SBI Education Loan –Types, Eligibility, Interest Rates, & Application Process

State Bank of India (SBI) offers various education loan schemes to cater to different educational needs. SBI provides a range of education loans with interest rates ranging from 8.05% to 11.75% per annum. These loans offer flexible repayment options, including a moratorium period post-course completion. Additionally, the bank does not impose prepayment penalties, allowing borrowers to repay the loan ahead of schedule. Certain loans also extend interest concessions to female students.

State Bank of India provides a range of education loans for school students in India to finance domestic and international studies, as well as vocational and professional courses. Additionally, SBI offers education loan takeover facilities which enable borrowers to consolidate existing high-interest education loans into a single, lower-interest SBI loan. To explore the features, interest rates, and application process for SBI education loans. Candidates can visit the official SBI website or consult with an SBI branch.

Types of SBI Education Loans

Established in 1806, the State Bank of India (SBI) is one of Asia's oldest and largest commercial banks. SBI serves millions of customers as a premier financial institution through its extensive network of over 24,000 branches and 59,000 ATMs. With a significant market share, SBI provides a diverse range of loan products to cater to the evolving needs of its customers.

SBI Student Loan Scheme:

SBI's Student Loan Scheme is designed to help aspiring students finance their higher education in India. SBI student loan repayment period of up to 15 years after the Course Period + 12 months of repayment holiday. This scheme offers a range of benefits and features to make the educational journey smoother.

Key Features of the SBI Student Loan Scheme:

• Loan Amount: Up to Rs 20 lakh and Loans above Rs. 20 lacs: Rs. 10,000 (plus taxes)

• Competitive Interest Rates: Enjoy competitive interest rates on SBI education loans.

• Flexible Repayment: A moratorium period is provided after completing the candidates' course.

• Minimal Documentation: The process is streamlined with minimal paperwork.

• Quick Disbursement: Funds are disbursed directly to the educational institution.

Eligibility Criteria:

To be eligible for the SBI Student Loan Scheme, candidate must:

• Be an Indian citizen.

• Be admitted to a recognized institution in India.

• 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

• Teacher training/ Nursing courses approved by the Central Government or the State Government

• Regular Degree/Diploma Courses like Aeronautical, pilot training, shipping, etc. approved by the Director General of Civil Aviation/Shipping/ concerned regulatory authority b. Studies abroad:

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

SBI Scholar Loan Scheme

SBI's Scholar Loan Scheme is specifically designed for students seeking admission to prestigious institutions like IITs, IIMs, NITs, AIIMS, etc. This scheme offers higher loan amounts and flexible repayment options to cater to the unique needs of students pursuing higher education at top-tier institutions. There will be quick sanction at designated campus branches or more than 5000 selected branches all over the country

Key Features of the SBI Scholar Loan Scheme:

• 100% Financing

• No Processing Fee

• Get loans up to a significant amount to cover tuition fees, hostel fees, and other expenses.

• Enjoy a moratorium period after their course completion to ease the initial financial burden.

• The application process is streamlined to ensure a hassle-free experience.

• Funds are disbursed directly to the educational institution to expedite the process.

Loan Amount & Security

Repayment of SBI Scholar Loan

Repayment of the loan commences 12 months after the conclusion of the course or 6 months after securing employment, whichever is earlier. The maximum repayment tenure is 15 years. In the event of a subsequent loan for further studies, the combined loan amount is to be repaid within 15 years of the completion of the second course.

Eligibility Criteria:

To be eligible for the SBI Scholar Loan Scheme, the candidate must:

• Be an Indian National

• Secured admission to professional/technical courses in select premier institutions through an entrance test/selection process

SBI Skill Loan Scheme:

SBI's Skill Loan Scheme is designed to help individuals acquire the necessary skills to enhance their employability. This scheme provides financial assistance for various skill development courses. It also includes any other reasonable expenditure found necessary for the completion of the course such as courses are localized boarding, lodging may not be necessary. However, wherever it is found necessary, the same could be considered on merits

Key Features of the SBI Skill Loan Scheme:

• Loan Amount: The minimum loan amount: is Rs 5000 and the maximum loan amount is Rs 1,50,000

• Enjoy affordable interest rates on the skill development loan.

• The application process is streamlined to ensure a hassle-free experience.

• No Collateral Security: Candidates don't need to provide any collateral to avail this loan.

• Flexible Repayment: A moratorium period is available after course completion.

• However, the Parent/ Guardian will execute loan documents along with the student, as a joint borrower (co-borrower). Spouse will be included as co-applicant wherever applicable, in addition to Parent/ Natural Guardian.

Eligibility Criteria:

To be eligible for the SBI Skill Loan Scheme, candidate must:

• Skill Development Courses: Courses offered by Industrial Training Institutes (ITIs), Polytechnics, training partners affiliated with the National Skill Development Corporation (NSDC)/ Sector Skill Councils, State Skill Missions, or State Skill Corporations, leading to a certificate, diploma, or degree recognized by the National Skill Qualification Framework (NSQF).

• Academic Courses: Courses offered by schools recognized by Central or State Education Boards or colleges affiliated with recognized universities, leading to a certificate, diploma, or degree recognized by the National Skill Qualification Framework (NSQF).

• Course Duration: There is no minimum course duration requirement for a Skilling Loan.

SBI Global ED-Vantage Scheme

SBI's Global ED-Vantage Scheme is designed to help aspiring students finance their higher education abroad. This scheme offers a range of benefits and features to make the international education journey smoother.

It is offered to 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.

Key Features of SBI Global ED-Vantage Scheme:

• Higher Loan Amounts: Get loans up to a significant amount to cover tuition fees, hostel fees, and other expenses.

• Faster: Online application process

• Lighter: Attractive interest rate

• Higher: Loan amount Upto Rs. 1.50 Crores

• Easier: Repayment through EMI for upto 15 years

• Early Approval: loan sanction before i20/Visa

• Tax Benefit: under section 80(E)

• Fee payable to college/school/hostel.

• Examination/Library/Laboratory fee.

• Travel expenses/passage money for studies abroad.

Eligibility Criteria:

To be eligible for the SBI Global ED-Vantage Scheme, they must:

• Be an Indian citizen.

• Have secured admission to a recognized foreign university or institution.

• Have a good academic record.

Documents Required:

• Duly filled application form

• Proof of identity (Aadhaar card, PAN card, passport)

• Proof of address (Aadhaar card, passport, voter ID, utility bills)

• Academic certificates (10th, 12th, graduation, etc.)

• Admission letter from a foreign institution

• The fee structure of the course

• Visa copy

• Foreign Exchange Demand Draft (FEDD) for initial expenses

Shaurya Education Loan

SBI Shaurya Education Loan is a special education loan scheme designed to support the higher education of eligible children of Defense and Indian Coast Guard personnel. This scheme offers a range of benefits to help students pursue their academic goals.

Key Features of SBI Shaurya Education Loan:

• Hassle-Free processing of the education Loan

• Quick sanctions

• 6 month grace period is provided to create a mortgage of property offered as security with the Bank.

• Easy repayment over 15 years through EMI

• Income Tax benefit U/S 80 (E)

• The takeover of existing education loans from other financial institutions is permitted.

• Loans can be obtained at a permanent place of residence/ place of posting or the location of the property offered as security.

• Loan amount:

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  • Studies In India- Maximum Rs. 40 lakhs

  • Studies Abroad- Maximum Rs. 1.50 Cr

Eligibility Criteria:

To be eligible for the SBI Shaurya Education Loan, they must:

• Only the wards of Defense & Indian Coast Guard Personnel will be eligible.

• Parents (Co-borrowers) must be Defense Salary Package/Indian Coast Guard Salary package account holders at SBI Bank.

• The co-borrower's salary/pension account should be with SBI throughout the loan tenure.

How to Apply for an SBI Education Loan?

For SBI Scholar Loans, candidates may need to apply through select campuses or mapped branches. By following these steps, they can initiate their journey towards securing an SBI education loan to fulfil their academic aspirations.

SBI Education Loan Offline Application Process:

1. Visit the Nearest SBI Branch: Head to the nearest SBI branch and collect the necessary application form.

2. Fill Out the Application Form: Complete the form with all the required details.

3. Submit the Application: Submit the filled-out form along with the necessary documents.

SBI Education Loan Online Application Process:

1. Visit the SBI Website: Go to the official SBI education loan website.

2. Navigate to the Education Loan Section: Locate the section dedicated to SBI education loans.

3. Choose Loan Option: Select the appropriate loan type (e.g., Student Loan, Scholar Loan).

4. Apply Online: Click on the "Apply Now" button.

5. Register on Vidya Lakshmi: They will be redirected to the Vidya Lakshmi portal, where they need to register with their details.

6. Submit Application: Complete the online application form and submit it.

7. Bank Representative Contact: An SBI representative will contact the candidate to further guide them through the process.

Documents Required for SBI Education Loan

• Mark sheet of 10th, 12th, Graduation (if applicable), Entrance Exam Result

• Proof of admission to the course [ Offer Letter/ Admission Letter/ ID card if available]

• Schedule of expenses for course

• Copies of letters conferring scholarship, free-ship, etc.

• Gap certificate, if applicable (self-declaration from the student for a gap in studies)

• Passport size photographs of Student / Parent / Co-borrower / Guarantor (1copy each)

• Asset-Liability Statement of Co-applicant / Guarantor (Applicable for loans above Rs 7.50 lacs)

• For Salaried Persons

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  • (a) Latest Salary Slip

  • (b) Form 16 OR latest IT Return (ITR V)

For other than Salaried Person:

• (a) Business address proof (if applicable)

• (b) Latest IT Returns (if applicable)

• Bank Account Statement for the last six months of Parent / Guardian/ Guarantor

• 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

• Permanent Account Number (PAN) of Student / Parent / Co-borrower / Guarantor

• AADHAAR (mandatory, if eligible under various interest subsidy schemes of GOI)

• Passport (mandatory for Studies Abroad)

• Submission of Officially valid documents

Important Considerations

SBI education loans are not limited to higher education; they can also be tailored to the specific financial requirements of school students. Students are encouraged to consult with bank representatives to discuss their individual needs.

Eligibility, documentation, interest rates, and repayment terms for SBI education loans can vary based on the specific course, institution, and the applicant's profile. It's crucial to ensure that candidate has all necessary documents ready and to carefully plan their repayment strategy to avoid any defaults. Additionally, interest rates may fluctuate based on factors such as the loan amount, tenure, and prevailing market conditions.