SBI Education Loan: Types, Eligibility, Interest Rates & Application Process
SBI offers many education loan schemes to support Indian students. These education loan schemes come with certain benefits that excel over other banks in some parameters. Low interest rates, 100% financing, and better repayment terms are some of the best benefits that students receive.
Key Takeaways
- SBI provides a comprehensive range of education loan schemes, catering to higher education in India and abroad. These loans are designed for various student needs and course types, offering tailored features.
- The loan amounts can be up to ₹1.5 crore with interest rates typically ranging from 7.15% to 11.5%, varying by loan type, amount, security, and study destination. Concessional rates for studies at premier institutions and for female applicants.
- All Indian nationals admitted to a recognized course are eligible. For loans up to ₹7.5 lakh, no tangible security is usually needed, but a co-obligor is required. Loans above ₹7.5 lakh typically require collateral alongside a co-applicant.
- The repayment tenure can extend up to 15 years, offering flexibility. Key advantages include low interest rates, zero prepayment penalties, flexible EMI options, and tax benefits under Section 80E.
- You can apply both offline or online. The loan processing generally takes around 15 days after complete application and document submission.
SBI Education Loan Interest Rates
State Bank of India (SBI) offers various education loan schemes with interest rates generally ranging from around 7.15% to 10.90% per annum, depending on the loan type, loan amount, security, and study destination (India or abroad).
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Scheme Name
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Interest Rate (p.a.)
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Scholar Loan Scheme (IITs, IIMs, NITs, etc.)
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8.30% – 9.80%
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Student Loan Scheme (General)
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10.25% – 10.90%
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Global Ed-vantage Scheme (for Overseas studies)
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10.90%
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Loans up to ₹7.5 lakh (Without Security)
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9.65%
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Above ₹7.5 lakh with Security
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8.65% – 9.15%
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Loan Takeover (Above ₹10 lakh)
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7.15% – 9.15%
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Before finalizing your SBI loan, take a moment to check which bank has the lowest interest rate so you can minimize overall borrowing costs through smart comparison and borrower-friendly tactics.
Get Education Loan 10X Faster than Banks.
SBI Education Loan Schemes: Complete Guide for Students
In the higher education financing space, the State Bank of India (SBI) remains one of the most trusted banks in India. With multiple education loan schemes tailored for different needs, SBI ensures that students—whether studying in India or abroad—can access financial support with flexible repayment options.
The different education loan schemes offered by SBI are:
SBI Loan Scheme for Study Abroad
- SBI Student Loan Scheme
- SBI Global ED-VANTAGE Scheme
- SBI Shaurya Education Loan
SBI Loan Scheme for Study in India
- SBI Student Loan Scheme
- SBI Scholar Loans
- SBI Shaurya Education Loan (For Wards of Defense and Indian Coast Guard Personnel)
- SBI Skill Loan Scheme
Apart from these, there is also a takeover of education loans provided for both of the above segments.
Let’s see these schemes in detail:
UI Components Section
Explore SBI Education Loan Schemes
Student Loan
Scholar Loan
Global Ed-Vantage
Skill Loan
Shaurya Loan
Takeover
SBI Student Loan Scheme
Designed for students pursuing higher education in India or abroad, this is the most common SBI education loan.
Key Features:
- Loan amount: Up to ₹10 lakh (India) and ₹20 lakh (abroad)
- Interest Rate: Starts from 8.15% p.a. (with concessions for female students)
- Repayment: Up to 15 years after the moratorium period
- Collateral: Required for loans above ₹7.5 lakh
- Coverage: Tuition fees, exam fees, books, equipment, travel (if abroad)
Best suited for: Students applying to general courses in recognized universities.
SBI Scholar Loan Scheme
This scheme is specially designed for students who secure admission to premier institutes in India such as IITs, IIMs, NITs, AIIMS, etc.
Key Features:
- Loan amount: Up to ₹40 lakh (depending on the institute category)
- Interest Rate: Concessional rates starting at 7.15% p.a.
- No processing fee for eligible institutes
- No collateral required for loans up to ₹40 lakh in selected institutes
- Repayment: Up to 15 years
Ideal for: Students of top-ranked Indian institutes who want maximum funding with minimal security requirements.
SBI Global Ed-Vantage Scheme
Exclusively for students planning full-time courses abroad.
Key Features:
- Loan amount: ₹7.5 lakh – ₹1.5 crore
- Interest Rate: Starts at 8.65% p.a.
- Collateral: Mandatory for entire loan amount
- Coverage: Tuition fees, living expenses, travel, insurance, equipment
- Repayment: Up to 15 years (after course completion + moratorium)
Best choice for: Students pursuing higher studies in international universities.
SBI Skill Loan Scheme
For students enrolling in vocational or skill development courses in India, recognized by government bodies.
Key Features:
- Loan amount: ₹5,000 – ₹1.5 lakh
- Interest Rate: 9.55% p.a. (linked to repo rate)
- Repayment: 3 to 7 years depending on loan amount
- No collateral required
Designed for: Short-term courses, certifications, and training programs that enhance employability.
SBI Shaurya Education Loan
A unique scheme for the children of Defence & Coast Guard personnel.
Key Features:
- Loan amount: Up to ₹10 lakh (India) and ₹20 lakh (abroad)
- Interest Rate: Special concessional rates, lower than regular student loan scheme
- Collateral: Required above ₹7.5 lakh
- Repayment: Up to 15 years
Aimed at: Supporting the education dreams of defence families with affordable terms.
SBI Loan Takeover Facility
If you already have an education loan from another bank/NBFC at higher rates, SBI allows you to transfer your loan and enjoy better terms.
Key Features:
- Loan takeover from other institutions
- Competitive interest rates (lower than most private lenders)
- Flexible repayment options
- Possible top-up loan facility
Perfect for: Reducing the cost, or getting better deals than an existing loan.
Always compare schemes before applying. If you are targeting international studies, read our detailed guide on SBI Education Loan for Abroad Studies to understand eligibility, costs, and application steps.
Education Loan - Min Docs. Max Approval. Min Hassle. Max Tenure
SBI Education Loan Documents Checklist
Applicant & Co-Applicant KYC Documents
- Identity Proof: PAN Card, Passport (student, if going abroad)
- Address Proof: Passport, Voter ID, Ration Card, Electricity Bill, Telephone Bill, Bank Account Statement, Aadhaar Card (two proofs if permanent & present addresses differ)
- Personal asset and liabilities statement approved by bank branch personnel
- Bank account statement (last 6 months):
- Applicant: Personal/salary account
- Co-applicant: Salary credits (if salaried) or 1-year business transactions (if self-employed)
- All copies should be self-attested
Student’s Academic Documents
- Mark sheets of Class 10, 12, and graduation
- Admission proof (showing duration of course)
- Fee structure from college/university
- Entrance exam scorecards (IELTS, GRE, GMAT, etc.)
Co-Applicant Income Documents
If Salaried:
- ITR (last 2 years)
- Form 16 (last 2 years)
- Salary slips (last 3 months)
- Employer ID card
If Self-Employed:
- Proof of business address
- ITR (last 3 years)
- Profit & Loss account + balance sheet (last 3 years)
Other Mandatory Documents
- Joint affidavit (student & co-applicant) in SBI’s standard format
- Co-applicant declaration for handling remaining expenses
- Loan account statements (if any) for last 1 year
- Payment receipts (if paid in past 6 months)
- Gap explanation letter (if studies were interrupted) on ₹100 stamp paper
Collateral Documents (if applicable)
- Property documents, valuation, and legal clearance reports.
All the photocopies of these documents should be self-attested.
Looking for an easy education loan without pledging your assets? Read our complete guide on No Collateral Education Loan.
SBI Education Loan Calculator
Knowing the precise amount of your EMI on your SBI student loan will help you better manage your student finances and plan your expenses. Use SBI Loan Calculator to know the complete details about your loan.
Just fill in the loan amount, tenure, and interest rate. Click 'Calculate' Decide any prepared payments you wish to make.
The calculator will then provide the estimated monthly EMI based on the loan amount, interest rate, and repayment period.
For example, if the interest rate is 10.55% and the repayment period is 10 years, the estimated monthly EMI would be around ₹26,000.
For easy, hassle free loans with minimum documentation, you can also check Propelld and their easy to use EMI Calculator.
How to Apply for SBI Education Loans?
Here's how you can apply for an SBI education loan easily:
Apply Offline
Apply Online
Offline Application Steps
- Arrive at your nearest SBI branch with the required paperwork.
- Complete and submit the application form for the SBI Education loan, which you may get from there.
Online Application Steps
- Visit the SBI's official website.
- Go to the section on Education Loans.
- Select the applicable lending option.
- Click 'Apply Now'.
- You will be routed to Vidya Lakshmi's website.
- Register by inputting all of your information.
- Finally, apply for the loan.
- A bank representative will contact you.
Check out our detailed guide on how to apply for an education loan through the Vidyalakshmi Portal. It also contains the complete process manual in a downloadable form.
People Also Ask
Why is my application routed through Vidyalakshmi Portal?
SBI requires education loan applicants to register and apply via Vidyalakshmi first, because the bank pulls the application data directly from there into their own system.
You aren’t applying to Vidyalakshmi itself — it’s just the gateway. Your loan is still processed and sanctioned by SBI.
Can I apply for an SBI education loan directly at the branch without using Vidyalakshmi?
Yes, you can visit the SBI branch and apply offline, but for online applications, you must use the Vidyalakshmi portal.
How can I track my SBI education loan application after submitting it online?
You can log in to the Vidyalakshmi portal to check your loan status, and SBI will also update you through the branch once they process your application.
SBI Education Loan Subsidies
Many students hesitate to take an education loan due to the burden of interest. To support deserving candidates, the State Bank of India (SBI) offers interest subsidy schemes backed by the Government of India. These schemes help reduce costs while ensuring students can continue their higher education without financial stress.
If you are applying through the Vidyalakshmi Portal, you can check and apply for these subsidies along with your loan application.
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Scheme Name
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Eligibility
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Purpose
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Key Features
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Central Programme for Interest Subsidies
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• Annual household income ≤ ₹4.5 lakh
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Technical/professional courses in Indian institutions
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• Interest subsidy during EMI moratorium period
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Padho Pardesh
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• Must belong to minority communities
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Higher education abroad (Master's, M.Phil, PhD)
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• Interest-bearing scholarships specifically for minority students
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Dr Ambedkar Central Sector Scheme
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• Must belong to EBC or OBC categories
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Higher education
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• Interest-bearing scholarships specifically for minority students.
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Tip: Always submit income certificates and community certificates (if applicable) while applying, as they are mandatory for subsidy approval.
Can I Reduce Interest on my SBI Education Loan?
One of the most common questions students and parents ask is: “How can I reduce the overall interest load on my education loan?”
In fact, a student on Reddit’s r/personalfinanceindia shared his concern:
“I plan to pursue MBBS abroad and am considering an SBI education loan. Since I don’t have collateral, I’m looking at the non-collateral option, which offers up to ₹7.5 lakh at around 10–11% interest. I’ll need about ₹1.25 lakh per year for 6 years, which means I could end up repaying ₹10.38 lakh in total. How do I minimize this interest and what precautions should I take?”
This is a real-world scenario many students face. Let’s check what can be done:
Practical Ways to Reduce SBI Education Loan Interest
The most important and effective way to reduce the interest is to leverage SBI concessions. For girl students or premier institutes, SBI often offers a 0.50% interest concession. Always ask if you qualify.
Other than this, in order to manage your loan properly and to avoid any extra cost, follow these guidelines:
- Confirm the exact rate & fees: Always check the sanctioned interest rate and ask about processing fees. Even a 0.5% variation can save thousands over 6 years.
- No prepayment penalty: SBI typically doesn’t penalize prepayments. So, if you or your co-borrower get extra income, you can prepay anytime to reduce interest outgo.
- Understand repayment & disbursement: Match your repayment schedule with the course duration. Request moratorium clarity (interest during study period).
- Ask about hidden costs: Margin money, late payment penalties, and floating interest clauses are often overlooked.
Advantages of SBI Education Loan
The State Bank of India (SBI) offers a range of education loans that cater to the diverse needs of students pursuing higher education in India and abroad. The advantages of SBI Education Loans include:
- Offers low interest rates starting at 7.15%.
- Provides high loan amounts up to ₹1.5 crore for studies in India and abroad.
- Features easy EMI options for manageable repayments.
- Ensures quick loan approvals for timely financial support.
- Offers tax benefits under Section 80E of the Income Tax Act.
- Allows flexible repayment with terms up to 15 years.
Choosing the right education loan is crucial to reduce the burden of higher education both financially as well as in terms of efforts required.
SBI offers a robust portfolio of education loans, catering to diverse needs with competitive interest rates, flexible repayment options, and extensive coverage for both domestic and international studies.
For those seeking faster processing and highly simplified, often collateral-free options, exploring specialized fintech lenders like Propelld could provide an invaluable alternative, potentially disbursing loans significantly quicker than traditional banks.
- Tailored plans for all courses and colleges in India
- Faster disbursements with minimal documentation
- Ideal for those without a co-applicant or fixed income proof
- No Collateral Education Loans even for higher amounts.
Ultimately, a well-informed decision will pave the way for a smoother educational journey and financial future.
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