Last Modified : January 19, 2019
With offering around four variants of education loans, State Bank of India is one of the most sought-after banks to offer education loans for studies in India and abroad.
Due to custom-made Education Loans for India and Abroad, students get a variety of options to choose from. Rate of interest acts as a key factor for attracting borrowers. The mean rate of interest for the loan amount less than INR 4 Lacs is 11.74%, for loan amount between INR 4 to 7.5 Lacs is 12.29% and for loan amount exceeding INR 7.50 Lacs is 11.7% (This data is curated from research work by Geetha Rani).
WHY SBI? Due to its user-friendly loan schemes for various courses running in India as well as overseas. Under schemes, it can lend an amount up to INR 35 Lacs for studying in India and Rs.1.5 Crores for SBI Education Loan for Abroad. |
The general eligibility criteria is mentioned above. There are some more requirements depending upon the type of loan offered.
There are variety of concessions offered by State Bank of India to lure borrowers for education loan schemes. Some of these concessions are mentioned below:
SBI Education loan application form can be available online or offline at Bank branches.
For Online:
If a person is applying for the loan through official website then he can follow the below given procedure:
For Offline:
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.
We have curated some important aspects of variety of SBI Education Loan for India and Abroad along with the government scheme offered by the bank.
The loan is offered for studies in both India and abroad. Maximum amount of loan offered in India is Rs. 10 Lacs and for abroad is Rs. 30 Lacs.
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% |
Quick Facts about SBI Student Loan Scheme
Margin | For loan above INR 4 Lacs In India: 5% In abroad: 15% |
Processing fee for below Rs. 4 Lakhs | No |
Processing fee for Above Rs. 4 Lakhs | Rs. 5000 |
Loan Security | Upto INR 4 Lacs: Parents considered as co-borrower Between INR 4 to 7.50 Lacs: Parent as well as third party guarantee is required 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. |
Additional Facts to Know
Expenses covered under SBI Student Loan Scheme
Courses Covered Under SBI Student Loan 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
The loan is offered for students aspiring for higher studies from a selected list of 105 premier Indian institutes. SBI offers 100% finance facility under this loan.
Rate of interest for SBI Student Scholar Loan
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 |
Quick Facts about SBI Scholar Loan Scheme
Processing fee | No |
Margin Money | No |
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 |
Additional Facts to remember
Expenses covered under SBI Student Scholar Loan Scheme
Courses Covered in SBI Student Scholar Loan
Note: List of colleges that fall under List AA, List A, List B and List C are mentioned towards the end of the article
This is a term loan provided for securing vocational education or training in India where admission is already secured.
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.
Maximum Amount for 6 Months Course | Rs. 50000 |
Maximum Amount for 6 + Months Course | Rs. 1 Lakh |
Processing Fee | No |
Margin Money | No |
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 |
Eligibility | Indian National, Have an life insurance from SBI |
Additional Facts about SBI for Vocational Education and Training
Expenses covered under SBI for Vocational Education and Training
The recently launched student loan scheme, Global Ed-Vantage is to offer student loan for overseas education. This scheme provides financial assistance to students who are planning to complete their studies from top global institutions like Harvard, Stanford, and MIT.
Quick facts about SBI Global Ed-Vantage Scheme
Available for | Abroad Studies |
---|---|
Courses Level | Both Undergraduate and Post Graduate Courses |
Courses Field | Mathematics, Science, Engineering, Medicine and Management |
Countries | USA, UK, Australia, Canada, Japan, Europe Hong Kong, New Zealand and Singapore |
Loan Amount | From Rs. 20 Lakhs to Rs. 1.5 Crores |
Concession | 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% |
Additional Facts about SBI Global Ed-Vantage Scheme
Countries covered in this Loan scheme
USA, UK, Australia, Canada, Japan, Europe Hong Kong, New Zealand and Singapore
The bank offers Skill Loan Scheme for students who aspire to gain knowledge and specialized training in one specific field.
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.
Central Government of India offered the scheme for economically weaker section for subsidy on education loan interest.
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
Applicability of Scheme
Eligibility for Subsidy
Nodal Bank
This will be implemented through Canara Bank.
Scheme Applicable Year
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
SBI Scholar Scheme
For List B – Institutes other than NITs
For List C – Institutes other than NITs
SBI Skill Loan Scheme
SBI Global Ed-Vantage Scheme
There are various factors that come into consideration when a bank scrutinizes your application for an Education Loan. Some of these factors are:
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:
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
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 compliment the SBI Education Loan.
Top Up Loan or Second Loan is permitted within the overall limit to pursue a professional/ technical course in India or abroad. This facility is available on the clause that further studies are commenced during the moratorium period of the first loan and subject to the second loan being allowed with the security requirements as applicable to the aggregate loan limit. Post the second loan, the moratorium period will be extended for the duration of the second course and repayment will commence one year after the completion of the second course, or 6 months after taking up the job (whichever is earlier).
Takeover Loans are those where you switch a bank for takeover loan.
Features
Rate of Interest
Loan Limit | 1-year MCLR | Spread | Effective ROI |
From INR 10 Lacs to 1.5 Crore | 8.25% | 1.50% | 9.75% |
Concession | 0.50% concession for girl students |
Quantum of Finance
Eligibility
Security
Collateral security should be 100% equivalent to the value of loan amount proposed
SBI and Axis bank, two of the most preferred banks running in the race of providing education loan with best features possible. SBI is government-owned bank whereas Axis Bank falls under private sector. Here under, we have discussed the differences these banks have on a single parameter.
Parameters | Axis Bank | SBI |
Quantum of Loan | INR 10 Lacs for India and INR 20 Lacs for abroad | INR 10 Lacs for India and INR 30 Lacs for abroad |
Rate of Interest | Upto 4 Lacs- 16.50% | Upto 7.5 Lacs- 11.01% |
Repayment Period | 7 years | 5-7 years |
Processing Time | 14 Days | 20 Days |
Interest Subsidy Schemes | Central Scheme of Interest Subsidy (CSIS) | SBI Skill Loan Scheme Central Scheme of Interest Subsidy (CSIS) |
Processing Fee | Nil | Upto INR 4 Lacs: No Above INR 4 Lacs: INR 5,000 |
Pre-payment charges | Nil | Nil |
Penal Charges | @2% per month on the overdue installment/s | Penal interest @ 2% to be charged for loans above INR 4 lacs for the overdue amount and overdue period. |
Top Up Loan facility | Unavailable | Available |
List of Institutes that fall under List AA, List A, List B, and List C of SBI Student Scholar Loan Scheme
Colleges in List AA Category
Name of Institution | Branch Code |
---|---|
Indian Institute of Management (IIM), Ahmedabad | 2653 |
Indian Institute of Management (IIM), Bangalore | 4407 |
Indian Institute of Management (IIM), Calcutta | 6210 |
Indian Institute of Management (IIM), Indore | 30525 |
Indian Institute of Management (IIM), Indore- Mumbai Campus | 13551 |
Indian Institute of Management (IIM), Kozhikode | 10565 |
Indian Institute of Management (IIM), Lucknow | 10175 |
Indian Institute of Management (IIM), Lucknow- Noida Campus | 5222 |
Indian School of Business (ISB), Hyderabad | 5916 |
Indian School of Business (ISB), Mohali | 1828 |
Xavier Labour Relations Institute (XLRI), Jamshedpur | 4660 |
Colleges in List A Category
Name of Institution | Branch Code |
Birla Institute of Technology & Sciences (BITS), Pilani | 11309 |
BITS (Pilani) - Goa Campus | 10720 |
BITS (Pilani) - Hyderabad Campus | 4274 |
Indian Institute of Foreign Trade (IIFT), Delhi | 1690 |
Indian Institute of Foreign Trade (IIFT), Kolkata | 9985 |
Indian Institute of Management (IIM), Amritsar | 732 |
Indian Institute of Management (IIM), Bodhgaya | 2739 |
Indian Institute of Management (IIM), Jammu | 2367 |
Indian Institute of Management (IIM), Kashipur | 17263 |
Indian Institute of Management (IIM), Nagpur | 6702 |
Indian Institute of Management (IIM), Raipur | 4440 |
Indian Institute of Management (IIM), Ranchi | 5598 |
Indian Institute of Management (IIM), Rohtak | 4734 |
Indian Institute of Management (IIM), Sambalpur | 2110 |
Indian Institute of Management (IIM), Shillong | 2081 |
Indian Institute of Management (IIM), Sirmaur | 1755 |
Indian Institute of Management (IIM), Trichy | 1617 |
Indian Institute of Management (IIM), Udaipur | 1533 |
Indian Institute of Management (IIM), Visakhapatnam | 4202 |
Indian Institute of Technology (IIT), Bhilai | 6995 |
Indian Institute of Technology (IIT), Bhubaneshwar | 4414 |
Indian Institute of Technology (IIT), Chennai | 1055 |
Indian Institute of Technology (IIT), Delhi | 1077 |
Dept of Management Studies, IIT Delhi | 1077 |
Indian Institute of Technology (IIT), Dharwad | 833 |
Indian Institute of Technology (IIT), Gandhinagar | 60363 |
Indian Institute of Technology (IIT), Goa | 557 |
Indian Institute of Technology (IIT), Guwahati | 14262 |
Indian Institute of Technology (IIT), Hyderabad | 14182 |
Indian Institute of Technology (IIT), Indore | 11779 |
Indian Institute of Technology (IIT), Jammu | 7974 |
Indian Institute of Technology (IIT), Jodhpur | 14892 |
Indian Institute of Technology (IIT), Kanpur | 1161 |
Department of Industrial & Management Engineering, IIT Kanpur | 1161 |
Indian Institute of Technology (IIT), Kharagpur | 202 |
Indian Institute of Technology (IIT), Mandi | 13711 |
Indian Institute of Technology (IIT), Mumbai | 1109 |
Indian Institute of Technology (IIT), Palakkad | 6640 |
Indian Institute of Technology (IIT), Patna | 17164 |
Indian Institute of Technology (IIT), Roorkee | 1069 |
Indian Institute of Technology (IIT), Rupnagar (Ropar) | 13181 |
Indian Institute of Technology (IIT), Tirupati | 6677 |
Indian Institute of Technology (IIT), Varanasi | 211 |
Indian School Of Mining (ISM), Dhanbad | 1641 |
Institute of Management Technology (IMT), Ghaziabad | 642 |
Kasturba Medical College (KMC), Mangalore | 3823 |
Management Development Institute (MDI), Gurgaon | 1565 |
Management Development Institute (MDI), Murshidabad | 12355 |
National Institute of Industrial Engineering (NITIE), Mumbai | 9055 |
Nirma Institute of Management, Ahmedabad | 4130 |
S P Jain Institute of Management and Research (SPJIMR), Mumbai | 4650 |
Shailesh J. Mehta School of Management (SJSOM), IIT Mumbai | 1109 |
Symbiosis Centre For Management & HRD (SCMHRD), Pune | 10203 |
Symbiosis Institute of Business Management (SIBM), Pune | 10203 |
T. A. Pai Management Institute (TAPMI), Manipal [Post Graduate Diploma in Management (PGDM)] | 4426 |
Xavier Institute of Management (XIM), XUB-Bhubaneswar | 4414 |
Xavier School of Human Resource Management (XSHRM), XUB- Bhubaneswar | 4414 |
Xavier School of Rural Management (XSRM), XUB-Bhubaneswar | 4414 |
Colleges under List B Category
Name of Institution | Branch Code |
---|---|
Army College of Dental Sciences (ACDS), Secunderabad | 4274 |
Army College of Medical Sciences (ACMS), Delhi Cantt | 733 |
Army Institute of Law (AIL), Mohali | 1828 |
Army Institute of Management (AIM), Kolkata | 4 |
Army Institute of Technology (AIT), Pune | 10473 |
Bharathidasan Institute of Management (BIM), Tiruchirapalli | 1363 |
Birla Institute of Technology (BIT), Mesra, Ranchi | 18056 |
College of Engineering, Pune | 10431 |
Delhi College of Engineering (DCE), Delhi | 10446 |
Dhirubhai Ambani Institute of Information & Communication Technology (DAIICT), Gandhinagar | 12700 |
Faculty of Engineering & Technology, Jadavpur University, Kolkata | 93 |
Faculty of Management Studies (FMS), Delhi | 1067 |
Goa Institute of Management (GIM), Goa | 11156 |
Indian Institute of Science (IISc), Bangalore | 2215 |
Indraprastha Institute of Information Technology (IIIT), Delhi | 727 |
International Management Institute (IMI), Kolkata | 4 |
International Management Institute (IMI), New Delhi | 1690 |
Jamnalal Bajaj Institute of Management Studies (JBIMS), Mumbai | 4283 |
Kasturba Medical College (KMC), Manipal | 4426 |
Kirloskar Institute of Advanced Management Studies (KIAMS), Bangalore | 7914 |
Manipal Institute of Technology (MIT), Manipal | 4426 |
Marine Engineering & Research Institute, Kolkata | 18118 |
Mudra Institute of Communication (MICA), Ahmedabad | 5084 |
Narsee Monjee Institute of Management Studies (NMIMS), Mumbai | 4242 |
National Institute of Technology (NIT), Surathkal | 2273 |
National Institute of Technology (NIT), Tiruchirapalli | 1617 |
National Law School of India University (NLSIU), Bangalore | 9050 |
National Law University (NLU), Jodhpur | 13525 |
Prin. L. N. Welingkar Institute of Management, Development & Research (WeSchool), Mumbai | 353 |
Visvesvaraya National Institute of Technology (VNIT), Nagpur | 6702 |
Colleges under list C Category:
Name of Institution | Branch Code |
Centre for Environmental Planning & Technology (CEPT), Ahmedabad | 2651 |
Chandragupt Institute of Management, Patna | 15996 |
Dr. B R Ambedkar National Institute of Technology (NIT), Jalandhar | 4121 |
Indian Institute of Forest Management (IIFM), Bhopal | 12194 |
Indian Institute of Petroleum and Energy (IIPE), Vishakhapatnam | 3170 |
International Institute of Information Technology (IIIT), Hyderabad | 21161 |
Kalinga Institute of Industrial Technology (KIIT) University School of Management (SOM) | 10250 |
Kalinga Institute of Industrial Technology (KIIT) University School of Technology (SOT) | 10250 |
L N Mittal Institute of Information & Technology (LNMIIT), Jaipur | 656 |
Loyola Institute of Business Administration (LIBA), Chennai | 1176 |
Maharishi Markandeshwar University (MMU) Medical College, Haryana | 11843 |
Malaviya National Institute of Technology (NIT), Jaipur | 6912 |
Maulana Azad National Institute of Technology (NIT), Bhopal | 1608 |
Motilal Nehru National Institute of Technology (NIT), Allahabad | 2580 |
National Institute of Construction Management & Research (NICMAR), Pune | 13295 |
National Institute of Food Technology Entrepreneurship and Management (NIFTEM), Sonepat | 15479 |
National Institute of Technology (NIT), Agartala | 11491 |
National Institute of Technology (NIT), Arunachal Pradesh | 15550 |
National Institute of Technology (NIT), Calicut | 2207 |
National Institute of Technology (NIT), Delhi | 50809 |
National Institute of Technology (NIT), Durgapur | 2108 |
National Institute of Technology (NIT), Goa | 557 |
National Institute of Technology (NIT), Hamirpur, Himachal Pradesh | 10367 |
National Institute of Technology (NIT), Jamshedpur | 1882 |
National Institute of Technology (NIT), Kurukshetra | 6260 |
National Institute of Technology (NIT), Manipur | 18546 |
National Institute of Technology (NIT), Meghalaya | 9105 |
National Institute of Technology (NIT), Mizoram | 7059 |
National Institute of Technology (NIT), Nagaland | 7543 |
National Institute of Technology (NIT), Patna | 3129 |
National Institute of Technology (NIT), Puducherry | 1418 |
National Institute of Technology (NIT), Raipur | 2852 |
National Institute of Technology (NIT), Rourkela | 2109 |
National Institute of Technology (NIT), Sikkim | 7218 |
National Institute of Technology (NIT), Silchar | 7061 |
National Institute of Technology (NIT), Srinagar | 2460 |
National Institute of Technology (NIT), Tadepalligudem | 16305 |
National Institute of Technology (NIT), Uttarakhand | 3181 |
National Institute of Technology (NIT), Warangal | 7167 |
National University of Juridical Sciences (NUJS), Kolkata | 4204 |
Netaji Subash Institute Of Technology (NSIT), Delhi | 10650 |
Sardar Vallabh Bhai National Institute of Technology (NIT), Surat | 3320 |
School of Planning & Architecture, New Delhi | 1187 |
Thapar University, Patiala | 50244 |
University College of Engineering (UCE), Odisha | 2034 |
Xavier Center For Urban Management and Governance (XUMG) [Post Graduate Programme in Urban Management and Governance (MBA- UMG)] | 4414 |
Xavier School of Commerce (XSC) [Master of Business Finance (MBF)] | 4414 |
Xavier School of Sustainability (XSOS) [Post Graduate Programme in Sustainability Management (MBA-SM)] | 4414 |
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 | 5% |
Margin For Above 4 Lakhs Loan in Overseas | 15% |
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
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.
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.
Q. What is security does one needs to provide while securing loan?
Answer:
Cases when Security Required in various loan:
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.
Contact Details
Contact Number: 1800 425 3800, 1800 11 2211, 080-26599990