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SBI Education Rate of Interest

SBI offers distinctive education loan variants for studies in India and Abroad.

  • Maximum loan amount offered is INR 10 and 20 Lacs for India and abroad respectively.
  • The loan is extended with no margin on loan amount upto INR 4 Lacs
  • The repayment period for a SBI Student Loan Scheme is 15 years

The interest rate is charged on base rate fixed by SBI as per RBI guidelines.

  • Base rate fixed by SBI is 9.05%
  • The bank charges 10.55% interest for loan amount upto INR 7.50 lacs
  • 10.80% for the loan amounting above INR 7.50 Lacs

CALCULATE YOUR EDUCATION LOAN EMI

Fill the Loan Amount
Fill the Interest Rate
Fill the Loan Tenure
EMI Payable

188 per month

Total Interest

1,280

Payable Amount

11,280

Total Interest
Principal Loan Amount

Looking for admission for India and Abroad?

Know Fees

SBI Education Loan Eligibility

loan eligibility image
  • Indian National. Student must be a citizen of India or a holder of Indian passport.
  • 10+2 qualified. One must have cleared 10+2 from a recognized board of institutions
  • Premier Universities. Admission must be in the top global institutes through Entrance test/Selection process.
  • Co-Signer. Applicant must have a credit worthy co-signer/ co-borrower to increase chances of getting a loan.

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Applicable Rate of Interest Up to INR 7.50 Lacs: 10.55%
Above INR 7.50 Lacs: 10.80%
up to INR 7.5 Lacs: MCLR + 2.00%
above INR 7.5 Lacs: 2.60%
Upto 4 Lacs- 16.50%
Upto 7.5 Lacs- 17.50%
Above 7.5 Lacs- 15.50%
12.10%+ floating rate(depends on the risks points of the applicant)
Max Loan with Collateral For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
For India: 10 Lacs
For Abroad: 100% finance
Max loan without collateral For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
For India: 10 Lacs
Processing Fee Up to INR 4 Lacs: Nil
Above INR 4 Lacs: INR 5000
Nil
Nil
1% of loan amount
Repayment Period 15 years
15 years
7 years
Loan amount upto INR 7.5 Lacs: 10 years
Loan amount above INR 7.5 Lacs: 15 years
Loan for top institutions Yes, SBI Scholar Loan Scheme
Yes, PNB Pratibha
No
No
Margin For loan above INR 4 Lacs
In India: 5%
In abroad: 15%
Up to INR 4 Lacs - NIL
Above INR 4 Lacs - 5%
Upto loan 4 Lacs: No margin
Above 4 Lacs: for India: 5%
for Abroad: 15%
For India:
up to INR 4 Lacs: Nil
Above INR 4 Lacs: 5%
Age Limit no age limit
No age limit
No
18 years
Loan Security Upto 7.50 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee
Above INR 7.50 Lacs: Tangible security along with parents as co borrower
Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required.
Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank.
Third party guarantee
Collateral security
Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount
Assignment of Future salaries in favor of Axis Bank
Upto 4 lacs- No security required
From INR 4 Lacs to 7.50 Lacs: collateral security in form of third party guarantee
Above INR 7.50 Lacs: Tangible collateral security in form of residential property, HDFC fixed deposit, LIC, or any other policy.
Eligibility concession for SC/ST No
50% for SC/ST, and;60% for General category.
No
No
Processing Time 20 days
15 days
14 Days
7 days
Prepayment charges Nil
Nil
Nil
Pre-closed within moratorium period: 4% of principal amount + taxes
Foreclosed after moratorium period: No prepayment penalty
Penal charges Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period
Nil
@ 2% per month on the overdue installment/s
@ 2% per month on the overdue installment/s
Mandatory insurance cover Yes
yes
yes
No
Travel expeneses yes
yes
yes
yes (one way travel
Bank transfter allowance available
available
No such clause mentioned
No such clause mentioned
Top up loan availability yes
available
unavailable
Unavailable
Interest Subsidy Schemes Padho Pardesh
CSIS
Skill Loan Scheme
Padho Pardesh
CSIS
Skill Loan Scheme
CSIS
CSIS
Tax benifit yes
yes
yes
Yes
Concession/benefits Concession to girl students
1% concession if interest is serviced during moratorium period including course period
0.5% concession to girl students
0.5% concession if interest is serviced during moratorium period including course period
Online application
There is no processing fee charged
No pre- payment charges are applied
No pre- closure charges are applied
Loan Disbursal period is 15 working days from the date of final submission of documents
Doorstep service
Flexible loan terms
Upto 100% finance
Tax benefits
Hassle-free documentation process
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How to apply for SBI Education Loan ?

SBI Education loan application form can be available online or offline at Bank branches.

Visit the official website and Click on SBI Education Loan

Select the particular loan scheme and click on Apply Online

Fill up the form with all the necessary details

Upload the signature, photograph other documents required

Submit the Form and take the print out

After that visit the nearby SBI Bank for the further proceedings

For offline procedure, student can visit the bank and ask for application form for education loan. The bank representative will then be able to guide you with all necessary details and information about margin money, interest rates, and eligibility criteria about the suitable loan for you.

SBI Education Loan Details

Loan Limit
For India- INR 10 Lacs
For Abroad- 20 Lacs
Margin
For loan above INR 4 Lacs
In India: 5%
In abroad: 15%
Processing Fee
Up to INR 4 Lacs: Nil
Above INR 4 Lacs: INR 5000
Loan Security
Upto 7.50 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee
Above INR 7.50 Lacs: Tangible security along with parents as co borrower
Loan Repayment
Starts After 1 year of course completion or 6 months after getting job

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Expenses covered under SBI Student Loan Scheme

  • College Fee
  • Hostel Fee
  • Examination Fee
  • Purchase of Books, Equipment, Uniform or Computer
  • Travel Expenses for abroad studies
  • Cost of Two wheeler (Maximum of Rs.50000)
  • Cost of other activities like study tours, project work, etc.

Education Loan Documents Required ?

Admission letter with all essential details

Attested copies of age proof, residence proof and birth date

Self-attested passport size photograph

Copies of qualifying courses

Income proof and/or copy of income tax return file

Details of collateral security along with government approved valuation certificate (if any)

Bank account statement of the applicant.

Copy of passport and visa for abroad courses

Interest Subsidy Schemes

SBI Skill Loan Scheme

The bank offers Skill Loan Scheme for students who aspire to gain knowledge and specialized training in one specific field.

CSIS (Central Scheme to provide Interest Subsidy)

Central Government of India offered the scheme for economically weaker section for subsidy on education loan interest.

SBI Skill Loan Scheme

Rate of Interest

Rate of interest is 3.90% above MCLR and presently it is 13.05%.

Additional Benefits of SBI Skill Loan Scheme

Concession of 1% is provided for full tenure of the loan, if the interest charged is serviced promptly as and when applied during the period of moratorium and including during the period of the course.

CSIS (Central Scheme to provide Interest Subsidy)

The scheme is formulated by Ministry of Human Resource Department, this interest subsidy provides a lower interest on education loan during suspension period for professional courses in India. 

Additional Facts about CSIS

  • Available for economically weaker sections of the society
  • Gross annual parents’ income is less than INR 4.50 Lacs
  • Repayment of the loan has to be done after 12 months of course completion or 6 months after getting job, whichever is earlier

Applicability of Scheme

  • This scheme is applicable for technical and professional courses
  • This scheme is applicable for the govt. recognized institutes for courses after class 12th
  • Under IBA education loan scheme the maximum loan limit is Rs. 10 Lakhs

Eligibility for Subsidy

  • The subsidy is provided for the course of study and moratorium period which is 1 year after course completion or 6 months after getting job (whichever is earlier).
  • After both period the loan amount will be paid in accordance to education loan scheme.

Nodal Bank

This will be implemented through Canara Bank.

Scheme Applicable Year

  • This scheme is implement 2009 – 2010 in academic year from April 1, 2009
  • Loan disbursed after April 1, 2009 irrespective of date of sanction shall only be covered under the scheme
  • In case of loans sanctioned prior to April 1, 2009, for the courses beginning prior to academic year 2009-10, the interest subsidy is available to the extent of disbursements made after April 1, 2009
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Frequently Asked Questions

01

What is Margin Money?

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Margin money is the amount which you have to pay from your own and the rest amount is paid by the bank.

In case of Student loan scheme the margin money will be considered when you loan amount is above Rs.4 lakhs. Below table shows the details:

Margin for Above 4 Lakhs Loan in India5%
Margin For Above 4 Lakhs Loan in Overseas15%
02

What are the documents Required while applying for the loan?

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Hi, below are the listed documents which you have to produce while applying for the Eduction loans at SBI

  • Letter of Admission
  • Completely filled Loan Application Form
  • 2 passport size photographs
  • Statement of cost of study
  • PAN card of the parent, student or legal guardian
  • Aadhar Card of the student and parent or guardian
  • Identity proof which may be a copy of Driving License or Passport or Aadhar Card
  • Residence Proof which may be copy of Driving License or Passport or Electricity Bill or Telephone bill
  • Student/co-borrower’s/Guarantor’s bank account statement of the last 6 months
  • IT Returns or IT Assessment Order of the last 2 years of parent or guardian or another co-borrower
  • Brief Assets and Liabilities Statement of parent or guardian or another co-borrower
  • Income proof which can be the salary slip or Form 16 of the parent or guardian
  • And other educational documents listed by the bank for SBI Student scheme.
03

What is holiday Period?

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A holiday period is the maximum time which is provided to a student before the repayment of the principal loan in EMIs.

In case a student starts working immediately after completion of course then he will not enjoy the holiday period.

04

What is Moratorium Period?

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A moratorium period is the time duration when the borrower is required to pay the EMIs.

05

I want SBI Education loan for Studying in IIM? For which loan I should apply?

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Hi, if you want to study in IIMs then you can apply for the SBI Scholar loans. The bank will give you loan depending upon which IIM you are studying in. They have categorized IIMs into two categories AA and A.

  • If you are taking admission in any of the IIM in AA category then you can get loan upto Rs.35 lakhs with any other security required.
  • If you are taking admission in any of the IIM falling in A category then you can get loan of maximum Rs. 20 lakhs and it can be extend up to Rs.30 Lakhs if co-borrower also show any tangible security of the loan value.
06

If I want to study in NIT. For this which loan I can apply?

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Hi, if you want to apply for education loan for studying into NIT then you also can apply for SBI Scholar loan. Under this scheme all the NITs fall under B and C Category colleges.

  • For B Category, you can get the loan of Rs.20 lakhs.
  • For C Category, you can get loan of Rs. 7.5Lakhs and can be extended upto 30 Lakhs if any tangible security equivalent of loan amount is submitted to the bank.
07

What is security does one needs to provide while securing loan?

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  • In most of the cases there is no need of security required for availing loan. But once the amount of loan is above the described amount then the person has to provide the tangible collateral security for the above loan amount.
  • The security can a property papers, gold, vehicle, bonds, National saving certificates etc.

Cases when Security Required in various loan:

  • In Student Loan - For loan amount above Rs.7.5 lakhs, a tangible security as well as the parents guarantee is required.
08

Is there any concession for girl students in interest?

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Yes, SBI provides a concession for the girl students in various loan schemes. In Student loan scheme and Global Ed-Vantage Scheme, girl students can avail 0.50% concession in interest.

09

Contact Details?

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Contact Number: 1800 425 3800, 1800 11 2211,  080-26599990

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