SBI Education Loan

  • Max Loan Amount - upto Rs. 3,000,000
  • Attractive interest rate starting at 11.10%
  • Collateral free loans of upto Rs 20 lakh for admission to top tier Institutions. Loans above Rs 20 lakh can be availed with adequate collateral
  • Flexible collateral scheme - collateral accepted from extended family members such as brother-in-law, sister-in-law
  • Nil prepayment charges
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Education Loan SBI

  Courses in India Courses Abroad IIT, IIM, ISB Courses
Max Loan Amount Rs. 1,000,000 Rs. 3,000,000 Rs. 2,000,000
Interest Rates      
Loans upto Rs. 4 lakh 11.10% 11.10% 9.60%
Loans Rs. 4.0 - 7.5 lakh 11.10% 11.10% 9.60% - 11.10%
Loans > Rs. 7.5 lakh 10.75% 10.75% 9.60% - 11.10%
Max Funding as Proportion of Cost      
Loans upto Rs. 4 lakh 100% 100% 100%
Loans above Rs. 4 lakh 95% 85% 95%
Max Tenure Post Moratorium      
Loans upto Rs. 7.5 lakh 10 years 10 years 10 years
Loans above Rs. 7.5 lakh 12 years 12 years 12 years
Co-Applicant required (Y/N) Yes Yes Yes
Third Party Guarantee      
Loans upto Rs. 4 lakh Not required Not required Not required
Loans Rs. 4.0 - 7.5 lakh Required Required Required
Loans > Rs. 7.5 lakh Not required Not required Not required
Collateral Security (Fixed deposit/ Property, LIC)      
Loans upto Rs. 4 lakh Not required Not required Not required
Loans Rs. 4.0 - 7.5 lakh Not required Not required Not required
Loans > Rs. 7.5 lakh Required Required Required
Prepayment Charges (Y/N) Nil Nil Nil
Moratorium Period (lower of the two)      
After course period 12 months 12 months 12 months
After getting job 6 months 6 months 6 months

SBI Student Loan Eligibility

Determinants of Eligibility for Education Loans
Age of the Applicant
  • Upto 35 years for non-employed personnels
  • Upto 45 years in case of working employees/ executives
Who is eligible
  • An Indian National having secured admission to professional/technical courses in recognized institutions.
  • Students seeking admission for higher studies.
  • Permanent employees who are employed for not less than three years with any organisation and who intend to acquire higher professional qualifications and have secured admissions in a reputed institute.
Maximum Loan Amount
  • Upto Rs. 1,000,000 for studies in India; with minimum margin money (own contribution by student/ family) of 5% of total cost for loan above 4 Lakh. No Margin for loan less than 4 Lakh
  • Upto Rs. 3,000,000 for studies abroad with minimum margin money (own contribution by student/ family) of 15% of total cost for loan above 4 Lakh. No Margin for loan less than 4 Lakh
  • Upto Rs. 2,000,000 for studies at IIT's, IIM's and ISB's with minimum margin money (own contribution by student/ family) of 5% of total cost
Which Cost Heads/ Expenses are Funded by Bank
  • Admission fees including monthly fees and examination fees.
  • Books, stationery and equipments.
  • Travel expense upto 25% of loan amount or Rs. 75,000 whichever is lower for joining the course abroad.
  • Boarding and lodging expenses of authorized hostel or boarding house.
  • Expenses required to complete the courses like those on study tours, project work and thesis etc.
Co-borrower/ Guarantor/ Security
  • Loans upto Rs. 4 lakh: Parents or guardian or husband/ in-laws in case of married woman required as co-borrower
  • Loans above Rs. 4 lakh and upto Rs 7.5 lakh: Parents or guardian or husband/ in-laws in case of married woman required as co-borrower, guarantee from third party guarantor required
  • Above Rs. 7.5 lakh: Parents or guardian or husband/ in-laws in case of married woman required as co-borrower
Repayment Frequency
  • Quarterly or monthly rests.
  • Repayment typically starts 1 year after completing the course or six months after getting a job, whichever is earlier.
  • Loan interest re‐payment will start immediately after disbursement of the first installment of the loan.
Repayment Period
  • Tenure of an education loan consists of Duration of Study + Grace Period after the Study + Repayment Period.
  • For Indian courses repayment tenure is maximum of 5 years after the commencement of repayment.
  • For Abroad courses repayment tenure is maximum for 7 years after the commencement of repayment.
  • There is no prepayment penalty or charge on early prepayment or foreclosure.
Key Appraisal Criteria
  • Good academic record with atleast 50% marks in the qualifying examinations.
  • Admission letter from bonafide educational institution.
  • Passport/visa/i-20 form for studies abroad.
  • Net-worth and credit history (CIBIL) of the guarantors.
Tax Benefits
  • Interest paid on education loan can be claimed as deduction from income of borrower (student) as per Section 80E of the Income Tax Act, 1961.
  • Rebate can be claimed without any upper ceiling or cap.
  • Rebate is available for full time courses, part time courses and vocational courses pursued in India and abroad.
  • Rebate can be claimed within eight (8) years post moratorium period subject to actual payment of interest.
  • Rebate is available for interest paid on loans for education of self, spouse, children or for the student of whom he/she is the legal guardian.
  • No rebate is available for principal repayment.

SBI Education Loan Interest Rate – Alternatives

  • In case you or your parents have availed a home loan and the property is registered, you may opt for a top up loan with balance transfer of the home loan . In this case, you don’t to provide any additional security and the rate of interest will be close to home loan rate (currently 8.60%). This will also be longer tenure loan (upto 15 years) and will result in lower EMI. However, you will not be able to claim income tax benefit available on education loan in this case.

SBI online Education Loan – Things to check

  • You have a valid offer letter from a recognized educational institution.
  • You meet the eligibility criteria of the bank that you are applying to.
  • You have not defaulted on loans or credit card dues in the past and have not delayed payments. If you have, these will reflect in your CIBIL report, hurt your CIBIL score and may result in rejection of your education loan application. Estimate your CIBIL score for free by using CIBIL score estimate calculator.
  • Your CIBIL report does not erroneously show defaults or delayed payments. This can be due to inadvertent error in data shared by banks with CIBIL.
  • You have made own arrangement for margin money and for expenses that are not covered by banks under education loan.
SBI Education Loan News - Mar 2017
14th Aug 16 SBI raises education loan cap five-fold to Rs 1.5 crore
State Bank of India has increased its limit for overseas education loans to Rs. 1.5 crore from Rs. 30 lakh currently. SBI is also increasing loan amount of government guarantee loan to Rs. 7.5 lakh from Rs. 4 lakh. SBI is an improving demand for education loans since it combined with the government Vidya Lakshmi portal, and 10 percent of its education loan applications are already through the portal. The current education loan book of SBI stands at Rs. 15,000 crore and it is expecting a growth of 15 per cent and 20 per cent in number of loans disbursements respectively
18th Mar 16 State Bank of India launches overseas education loan
SBI has launched SBI Global Ed Vantage, an overseas education loan for students who wish to pursue higher education abroad. SBI Scholar Loan scheme has been specifically tailored for those who get admission to a select list of 100 plus top institutions in India covering management, engineering, medicine, law etc. The SBI Global Ed Vantage aims to help those who are pursuing full time regular courses in foreign colleges/ universities. The loan amount is upwards of Rs 20 Lakh to Rs 1.5 crore at up to 80% of cost of course is eligible for financing with a 0.5% concession for girl students.
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