SBI Education Loan

Important information on State Bank of India Education Loans is:

1Y MCLR for SBI is 8.55%.

The Reset Period for Education Loan is 1 year. The list for premier institutes can be found here.

The Rate of Interest on their diverse education loan schemes are as follows:

Education Loan Scheme	Interest Rate
SBI Student Loan Scheme*	Up to ₹ 7.50 Lakh 1Y MCLR + 2.00% Spread Above ₹ 7.50 Lakh** 1Y MCLR + 2.25% spread
SBI Scholar Loan Scheme	AA list institutes 1Y MCLR + 0.20% spread
	A list institutes
	All IIMs & IITs 1Y MCLR + 0.35% spread	Other Institutes 1Y MCLR + 0.50% spread
	B list institutes
	All NITs 1Y MCLR + 0.50% spread	Other institutes 1Y MCLR + 1.00% spread
	C list institutes
	All NITs 1Y MCLR + 0.50% spread	Other institutes 1Y MCLR + 1.50% spread
SBI Skill Loan Scheme	1Y MCLR + 1.50% spread
SBI Global Ed-Vantage Scheme***	1Y MCLR + 2.25% spread
SBI Takeover Of Collateralised Education Loans Scheme*	1Y MCLR + 1.50% spread

* 0.50% concession in interest rate for girls
** 0.50% concession for students availing of SBI Rinn Raksha or other policy in favour of bank
*** concession for girls as well as policies favouring SBI will get 0.50% concession each

State Bank of India charges no processing fees when the student pursues higher education in India or when the loan amount sought is below ₹ 20.00 Lakh for foreign education. State Bank of India also doesn’t charge any hidden fees on the loan amount sought. The bank realises the potential of students that are able to secure admission in premier institutes and offers them special concessions for the same. The maximum tenure is 15 years on SBI Education Loans. On top of that State Bank of India is one of India’s oldest and most trusted banks so applying for an education loan from the bank is a reliable venture.

State Bank of India has brought out many schemes that aim to cater to the diverse needs of India’s youth. The scheme target specific groups of students that might want to pursue higher education in India, abroad, or simply want to develop a specific vocational skill. The schemes are:

• SBI Scholar Loan Scheme

State Bank of India Scholar Loan Scheme was brought out by the bank to provide financial aid to meritorious students who have secured admission in a premier institute of India. The list of premier institutes can be found here.

Maximum Loan Amount

Grade of Institute	Maximum Loan Amount
	Without Security. Parent as co-borrower	100% tangible security with parent as co-borrower
List AA	₹ 40.00 lakh	–
List A	₹ 20 Lakh	₹ 30.00 lakh
List B	₹ 20 Lakh	–
List C	₹ 7.5 Lakh	₹ 30.00 lakh

In case of married person, co-obligator can either be spouse or parent, parent-in-law. Parental obligation can also be substituted by a suitable third party guarantee.

Courses Covered

Courses covered in this education loan are only regular full time Degree or Diploma courses that the student secured through selection or merit. Full time Executive Management Courses like PGPX is also considered.

Other details of SBI Scholar Scheme are:

Eligibility	Should be an Indian national residing in India.
	Student should have secured admission in a premier institute as set by SBI.
Moratorium Period	Course Period with additional 1 year
Expenses Covered	Fee payable to College or University, Hostel charges.
	Travel Expenses or passage money from destination country to back even in case of student exchange program.
	Insurance premium if any Life Insurance is opted by the student borrower
	Examination, Library, and Laboratory Fee.
	Any other expenses required to complete the course like study tour, etc
	Books, instruments, uniforms.
	Personal Computers or Laptops if required.
	Caution deposit, building fund, refundable deposit supported by institution bills. As long as it is less than 10% of total tuition fee for the course.
Repayment Period	Repay within 15 years after completion of course and additional 1 year
	In case second loan is availed for higher studies later then repay within 15 years after completion of the second course
EMI Generation	The accrued interest during moratorium and course period is added to principal amount and repayment EMI is fixed. If interest is paid off within moratorium period then EMI is fixed based on principal amount only.

Documents Required

The bank requires certain documents under Know Your Customer Policy (KYC). The documents are required from both the student and co-borrower:

Identity Proof	Passport, PAN Card, Aadhaar Card, Voter’s ID Card, Driving Licence, Photo Credit Card, Central and State Govt. issued Photo ID Proof, Defence ID Card, etc.
Residence Proof	Aadhaar Card, Ration Card, Passport, Bank Account Statement, Voter’s ID Card, Letter from any recognized public authority, Telephone Bill, Electricity Bill, Water Bill etc (not more than 3 months old), etc.
Income Proof in case of salaried co-borrower	Salary Slips (not more than 3 months old), Bank Statements (not more than 3 months old), ITR, Form-16 for last 2 years, bank account statement for  last 6 months of salary account.
Income proof for self-employed co-applicant	Business address proof, IT returns for last two years (If IT payee). TDS certificate Form 16A if applicable, Certificate of qualification (for CA, doctor, and other professions). Bank account statement for last 6 months.

Aside from KYC documents banks require some additional documents as well.

Student Applicant	Mandatory Passport submission
	Academic Records: X, XII grade results. Graduation results semester wise. Entrance Exam results that formed the basis of admission
	Proof of admission. Conditional application letter may be considered
	Cost of education, schedule of expenses.
	2-passport size photographs
	If Loan was taken out before then loan account statement for last 1 year.
Co-applicant	2-passport size photographs
	If Loan was taken out before then loan account statement for last 1 year.

Do note that all documents need to be self-attested.

SBI Global Ed-Vantage Scheme

State Bank of India has also brought out schemes that cater to students that plan to go abroad to pursue their education. This scheme only caters to them and has faster application review and offers better interest rate. Also under this scheme student can avail a loan before their I-20 visa/Visa is approved.

Maximum Loan Amount

SBI Global ED-Vantage scheme allows a maximum of ₹ 1.5 crore loan amount for foreign education. The minimum loan amount is ₹ 20.00 Lakh.

Eligible Courses

Regular Graduate or Post Graduate courses offered by institutes or universities located in USA, UK, Canada, Australia, Europe, Singapore, Japan, Hong Kong and New Zealand.

Other details of SBI Global Ed-Vantage Scheme are:

Eligibility	Should be an Indian national.
Margin	Scholarship or assistance to be considered in Margin
	Margin will be brought in on year-on-year basis as and when disbursements are made on a pro-rata basis.
Moratorium Period	Course Period with additional 6 months
Processing Fees	₹ 10,000 per application
Expenses Covered	Fee payable to College or University, Hostel charges.
	Travel Expenses or passage money from destination country to back even in case of student exchange program.
	Insurance premium of Rinn Raksha insurance scheme
	Examination, Library, and Laboratory Fee.
	Any other expenses required to complete the course like study tour, etc
	Books, instruments, uniforms, capped at 20% of total tuition fees.
	Personal Computers or Laptops if required.
	Caution deposit, building fund, refundable deposit supported by institution bills. As long as it is less than 10% of total tuition fee for the course.
Repayment Period	Repay within 15 years after completion of course and additional 1 year
EMI Generation	The accrued interest during moratorium and course period is added to principal amount and repayment EMI is fixed. If interest is paid off within moratorium period then EMI is fixed based on principal amount only.
Security	Tangible collateral security Collateral security offered by third party, other than parents, can also be considered.

Documents Required

The bank requires certain documents under Know Your Customer Policy (KYC). The documents are required from both the student and co-borrower:

Identity Proof	Passport, PAN Card, Aadhaar Card, Voter’s ID Card, Driving Licence, Photo Credit Card, Central and State Govt. issued Photo ID Proof, Defence ID Card, etc.
Residence Proof	Aadhaar Card, Ration Card, Passport, Bank Account Statement, Voter’s ID Card, Letter from any recognized public authority, Telephone Bill, Electricity Bill, Water Bill etc (not more than 3 months old), etc.
Income Proof in case of salaried co-borrower	Salary Slips (not more than 3 months old), Bank Statements (not more than 3 months old), ITR, Form-16 for last 2 years, bank account statement for  last 6 months of salary account.
Income proof for self-employed co-applicant	Business address proof, IT returns for last two years (If IT payee). TDS certificate Form 16A if applicable, Certificate of qualification (for CA, doctor, and other professions). Bank account statement for last 6 months.

Aside from KYC documents banks require some additional documents as well.

Student Applicant	Mandatory Passport submission
	Academic Records: X, XII grade results. Graduation results semester wise. Entrance Exam results that formed the basis of admission
	Proof of admission. Conditional application letter may be considered
	Cost of education, schedule of expenses.
	2-passport size photographs
	If Loan was taken out before then loan account statement for last 1 year.
Co-applicant	2-passport size photographs
	If Loan was taken out before then loan account statement for last 1 year.

Do note that all documents need to be self-attested.

SBI Student Loan Scheme

Under State Bank of India Student Loan Scheme the bank extends loan to students who want to secure higher education but don’t have the finances at the moment or want to disburse the financial burden over a greater time period. This student loan scheme can be availed by any prospective student seeking education in India or abroad.

The Maximum Loan Amount is ₹ 10.00 Lakh if pursuing education in India. It is ₹ 20.00 Lakh if pursuing in a foreign land. Higher loan limit for domestic education can be considered on a case to case basis. If the student plans to move abroad to pursue higher education and want additional loan amount they can apply for Global Ed-Vantage Scheme.

Eligible Courses

• Domestic Courses

Graduation, Post-graduation including regular technical and professional Degree or Diploma courses conducted by colleges or universities approved by UGC, AICTE,IMC, Government, etc.

Regular Degree or Diploma Courses conducted by autonomous institutions like IIT, IIM, etc.

Teacher training or Nursing courses that are approved by Central government or the State Government.

Regular Degree or Diploma Courses like Aeronautical, pilot training, shipping etc. approved by Director General of Civil Aviation/Shipping, or concerned regulatory authority.

• International Courses

Job oriented professional, technical Graduation Degree courses, Post Graduation Degree, and Diploma courses like MCA, MBA, MS, etc. that are offered by reputed universities

Courses conducted by CIMA (Chartered Institute of Management Accountants) – London, CPA (Certified Public Accountant) in USA etc.

Other details regarding the scheme are:

Eligibility	Should be an Indian national who has secured an admission.
Margin	Up to ₹ 4.00 Lakh Nil
	Above ₹ 4.00 Lakh	Domestic 5%                     International 15 %
Moratorium Period	Course Period with additional 1 year
Expenses Covered	Fee payable to College or University, Hostel charges.
	Travel Expenses or passage money for those that are headed abroad.
	Cost of a two wheeler, capped at ₹ 50,000.
	Examination, Library, and Laboratory Fee.
	Any other expenses required to complete the course like study tour, etc.
	Books, instruments, uniforms, capped at 20% of total tuition fees.
	Personal Computers or Laptops if required.
	Caution deposit, building fund, refundable deposit supported by institution bills. As long as it is less than 10% of total tuition fee for the course.
Repayment Period	Repay within 15 years after completion of course and additional 1 year.
	In case second loan is availed for higher studies later then repay within 15 years after completion of the second course.
EMI Generation	The accrued interest during moratorium and course period is added to principal amount and repayment EMI is fixed. If interest is paid off within moratorium period then EMI is fixed based on principal amount only.
Security	Up to ₹ 7.50 Lakh Only parent or Guardian as co-borrower
	Above ₹ 7.50 Lakh Parent, parent in law, spouse, guardian as co-borrower with tangible security

Documents Required

The bank requires certain documents under Know Your Customer Policy (KYC). The documents are required from both the student and co-borrower:

Identity Proof	Passport, PAN Card, Aadhaar Card, Voter’s ID Card, Driving Licence, Photo Credit Card, Central and State Govt. issued Photo ID Proof, Defence ID Card, etc.
Residence Proof	Aadhaar Card, Ration Card, Passport, Bank Account Statement, Voter’s ID Card, Letter from any recognized public authority, Telephone Bill, Electricity Bill, Water Bill etc (not more than 3 months old), etc.
Income Proof in case of salaried co-borrower	Salary Slips (not more than 3 months old), Bank Statements (not more than 3 months old), ITR, Form-16 for last 2 years, bank account statement for  last 6 months of salary account.
Income proof for self-employed co-applicant	Business address proof, IT returns for last two years (If IT payee). TDS certificate Form 16A if applicable, Certificate of qualification (for CA, doctor, and other professions). Bank account statement for last 6 months.

Aside from KYC documents banks require some additional documents as well.

Student Applicant	Mandatory Passport submission if going abroad.
	Academic Records: X, XII grade results. Graduation results semester wise. Entrance Exam results that formed the basis of admission
	Proof of admission. Conditional application letter may be considered
	Cost of education, schedule of expenses.
	2-passport size photographs
	If Loan was taken out before then loan account statement for last 1 year.
Co-applicant	2-passport size photographs
	If Loan was taken out before then loan account statement for last 1 year.

Do note that all documents need to be self-attested.

SBI Skill Loan Scheme

State Bank of India has also brought out Skill Loan scheme to cater to those individuals that want to develop their future by acquiring vocational skills. The individuals can avail this loan at attractive interest rate.

The maximum Loan amount is ₹ 1.50 Lakh. However individuals can also seek loan amount as little as ₹ 5,000.

Eligible Courses and Schools

Courses run by Industrial Training Institutes (ITIs), Polytechnics, training partners affiliated to National Skill Development Corporation (NSDC), Sector Skill Councils, State Skill Mission, State Skill Corporation, preferably leading to a certificate, diploma, degree issued by such organizations as per National Skill Qualification Framework (NSQF) are eligible for a Skill Loan.

Schools recognized by Central or State Education Boards or Colleges affiliated to recognized university leading to a certificate, diploma, degree issued by such organization as per National Skill Qualification Framework (NSQF) is eligible for a Skill Loan.

Other details for skill loan are:

Eligibility	Should be an Indian national who has secured an admission.
Margin	Nil
Moratorium Period	Course period less than 1 year 6 Months after course completion
	Course period more than 1 year 12 Months after course completion
Expenses Covered	Caution Deposit
	Examination, Library, and Laboratory Fee.
	Cost of Books, and Equipment.
	Tuition Fees
	Any other expenses required to complete the course like study tour, etc.
	If deemed necessary Lodging or Hostel Fees will also be provided.
Repayment Period	Loans up to ₹ 50,000 Up to 3 years
	Loans between ₹ 50,000 and ₹ 1.00 Lakh Up to 5 years
	Loans above ₹ 1.00 Lakh Up to 7 years
Timeline for Disposal of Loan	Maximum 6 days after receiving duly completed application. Additional 15 days required where verification is sought
Security	No collateral required, parents or guardian will sign as co-borrower

Documents Required

• Duly Filled Application Form
• Mark Sheet of last qualifying Exam
• Proof of admission, scholarship, etc.
• Schedule of expenses
• 2 passport size photographs
• PAN Card of student and co-borrower
• Aadhaar Card of student and co-borrower
• Co- borrower’s bank account statement for past 6 months
• Co-borrower’s income tax Returns or IT assessment order for the last 2 years (if IT Assesse)
• Statement of assets and liabilities of co-borrower
• Proof of Income, salary slips or form 16, for co-borrower

Take-Over of Education Loans

State Bank of India in its drive to help secure students’ academic career has brought out a scheme where they help financially struggling families by buying their Student Loans from their creditors and levying smaller interest rate. The scheme is really useful for those who have taken out an education loan and after their course end they have a hard time getting a job or had a huge financial loss. This scheme lets the user take the burden off the student and getting an extension of the loan. The scheme covers outstanding amount, Limits sanctioned as Top up Loan, and Prepayment penalty if any.

Salient Features

• Education loans up to ₹ 1.50 Crore can be considered
• Attractive Interest Rate
• Repayment tenure can be up to 15 years
• No processing fee
• No hidden charges
• Get top-up loan for pursuing higher studies

Maximum Loan Amount is ₹ 1.5 Crore. The minimum education loan amount should be ₹ 10.00 Lakh.

Other important details for Take-Over of Education Loan are:

Eligibility	The Education Loan should be fresh
	Student should be an adult
	Loan should be fully disbursed
	Repayments should have started with regular EMIs registered with the creditor
Processing Fee	NIL
Security	The collateral security should be 100% of the value of the proposed loan
Documents Required	Duly filled application form
	2 passport size photographs
	PAN Card of student and co-borrower
	Aadhaar Card of student and co-borrower
	Identity and Residence KYC documents
	Bank account statement of borrower and co borrower
	IT return or IT assessment order, pertaining to previous 2 years, of borrower and co-borrower (if IT Payee)
	Statement of assets and liabilities
	Proof of Income

For proof of income and KYC the following documents will do:

Identity Proof	Passport, PAN Card, Aadhaar Card, Voter’s ID Card, Driving Licence, Photo Credit Card, Central and State Govt. issued Photo ID Proof, Defence ID Card, etc.
Residence Proof	Aadhaar Card, Ration Card, Passport, Bank Account Statement, Voter’s ID Card, Letter from any recognized public authority, Telephone Bill, Electricity Bill, Water Bill etc (not more than 3 months old), etc.
Income Proof	Salary Slips (not more than 3 months old), Bank Statements (not more than 3 months old), ITR, Form-16, etc.

Other documents sought by the bank are:

• Mark sheet of latest qualifying exam for school and graduate course pursued in India
• Proof of admission to the institute
• Schedule of expenses
• Copies of letter confirming scholarship, etc.
• Copies of foreign exchange permit, if seeking travel expenses.
• Statement of Bank account for the last six months of guarantor

If you are not an existing bank customer you would also need to establish your identity and give proof of residence.

State Bank of India in its drive to help secure students’ academic career has brought out a scheme where they help financially struggling families by buying their Student Loans from their creditors and levying smaller interest rate. The scheme is really useful for those who have taken out an education loan and after their course end they have a hard time getting a job or had a huge financial loss. This scheme lets the user take the burden off the student and getting an extension of the loan. The scheme covers outstanding amount, Limits sanctioned as Top up Loan, and Prepayment penalty if any.

Salient Features

• Education loans up to ₹ 1.50 Crore can be considered
• Attractive Interest Rate
• Repayment tenure can be up to 15 years
• No processing fee
• No hidden charges
• Get top-up loan for pursuing higher studies

Maximum Loan Amount is ₹ 1.5 Crore. The minimum education loan amount should be ₹ 10.00 Lakh.

Other important details for Take-Over of Education Loan are:

Eligibility	The Education Loan should be fresh
	Student should be an adult
	Loan should be fully disbursed
	Repayments should have started with regular EMIs registered with the creditor
Processing Fee	NIL
Security	The collateral security should be 100% of the value of the proposed loan
Documents Required	Duly filled application form
	2 passport size photographs
	PAN Card of student and co-borrower
	Aadhaar Card of student and co-borrower
	Identity and Residence KYC documents
	Bank account statement of borrower and co borrower
	IT return or IT assessment order, pertaining to previous 2 years, of borrower and co-borrower (if IT Payee)
	Statement of assets and liabilities
	Proof of Income

 

For proof of income and KYC the following documents will do:

Identity Proof	Passport, PAN Card, Aadhaar Card, Voter’s ID Card, Driving Licence, Photo Credit Card, Central and State Govt. issued Photo ID Proof, Defence ID Card, etc.
Residence Proof	Aadhaar Card, Ration Card, Passport, Bank Account Statement, Voter’s ID Card, Letter from any recognized public authority, Telephone Bill, Electricity Bill, Water Bill etc (not more than 3 months old), etc.
Income Proof	Salary Slips (not more than 3 months old), Bank Statements (not more than 3 months old), ITR, Form-16, etc.

 

Other documents sought by the bank are:

• Mark sheet of latest qualifying exam for school and graduate course pursued in India
• Proof of admission to the institute
• Schedule of expenses
• Copies of letter confirming scholarship, etc.
• Copies of foreign exchange permit, if seeking travel expenses.
• Statement of Bank account for the last six months of guarantor

 

If you are not an existing bank customer you would also need to establish your identity and give proof of residence.

Students who have successfully applied for an institution can apply for the education loan in the following ways:

• Online Application

You can apply for a State Bank of India Education Loan online to do this follow the steps laid below:

• Got to the Education Loan Platform of State Bank of India.
• Select the type of education loan you want to apply for.
• On the new page click on ‘Apply Now Online’ tab.
• Fill up the form with all the required information and submit it.
• Select the type of loan you want and then complete the necessities required for fast processing.
• Offline Application

There are two ways through which you can apply for an education loan offline

• • Get a Callback

To get a call back from the bank follow the below laid steps:

• Got to the Education Loan Platform of State Bank of India.
• Select the type of education loan you want to apply for.
• On the new page click on ‘Get a Callback’ tab.
• Fill out the form and submit
• Enter the OTP and click on confirm tab.

You will get a call back from SBI customer care team specialising in education loans. You can discuss with the executive how you want to proceed with the education loan.

• • Branch Visit

Alternatively students wishing to apply for an education loan can approach the nearest SBI Bank branch. To find a branch near you go to branch locator of SBI bank. There you can contact a bank official who will guide you through the process of applying for an education loan.

Equated Monthly Installments or EMIs can easily be calculated through Paisabazaar’s Education Loan EMI Calculator. This is a fairly easy to use tool by following the steps which are given below:

Step 1: Enter the principal amount for education loan that you wish to borrow.

Step 2: In the next section enter the interest rate that has been offered to you for the education loan by the bank.

Step 3: In the last section, you will have to enter the loan tenure that you are opting for.

On the right side of the screen, you should be able to see the education loan EMI that you are liable to pay with the given combination of loan principal, tenure, and rate of interest.

The resulting EMI will vary as you change the variables of the education loan EMI calculation. You can easily change these values to arrive at an EMI that suits your budget and proceed to seek an education loan in that territory.

• Does State Bank of India charge any processing fees on education loan?

Only SBI Global Ed-Vantage Scheme charges ₹ 10,000 per application rest do not charge any processing fee or charge.

• What is EMI and how is it calculated?

EMI stands for Equated Monthly Installments. EMIs are calculated on the basis of both principal amount and interest accrued over the tenure, time period in which the loan has to be paid off. Shorter tenure means higher EMIs whereas longer tenure results in lower EMIs.

• What is repayment holiday or Moratorium period?

Repayment holiday or Moratorium period is the time period when you do not have to pay the Equated Monthly Instalments. This is the grace period that the bank provides to the students so that they can complete their education, secure a job and get settled. At SBI, the moratorium period ends after 1 year of completion of course or 6 months after you land a job. You are expected to pay the EMI as it is the minimum amount to be paid. You can pay more than the EMI and the bank will not charge any prepayment penalty.

• Will the loan affect my Credit Score?

Yes, the credit score or CIBIL score is affected by education loan and it serves a great opportunity to build the score. You are required to be very diligent when it comes to your education loan payments. Make sure you are never behind your payments on your education loan. Also if you do not pay the EMIs for three consecutive months the bank will label you NPA (Non-Performing Asset) which will ruin your credit score for the next 7 to 10 years!

• Who can apply for State Bank of India Education Loan?

Any student can apply for an education loan as long as they have received their High School Certification, passed the 12^th Grade. Students who can want to go to trade school, develop vocational skills can also apply as well.

• Where can I apply for a SBI education loan?

Students can apply for the loan from any branches in metro or urban areas as well as those who have personal banking divisions.

• Are there margins on loan amount sought from State bank of India Education Loans?

Some education loans of State Bank of India have margins and they vary from 5 to 15 per cent. Others don’t have any margins and they pay the full amount.

• Are there any tax benefits that come with educational loans?

Yes there is one tax benefit that you can avail. According to section 80 E of Income Tax Act of India, 1961, you can claim the interest paid on the education loan as a deduction.

• Are there any Subsidies I can apply for?

Yes, there are few schemes you can apply for like

• Padho Pardesh Interest Subsidy Scheme for Overseas Studies for the Minority Communities
• Dr. Ambedkar Interest Subsidy Scheme for Overseas Studies for OBCs and EBCs
• Central Scheme for Interest Subsidy for Economiacally Weaker Sections.

These schemes are for minorities such as SC/STs OBCs or other economically backward sections.

• What is the Marginal Cost Based Lending Rate (MCLR) of State Bank of India?

The MCLR rate of State Bank of India is 8.55% currently.