SBI Education Loan - Eligibility and Interest Rates (2024)

About SBI Education Loans

As important as education is, the expenses associated with it are challenging to bear for many Indian families and students. This is why SBI, a national financial powerhouse, offers students many education loan schemes to cover these expenses. SBI education loan is one of the most accessible options for students to fund and fuel their dreams of higher education.

Students with varying financial demands find a solution through SBI's Education Loan scheme. It supports both domestic and international higher education. SBI offers a variety of loan alternatives to meet the needs of students pursuing various types of higher education, including degrees, diplomas, and vocational training.

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SBI Education Loan Overview

SBI offers many education loan schemes to support Indian students and aspirants pursuing higher education in India and abroad. These education loan schemes come with certain benefits that excel over other banks in some parameters. Low SBI education loan interest rates, 100% financing, and better repayment terms are some of the best benefits that students receive.

The State Bank of India offers many education loan schemes, with interest rates beginning at 8.15%. The adjustable payback terms also include a grace period following the course conclusion. Prepayment of the loan is free of prepayment charges, and it can be done at any time during the loan tenure. Some loans also offer interest concessions for female students.

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Types of SBI Education Loan

Whether they are studying in India or overseas, SBI provides a wide variety of education loan plans For students' varied needs. These initiatives can cover various courses, programmes, and educational fees.

SBI Education Loan India

SBI offers many student loan schemes that you can apply for studying in India on your needs and demands. All these SBI education loan schemes have varying benefits and features, which include:

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SBI Education Loan for Abroad

If you want to study abroad, you can apply for the following SBI education loan scheme for study abroad:

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Comparison of SBI Education Loan Schemes

Here is a comparison of different SBI education loan schemes on the most important features i.e. the loan amount and the interest rates.

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Features of SBI Education Loan

The following are the general characteristics of the education loan issued by SBI:

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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:

1. Low Interest Rates

SBI Education Loans offer competitive interest rates, with the lowest rate being 10.25% as of May 1, 2024.

2. Higher Loan Amounts

SBI Education Loans offer higher loan amounts, with the maximum loan amount for studying in India being ₹1.5 crore and for studying abroad being ₹1.5 crore.

3. Easier EMI Options

SBI Education Loans provide easier EMI options, allowing students to manage their repayment obligations more effectively.

4. Early Approvals

SBI Education Loans are known for their early approvals, which can be beneficial for students who need timely financial assistance for their education.

5. Tax Benefits

SBI Education Loans offer tax benefits, which can help students reduce their tax liability and make their education more affordable.

6. Better Repayment Options

SBI Education Loans provide better repayment options, including a repayment period of up to 15 years.

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‍Approval Based on Your 12th Marks. No Co Applicant Required. Check Your Eligibility.

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SBI Education Loan Documents Required

To apply for an SBI Education Loan, students and their co-applicants/guarantors need to submit a comprehensive set of documents. These documents serve as proof of eligibility, financial standing, and academic credentials, allowing SBI to assess the loan application thoroughly.

For Students, the Essential Documents Include:

1. Admission letter from the institution
2. Academic records (mark sheets, degrees, etc.)
3. Proof of age (birth certificate, passport, etc.)
4. Income proof of parents/guardians (salary slips, income tax returns, etc.)

Co-Applicants or Guarantors, Who Act as Financial Support, Need to Provide:

1. Identity proof (Aadhaar card, PAN card, etc.)
2. Residence proof (utility bills, rental agreement, etc.)
3. Income proof (salary slips, income tax returns, bank statements, etc.)
4. Asset and liability details

Additional Documents May be Required, Such as:

1. Fee structure from the institution
2. Certificate of language proficiency (for overseas studies)
3. Passport and visa copies (for overseas studies)
4. Quotations for cost estimates (for courses abroad)

SBI Education Loan Processing Fees and Charges

The SBI education loan offers a set of benefits to students and their families. However, it still comes with a few charges and a processing fee that students have to bear. The processing fee associated with the SBI education loan is ₹10,000 + GST. This processing fee is non-refundable.

Besides the processing fee, the student loan also involves property evaluation charges, which are approximately ₹7,500. These charges are subject to change and vary depending on the student’s location and property.

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SBI Education Loan Calculator

Knowing the precise amount of your Equated Monthly Installment (EMI) on your SBI student loan will help you better manage your student finances and plan your expenses. Use the SBI Education Loan Calculator to get an amortization table that breaks down your EMIs in full.

This easy-to-use online EMI calculator displays your EMI details immediately on the screen. To apply, fill in the appropriate boxes with the loan amount, tenure, and interest rate that you have been approved for or requested from SBI. Decide any prepared payments you wish to make. You can view your EMI information by selecting 'Calculate'.

Suppose a student wants to pursue a Master's degree program abroad that costs ₹30 lakhs per year. The student has already secured ₹5 lakhs in scholarships and grants, and they plan to contribute ₹3 lakhs from their own savings.

Using the SBI Education Loan Calculator, we can calculate the following:

• Total Annual Cost to Attend: ₹30 lakhs
• Gift Aid (Scholarships & Grants): ₹5 lakhs
• Your Financial Contributions: ₹3 lakhs

Based on this information, the SBI Education Loan Calculator will determine the loan amount required:

1. Total Annual Cost: ₹30 lakhs
2. Less: Gift Aid (Scholarships & Grants): ₹5 lakhs
3. Less: Your Financial Contributions: ₹3 lakhs
4. Loan Amount Required: ₹22 lakhs

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.

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SBI Education Loan Interest Rate

As one of the main education loan providers, SBI is aware of students' demands and provides very affordable education loans with lower interest rates. That is why SBI student loans offer one of the most competitive interest rates to ease the financial burden on students. The SBI student loan scheme interest rate varies from 8.15% to 11.15%.

The interest rate of SB Scholar Loans for premier IITs, IIMs, and NITs is 8.15%. The interest rate of the SBI Student Loan Scheme, Shaurya Education Loan, and SBI Global Ed-Vantage is 10.15%. Besides all these, the SBI Skill Loan offers an interest rate of 10.65%.

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How to Apply for SBI Education Loan Online/Offline

Applying for an SBI education loan can be done in person or online.

Offline

• Step 1: Arrive at your nearest SBI branch with the required paperwork. 
• Step 2: Complete and submit the application form, which you may acquire from there.

Online

• Step 1: Visit the SBI's official website. 
• Step 2: Go to the section on Education Loans. 
• Step 3: Select your favorite lending option. 
• Step 4: Click 'Apply Now'. 
• Step 5: You will be routed to Vidya Lakshmi's website. 
• Step 6: Register by inputting all of your information. 
• Step 7: Finally, apply for the loan. 
• Step 8: A bank representative will contact you.

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How to Transfer Your Education Loan to SBI?

You can lower your monthly EMIs by switching from your current, expensive education loan to an SBI takeover of Education Loans.

1. Contact SBI: Reach out to the State Bank of India to inquire about their Takeover of Education Loans scheme.
2. Understand the Process: Familiarize yourself with the terms and conditions of the SBI Takeover of Education Loans scheme.
3. Eligibility Check: Ensure you meet the eligibility criteria for transferring your existing high-cost education loan to SBI.
4. Prepare Documents: Gather all the necessary documents required for the loan transfer process.
5. Application: Fill out the SBI Education Loan application form for the takeover process.
6. Submission: Submit the completed application form along with the required documents to SBI for processing.
7. Review and Approval: Wait for SBI to review your application and approve the transfer of your education loan.

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SBI Education Loan Repayment Process

SBI education loan provides students with an easy repayment process. It not only allows students to focus on their studies but also makes it easy to repay the loan.

1. Repayment for SBI student loans will begin one year after the course ends or six months after landing a job, whichever comes first.
2. The Loans are approved as term loans and, for Student, Scholar, and Global Ed-vantage Education Loans, must be paid back in EMIs over a maximum 15-year (180-EMI) payback term. For Student and Scholar Loan Schemes, the EMI payments begin 12 months following the completion of the degree or, if early, 6 months following employment. Repayment of the EMI for Global Ed-Vantage Loans begins six months after the course is over.
3. Repayment is fixed in Equated Monthly Installments (EMI) and includes interest that has accrued during the course and moratorium periods.
4. EMI is set based simply on the principal amount if all interest is paid before the start of repayment.
5. Prepayment has NO penalties. You always have the option to prepay your college loan.

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Programmes for SBI Education Loan Subsidies

SBI provides interest-only loan programmes that enable worthy students to minimize costs while maintaining their academic progress. Below are a few of these schemes:

Central Programme for Interest Subsidies for Sections with Lower Economic Status

The parents' or the household's annual gross income cannot exceed ₹4.5 lakh. This is relevant to courses offered in India's recognized technical and professional schools. The support is provided during the EMI moratorium.

Padho Pardesh

This programme offers interest-bearing scholarships for minority students to pursue higher education abroad. This pertains to the PhD, M.Phil, and Master's degrees.

Dr. Ambedkar Central Sector Scheme

Ambedkar, Dr The Central Sector Scheme provides interest subsidies to students from Economically Backward Castes (EBCs) and Other Backward Castes (OBCs) who are pursuing education abroad.

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If you wish to experience a hassle free and quicker loan process, Propelld can be your reliable companion. Propelld streamlines the loan application process by offering individualized support and knowledgeable direction. We will also assist you in navigating the intricacies of loan alternatives, documentation, and application procedures.

• Step 1: Get in touch with Propelld's financial officer by requesting a callback or filling up the SBI education loan form.
• Step 2: Share your needs and details with your financial officer.
• Step 3: Gather all the documents and upload all of them online on our portal.
• Step 4: After analyzing your eligibility, your financial officer will connect you to the best education loan lender.
• Step 5: Your financial officer will take care of the process from here.

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FAQs

Is SBI education loan for MBBS students available?

Yes. Students in India can obtain an education loan for MBBS for up to ₹30 lakhs through SBI education loan for MBBS students.

Can I get 50 lakhs education loan from SBI?

Yes. You can get a 50 lakh education loan from SBI on a case-to-case basis under the SBI student loan scheme and Global Ed—Vantage.

How much does SBI charge for education loan?

SBI education loan charges ₹10,000 + GST for processing the loan. It also charges another ₹7,500 for property evaluation. 

What is the minimum SBI education loan?

For students pursuing quality education in India and abroad, SBI offers a minimum education loan of ₹7.5 lakh.

How much percentage required for education loan in SBI?

There is no minimum percentage requirement for SBI education loans in India. However, banks will consider your overall academic record, including your class 10th and 12th marks, as well as your performance in entrance exams, if applicable.

What are the different types of SBI Education Loans available?

SBI offers two primary types of education loans: one for students pursuing higher education in India and another for students studying abroad.

What is the interest rate and security required for SBI Education Loans?

The interest rate for SBI Education Loans varies based on the loan amount. For loans up to ₹7.5 lakhs, the interest rate is 10.55% p.a. with a 0.50% concession for girl students. For loans above ₹ 7.5 lakhs, the interest rate is 10.80% p.a.

Does there exist an interest rate cut available for students other than female students?

Breaks in interest rates could differ according to the loan plan and qualifying requirements. For particular student or course groups, some banks typically provide special interest rates. For information on available interest rate breaks, contact your particular bank or lending institution.

Does one have any chance of getting more interest concession?

Under some conditions, such those of students from economically disadvantaged areas or those who have excelled academically, there may be more interest discounts offered. Find out from your bank whether they have any other choices for interest reductions.

Can I pay for accommodation on campus with my SBI education loan?

Indeed, tuition, books, equipment, and lodging costs—including on-campus housing—can all be paid for by student loans. To be sure about certain coverage details, though, check with your bank or lending institution.

Will the SBI education loan cover boarding and lodging expenses if the student arranges for such outside campus?

Together with tuition and other educational expenditures, education loans frequently pay for living expenses, such as off-campus lodging and board. To be sure these expenses are covered under your loan, you should, however, confirm the coverage details with your bank or lending institution.

Should a student join in another course after completing the first, would the embargo period be extended?

One of the reasons an embargo period—the time a borrower is exempt from making any loan payments—may alter is if they decide to take more classes. Usually, such circumstances are outlined in the loan agreement's terms and conditions. Speaking with your bank to find out how enrolling in another course could impact your loan payback plan is a good idea.

When will the SBI education loan be paid out—all at once or in stages?

Though distribution procedures can differ, education loans are usually paid out in phases in accordance with the needs of the educational institution. To pay for tuition and other permitted costs, money is usually released either directly to the school or in installments to the borrower's account. Check the particulars of the disbursement with your bank.

Where can one get the SBI education loan application form?

Applications for SBI education loans can be downloaded from the SBI website or picked up at SBI locations. Inquiries concerning the application procedure and the required forms can also be made by calling SBI customer care or by stopping by your closest SBI branch.