If you’re planning higher studies, the YONO SBI education loan can make your journey a lot smoother. In 2024, the State Bank of India disbursed over ₹10,860 crore in education loans to more than 1.26 lakh students. These numbers show that students are relying on loans more than ever to chase their dreams, and SBI, through its YONO app, has made the process quicker and easier.
In this article, we’ll walk you through everything about applying for a YONO SBI education loan 2025, eligibility, step-by-step process, interest rates, and key details you shouldn’t miss.
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About The YONO SBI Education Loan 2025
When it comes to funding higher education, convenience and speed matter just as much as affordability. That’s where the YONO SBI education loan steps in. Offered by the State Bank of India through its digital platform YONO (You Only Need One), this loan makes it possible for students to apply directly from their smartphones without visiting a branch.
Read on to know what makes the YONO SBI education loan stand out:
1. Quick and Simple SBI Student Loan Application Process
Apply directly through the YONO app without heavy paperwork or repeated branch visits.
2. Real-time Loan Updates
Students can track their loan application status instantly through the YONO app. Borrowers can monitor how their loan amount is being utilised, helping them stay financially disciplined.
3. Smooth Loan Management
EMI schedules, repayments, and interest details can all be managed digitally without hassle.
4. Fast Disbursement
Once approved, funds are released quickly, ensuring you don’t miss deadlines for fee payments.
5. Check Existing Loans & Bills
Users can easily track details of ongoing loans as well as credit card bills, making financial planning more efficient.
6. ATM Withdrawal without a Card
With the YONO Cash facility, you can withdraw money from SBI ATMs without using a debit card, adding both convenience and security.
7. Round-the-Clock Access
Unlike traditional banking hours, YONO SBI can be accessed 24/7, making it highly useful for students and working professionals.
YONO SBI Education Loan Schemes
SBI provides a tailored set of loan schemes designed to meet diverse academic needs, whether you're aiming for top institutes in India, enhancing your skillset, or studying overseas.
Listed below are some of the popular SBI education loan schemes you can apply for via the YONO app:
1. SBI Student Loan Scheme
This is the most common loan for higher studies in India and abroad. It covers tuition fees, books, hostel charges, and travel (for overseas courses). Students can borrow up to ₹50–75 lakh for the top 100 NIRF institutes, and even up to ₹1 crore in special cases like MBBS or foreign studies.
2. SBI Global Ed-Vantage Scheme
Exclusively for students going abroad, this loan supports full-time courses at recognised universities. The loan amount ranges from ₹7.5 lakh to ₹3 crore, covering tuition, living expenses, travel, and more. Collateral is generally required, though certain premier universities may get collateral-free funding up to ₹50 lakh.
3. SBI Scholar Loan Scheme
This scheme is meant for students admitted to prestigious Indian institutions like IITs, IIMs, NITs, AIIMS, and other top institutes. Loan amounts are higher, and the terms are more flexible compared to the regular student loan. Repayment starts 6–12 months after course completion or employment, and the tenure can go up to 15 years.
4. SBI Skill Loan Scheme
For students pursuing short-term vocational or skill development programs at ITIs, NSDC-affiliated centres, or polytechnics, SBI offers the Skill Loan. The loan amount is smaller, ranging from ₹5,000 to ₹7.5 lakh, with no need for collateral. A parent or guardian acts as a co-borrower.
The loan comes with flexible repayment options and a moratorium period after course completion, making it accessible for students looking to upgrade skills for quick employment.
Comparison of SBI Education Loan Schemes on YONO
If you’re planning to pursue medicine, don’t miss our detailed guide on SBI Education Loan for MBBS Students, where we cover everything from eligibility criteria to step-by-step application.
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How Does the YONO SBI Education Loan App Work?
The YONO SBI app is designed to make banking and loan services, including education loans, easier and faster for students. You can manage your loan application, track expenses, and access financial services right from your phone.
However, to use the app, your registered mobile number must match the SIM card in the phone you are logging in with. This ensures better security and smooth functioning. Here’s a simple step-by-step process to get started with the YONO SBI app:
1. Download the App
Go to the Google Play Store (Android) or App Store (iOS) and search for the YONO SBI app. Install it on your smartphone.
2. Register and Login
Use your SBI net banking username and password to log in. If you don’t have internet banking, you can register using your debit card details.
3. Verify with OTP
An OTP will be sent to your registered mobile number. Enter it to continue.
4. Set Up M-PIN
After successful login, create an M-PIN for easier access in the future.
5. Start Using YONO
Once registered, you can explore all features, including education loan applications, real-time tracking, and expense management.
How To Apply for Education Loan on YONO App?
As per the latest guidelines from the Government of India, all education loan applications must eventually be submitted through the Pradhan Mantri Vidya Lakshmi (PM-Vidya Lakshmi) Portal, which serves as the single-window system for loan applications across multiple banks. YONO SBI works as an entry point, guiding you to the portal and making the initial process seamless.
Here’s the step-by-step SBI student loan application process via the YONO app:
1. Log in to the App
Open the YONO SBI app and log in using your M-PIN. If you haven’t set it up yet, you can do so during the first registration process.
2. Navigate to Loan Options
On the homepage, select the ‘Loans’ option. You will see different loan categories such as home loans, personal loans, car loans, and education loans.
3. Choose an Education Loan
Tap on ‘Education Loans’ to proceed. The app will display available SBI education loan schemes along with their features, eligibility criteria, required documents, interest rates, and processing fees.
4. Review Loan Details
Carefully go through the scheme details, as interest rates and terms may vary depending on the course, institution, and whether it is in India or abroad. For instance, SBI’s education loan interest rates currently start from around 8.15% per annum.
5. Apply Online
Once you have reviewed the details, click on the ‘Apply Now’ button on the screen.
6. Redirection to Vidya Lakshmi Portal
As per the Government of India’s regulations, the application will now be redirected to the Vidya Lakshmi Portal, where you need to fill in and submit the loan application form.
7. Bank Communication
After submission, SBI will contact you for document verification and further processing.
8. Loan Approval and Disbursement
Once the loan is approved, SBI will initiate the loan disbursement process.
To know whether your institute is covered, check out our complete guide on the SBI Education Loan College List, where we’ve detailed approved colleges and the step-by-step loan process.
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SBI Education Loan Eligibility Requirements
SBI has outlined clear criteria to ensure that only genuine and financially capable applicants benefit from the education loan facility. According to the RBI and the Government of India’s education loan guidelines, banks evaluate both the student’s academic profile and the co-applicant’s repayment ability before sanctioning the loan.
Here are the key eligibility criteria for applying through YONO SBI:
- The applicant must be an Indian citizen.
- Minimum age of 18 years and maximum of 35 years at the time of application.
- You must have secured admission to a recognised university, college, or institution in India or abroad.
- A good academic track record is essential, as it reflects your seriousness and future potential.
- A parent, legal guardian, or close family member with a stable income and strong credit history should act as a co-applicant.
- Depending on the loan amount, you may need to pledge liquid assets, immovable property, or constructed property as collateral.
Here are the collateral options accepted by SBI.
Type of Collateral
Examples
Tangible Assets
Residential property (flat, house), non-agricultural land, fixed deposits, NSC, KVP, or government bonds.
Third-Party Collateral
Assets offered by relatives or friends (not necessarily parents), provided they agree to act as guarantors and meet eligibility requirements.
These eligibility rules ensure that students have the right support system and repayment capacity in place.
Documents Required for SBI Education Loan on YONO
Having the right documents ready speeds up approval and also reduces the chances of rejection. Below is a breakdown of the documents required:
1. KYC Documents (Identity & Address Proof)
These help verify the identity and residence of both the student applicant and co-applicant.
- Aadhaar Card / PAN Card / Passport / Voter ID / Driving License (any one)
- Proof of residence, including the latest utility bill (electricity, water, telephone), rental agreement, or bank statement with address
2. Applicant’s Documents
- Duly filled education loan application form
- Identity proof (PAN, Passport, Voter ID, Driving License, etc.)
- Address proof (utility bills or government-issued ID)
- Passport (mandatory for overseas studies)
- Academic records – 10th, 12th, and graduation mark sheets (if applicable)
- Entrance exam or standardised test results (GRE, TOEFL, IELTS, GMAT, etc., if required)
- Admission or offer letter from the institution
- Statement of estimated expenses (tuition fees, living costs, travel, etc.)
- Two recent passport-size photographs (taken within the last 6 months)
- Loan account statement (if the applicant has existing loans with any lender)
3. Co-Applicant’s Documents
- Identity and address proof (same as KYC requirements)
- Two passport-size photographs
- Salary slips for the last 3 months (if salaried)
- Bank statement for the past 6–12 months
- Income Tax Returns (ITR) for the last 2 years / Form 16
- Asset-liability statement (for loans above ₹7.5 lakh)
- Business address proof (if self-employed)
- Property/collateral ownership documents (if loan requires security)
4. Academic Documents
These establish the student’s qualifications and confirm admission.
- Class 10 & 12 mark sheets
- Graduation mark sheets (if applicable)
- Entrance exam results (if applicable)
- Admission/offer letter from the university or college
- Scholarship or grant letters (if awarded)
- Gap certificate (if there is a break in studies)
5. Collateral Documents (For Loans Above ₹7.5 Lakh)
Collateral is required for larger loan amounts. Accepted documents include:
- Property papers and clear title deeds
- Fixed deposit receipts (if pledging FDs)
- Valuation report of the property or asset offered
- Life insurance policy documents (surrender value considered)
Important Tip: All documents must be self-attested, and it’s recommended to keep multiple copies for submission and personal records.
Planning to study overseas? Don’t miss our detailed guide on SBI Education Loan for Abroad 2025 to understand the complete process before applying.
SBI Education Loan Disbursement Process
The disbursement of an education loan through YONO SBI follows a structured process to ensure funds are released securely and for the right purpose. The bank verifies your academic admission, expenses, and supporting documents before transferring the loan amount.
Let’s look at the process step by step:
1. Submission of Documents
To initiate the disbursement, you need to provide the key documents listed in the above section. These documents help the bank assess the actual financial requirement. Submitting them in advance can reduce delays in the disbursement process.
2. Approval of Disbursement
After verifying the submitted documents, SBI issues a disbursement letter. This letter specifies the sanctioned amount and payment details. The student must review and sign this document before the funds are released.
3. Actual Disbursement
Once approved, the bank transfers the tuition fee directly to the university or institution’s account. Other approved expenses, such as accommodation or travel costs, are credited to the student’s account. Alternatively, you can also choose to have funds loaded into a prepaid Forex card, which is convenient for students studying abroad.
Repaying SBI Education Loan Before EMI Begins? Student Concerns Explained!
Many students worry about rising interest rates on their education loans during the moratorium period. A recent Reddit discussion highlights this common concern.
Reddit User in r/India shared:
"I finished my undergrad with an SBI education loan. Although I have a year of moratorium left, I want to start partial repayments since interest is piling up. The bank told me I can transfer directly to the loan account, but I’m confused whether it goes toward principal or interest, and if I’ll be forced into regular EMI payments."
Insight: During the moratorium, you’re allowed to make voluntary payments without committing to full EMI. Any amount paid usually goes first toward the interest before reducing the principal. Banks don’t typically force EMIs unless you opt to convert to regular repayment mode.
What do we infer from the above case?
You can reduce interest burden by making early, flexible payments during the moratorium without triggering compulsory EMIs.
Tip: Always confirm the correct loan account number for repayment and keep digital/official receipts for every transfer.
The YONO SBI education loan stands out for its simple process, flexible features, and focus on accessibility. In 2024 alone, 41% of these loans were granted to female students, a clear reflection of SBI’s effort toward promoting gender inclusivity in higher education. If you are planning to fund your studies in India or abroad, this loan can be a reliable option that supports your academic journey.
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