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Wish to get a Top-Up Loan on Existing one? Know how SBI helps.

Wish to get a Top-Up Loan on Existing one? Know how SBI helps.

Last Modified : April 15, 2019

State Bank of India (SBI) has been offering many benefits and facilities to its customers for long and Top-Up Loan is one of them. SBI Education Top-Up Loan is offered to the bank’s already existing customers who have availed an education loan.

Also known as the “Second Loan”, this top-up loan is offered to those students who want to pursue higher studies rather than opting for a job. There are students who want to pursue postgraduation after completing their graduation instead of going for a job or any other higher degree course. In such cases, SBI has a provision of offering a second loan to students. The second loan is added to the first loan.

To be eligible for the Top-Up Loan, students need to pursue another professional course within the moratorium period of the first loan. This is valid for courses in both India and Abroad. When the top-up loan is availed, the moratorium period is extended according to the duration of the second course. The combined repayment of the two loans is shifted to 1 year after completion of the second course or to 6 months after getting a job.

Not just Top-Up Loan, SBI offers many other attractive features to its customers like the Takeover Loan. Under its Takeover Loan Scheme, SBI allows you to shift your high-cost education loan to SBI to reduce your monthly EMIs. The maximum limit for this facility goes up to INR 1.5 crores and the bank doesn’t even charge any processing fee for that.

Aren’t these 2 schemes so beneficial for the aspiring minds? But SBI doesn’t just stop here. The largest bank of India offers many more attractive schemes for its customers.

Pre-Payment Policy

SBI Education Loan customers are allowed to prepay their loans. While most of the banks do not allow repayment before the moratorium period ends and even charge a penalty for that, SBI does nothing like that.

Interest Rates

Whether SBI Education Loan for Abroad or India, SBI Education Loans are offered at interest rates as low as 8.75%. While the average interest rate range is 10%-12%, SBI ensures that no huge burden is laid upon students.

State Bank of IndiaAxis BankICICI Bank
Up to INR 7.5 Lakhs: 10.55% Above INR 7.5 Lakhs: 10.80%Up to INR 4 Lakhs: 16.50% Between INR 4-7.5 Lakhs: 17.50% Above INR 7.5 Lakhs: 15.50%Up to INR 4 Lakhs: 13.60% Above INR 4 Lakhs: 14.60%

Tax Benefit under SBI Education Loan

SBI Education Loan also provides people with tax benefits under section 80E of Income Tax Benefits.

Apart from all these, SBI offers many other benefits to its customers. From offering 4 different schemes to scrapping any age limit, SBI Education Loan has a lot of attractive features. The bank offers loans up to INR 40 Lakhs and gives special concessions to girls. The bank takes care of your travel expenses and charges no processing fees.