State Bank of India Education Loan: Study Abroad, Eligibility,Benefits, Interest Rates, EMI Calculator, Apply Online provides Education Loans for students looking to pursue higher education in India or abroad, at attractive interest rates.

what is State Bank of India Education Loan?

State Bank of India (SBI) Education Loan is a financial product offered by the State Bank of India to support students in pursuing higher education in India or abroad. It provides financial assistance to cover various educational expenses, including tuition fees, accommodation charges, travel expenses, books, equipment, and other related costs. SBI Education Loan offers competitive interest rates, flexible repayment options, and attractive features to help students fulfill their academic aspirations. The loan is available for a wide range of courses, from undergraduate to postgraduate programs, professional courses, vocational training, and even loans for study abroad.

Eligibility for State Bank of India Education Loan

The eligibility criteria for State Bank of India (SBI) Education Loan may vary based on factors such as the loan amount, course, institute, and individual circumstances. However, here are some common eligibility requirements:

Nationality:

The applicant should be a citizen of India.

Age:

The minimum age of the applicant should be 18 years, and the maximum age can vary depending on the course and loan amount.

Course and Institute:

The loan is available for a wide range of courses, including undergraduate and postgraduate programs, professional courses, vocational training, and study abroad programs. The educational institution should be recognized by the relevant authorities.

Academic Qualifications:

The applicant should have secured admission to a recognized course through a valid entrance examination or a merit-based selection process.

Co-applicant:

In most cases, a parent or guardian needs to be the co-applicant for the loan.

Creditworthiness:

The applicant and co-applicant should have a satisfactory credit history and repayment capacity.

It’s important to note that these are general eligibility criteria, and specific requirements may vary. It is recommended to visit the official SBI website or contact the nearest SBI branch for the most accurate and up-to-date information on the eligibility criteria for SBI Education Loan. The bank will provide detailed information regarding eligibility, required documents, and other specific terms and conditions when you apply for the loan.

Features and Benefits of State Bank of India Education Loan

State Bank of India (SBI) offers education loans to help students pursue higher education in India and abroad. Here are some of the features and benefits of SBI education loans:

Wide coverage:

SBI education loans cover a wide range of courses and institutions, including undergraduate and postgraduate programs, diploma courses, vocational training programs, and courses conducted by recognized universities and colleges in India and abroad.

Loan amount:

SBI offers loans ranging from small amounts to higher limits, depending on the course and institution. The loan amount can cover tuition fees, examination fees, library fees, lab fees, study tours, project work, purchase of books, equipment, and instruments, and other necessary expenses.

Competitive interest rates:

SBI provides education loans at competitive interest rates, which are generally lower than personal loans or other forms of financing. The interest rates are linked to the Marginal Cost of Funds Based Lending Rate (MCLR) or the External Benchmark Rate (EBR), ensuring transparency and fairness.

Flexible repayment options:

SBI offers flexible repayment options, allowing students to start repaying the loan after completing the course or getting employed. The repayment period can extend up to 15 years, depending on the loan amount and the borrower’s financial situation.

Moratorium period:

SBI offers a moratorium period, also known as an “education holiday,” during which borrowers need not pay the principal amount and can focus on their studies. The moratorium period usually includes the course duration and an additional six months to one year, depending on the course.

Collateral requirements:

For loans up to a certain amount, SBI does not require collateral or a third-party guarantee. However, for higher loan amounts, collateral may be necessary, such as property, fixed deposits, or LIC policies, depending on the bank’s guidelines.

Loan processing and disbursal:

SBI has a streamlined loan processing system, and the loan amount is disbursed directly to the educational institution or the vendor, as per the fee structure. This ensures that the funds are utilized for educational purposes.

Tax benefits:

The interest paid on education loans is eligible for tax benefits under Section 80E of the Income Tax Act, 1961, which can help borrowers reduce their tax liabilities.

Loan transfer:

SBI allows borrowers to transfer their existing education loans from other banks to SBI to take advantage of better interest rates or repayment terms.

Personal accident insurance:

SBI provides personal accident insurance coverage for the borrowers, offering financial protection in case of accidental death or permanent disability.

It’s important to note that the specific terms and conditions of SBI education loans may vary, and it’s advisable to check with the bank for the most up-to-date information and eligibility criteria.

Documents Required State Bank of India Education Loan

When applying for an education loan from State Bank of India (SBI), you will need to provide certain documents to support your application. The exact documentation requirements may vary based on factors such as the loan amount, the type of course, and whether the loan is for studies in India or abroad. Here is a general list of documents typically required for an SBI education loan:

1. Application form: Fill out the loan application form provided by SBI, providing accurate and complete information.
2. Identity proof: Provide documents such as a valid passport, Aadhaar card, PAN card, voter ID card, or driving license to establish your identity.
3. Address proof: Submit proof of your residential address, such as a utility bill (electricity, water, or gas), ration card, Aadhaar card, or rental agreement.
4. Proof of admission: Provide the admission letter or offer letter from the educational institution where you have been accepted for the course.
5. Academic records: Submit your academic records, including mark sheets and certificates of your previous qualifying examinations (10th, 12th, or graduation).
6. Course fee details: Provide the fee structure or fee receipt from the educational institution, indicating the tuition fees and other expenses related to the course.
7. Income proof: Depending on the loan amount, you may need to provide income proof of your parents or guardians. This can include salary slips, income tax returns, or a letter from the employer.
8. Bank statements: Submit bank statements of the borrower or co-borrower for the last six months to demonstrate financial stability and repayment capacity.
9. Collateral documents: If collateral is required for higher loan amounts, you will need to provide the relevant documents, such as property documents, fixed deposit receipts, or LIC policies.
10. Passport-sized photographs: Attach a few recent passport-sized photographs as per SBI’s specifications.

It’s essential to note that this is a general list, and additional documents may be required based on the specific requirements and policies of SBI. It’s recommended to contact SBI or visit their official website for the most accurate and up-to-date information regarding documentation requirements for education loans.

Compare SBI Education Loan Schemes for Students and Interest Rate

Loan schemes	Loan limit	Interest Rate
SBI Student Loan Scheme	Up to Rs.7.5 lakh Above Rs.7.5 lakh	10.90%
SBI Scholar Loan Scheme	AA list: Rs.40 lakh A list: Rs.20 lakh/Rs.30 lakh B list: Rs.20 lakh C list: Rs.7.5 lakh	AA list: IITs: 8.30%Other institutions: 8.35% A list: IITs: 8.30%Other institutions: 8.80% B list: NITs: 8.80%Other institutions: 9.30% C list: NITs: 8.80%Other institutions: 9.80%
SBI Skill Loan Scheme	Up to Rs.1.5 Lakh	10.40%
SBI Global Ed- Vantage	Above Rs.7.50 lacs & up to Rs.1.5 crore	10.90%
SBI Takeover of Education Loan Scheme	Above Rs.10 lakh & up to Rs.1.5 crore	10.90%
SBI Shaurya Education Loan	Up to Rs.7.50 lakh Above Rs.7.50 lakh & up to Rs.1.50 crore	10.90%, 10.90% – 11.50%

SBI Education Loan -Study Abroad and India

State Bank of India (SBI) offers education loans for studying abroad, covering a wide range of expenses. Here are the details regarding the covered expenses, margin, and loan limit for SBI education loans for studying abroad:

Covered Expenses:

Tuition fees: SBI education loans cover the tuition fees payable to the educational institution for the selected course.

Examination fees: Expenses related to examination fees are covered.

Hostel and accommodation charges: The loan can include expenses for accommodation in a hostel or rented accommodation.

Cost of books and equipment: The loan amount can cover the cost of books, equipment, and study materials required for the course.

Travel expenses: Expenses related to travel, including airfare, can be included in the loan amount.

Insurance premium: The premium for insurance coverage related to the student’s life or loan can be covered.

Miscellaneous expenses: Other necessary expenses directly related to the course, such as study tours, project work, and other academic requirements, can be covered by the loan.

Margin:

• • For loans up to Rs. 4 lakhs: No margin is required.For loans above Rs. 4 lakhs
• • For studies in India: A margin of 5% is required.
• • For studies abroad: A margin of 15% is required.
  The margin refers to the portion of the total expenses that the borrower needs to fund from their own sources. The remaining percentage is covered by the education loan.

Loan Limit:

• For studies in India: SBI education loans can cover expenses up to Rs. 10 lakhs for studies in India.
• For studies abroad: SBI education loans can cover expenses up to Rs. 30 lakhs for studies abroad.

The loan limit can vary based on factors such as the course, institution, and the borrower’s creditworthiness. Higher loan amounts may require collateral or a third-party guarantee, as per SBI’s guidelines.

Please note that these figures are based on the information available up to September 2021. It’s advisable to check with SBI or visit their official website for the most accurate and up-to-date details regarding covered expenses, margin requirements, and loan limits for education loans for studying abroad.

SBI Education Loan –EMI Calculator

To calculate the Equated Monthly Installment (EMI) for an SBI Education Loan, you can use an online EMI calculator or a formula. Here’s how you can calculate the EMI for an SBI education loan using the formula:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Where: EMI = Equated Monthly Installment P = Loan amount R = Monthly interest rate N = Loan tenure in months

For example, let’s assume you have taken an SBI education loan of Rs. 10 lakhs with an interest rate of 9.5% per annum and a tenure of 7 years (84 months). The monthly interest rate would be (9.5/12)/100 = 0.00792.

Using the formula:

EMI = [10,00,000 x 0.00792 x (1+0.00792)^84]/[(1+0.00792)^84-1]

By evaluating this equation, the EMI for the given loan would be calculated.

However, it’s important to note that SBI may have different methods of calculating EMIs or may provide an online EMI calculator on their official website. Using an online EMI calculator will provide you with the most accurate and up-to-date results, as it takes into account any specific parameters or terms provided by the bank.

It’s advisable to visit the SBI official website or contact SBI directly for the most accurate and reliable EMI calculation for your specific education loan.

How to Apply for the SBI Education Loan.

To apply for an SBI Education Loan, you can choose to apply either offline or online. Here are the steps for both methods:

Offline Application:

1. Visit the nearest SBI branch: Locate the nearest SBI branch that deals with education loans. You can find the branch details on the SBI official website or by contacting their customer service.
2. Obtain the application form: Request an application form for an education loan from the bank officials or download it from the SBI website, if available.
3. Fill out the application form: Carefully fill out the application form with accurate and complete information. Ensure that you provide all the required details and attach the necessary documents as mentioned in the form.
4. Submit the application: Submit the filled application form along with the required documents to the bank officials at the SBI branch. They will guide you through the further process and assist you in completing the application.

Online Application:

1. Visit the SBI official website: Go to the official website of SBI (www.sbi.co.in) and navigate to the “Education Loan” section or the loan application page.
2. Fill out the online application form: Provide all the required details in the online application form. This may include personal information, educational details, course details, loan amount, and repayment preferences.
3. Upload the necessary documents: Scan and upload the required documents as per the instructions provided on the website. Ensure that the documents are clear and legible.
4. Review and submit the application: Double-check all the entered information and uploaded documents. Once satisfied, submit the application form electronically.
5. Follow up with the bank: After submitting the online application, note down the application reference number. The bank will review your application and contact you for further processing or documentation, if required. You may also need to visit the branch for verification and signing of documents.

It’s important to note that the application process may vary slightly based on individual circumstances and the bank’s specific requirements. It’s advisable to check the SBI official website or contact their customer service for the most accurate and up-to-date information on how to apply for an SBI Education Loan.

FAQ – State Bank of India Education Loan