State Bank of India (SBI), the largest bank in India by the number of customers and asset size, offers a range of credit facilities especially for higher education aspirants.
New Delhi: State Bank of India (SBI), the largest bank in India by the number of customers and asset size, offers a range of credit facilities especially for higher education aspirants. Under the SBI education loans, State Bank of India has educational loan web platform for students, student loan scheme, SBI scholar loan scheme, loan scheme for vocational education and training, central scheme for interest subsidy and State Bank rewardz for educational loan.
With the facility of SBI student loan scheme, State Bank of India grants a term loan to Indian nationals for pursuing higher education in India or abroad where admission has been secured. Interestingly, SBI doesn’t levy any processing fee or upfront charges on the educational loans granted to the students.
SBI education loan: Courses, expenses covered, interest rate, loan amount, repayment, EMI, margin, security deposit
Courses covered for higher studies in India:
- Graduation, Post-Graduation including regular technical and professional Degree/Diploma courses conducted by colleges/universities approved by UGC/ AICTE/IMC/Government etc.
- Regular Degree/ Diploma Courses conducted by autonomous institutions like IIT, IIM etc.
- Teacher training/ Nursing courses approved by the Central Government or the State Government.
- Regular Degree/Diploma Courses like Aeronautical, pilot training, shipping etc. approved by Director General of Civil Aviation/Shipping/ concerned regulatory authority.
Courses covered for higher studies abroad:
- Job oriented professional/ technical Graduation Degree courses/ Post-Graduation Degree and Diploma courses like MCA, MBA, MS, etc. offered by reputed universities.
- Courses conducted by CIMA (Chartered Institute of Management Accountants) – London, CPA (Certified Public Accountant) in the USA etc.
- Fees payable to college/school/hostel with regard to examination/library/laboratory.
- Purchase of books/equipment/instruments/uniforms, purchase of computers-essential for completion of the course (maximum 20 per cent of the total tuition fees payable for completion of the course).
- Caution deposit/building fund/refundable deposit (maximum 10 per cent of tuition fees for the entire course)
- Travel expenses/passage money for studies abroad.
- Cost of a two-wheeler up to Rs 50,000.
- Any other expenses required to complete the course like study tours, project work etc.
Loan amount: SBI grants an education loan of up to Rs 10 lakh for higher studies in India and up to Rs 20 lakh for higher studies abroad.
Interest rate: State Bank of India charges a rate of interest between 8.55 per cent and 10.80 per cent with 0.50 per cent concession for girl students and for students availing SBI Rinn Raksha or any other existing policy assigned in favour of the bank. The rate of interest may vary from depending upon the credit score, nature of the course, other things as mandated by the State Bank of India.
Repayment: The repayment of the loan amount commences one year after the completion of the course. The loan amount should be repaid within 15 years after the beginning of the repayment period. In case a second loan is availed for higher studies later, to repay the combined loan amount in 15 years after completion of the second course, SBI said.
EMIs: The accrued interest during the moratorium period (one year after the completion of course) and the course period is added to the principal amount and repayment is fixed in Equated Monthly Installments (EMIs). If an individual has paid full interest before the commencement of repayment the EMI is fixed based on principal amount only.
Security deposit: For educational loans of up to Rs 7.5 lakh, no collateral security or third party guarantee is required, only the parent/guardian should be the co-borrower. For loan amount over Rs 7.5 lakh, tangible collateral security is required along with parent/guardian being the co-borrower.
Margin: There is no margin requirement for the loan amount of up to Rs 4 lakh, whereas, for loan amount above Rs 4 lakh, SBI levies a margin at a rate of 5 per cent for studies in India and 15 per cent for studies abroad.