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SBI Education Loan

Last Modified : June 05, 2018

State Bank of India (SBI) is acclaimed to be the largest lender of education loan. SBI successfully granted highest education loans amounting to total of Rs. 13214.3 crores, as on March 2015.

With education getting costly, Banks offer exclusive benefits with Education Loans for India and Abroad. So Why SBI? Because of its user-friendly loan schemes for various courses running in India as well as overseas. Under schemes, it can lend amount up to Rs.35 lakhs for studying in India and Rs.1.5 Crores for studying in Overseas institutes. 

Rate of Interest is a key factor that makes SBI as one of the best education loan lender. The mean rate of interest for the loan amount less than Rs.4 Lakhs is 11.74%, for loan amount above Rs.4 Lakhs and below Rs.7.5 Lakhs is 12.29% and for above 7.5 Lakhs is 11.7%. (This data is taken from Research work by Geetha Rani).

SBI sanctions loan under three different categories based on the type of course and country in which you are going to study. SBI Education Loan for Abroad is extended to meet the monetary needs of students pursuing their studies overseas. 

Main eligibility to apply for education loan is that the student must be an Indian National.

We have provided every aspect about the all the education loan scheme which are provided by the SBI to students.

Worried if you are eligible or not? Check Eligibility

Why SBI? How is it Beneficial?

State Bank of India have acclaimed to be the largest lender in Education Loan. The loan it offers might not be very distinctive in nature but there are some key benefits that compliments the SBI Education Loan.

How is it Beneficial? An education loan no matter how similar to the others do provide various key benefits in favour of the borrower. Some of these are mentioned below:

  • No Margin upto loan amount of INR 4 Lacs
  • 0.50% concession in interest for girl students under SBI Education Loan Scheme and SBI Global Ed-Vantage Scheme
  • 1% concession if the interest is serviced promptly by the borrower as and when applied during moratorium period (including course duration)
  • 0.25% concession for work experience under SBI Scholar Loan Scheme
  • No Processing fee charged

Variants of Education Loans provided by State Bank of India

1. SBI Student Loan Scheme: 

This loan is for the students who want to pursue higher studies in India or abroad:

Quick Facts for SBI Student Loan:

Maximum Loan for Studying in India

Rs. 10 Lakhs

Maximum Loan for Studying in Abroad

Rs. 30 Lakhs

Processing fee for below Rs. 4 Lakhs


Processing fee for Above Rs. 4 Lakhs

Rs. 5000

Courses covered in India

Almost All Courses

Courses covered in Abroad

Job oriented, Technical, PG, Diploma Courses, Courses by CIMA in London and CPA in USA

Margin for Above 4 Lakhs Loan in India


Margin For Above 4 Lakhs Loan  in Overseas



Indian Nationals

Loan Repayment

Starts After 1 year of course completion or 6 months after getting job.

SBI Student Loan Scheme Agreement Terms:

  • There will be no processing fee below 4 lakhs loan amount.
  • Students with loan amount more than Rs.4 Lakh have to deposit Rs. 5000 in the starting.
  • The amount deposited by the applicant will be appropriated by the bank if the loan is not availed within 4 months of the loan sanction.
  • Maximum loan amount for studying in India is Rs.10 Lakhs and for overseas it will be Rs.30 Lakhs.
  • For Security of amount under or equal to Rs.4 Lakhs, Parents can considered as co borrower.
  • For Security of amount between Rs.4 lakhs and Rs.7.5 lakhs, Parent as well as third party guarantee is required.
  • For loan amount above Rs.7.5 lakhs, Parents can act as co borrower as well as a tangible security is required.
  • In case a candidate is married then spouse/parents/Parent-in-laws can be considered as co borrower.
  • There will be no margin money for loan amount less than Rs.4 Lakhs
  • For loans above this amount, 5% margin is required for domestic studies while loans for overseas studies feature a 15% margin.
  •  The repayment period for SBI Student Loan scheme is up to INR 7.5 lakh is 10 years and for a higher amount is 12 years.
  • The repayment period will start either 1 year after course completion or 6 months post getting a job whichever is earlier.

Fees Covered Under this Loan

  • 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.

Courses Covered Under this Scheme

In India

Almost every undergraduate and post graduate course has been included in this scheme. Technical or Professional Courses approved by AICTE/UGC. Degree and diploma courses approved by the Govt. Teacher Training, Nursery courses, pilot training, aeronautical, shipping courses which are approved by respective authorized departments.

In Abroad

  • Job Oriented, Technical/Professional, and UG/PG/Diploma courses.
  • Courses approved by CIMA in London and CPA in USA.

SBI Student Loan Scheme Rate of interest:

Listed below is the interest on educational loans offered on SBI education loan.

Loan amount

Interest Rate

Up to INR 4 lakh

3.65% above the Base Rate - 13.35%

Above INR 4 lakh and up to INR 7.5 lakh

3.90% above the Base Rate - 13.60%

Above INR 7.5 lakh

1.90% above the Base Rate - 11.60%

2. SBI Scholar Loan Scheme: 

This loan scheme is for the students pursuing their higher studies from a selected list of 105 premier Indian Institutes.

Quick Facts for SBI Scholar Loan:

Loan For

Only 105 Selected institutes in India

Processing fee


Margin Money


Courses Covered

Full Time Degree/Diploma (Through Entrance Test)

Full Time Executive Management Courses

Maximum Loan for AA Category

Rs. 35 Lakhs

Maximum Loan for A Category

Rs. 20 Lakhs and can be extended to Rs.30 Lakhs under conditions

Maximum Loan For B Category

Rs. 20 Lakhs

Maximum Loan For C Category

Rs. 7.5 Lakhs

Repayment Starts

After the completion of Course

Repayment Period

Upto 12 Years + 6 months Repayment Holidays


Indian National and should get admission in any of 105 listed Institutes

SBI Scholar Loan Scheme Agreement Terms:

  • There will be no margin money required.
  • 100% Finance facility available.
  • No Processing fee charged.
  • This loan can be easily sanctioned in various 5000 branches across designated campuses.
  • For List AA colleges, maximum loan amount is Rs.35 Lakhs.
  • For List A colleges, Maximum loan amount is Rs. 20 lakhs and it can be extend up to Rs.30 Lakhs if co-borrower also show tangible security of the loan value.
  • For List B colleges, Maximum loan amount is Rs.20 Lakhs.
  • For List C Colleges, Maximum loan amount is Rs. 7.5 Lakhs and it can be extend up to Rs.30 Lakhs if co-borrower also show tangible security of the loan value.
  • Repayment of loan is upto 12 years and plus 6 months repayment holidays.
  • Repayment will be started after completion of course.

Fees Covered in this Loan

  • College Fee
  • Hostel Fee
  • Library + Laboratory Fee
  • Books and Equipment
  • Caution Deposit/Building Funds/Refundable Deposits – Doesn’t exceed 10% of entire tuition fee
  • Travel expenses
  • Laptop Purchase 
  • Other expenditure related to course – Up to Rs.1 Lakh

Courses Covered in This Loan

  • Regular Full Time Degree and Diploma Courses under which admissions are given through admission test or selection process.
  • Full Time Executive management courses like PGPX are also covered
  • It doesn’t cover certificate and part time courses.

Colleges Covered under this Loan

Colleges in List AA Category

Name of Institution



Indian Institute of Management (IIM), Ahmedabad


Indian Institute of Management (IIM), Bangalore


Indian Institute of Management (IIM), Calcutta


Indian Institute of Management (IIM), Indore


Indian Institute of Management (IIM), Indore- Mumbai Campus


Indian Institute of Management (IIM), Kozhikode


Indian Institute of Management (IIM), Lucknow


Indian Institute of Management (IIM), Lucknow- Noida Campus


Indian School of Business (ISB), Hyderabad


Indian School of Business (ISB), Mohali


Xavier Labour Relations Institute (XLRI),  Jamshedpur


Colleges in List A Category

Name of Institution



Birla Institute of Technology & Sciences (BITS), Pilani


BITS (Pilani) - Goa Campus


BITS (Pilani) - Hyderabad Campus


Indian Institute of Foreign Trade (IIFT), Delhi


Indian Institute of Foreign Trade (IIFT), Kolkata


Indian Institute of Management (IIM), Amritsar


Indian Institute of Management (IIM), Bodhgaya


Indian Institute of Management (IIM), Jammu


Indian Institute of Management (IIM), Kashipur


Indian Institute of Management (IIM), Nagpur


Indian Institute of Management (IIM), Raipur


Indian Institute of Management (IIM), Ranchi


Indian Institute of Management (IIM), Rohtak


Indian Institute of Management (IIM), Sambalpur


Indian Institute of Management (IIM), Shillong


Indian Institute of Management (IIM), Sirmaur


Indian Institute of Management (IIM), Trichy


Indian Institute of Management (IIM), Udaipur


Indian Institute of Management (IIM), Visakhapatnam


Indian Institute of Technology (IIT), Bhilai


Indian Institute of Technology (IIT), Bhubaneshwar


Indian Institute of Technology (IIT), Chennai


Indian Institute of Technology (IIT), Delhi


Dept of Management Studies, IIT Delhi


Indian Institute of Technology (IIT), Dharwad


Indian Institute of Technology (IIT), Gandhinagar


Indian Institute of Technology (IIT), Goa


Indian Institute of Technology (IIT), Guwahati


Indian Institute of Technology (IIT), Hyderabad


Indian Institute of Technology (IIT), Indore


Indian Institute of Technology (IIT), Jammu


Indian Institute of Technology (IIT), Jodhpur


Indian Institute of Technology (IIT), Kanpur


Department of Industrial & Management Engineering, IIT Kanpur


Indian Institute of Technology (IIT), Kharagpur


Indian Institute of Technology (IIT), Mandi


Indian Institute of Technology (IIT), Mumbai


Indian Institute of Technology (IIT), Palakkad


Indian Institute of Technology (IIT), Patna


Indian Institute of Technology (IIT), Roorkee


Indian Institute of Technology (IIT), Rupnagar (Ropar)


Indian Institute of Technology (IIT), Tirupati


Indian Institute of Technology (IIT), Varanasi


Indian School Of Mining (ISM), Dhanbad


Institute of Management Technology (IMT), Ghaziabad


Kasturba Medical College (KMC), Mangalore


Management Development Institute (MDI), Gurgaon


Management Development Institute (MDI), Murshidabad


National Institute of Industrial Engineering (NITIE), Mumbai


Nirma Institute of Management, Ahmedabad


S P Jain Institute of Management and Research (SPJIMR), Mumbai


Shailesh J. Mehta School of Management (SJSOM), IIT Mumbai


Symbiosis Centre For Management & HRD (SCMHRD), Pune


Symbiosis Institute of Business Management (SIBM), Pune


T. A. Pai Management Institute (TAPMI), Manipal [Post Graduate

Diploma in Management (PGDM)]


Xavier Institute of Management (XIM), XUB-Bhubaneswar


Xavier School of Human Resource Management (XSHRM), XUB-



Xavier School of Rural Management (XSRM), XUB-Bhubaneswar


Colleges under List B Category

Name of Institution



Army College of Dental Sciences (ACDS), Secunderabad


Army College of Medical Sciences (ACMS), Delhi Cantt


Army Institute of Law (AIL), Mohali


Army Institute of Management (AIM), Kolkata


Army Institute of Technology (AIT), Pune


Bharathidasan Institute of Management (BIM), Tiruchirapalli


Birla Institute of Technology (BIT), Mesra, Ranchi


College of Engineering, Pune


Delhi College of Engineering (DCE), Delhi


Dhirubhai Ambani Institute of Information & Communication Technology (DAIICT), Gandhinagar


Faculty of Engineering & Technology, Jadavpur University, Kolkata


Faculty of Management Studies (FMS), Delhi


Goa Institute of Management (GIM), Goa


Indian Institute of Science (IISc), Bangalore


Indraprastha Institute of Information Technology (IIIT), Delhi


International Management Institute (IMI), Kolkata


International Management Institute (IMI), New Delhi


Jamnalal Bajaj Institute of Management Studies (JBIMS), Mumbai


Kasturba Medical College (KMC), Manipal


Kirloskar Institute of Advanced Management Studies (KIAMS), Bangalore


Manipal Institute of Technology (MIT), Manipal


Marine Engineering & Research Institute, Kolkata


Mudra Institute of Communication (MICA), Ahmedabad


Narsee Monjee Institute of Management  Studies (NMIMS), Mumbai


National Institute of Technology (NIT), Surathkal


National Institute of Technology (NIT), Tiruchirapalli


National Law School of India University (NLSIU), Bangalore


National Law University (NLU), Jodhpur


Prin. L. N. Welingkar Institute of Management, Development & Research (WeSchool), Mumbai


Visvesvaraya National Institute of Technology (VNIT), Nagpur


Colleges under list C Category:

Name of Institution

Branch Code

Centre for Environmental Planning & Technology (CEPT), Ahmedabad


Chandragupt Institute of Management, Patna


Dr. B R Ambedkar National Institute of Technology (NIT), Jalandhar


Indian Institute of Forest Management (IIFM), Bhopal


Indian Institute of Petroleum and Energy (IIPE), Vishakhapatnam


International Institute of Information Technology (IIIT), Hyderabad


Kalinga Institute of Industrial Technology (KIIT) University School of Management (SOM)


Kalinga Institute of Industrial Technology (KIIT) University School of Technology (SOT)


L N Mittal Institute of Information & Technology (LNMIIT), Jaipur


Loyola Institute of Business Administration (LIBA), Chennai


Maharishi Markandeshwar University (MMU) Medical College, Haryana


Malaviya National Institute of Technology (NIT), Jaipur


Maulana Azad National Institute of Technology (NIT), Bhopal


Motilal Nehru National Institute of Technology (NIT), Allahabad


National Institute of Construction Management & Research (NICMAR), Pune


National Institute of Food Technology Entrepreneurship and Management (NIFTEM), Sonepat


National Institute of Technology (NIT), Agartala


National Institute of Technology (NIT), Arunachal Pradesh


National Institute of Technology (NIT), Calicut


National Institute of Technology (NIT), Delhi


National Institute of Technology (NIT), Durgapur


National Institute of Technology (NIT), Goa


National Institute of Technology (NIT), Hamirpur, Himachal Pradesh


National Institute of Technology (NIT), Jamshedpur


National Institute of Technology (NIT), Kurukshetra


National Institute of Technology (NIT), Manipur


National Institute of Technology (NIT), Meghalaya


National Institute of Technology (NIT), Mizoram


National Institute of Technology (NIT), Nagaland


National Institute of Technology (NIT), Patna


National Institute of Technology (NIT), Puducherry


National Institute of Technology (NIT), Raipur


National Institute of Technology (NIT), Rourkela


National Institute of Technology (NIT), Sikkim


National Institute of Technology (NIT), Silchar


National Institute of Technology (NIT), Srinagar


National Institute of Technology (NIT), Tadepalligudem


National Institute of Technology (NIT), Uttarakhand


National Institute of Technology (NIT), Warangal


National University of Juridical Sciences (NUJS), Kolkata


Netaji Subash Institute Of Technology (NSIT), Delhi


Sardar Vallabh Bhai National Institute of Technology (NIT), Surat


School of Planning & Architecture, New Delhi


Thapar University, Patiala


University College of Engineering (UCE), Odisha


Xavier Center For Urban Management and Governance (XUMG) [Post Graduate Programme in Urban Management and Governance (MBA- UMG)]


Xavier School of Commerce (XSC) [Master of Business Finance (MBF)]


Xavier School of Sustainability (XSOS) [Post Graduate Programme in Sustainability Management (MBA-SM)]


Rate of interest

Category of Institutes

Interest Rate

List AA

25 bps above the Base Rate i.e. 9.95% p.a. for loans up to INR 30 lakhs without collateral

List A

25 bps above the Base Rate i.e. 9.95% p.a. for loans up to INR 20 lakh and INR 30 lakhs without collateral

List B

50 bps above the Base Rate i.e. 10.20% p.a. for loans up to INR 20 lakhs without collateral


25 bps above Base Rate i.e. 9.95% if collateral security’s value is greater than loan amount and/or work experience of the applicant is more than 2 years

List C

175 bps above the Base Rate i.e. 11.45% p.a. for loans up to INR 30 lakhs with collateral and 7.5 lakh without collateral

3. SBI Loan for Vocational Education and Training: 

This is a term loan provided for securing vocational education or training in India where admission is already secured.

Maximum Amount for  6 Months Course

Rs. 50000

Maximum Amount for 6 + Months Course

Rs. 1 Lakh

Processing Fee


Margin Money


Repayment Starts

After the 6 months of Completion of Course/Getting Job

Repayment Period

For 12 Month course – 3 years

For Above 12 Months Course – 5 years


Indian National, Have an life insurance from SBI

SBI Loan for Vocational Education and Training Agreement Terms:

  • No Margin money required
  • 100% Financing
  • No Processing fee will be charged
  • No third party guarantee required
  • Maximum amount for 6 months course is Rs. 50000
  • Maximum amount for above 6 months course is Rs. 1Lakh
  • Repayment will be started after 6 months of completion of course.
  • Repayment period for 1 year course is 3 years and above 1 year is 5 years

Fee Covered

  • Tuition Fee/Course Fee
  • Examination Fee
  • Library/Lab Fee
  • Caution Deposit
  • Books/Equipment/Instrument
  • Other Expenses related to courses

Rate of interest

The interest rate is 3.65% above the Base rate of 9.70% which makes the interest rate 13.35% p.a.

4. SBI Global ED-Vantage scheme:

SBI has recently launched a new student loan scheme to offer student loans for overseas education. These years have seen a stable increase in inquisition of financing studies in foreign universities. Students who look forward for global exposure in universities like Harvard, Stanford, and MIT. This scheme provides financial assistance to students who are planning to complete their studies from the top global institutions.

Available for

Abroad Studies

Courses Level

Both Undergraduate and Post Graduate Courses

Courses Field

Mathematics, Science, Engineering, Medicine and Management


USA, UK, Australia, Canada, Japan, Europe Hong Kong, New Zealand and Singapore

Loan Amount

From Rs. 20 Lakhs to Rs. 1.5 Crores


0.5% for Girls

Repayment Period

15 Years

Repayment Starts

6 Months after completion of course

Rate of Interest

1.7%  above MCLR and currently is 10.85%

SBI Global ED-Vantagescheme Agreement Terms:

  • Loan amount available is from Rs. 20 lakhs to 1.5 crores.
  • Processing fee is 10,000 per application.
  • Scholarship and assistantship are included in margin
  • Margin to be brought in on year-on-year basis as and when disbursements are made on a pro-rata basis.
  • Tangible collateral security is required.
  • Collateral security by third party are also accepted.
  • Repayment starts 6 months after the completion of course
  • Repayment period is of 15 years.
  • There will be concession of .5% in interest for girls

Countries covered in this Loan scheme

USA, UK, Australia, Canada, Japan, Europe Hong Kong, New Zealand and Singapore

5. SBI Skill Loan Scheme: 

The bank has begun another student loan scheme for students who wish to gain specialized training in one specific field such as arts and crafts.

  1. Rate of interest is 3.90% above MCLR and presently it is 13.05%.
  2. 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.

SBI Education Loan Eligibility

Main Eligibility for the candidate to apply for education loan in SBI Bank is that he must be Indian Citizen. However there are different eligibility criteria for candidates according to the loan scheme he/she wishes to apply.

For Scholar Loan

Admission must be in any of 105 selected institutes from list through Entrance test/Selection process.

For Vocational Loan

  1. Should have secured admission in a course run by
  • Ministry of Ministry or a Department or organization of the Government; Or
  • Company or society or organization supported by National Skill Development Corporation (NSDC); Or
  • Skill Missions / State Skill Corporations preferable leading to a Certificate or Degree or Diploma issued by a Government
  1. Also borrower must have a life insurance policy from SBI.

What Factors makes it easy to avail SBI Education Loan?

There are various factors that come into consideration when a bank scrutinizes your application for an Education Loan. Some of these factors are:

  • Borrower and Co-Borrower must be Indian National
  • NRIs are only eligible if they have Indian citizenship and are in possession of Indian Passport
  • Borrowers must have a strong academic background to get an upper hand in availing SBI Education Loan
  • Having a good credit score gives an undue advantage. (It is obvious that the borrower might not have a credit score, hence credit score of co applicant will be considered)
  • Co Borrower must be a member from immediate family
  • Academic and financial background of the co- applicant plays a vital role in availing SBI Education Loan
  • SBI must be able to find a good chance of placement and job prospect in an applicant so that he/ she can repay the Loan
  • The institute and course are also considered equally important by the bank while examining your application.

What Factors makes it difficult to avail SBI Education Loan?

If there are factors that can make availing SBI Education Loan a cake walk, there are some factors that might not work in your favour. Some of them are mentioned below:

  • If borrower fails to prove their or the co-borrower’s nationality to be Indian
  • The Bank favors when the co-borrower is an immediate family member with a good economic background. If your parents belong to the medium income group, you might call for third party guarantor approved by bank (with a good credit score)
  • The institution and course earns an advantage, hence, you must be wise while choosing your course and institution as it may work in your favour or against
  • Lack of any document or false claim may lead to disqualification for the SBI Education Loan
  • The background check on the borrower and co-borrower must go as per the applicants claim to avoid any difficulties in availing SBI Education Loan

SBI Education Loan Subsidy

There is a scheme by Central Government for the economically weaker section for subsidy on the interest of education loans.

This scheme is provided by the Ministry of Human Resource Department, this interest subsidy provides a lower interest on education loan during suspension period for professional courses in India. Central Government Interest Subsidy Scheme for Education Loans is mainly for students from economically weaker sections of society and also, whose gross annual parental income is less than INR 4.50 lakh. Under this scheme candidate has to pay the loan amount after the 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.

Subsidy Eligibility Period

  • 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.

SBI Education Loan Concession

SBI provides concession on interest rate in various schemes under certain conditions. We have listed out all the scheme with the concession and its eligibility below:

SBI Student Loan Scheme

  • 0.50% for girl students.
  • 1% for full tenure if interest is serviced promptly and when applied during Moratorium period which includes course duration.

SBI Scholar Scheme

  1. For List B – Institutes other than NITs
  • 0.25%, If the collateral security is greater than or equal to the loan amount.
  • 0.25%, if student has work experience of more than 2 years.
  1. For List C – Institutes other than NITs - 1% for full tenure if interest is serviced promptly and when applied during Moratorium period which includes course duration.

SBI Skill Loan Scheme

1% for full tenure if interest is serviced promptly and when applied during Moratorium period which includes course duration.

SBI Global Ed-Vantage Scheme

  • 0.50% for the students availing SBI Rinn Shiksha or any other life insurance policy from SBI.
  • 0.50% for girl students.

How to Apply for SBI Education Loan?

SBI Education loan application form can be available online or offline at Bank branches. If a person is applying for the loan through official website then he can follow the below given procedure:

  1. Visit the official website.
  2. Click on SBI Education Loan.
  3. Now select the particular loan scheme you want to apply for.
  4. Click on Apply Online
  5. Fill up the form with all the necessary details
  6. Upload the signature, photograph other documents required
  7. Submit the Form.
  8. Take the print out of application form

After that visit the nearby SBI Bank for the further proceedings.

A person can also go to bank and ask for the application form for the education loan. It will be good if you visit the bank and ask for the necessary details for the bank. Bank personnel will give you all the necessary information and will tell you all the details like margin money, interest rates and eligibility criteria about the suitable loan for you.

Confused about calculating EMI? Have a look

Worried about how EMI is generated? The accured interest during moratorium period along with course period is fixed in equated monthly instalments (EMIs)

In case, the full interest is serviced before the commencement of repayment term, the EMI is fixed based on principle amount only.

EMI (Equated Monthly Installments) 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. Or simply you can use the EMI calculator provision mentioned below


Q. What is Margin Money?

Answer: 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 India


Margin For Above 4 Lakhs Loan  in Overseas


Q. What are the documents Required while applying for the loan?

Answer: 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.

Q. What is holiday Period?

Answer: 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.

Q. What is Moratorium Period?

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

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

Answer: 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.

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

Answer: 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.

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


  • 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.
  • In Scholar Loan - For loan amount above the prescribed amount the tangible security is required.

Q. Is there any concession for girl students in interest?

Answer: 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.