borrower and tangible collateral security

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