Shaurya Education Loan 2025 is a powerful opportunity crafted exclusively for spouses & wards of DSP/ICGSP officers seeking education in India or abroad. This SBI loan offers coverage up to INR 40 lakh for domestic courses and up to INR 1.5 crore for international studies.
Its floating interest rates, ranging between 9.15% and 10.15%, are determined using the External Benchmark Rate, making them competitive and transparent. Keep reading to explore every angle, from eligibility criteria and interest structure to unique benefits and application process.
SBI Shaurya Education Loan Overview
The table below highlights the key features of the Shaurya Education Loan 2025, making it easier for you to understand eligibility, loan amount, interest rates, repayment terms, and other important details.
Looking to study abroad? Explore our guide on SBI Education Loan for Abroad 2025 to learn about eligibility, interest rates, and the complete application process.
What Is The Shaurya Education Loan By SBI?
The SBI Shaurya Education Loan is a specialised financial scheme offered by the State Bank of India to support the higher education of wards and spouses of Defence, Indian Coast Guard, and Central Armed Police Force personnel. This loan offers high loan amounts up to ₹40 lakh for Indian studies and ₹1.5 crore for abroad.
The scheme ensures that students can pursue quality education without financial constraints, making it a preferred choice among eligible families.
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What Is The Shaurya Education Loan SBI Interest Rate?
When planning to finance higher education, understanding how interest is charged on your loan is just as important as knowing the maximum amount you can borrow. The Shaurya Education Loan by SBI follows a structured system where the interest rate is linked to the External Benchmark Rate (EBR), making it transparent and market-driven.
SBI’s EBR is 9.15%. On top of this, the bank adds a Credit Risk Premium (CRP) depending on the applicant’s profile and repayment capability. This ensures that the loan remains fair and adjusted to the financial risk involved.
Here’s a table highlighting the SBI Shaurya Education Loan interest rate.
Note: EBR= Repo rate + Spread
Key Features and Advantages of the SBI Shaurya Education Loan
According to the India CSR report, in FY 2024, SBI has disbursed over ₹10,860 crore in education loans, setting a new benchmark in the sector and reflecting the bank’s commitment to supporting students across India and abroad.
Here are the key features and benefits of the Shaurya Loan:
1. High Loan Amounts
The Shaurya education loan SBI maximum amount is up to INR 40 lakh for studies in India and up to INR 1.5 crore for studies abroad..
2. Competitive Interest Rates
The interest rates are floating, ranging from 9.15% to 10.15%. Additionally, female students receive a 0.50% concession.
3. Collateral-Free Loans
Loans up to INR 7.5 lakh do not require any collateral. For amounts above this, collateral security is needed, ensuring both accessibility for students and risk mitigation for the bank.
4. Flexible Repayment Options
Borrowers enjoy a repayment tenure of up to 15 years. The moratorium period covers the course duration plus one year for studies, allowing students to focus on their education without immediate financial pressure.
5. Tax Benefits
The interest paid on the loan qualifies for a deduction under Section 80E of the Income Tax Act, providing additional financial relief during the repayment period.
6. Quick and Hassle-Free Processing
The loan application process is streamlined for faster approval and disbursement, ensuring that students can meet admission deadlines without delays.
Shaurya Education Loan SBI Eligibility Criteria 2025
Since this scheme is designed exclusively for families of defence and paramilitary personnel, the eligibility rules are slightly different from regular education loans. Here’s a detailed look at the eligibility requirements:
General Eligibility Requirements
- Applicants must be wards or spouses of DSP/ICGSP/CAPF officers from all ranks.
- A co-borrower is mandatory, and they must hold a Diamond or Platinum DSP/ICGSP account with SBI.
- The salary or pension account of the co-applicant must remain with SBI for the entire loan tenure.
Eligible Courses in India
- Graduate and Postgraduate Programs offered by colleges or universities recognised by UGC, Government, AICTE, AIBMS, ICMR, etc.
- Professional Certifications such as ICWA, CA, CFA, and equivalent qualifications.
- Courses that are offered by top institutes like IIMs, IITs, IISc, XLRI, NIFT, NID, ISB, and similar reputed bodies.
- Programs run in India by recognised foreign universities with government approval.
- Specialised technical and professional courses, including aeronautical, pilot training, shipping, nursing, or any course approved by DGCA, the Directorate General of Shipping, or equivalent regulatory authorities.
Eligible Courses Abroad
- Undergraduate Programs in job-oriented professional or technical fields, including foundation, pathway, and integrated courses.
- Postgraduate Programs such as MCA, MBA, MS, or other advanced diplomas and professional courses from reputed global institutions.
- Doctoral (Ph.D.) Programs across recognised international universities.
- Professional certifications like CIMA (UK), CPA (USA), and equivalent qualifications.
- Degree/diploma courses in Aviation, shipping, and pilot training courses recognised by regulatory bodies for employment in India or abroad.
For students interested in specialised courses, check out the SBI Pilot Training Loan to explore financing options specifically designed for aviation and pilot training programs.
Required Documents to Apply for SBI Shaurya Education Loan
Before applying for the SBI Shaurya Education Loan, it is essential to gather all necessary documents to ensure smooth processing and timely disbursement. Below is a detailed list of the documents needed:
Academic Documents
- Mark sheets of 10th, 12th, and Graduation (if applicable).
- Entrance exam results (if applicable).
- Proof of admission: Offer letter, admission letter, or student ID card.
- Schedule of course expenses.
- Scholarship or fee waiver letters, if applicable.
- Gap certificate, if there is a break in studies (self-declaration from the student).
Photographs, Identity, and Address Proof
- Passport-size photographs of the student, parent, co-borrower, and guarantor (1 copy each).
- Permanent Account Number (PAN) of student, parent, co-borrower, or guarantor.
- AADHAAR card (mandatory if applying under GOI interest subsidy schemes).
- Passport (mandatory for studies abroad).
Financial Documents of Co-Applicant/Guarantor
For loans above ₹7.5 lakh, submit the Asset-Liability Statement of the co-applicant or guarantor.
For salaried persons:
- Latest salary slip.
- Form 16 or the latest Income Tax Return (ITR V).
For non-salaried/business persons:
- Proof of business address (if applicable).
- Latest Income Tax Returns (if applicable).
Bank Account Statements:
- Last 6 months for parent, guardian, or guarantor.
Collateral documents (if applicable):
- Copy of the sale deed or other property ownership documents for immovable property.
- Photocopy of liquid assets offered as security.
Officially Valid Documents (OVD) for identity and address:
Submit at least one self-attested copy from the following:
- Passport
- Driving license
- Aadhaar card
- Voter ID issued by the Election Commission
- Job card issued under NREGA, signed by a State Government officer
- A letter issued by the National Population Register containing the name and address.
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What Expenses Are Covered Under the SBI Shaurya Education Loan?
The Shaurya Education Loan is structured to cover all essential costs associated with completing a course, both in India and abroad, ensuring that students can focus on their studies without worrying about financial gaps.
Here are the expenses that are typically covered under this loan:
- Tuition and Institutional Fees
- Fee payable to colleges, schools, or hostels.
- Examination, library, and laboratory fees.
- Study Materials and Equipment
- Purchase of books, instruments, uniforms, and essential course equipment.
- Computers or laptops necessary to complete the course.
- Additional Course-Related Expenses
- Study tours, project work, thesis preparation, or any other expense required to complete the course.
- Caution deposits, building funds, or refundable deposits, supported by official institution bills or receipts.
- Travel Expenses
For studies abroad, travel expenses and passage money are included.
- Purchase of Two-Wheelers
Up to ₹50,000, eligible for financing if the loan is secured with a suitable third-party guarantee or tangible collateral.
- Education Loan Insurance
Premium of ‘Rinn Raksha’ insurance policy can also be financed, providing enhanced insurance coverage for the loan.
Margin Money Requirement for the SBI Shaurya Education Loan
When considering the SBI Shaurya Education Loan, it's essential to understand the concept of margin money. Margin money refers to the portion of the total loan amount that the borrower is required to contribute. This contribution ensures the borrower's commitment to the loan and reduces the bank's risk exposure.
According to the most important terms and conditions document from SBI, the margin money requirements are as follows:
- Loan Amount up to ₹4 lakh: No margin money required.
- Loan Amount above ₹4 lakh: A margin of 5% is applicable.
This means that for loans exceeding ₹4 lakh, the borrower must contribute 5% of the total loan amount. For instance, if the loan sanctioned is ₹10 lakh, the borrower would need to provide ₹50,000 as margin money.
SBI Shaurya Education Loan Application Process
The loan application is typically processed and disposed of within a maximum of 15 days after receiving the complete application, along with all supporting documents.
Here are the key steps of the application process:
1. Visit Your Nearest SBI Branch
Go to the SBI branch that provides education loan services. You can also check online for branch details or contact SBI’s customer care for guidance.
2. Collect and Fill the Application Form
Obtain the education loan application form from the branch or download it from the official SBI website. Complete the form accurately with all required details.
3. Submit the Application Form with Documents
Submit the completed application form along with all required documents to the branch. Ensure that all copies are self-attested where necessary.
4. Verification and Processing
The bank will verify your application, documents, and eligibility. This step includes checking your co-borrower’s financial capacity and any collateral offered.
5. Loan Sanction and Disbursement
Once the verification is complete, SBI will sanction the loan. The sanctioned amount is disbursed in stages, according to the actual requirement, and is typically paid directly to the educational institution or to vendors for books, equipment, and other course-related instruments, wherever possible.
Applying For An SBI Non-Collateral Education Loan? Here’s What You Should Know!
Many students planning to study abroad often face challenges when they don’t have collateral to pledge for a bank loan. SBI offers non-collateral education loans up to ₹7.5 lakh, with interest rates ranging from 10–11%. While this is helpful, understanding how interest accumulates and the terms of disbursement is crucial.
Reddit User shared:
"Since I have nothing to pledge, only non-collateral is possible. The bank will give 1.25 lakh per year for my 6-year MBBS, and after 6 years, I’ll owe 10.38 lakh."
Insight: Non-collateral loans are convenient but have yearly disbursements that accumulate interest over time. Without careful planning, borrowers can end up paying significantly more than the principal.
What do we infer from the above case?
- Interest can accumulate rapidly over long courses.
- Non-collateral loans are limited in amount, often requiring multiple annual disbursements.
- Borrowers should calculate the total repayment before agreeing.
Tip: Try to pay interest during the study period if possible to reduce total interest. Compare repayment options and prepayment facilities. Read the fine print carefully to avoid hidden charges or penalties.
For students specifically pursuing medical courses, check out our detailed guide on SBI Education Loan for MBBS Students to understand the requirements and application steps.
The SBI Shaurya Education Loan 2025 stands out as a comprehensive financial solution for the families of Defence, Indian Coast Guard, and CAPF personnel, covering almost every cost associated with higher education in India and abroad. With flexible repayment options, competitive interest rates, and collateral-free loans up to ₹7.5 lakh, it eases the financial burden and also encourages students to aim for top-tier courses and institutions.
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