SBI Education Loan – All You Need to Know

SBI education loan schemes are supporting students across the country with the impending cost of education. SBI has been offering various SBI education loan schemes for students as per their specific requirement. Whether you want to opt for a student loan, skill loan, scholar loan or a loan to study abroad, SBI education loans have got you covered on all fronts. With faster online application process, lighter and attractive interest rates, higher loan amounts, easier EMI options, early approvals, tax benefits and better repayment options, SBI education loans are the preferred choice for innumerable students in India.

The first step for you as a student is to identify the type of SBI education loan you require in order to pursue your academic journey. The bank offers a range of student loan schemes depending upon the requirement of the students such as SBI Student Loan Scheme, SBI Scholar Loan Scheme, SBI Skill Loan Scheme, SBI Global Ed-Vantage Scheme. To compare SBI education loan details as per their specific requirements and offerings, check the comparison table ‘SBI Education Loan – Eligibility, Courses, Rate of Interest, Repayment, Comparison’ given at the end of the article.

SBI Education Loan – Eligibility

SBI education loan eligibility criteria differ for each type of education loan offered by the bank. While being an Indian national and having secured admission at the university are the basic eligibility criteria, there are more conditions specific to the type of education loan you are opting for. Given below are the eligibility criteria for each type of SBI education loan:

1. SBI Student Loan Scheme eligibility

SBI Student Loan Scheme is a term loan given to students of Indian nationality, looking to pursue higher education in India or abroad. The key eligibility criteria to apply for the loan is that the student must have secured admission before applying for the loan.

2. SBI Scholar Loan Scheme eligibility

SBI Scholar Loan Scheme is open to students looking to pursue higher education in select premier institutions in India. You can check the list of approved institutions in the table ‘SBI Scholar Loan Scheme – List of Approved Institutions’ given at the end of the article.

3. SBI Skill Loan Scheme eligibility

As the name suggests SBI Skill Loan Scheme is a term loan given to students with Indian nationality for pursuing skill development courses in India. Schools recognized by the Central or State education boards or colleges affiliated to recognized university leading to a certificate/diploma/degree issued by such organization as per the National Skill Qualification Framework (NSQF) are eligible for this loan.

4. SBI Global Ed-Vantage Scheme eligibility

An overseas education loan, SBI Global Ed-Vantage is open for Indian students looking to pursue full-time regular courses at foreign colleges and universities.

SBI Education Loan – Courses Covered

SBI education loan schemes vary in nature when it comes to the kind of courses covered. But all-in-all, from graduation courses to post-graduation courses, from teacher training to pilot training, and from polytechnic courses to global courses, SBI education loans cover most of the courses. Given below are the courses covered for each type of SBI education loan:

1. SBI Student Loan Scheme courses

For studies in India:

• Graduation, post-graduation courses together with regular technical and professional degree/diploma courses conducted by colleges and universities approved by UGC/ AICTE/IMC/Government, etc.
• Regular degree/diploma courses conducted by self-directed institutions like IIT, IIM, etc.
• Teacher training/nursing courses approved by the Central or the State Government
• Regular degree/diploma courses such as pilot training, aeronautical, etc. approved by the concerned regulatory authority

For studies abroad:

• Professional/technical graduation degree courses/PG degree and diploma courses aligned towards a job offered by reputed universities
• Courses conducted by CIMA (Chartered Institute of Management Accountants) – London, CPA (Certified Public Accountant) in the US, etc.

2. SBI Scholar Loan Scheme courses

Eligible courses for SBI Scholar Loan Scheme:

• Full-time degree/diploma courses (regular) through selection process/entrance test
• Full-time executive management courses like PGPX

Note: Students looking to pursue a certificate or part-time courses are eligible to apply.

3. SBI Skill Loan Scheme courses

Eligible courses for SBI Skill Loan Scheme:

• Courses run by ITIs, polytechnics, training partners affiliated to National Skill Development Corporation (NSDC)/Sector Skill Councils, State Skill Mission, State Skill Corporation

Note: There is no minimum course duration.

4. SBI Global Ed-Vantage Scheme courses

Eligible courses for SBI Global Ed-Vantage Scheme:

• Regular graduate/post graduate/doctorate courses in any discipline offered by foreign institutes/universities in the US, UK, Canada, Australia, Europe, Singapore, Japan, Hong Kong and New Zealand

SBI Education Loan – Expenses Covered

SBI education loans cover the expenses of your course and other related expenditure depending upon the type of loan you have opted for. Given below are the expenses covered for each type of SBI education loan:

1. SBI Student Loan Scheme expenses covered

Find below the list of the type of expenses covered under SBI Student Loan Scheme:

• Fees for college/school/hostel
• Fees for examination/library/laboratory
• Books/equipment/instruments/uniforms
• Computer necessary for completion of the course (maximum 20% of the total tuition fees payable for completion of the course)
• Building fund or caution/refundable deposit (at most 10% of tuition fees for the entire course)
• Travel expenses/passage money for studies abroad
• Cost of a two-wheeler up to INR 50,000
• Any other expenses compulsory to conclude the course

2. SBI Scholar Loan Scheme expenses covered

Find below the list of the type of expenses covered under SBI Scholar Loan Scheme:

• Fees for college/school/hostel
• Fees for examination/library/laboratory
• Books/equipment/instruments
• Caution deposit/building fund/refundable deposit supported by institution’s bills/receipts (maximum 10% of tuition fees for the entire course)
• Travel expenses/expenses on exchange programme (No voucher/receipt necessary; purpose (end use) need to be self-certified)
• Purchase of computer/laptop (maximum 20% of the total tuition fees payable for completion of the course – up to a lump sum amount of maximum INR 1 lacs)
• Any other expenses related to education (Expenditure beyond 25% cap allowed provided the student presents the voucher/receipt.)

3. SBI Skill Loan Scheme expenses considered

Find below the list of the type of expenses covered under SBI Skill Loan Scheme:

• Fees for tuition/course
• Fees for examination/library/laboratory
• Caution deposit
• Books, equipment and instruments
• Any other expenses compulsory to conclude the course

4. SBI Global Ed-Vantage Scheme expenses covered

Find below the list of the type of expenses covered under SBI Global Ed-Vantage Scheme:

• Fees for college/school/hostel
• Fees for examination/library/laboratory
• Travel expenses/passage money for studies abroad
• Books/equipment/instruments/uniforms/computer at a reasonable cost (if required for course completion) and any other expense necessary to complete the course (maximum 20% of the total tuition fees payable for completion of the course)
• Caution deposit/building fund/refundable deposit supported by institution’s bills/receipts (maximum 10% of tuition fees for the entire course)
• The premium of ‘RiNn Rakhsha’

SBI Education Loan – Loan Amount and Security

SBI education loans offer a handsome amount of loan even at the minimum level depending upon the eligibility and requirement. The kind of security, whether collateral security, third-party guarantee or co-borrower, also varies in different kinds of loans. Given below are the loan amounts and security required for each type of SBI education loan:

1. SBI Student Loan Scheme amount and security

SBI Student Loan Scheme offers a maximum of INR 10 lacs for studies in India and a maximum of INR 20 lacs for students opting to study abroad.

Note: Higher loan limit for students opting to study in India are considered on case-to-case basis, while higher loan limit for students opting to study abroad is considered under the SBI Global Ed-Vantage Scheme.

For loan amount up to INR 7.5 lacs does not require any collateral security or third-party guarantee. Only parent/guardian as co-borrower are considered. Tangible collateral security and parent/guardian as co-borrower are required for loan amount above INR 7.5 lacs.

Note: In case of a married person, co-obligator can be either spouse or the parent(s)/parents-in-law.

2. SBI Scholar Loan Scheme amount and security

A minimum loan amount of INR 7.5 lacs and a maximum of INR 40 lacs is offered under SBI Scholar Loan scheme depending upon the type of institution the student is opting for. For minimum loan amounts for all covered institutions, no security is required; only parent/guardian can act as the co-borrower. For a maximum loan amount for List A and List B institutions, tangible collateral of full value and parent/guardian as co-borrower are necessary.

3. SBI Skill Loan Scheme amount and security

SBI Skill Loan Scheme offers a minimum loan amount of INR 5,000 and a maximum loan amount of INR 1,50,000. No collateral or third-party guarantee is required. Only parent/guardian as co-borrower are considered. Spouse will be included as co-applicant wherever applicable, in addition to parent/guardian.

4. SBI Global Ed-Vantage Scheme amount and security

SBI Global Ed-Vantage Scheme offers a minimum loan amount of INR 20 lacs and a maximum loan amount of INR 1.5 Cr. Tangible collateral security is required. Collateral security offered by third-party (other than parents) is also acceptable.

SBI Education Loan – Interest Rate

SBI education loan interest rates are known to be one of the most viable in the market with interest rates as low as 8.65% and special concession for girl students. Given below are the loan amounts and security required for each type of SBI education loan:

1. SBI Student Loan Scheme interest rates

10.45% interest rate is offered for up to INR 7.5 lacs with 0.50% concession for girl students. 10.70% is offered for above INR 7.5 lacs with 0.50% concession for girl students and 0.50% concession for students availing SBI Rinn Raksha or any other existing policy assigned in favour of SBI.

2. SBI Scholar Loan Scheme interest rates

8.65% interest rate is offered for list AA institutions, up to 8.95% for list A institutions, up to 9.45% for list B institutions and up to 9.95% for list C institutions.

3. SBI Skill Loan Scheme interest rate

9.95% interest rate is offered for loan amount up to INR 1.5 lacs.

4. SBI Global Ed-Vantage Scheme interest rates

10.70% interest rate is offered for loan amount above INR 20 lacs and up to INR 1.5 Cr with 0.50% concession for girl students and 0.50% concession for students availing SBI ‘Rinn Raksha’/existing life insurance policy allocated in favour of SBI.

SBI Education Loan – Repayment Rules

SBI education loan repayment rules include repayment commencement a year after course completion and the repayment period as long as 15 years. Given below are the loan repayment terms for each type of SBI education loan:

1. SBI Student Loan Scheme repayment terms

The repayment period begins 1 year after completion of the course and the loan is to be repaid in 15 years after the beginning of the repayment period.

Note: In case a second loan is availed for higher studies in the future, the combined loan amount is to be repaid in 15 years after completion of the second course.

2. SBI Scholar Loan Scheme repayment terms

The repayment period begins after the course completion + 12 months and the loan is to be repaid in 15 years.

Note: In case a second loan is availed for higher studies in the future, the combined loan amount is to be repaid in 15 years after completion of the second course.

3. SBI Skill Loan Scheme repayment terms

Loans up to INR 50,000 can be repaid in up to 3 years, loans between INR 50,000 to INR 1 lacs can be repaid in up to 5 years, and loans above INR 1 lacs can be repaid in up to 7 years.

4. SBI Global Ed-Vantage Scheme repayment terms

The repayment period begins 6 months after the course completion and the loan is to be repaid in 15 years.

SBI Education Loan – Documents Required

The documents required for SBI education loan schemes also vary depending upon the type of loan you opt for. While most of the documents are the same, you must still make a checklist of the documents required for your education loan. To make your work easier, given below is the documents checklist for each type of SBI education loan:

Documents checklist for SBI Student Loan Scheme, SBI Scholar Loan Scheme and SBI Global Ed-vantage Scheme

For student-applicant:

• Duly-filled loan form
• Any one proof of identity: PAN/Passport/Driver’s License/Voter ID card
• Any one proof of residence: Recent copy of Telephone Bill/Electricity Bill/Water Bill/Piped Gas Bill or copy of Passport/Driving License/Aadhaar Card
• Passport (mandatorily in case of studies abroad)
• Academic Records: 10th result, 12th result, graduation result, entrance exam result through which admission is being taken
• Proof of admission: Offer letter/admission letter from the institution
• Statement of cost of study or schedule of expenses
• 2 passport-size photographs
• Loan A/C statement for last 1 year in case of any previous loan from other banks/lenders

For co-applicant:

• Any one proof of identity: PAN/Passport/Driver’s License/Voter ID card
• Any one proof of residence: Recent copy of Telephone Bill/Electricity Bill/Water Bill/Piped Gas Bill or copy of Passport/Driving License/Aadhaar Card
• 2 passport-size photographs
• Loan A/C statement for last 1 year in case of any previous loan from other banks/lenders

Note:

• Income proof for salaried co-applicant/guarantor include salary slips of last 3 months, copy of Form 16 for last 2 years/copy of IT Returns for last 2 financial years acknowledged by IT department, and bank account statement for last 6 months
• Income proof for self-employed co-applicant/guarantor include business address proof (if applicable), IT returns for last 2 years (if IT payee), TDS Certificate (Form 16A, if applicable), certificate of qualification (Chartered Accountants/Doctors and other professions), and bank account statement for last 6 months
• All documents should be self-attested

SBI Skill Loan Scheme documents

• Duly-filled loan form
• Mark sheets of last qualifying examination
• Proof of admission scholarship, studentship, etc.
• Schedule of expenses for the specified course
• 2 passport size photographs
• Student’s and the parent/guardian/spouse’s PAN Card
• Student’s and the parent/guardian/spouse’s AADHAAR card
• Borrower’s bank account statement for last six months
• Co-borrower’s ITR/IT assessment order for last 2 years (if applicable)
• Co-borrower’s brief statement of assets and liabilities
• Proof of Income (salary slips/Form 16), if applicable

SBI Education Loan – Eligibility, Courses, Rate of Interest, Repayment, Comparison

SBI education loans come in four different categories and the table below will help you compare your choices and choose the best one.

SBI Scholar Loan Scheme – List of Approved Institutions

SBI Scholar Loan Scheme can only be opted by students who are looking to pursue higher education in select premier institutions in India. Given below are the list of premier institutions covered under this scheme.