SBI Education Rate of Interest

SBI Global Ed-Vantage Loan is offered to financially support students planning to study overseas

  • Loan amount available is from INR 20 lakhs to 1.5 crores
  • Processing fee is 10,000 per application
  • Repayment starts 6 months after the completion of course
  • Repayment period is of 15 years

Interest Rate charged by SBI depends on the base rate fixed by bank as per RBI guidelines

  • Base rate fixed by SBI is 9.05%
  • Interest Rate for SBI Global Ed-Vantage is 1.70% above the base rate
  • Concession of 0.5% in interest is applicable for girls


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Fill the Interest Rate
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EMI Payable

1,000 per month

Total Interest


Payable Amount


Total Interest
Principal Loan Amount

Looking for admission for India and Abroad?

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SBI EducationLoan 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 Interest1.70% above the base rateup 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 CollateralFor Abroad: 30 LacsFor Abroad: 20 LacsFor India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
For Abroad: 100% finance
Max loan without collateralFor Abroad: 30 LacsFor Abroad: 20 LacsFor India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
For Abroad: 100% finance
Processing FeeINR 10,000NilNil1.5% of loan amount
Repayment Period15 years15 years7 yearsLoan amount upto INR 7.5 Lacs: 10 years
Loan amount above INR 7.5 Lacs: 15 years
Loan for top institutionsYes, SBI Scholar Loan SchemeYes, PNB PratibhaNoNo
Margin15%Up to INR 4 Lacs - NIL
Above INR 4 Lacs - 15%
Upto loan 4 Lacs: No margin
Above 4 Lacs: for India: 5%
for Abroad: 15%
Age Limitno age limitNo age limitNo18 years
Loan SecurityTangible collateral security is required
Collateral security by third party are also accepted
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/STNo50% for SC/ST, and;60% for General category.NoNo
Processing Time20 days15 days14 Days7 days
Prepayment chargesNilNilNilIf the loan is pre closed within 12 month from date of agreement: 4% of principle amount + taxes
If the loan is fore closed after 12 months: 2% of principle amount + taxesy
Penal chargesPenal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue periodNil@ 2% per month on the overdue installment/s@ 2% per month on the overdue installment/s
Mandatory insurance coverYesyesyesNo
Travel expenesesyesyesyesyes (one way travel)
Bank transfter allowanceavailableavailableNo such clause mentionedNo such clause mentioned
Top up loan availabilityyesavailableunavailableUnavailable
Interest Subsidy SchemesPadho Pardesh
Skill Loan Scheme
Padho Pardesh
Skill Loan Scheme
Tax benifityesyesyesYes
Concession/benefitsConcession 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

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
From INR 20 Lakhs to 1.5 Crores
Processing Fee
10,000 per application
Loan Security
Tangible collateral security is required
Collateral security by third party are also accepted
Loan Repayment
Starts after 6 months of course completion
Repayment Period is of 15 years

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 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 securityalong with government approved valuation certificate (if any)

Bank account statement of the applicant.

Copy of passport and visa for abroad courses

Interest Subsidy Schemes

Padho Pardesh

The scheme ‘Padho Pardesh’ was founded under the Prime Ministers new 15 point programme for welfare of minorities.

Padho Pardesh scheme of Interest Subsidy on education loans for overseas studies aims to promote the academic advancement of students belonging to minority communities. The scheme provides 100% interest subsidy to students belonging to the minority community


Frequently Asked Questions


What schemes does State Bank of India consider for its education loans?

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There are multiple other schemes offered by State Bank of India apart from the basic education loans viz. Student Loan Scheme, Global Ed-Vantage Scheme, Scholar Loan Scheme and Skill Loan Scheme. These are:

  • CSIS Scheme
  • Padho Pardesh
  • Skill Loan Scheme
  • Vocational Education and Training

In whose name is the loan granted?

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The loan is granted in the name of the student


Is the loan contract executed only in student's name?

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No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.


What is the age limit for availing loan in State Bank of India?

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There is no age restriction as stated by State Bank of India. Borrowers must fulfil other eligibility criteria mentioned.


Are minors eligible to apply for State Bank of India Education Loan

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Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.


What does margin on any loan mean?

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Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.


Should the student's margin be paid upfront in the starting?

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Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.


Where can I avail State Bank of India Education Loan?

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You can either contact your nearest branch for the application form or details regarding the loan.


Is there any provision to apply for loan online?

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Yes, you can apply online through Vidyalakshmi portal to avail for this loan.


Can I view my loan statement online if I am an existing education loan borrower?

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Yes, by creating a login on State Bank of India web portal, you can view all details related to education loan online.


Is there any minimum aggregate marks to meet the eligibility criteria to avail State Bank of India education loan?

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Yes, a student must have secured a minimum aggregate marks in their last qualifying examination (10+2 or Graduation). Relaxation in the marks is given to SC/ ST students


What is the discount/ rebate offered by State Bank of India?

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  • 0.50% concession is given to girl students
  • 1% concession is given of the interest is serviced during the moratorium period
  • Eligibility criteria and margin on education loan is relaxed for SC/ST students

What all is included in tangible collateral security?

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Mostly State Bank of India asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of State Bank of India. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.


Can I place my family property as collateral?

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Yes, but it will need consent of all family members involved.


Is scholarship or assistantship included in the margin?

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Yes any scholarship or assistantship will be a part of margin charged on education loan.


What is Moratorium Period?

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Course Period plus one year, or six months after getting a job


What is tenure of an education loan?

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Tenure of education loan provided by State Bank of India is maximum 15 years


What does MCLR stands for?

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MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.


What all expenses are covered under this course?

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Expenses covered by State Bank of India education loan are:

  • Tuition/ college/ hostel fee
  • Examination/ lab/ library fee
  • Books/ uniform/ instruments
  • Caution deposit
  • Passage money for studies abroad, etc.

Will my travel expense will be covered if I take loan from State Bank of India?

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Yes, travel expenses are covered under this loan


I have taken admission through management quota. Am I eligible?

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This depends totally on bank?s discretion as whether a student meets other eligibility criteria or not


What do you mean by reputed or recognized institutes?

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Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)


Are there any special benefits if I have secured admission to one of the top premier institutes?

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State Bank of India offers no special benefits to students admitted in top premier institutes abroad.


What is the processing fee or prepayment charges?

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The education loan offered by State Bank of India for Global Ed-Vantage Loan Scheme has a processing fee of INR 10,000 per application


Will cost of my computer be covered under the loan sanctioned?

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Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course


Why is Pan Card necessary?

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Pan Card is one of the mandatory document required by banks these days. It is mandatory because:

  • Easy to assess Income
  • Easy to trace borrowers

Are diploma or certificate courses considered under State Bank of India education Loan (both for India and Abroad)?

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Diploma/ Certificate courses are eligible under State Bank of India Education Loan for abroad. Regular degree like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping can be considered.


Is a co-borrower necessary for loan?

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Yes, it is mandatory to have a co-borrower to avail loan from State Bank of India.


Who can be my co-borrower?

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Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.


What all documents are required from the co-borrower?

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Documents required from the co-borrower are:

  • Attested copies of age proof, residence proof and birth date.
  • Self-attested passport size photograph
  • Income proof and/or copy of income tax return file
  • Details of collateral security along with government approved valuation certificate (if any).

How many guarantors do I need to borrow loan from State Bank of India?

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You need at least 2 guarantors to avail loan from State Bank of India.


What is the KYC requirement in education loan?

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KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.


What are maximum term for repayment?

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The maximum term for repayment is 15 years for SBI Education Loan


How can I repay the loan?

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You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.


What is EMI? How are they calculated?

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EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below

  • EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
  • Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.

What are the charges for late EMI payment?

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There are no charges for late EMI payment mentioned by SBI.


Is the loan disbursed in name of individual applicant or to the institute/ university directly?

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The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee


If I am unable to complete my course in given tenure, will my repayment term be extended?

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It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student?s reason. You can contact your nearest branch for more details.


What is method of application of interest on education loan?

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The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.


If I am joining the course soon after current course, can I get an extension?

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Mostly, in such cases, you do not get an extension and even if you do there is a possibility that interest rates are higher


What is interest rate of education loan?

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  • SBI Global ED Vantage Scheme
Amount of Loan 1 year MCLR Rate of Interest
Upto INR 20 Lacs and upto INR 1.5 Crore 8.15% + 2.50% 10.65%

What is interest subsidy on education loan?

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State Bank of India offers

  • CSIS- Interest Subsidy scheme for economically weaker sections and to promote education amongst them
  • Padho Pardesh scheme for students who wish to pursue studies abroad
  • Skill Loan Scheme for students who wish to pursue courses to enhance their skills and attain better career opportunities.
  • Vocational and Education Training for students who wish to purse vocational (skill development) courses for better career prospects and enhancing knowledge.

What documents do I need to submit to avail interest subsidy scheme?

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The documents that need to be submitted are:

  • Income certificate issued by authorised authorities
  • Bonafide student certificate
  • Letter of undertaking or declaration signed by borrower/ co-borrower

If I am availing loan for overseas studies, can I also avail interest subsidy scheme?

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CSIS Scheme is not available for students who wish to pursue overseas studies whereas Padho Pardesh is formulated for foreign education


What is employment verification in an education loan?

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The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.


Are there any tax benefits in education loans?

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Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier).


Is it necessary to have bank account with the bank while availing loan from that particular bank?

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It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.


Can I repay my loan in foreign currency even if my bank is in India?

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Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) The bank might charge an additional currency conversion fee as per RBI regulations.


Why do banks require insurance policy as security?

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The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy


Are there any additional benefits on availing loan from State Bank of India?

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Some of the benefits are:

  • State Bank of India provides Life Insurance Cover Scheme for education loan borrowers. The premium of which will be borne by the bank.
  • 1% concession on interest rate is provided if the interest is serviced during the moratorium period.

What is credit score? Is it important for education loan?

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Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.


Are NRIs eligible for the education loan?

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NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.


Is Visa a necessary document for studying abroad?

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Visa is needed as a document proof but it is not a sole requirement.


What all procedures do one have to go through while applying for abroad?

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A student who is applying for studying abroad have to give necessary documents required by the bank. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.


If a student have any query, where or whom to contact?

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student can reach out to the nearest branch in case of any query.

Customer Care Number:

1800 425 3800/ 1800 11 2211

080-26599990/ 022-22029456

Local rates apply on every call

Customer Care Id:

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