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
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SBI offers various education loans for studies in India and abroad, designed for different needs.
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Interest rates range between 7.15% and 11.50%, with concessions for female students and premier institutions.
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All Indian nationals admitted to recognized courses are eligible.
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Collateral-free education loans up to ₹50 lakhs for premier institutions.
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Repayment tenure extends up to 15 years with no prepayment penalty.
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Applications can be made online or offline, with processing in about 15 days.
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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While SBI offers some of the lowest interest rates among banks, processing can take 15–30 days. NBFCs and fintechs like Propelld are faster and more flexible, often collateral-free.
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
The SBI Student Loan Scheme provides comprehensive financial assistance for higher education in India and abroad, featuring competitive rates and flexible repayment options.
Key Highlights
- ✓ No collateral up to ₹7.50 lakhs
- ✓ Special 0.5% concession for girl students
- ✓ 15-year repayment with moratorium period
- ✓ Fast 15-day processing
Loan Limits & Rates
| Study Location | Loan Amount | Interest Rate | Margin Required |
|---|
| India | ₹50 lakhs (₹30L medical) | 11.15% | 5% above ₹4L |
| Abroad | ₹7.50 lakhs | 11.15% | 15% above ₹4L |
Additional concessions: 0.5% for girls, 0.5% for SBI Rinn Raksha holders
Security Requirements
- Up to ₹7.50L: Parent/guardian co-obligation only
- Above ₹7.50L: Co-obligation + tangible collateral
Processing fees: Free up to ₹7.50L, ₹10,000+ taxes above ₹20L
What's Covered?
- Academic: Tuition, exam fees, books, equipment, lab fees
- Living: Hostel charges, travel, study tours, two-wheeler (₹50K max)
Eligibility & Courses
- Students: Indian nationals, NRIs (global); PIOs/OCIs (India only)
- India courses: All UG/PG degrees, diplomas, professional courses
- Abroad courses: Job-oriented programs, MBA/MS, Ph.D., specialized diplomas
Repayment Terms
- Grace period: 1 year post-course OR until employment
- Tenure: Up to 15 years from loan start
- Top-up facility: Available during moratorium for further studies
Best suited for students applying to general courses in recognized universities.
Apply immediately after admission confirmation for faster processing.
SBI Scholar Loan Scheme
The SBI Scholar Loan Scheme offers premium financing for students pursuing full-time courses at India's top-tier institutions, with preferential rates based on institutional rankings.
Key Highlights
- ✓ Ultra-low rates starting from 8.05% for premier institutes
- ✓ Up to ₹40 lakhs loan amount for Category AA institutions
- ✓ No processing fees across all categories
- ✓ Institution-specific benefits based on college ranking
Interest Rates by Institution Category
| Category | Institution Type | Interest Rate |
|---|
| AA | IITs | 8.10% p.a. |
| AA | Other Premier | 8.05% p.a. |
| A | IITs | 8.15% p.a. |
| A | Other Institutes | 8.65% p.a. |
| B | NITs | 8.65% p.a. |
| B | Other Institutes | 9.15% p.a. |
| C | NITs | 8.65% p.a. |
| C | Other Institutes | 9.65% p.a. |
Check eligible institutions and download pdf at SBI Scholar Loan List.
Loan Amount & Security by Category
| Category | Max Loan Amount | Security Requirements |
|---|
| AA | ₹40 lakhs | No collateral (parent co-borrower) |
| A | ₹20 lakhs (₹30L with security) | Parent/guardian co-borrower |
| B | ₹20 lakhs | No collateral (parent co-borrower) |
| C | ₹7.5 lakhs (higher with security) | Parent/guardian co-borrower |
Margin & Processing Details
- Up to ₹4 lakhs: No margin required
- ₹4L - ₹7.5L: 5% margin
- Above ₹7.5 lakhs: No margin
- Processing fees: Completely waived
Ideal for: Students targeting premium institutions with confirmed admissions through competitive entrance exams.
SBI Global Ed-Vantage Scheme
The SBI Global Ed-Vantage Scheme is designed for meritorious Indian students pursuing full-time regular courses at foreign universities, offering higher loan limits for international education.
Key Highlights
- ✓ Higher loan limits up to ₹3 crores for overseas studies
- ✓ Collateral-free education loans up to ₹50 lakhs for premier institutions.
- ✓ Lower margins compared to standard schemes (10-15%)
- ✓ Direct institutional payments in foreign currency
- ✓ Extended moratorium of course period + 6 months
Loan Structure & Rates
| Parameter | Details |
|---|
| Loan Amount | ₹7.5 lakhs to ₹3 crores |
| Interest Rate | 11.15% p.a. |
| Girl Student Concession | 0.5% reduction |
| Insurance Holder Concession | 0.5% reduction (SBI Rinn Raksha) |
| Processing Fee | ₹10,000 + taxes |
Ideal for: Students with confirmed admissions at top global universities requiring substantial funding.
SBI Skill Loan Scheme
The SBI Skill Loan Scheme is specifically designed for individuals pursuing skill development courses in India, offering accessible financing for vocational and professional training programs.
Key Highlights
- ✓ No collateral required - parent/guardian co-application only
- ✓ Zero processing fees and no margin requirements
- ✓ Quick approval within 15 days
- ✓ Flexible moratorium based on course duration
Loan Terms & Structure
| Parameter | Details |
|---|
| Loan Amount | Up to ₹1.5 lakhs |
| Interest Rate | 10.65% p.a. |
| Margin | Not required |
| Processing Fee | Waived |
| Security | Parent/guardian as joint borrower |
Moratorium & Repayment
| Course Duration | Grace Period |
|---|
| ≤ 1 year | 6 months moratorium |
| > 1 year | 12 months moratorium |
Perfect for: Students seeking vocational training, skill upgrades, or professional certifications without hefty financial barriers.
SBI Shaurya Education Loan
The Shaurya Education Loan is exclusively designed for wards and spouses of Defence, Indian Coast Guard, and Central Armed Police personnel, offering enhanced benefits for military families.
Key Highlights
- ✓ Exclusive for defense families - DSP/ICGSP account holders
- ✓ Higher loan limits up to ₹1.5 crores for abroad studies
- ✓ Optional security for most loan amounts
- ✓ Premium institutional coverage including IIMs, IITs
Loan Limits & Interest Rates
| Study Location | Loan Amount | Interest Rate | Security |
|---|
| India | Up to ₹40 lakhs | 11.15% (secured) | Optional above ₹7.5L |
| India | Up to ₹40 lakhs | 11.75% (unsecured) | Not required |
| Abroad | Up to ₹1.5 crores | 11.15%/11.75% | Optional above ₹7.5L |
Designed specifically for: Defense families with enhanced loan limits and flexible security options.
SBI Takeover Education Loan Scheme
The SBI Takeover Education Loan Scheme allows students to transfer their existing education loans to SBI for better interest rates and terms.
Key Highlights
- ✓ Zero processing fees for loan transfer
- ✓ Competitive 11.15% interest rate with concessions
- ✓ Top-up facility available for additional funding
- ✓ Covers prepayment penalties from previous lender
Loan Structure & Benefits
| Parameter | Details |
|---|
| Transfer Amount | ₹10 lakhs to ₹1.5 crores |
| Interest Rate | 11.15% p.a. |
| Girl Student Benefit | 0.5% interest reduction |
| Processing Fee | Completely waived |
| Repayment Tenure | Up to 15 years |
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.
Points at a Glance
- While SBI generally takes 15-30 days for processing, many NBFCs like Propelld, disburse the loan 10X faster.
- SBI typically offers a moratorium = course period + 6–12 months depending on scheme.
- Collateral-free up to ₹7.5L for most schemes; above this, tangible collateral usually required unless in Scholar or premier-institute list.
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.
Get 40 Lacs No Collateral Education Loan
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 Online
Apply Offline
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.
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.
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.
Where is the loan amount disbursed?
SBI disburses directly to the college/university in tranches; rarely to the student unless for travel/books.
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 frequently asked questions by prospective borrowers is: "How can I minimize the interest burden on my education loan?"
Real Student Concerns from Online Communities
A student on Reddit’s r/personalfinanceindia, planning MBBS abroad shared his concern of loan structuring. With annual expenses of ₹1.25 lakhs over 6 years and available funding of ₹7.5 lakhs at 10-11% interest, the total repayment can reach ₹10.38 lakhs. This represents the challenge many medical students face when planning their education financing.
Why Understanding This Matters for Your Planning?
Understanding interest reduction strategies becomes crucial because:
- Long course durations increase total interest burden
- Compound interest during moratorium period adds to principal
- Early planning can save significant amounts over loan tenure
- Available concessions are often underutilized by borrowers
Let's explore practical solutions to address this concern of interest burden:
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.
Remember: SBI applies a 2% monthly penalty on overdue EMIs and requires margin money (5–15% depending on loan). Always clarify these before signing.”
People Also Ask
What precautions to take during loan tenure?
Maintain regular EMI payments, keep all loan documents safe, inform the bank of address changes, and avoid defaulting to prevent penalty charges.
Should I opt for secured vs. unsecured loans?
Choose secured loans for lower interest rates if you have collateral; unsecured loans offer convenience but at higher rates.
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.
- No Foreclosure Penalty SBI allows you to prepay anytime without charges, helping reduce total interest burden.
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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