SBI Education Loan: State Bank of India is offering education loans to students who want to pursue higher education in India or Abroad. SBI is one of the largest education loan providers in India that understands students’ needs and provides highly competitive loan amounts with lower interest rates.
Willing students are advised to compare the interest rates between all public and private banks before taking a student education loan. Know the complete details about SBI education loans in the following sections. This page covers the different types of student loans in SBI, eligibility conditions, interest rates, the application process, needed documents, loan repayment rules, subsidy schemes, and interest rates.
SBI Education Loans
Education is one section where everyone is willing to spend a lot of money to live a prosperous life in the future. But all students might not have sufficient amounts to spend on their studies. For those, the State Bank of India is giving education loans to secure admissions to top universities and colleges in India and abroad.
The bank offers a wide range of education loans with interest rates beginning from 11.15%. The schemes have flexible repayment tenures and a moratorium period after completion of the selected course. The different types of available education loans in SBI are here:
- SBI Student Loan Scheme
- Scholar Loans (IITs, IIMs, NITs etc.)
- Studies Abroad (Above Rs. 7.50 lakhs)
- Skill Loan
- Takeover of Education Loans
- Education Loan MITC
- Shaurya Education Loan
The different subsidy schemes available in the State Bank of India are along the lines:
- Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for Overseas Studies for OBCs and EBCs
- CSIS Scheme
- Padho Pradesh – Scheme of Interest Subsidy on Education Loans for Overseas Studies For the Students Belonging to the Minority Communities
Features of SBI Student Education Loans
The features of various SBI Education Loan schemes are along the lines:
SBI Student Loan Scheme
- Students can make loan repayments for up to 15 years.
- Interest rate is 11.15%
- No processing fee for 20 lakhs loan amount
- Loan is sanctioned to Indian students for higher education in India or abroad.
Scholar Loans
- Repayment period is up to 15 years + moratorium period
- Loan is approved for higher studies in IITs, NITs, and IIMs
- Rate of Interest is 8.15% to 9.65%
- There is no processing fee
Studies Abroad
- Repayment tenure si 15 years through EMI
- Processing Fee: INR 10,000/-
- Rate of Interest: 11.15%
- Loan is approved to pursue full-time courses in abroad countries.
Skill Loan
- Repayment tenure is 7 years for loans > 1 lakh, 3 years for loans up to 50,000
- No processing fee charge
- Students can switch their high-cost education loans to SBI
- Rate of Interest: 10.65%
Takeover of Education Loans
- Repayment period is up to 15 years
- No processing fee charges are applied
- Loan is provided to pursue skill development courses in India
- Rate of Interest: 11.15%
Education Loan MITC
- Loan repayment period is 15 years and moratorium period
- The loan is approved to study higher education in India/abroad
- Rate of Interest: 11.15%
Shaurya Education Loan
- Loan repayment period is up to 15 yera through EMI
- The loan is given to support the wards of Defense & Indian Coast Guard Personnels
- Rate of Interest: 11.15%
Needed Documents for SBI Student Education Loans
The list of documents needed to apply for a State Bank of India Education Loan is here:
- Mark sheet of class 10, 12, graduation, and entrance exams.
- Admission letter from the college.
- Course expense details.
- Documents confirming scholarship or free ship
- For a loan amount above Rs 7.50 lakhs, an asset-liability statement of co-applicant is needed
- Latest pay slips and Form 16 and IT Return for salaried applicants
- Business address proof and latest salary slip for non-salaried persons
- Last 6 months bank statements of parent or guardian
- One passport size photograph of student and parent/co-applicant/co-borrower
- PAN of student, parent and guardian
- Aadhar card of student and parent
- Passport of students
- Officially Valid Documents: Aadhar, Voter ID, Driving License, Passport, NREGA job card signed by state govt officer
The documents may differ for Takeover of Education Loans, and Shaurya Education Loan
How To Apply for SBI Student Loan?
Students can apply for SBI Education Loan online or offline. Here is the simple application process.
Offline:
- Go to the nearest SBI branch with all the required documents.
- Fill out the application form and submit it.
Online:
- Check the SBI official portal.
- Navigate to the section on Education Loan.
- Select your preferred loan option from the available.
- Click on the “Apply Now” option.
- You will be redirected to the application form page.
- Register by entering your details.
- Finally apply for the loan.
- The bank representative will communicate with you.
Benefits of Taking an Education Loan in SBI
Here are some of the advantages of an education loan with SBI.
- In this bank, interest rates are low.
- There are no hidden fees or administrative expenditures.
- There are fewer forms to fill out and no processing fees for many loans.
- For loan amounts up to 4 lakhs, no security is needed.
- For female students, there is a 0.50% discount.
- Loan repayment can be till 15 years.
Subsidy Schemes for State Bank of India Student Education Loan
State Bank of India offer loan interest subsidy schemes for students, allowing them to save money while continuing their studies. Those schemes are as mentioned here:
- Interest Subsidy Central Scheme for Economically Weaker Sections: The annual gross parental or family income should be less than Rs. 4.50 lakhs. It applies to courses in India’s approved professional and technical courses. The subsidy is available during the EMI moratorium period.
- Padho Pardesh is a state in India: This programme gives interest-free education loans to minority students to pursue higher studies in foreign countries. This applies to Master’s, M.Phil, and PhD curses.
- Dr Bhimrao Ambedkar Scheme for the Central Sector: It applies to interest subsidies on education loans for students from EBCs and OBCs.
SBI Repayment Rules for Education Loans
The SBI Education Loans have 6 months moratorium period for courses that are longer tahn 6 months. There is no need to make any payments during that moratorium period. The repayment of the loan starts 6 months after the completion of the course for both the SBI student loan scheme and the SBI Global Edvantage scheme.
Other private banks and NBFCs need at least a partial payment of interest while your studies. The moratorium period is not available in those banks.
FAQs on Education Loan in SBI
- Who is eligible for an SBI education loan?
The students who are Indian nationals and have secured admission from a recognised institution in India or abroad for various eligible courses are eligible to take education loans from SBI.
- Is there any interest in an education loan in SBI?
Yes, SBI makes repayment of the education loan along with interest. The interest rates are different for different loan schemes. For education loans, the interest rate starts at 11.5%.
- Is a parent’s income required for an education loan?
Yes, the parent’s financial status is needed for an education loan. The bank asks for parent’s annual income for abroad students.
- What is the maximum period of an SBI education loan?
The maximum period to make repayment of education loans in SBI is 15 years.
Final Words
We are hoping that by looking at the various SBI Education Loan Schemes, you have got an idea of which loan scheme is suitable for you. Collect all the required documents and start the loan process. Know more related articles like Study in India Education Loan, How to Get Education Loan for B.Tech, and HDFC Education Loan on this page.