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SBI Education Loans for Foreign Studies and Studies in India

Posted Date: |Updated: 25-Mar-2017 |Category: Educational Loans |Author: |Member Level: Platinum |Points: 30 |


Are you looking for details for applying Education loans in SBI? This article gives complete information on SBI Education Loans for Indian Students for Foreign Studies and for studies in India.

State Bank of India (SBI) is not just any bank in India. It is the largest bank in India which provides multiple financial services. One of these financial services is education loan. SBI give educational loans to eligible candidates to pay their tuition fee, hostel fee, exam fee etc.

What are SBI education loans?

SBI education loans are loans given to an Indian national who has secured admission to an educational institute in India or abroad and wishes to obtain financial support to pursue that educational path.

Courses are eligible for SBI education loans

You can apply for an SBI education loan for any graduate, postgraduate or professional course. Courses approved by the Govt. of India, UGC and AICTE are also eligible for SBI education loans.



Expenses included by SBI education loans

In addition to the education fees of the institute where you have secured admission, an SBI education loan will include the following expenses:
  1. Hostel fees

  2. Library fees

  3. Laboratory fees

  4. Examination fees

  5. Fees to purchase uniforms, books, equipment and instruments

  6. Money which you need to pay as deposits, such as a refundable deposit (maximum 10% tuition fees for the entire course), caution deposit, etc.

  7. Money towards travel to study in a foreign country

  8. Money towards buying a computer for the purpose of completing the course

  9. Two-wheeler purchase cost (up to Rs.50,000/-)

  10. Expenses for study tour and specific project work

Maximum amount of SBI education loan

The loan amount given through a SBI education loan depends on whether the loan is for studying in India or for studying abroad. SBI education loan for studying in India is maximum Rs. 10 lacs; and SBI education loan for studying abroad is maximum Rs. 20 lacs

Interest rates of SBI education loans

As of June 2009, the SBI Student Loan Scheme has varying interest rates depending on the amount of the loan with SBAR 11.75%
  1. For SBI education loans up to Rs. 4.00 Lacs: 0.50% below SBAR i.e. 11.25% p.a.

  2. For SBI education loans above Rs. 4.00 Lacs and up to Rs. 7.50 Lacs: 1.00% above SBAR i.e. 12.75% p.a.

  3. For SBI education loans above Rs. 7.50 Lacs: At SBAR i.e. 11.75% p.a.

Note: SBI education loan for girl students has an interest rate concession of 0.50%

Processing fees of SBI Education Loans

There are No processing fees or any upfront charges when you apply for an SBI education loan. However, if you are applying for an SBI education loan for studying abroad, you will need to pay a deposit of Rs. 5000/- which will be then adjusted in the margin money.

Repayment tenure of SBI Education Loans

The repayment of your SBI education loan will begin 1 year after you complete your course or 6 months after you get a job, whichever is earlier.

  1. For Studies in India Repayment Tenure of SBI Education Loan: 5 to 7 years (loan amount of maximum Rs. 10 lacs)

  2. For Studies Abroad Repayment Tenure of SBI Education Loan: 5 to 7 years (loan amount of maximum Rs.20 lacs)

Security for SBI education loans

The security to be given for an SBI education loan depends on the loan amount.
  1. Security for SBI education loan up to Rs. 4 lacs: No security is required

  2. Security for SBI education loan above Rs. 4 lacs to Rs. 7.50 lacs: You need to provide collateral security in the form of a suitable third party guarantee. However, SBI states that it may use its discretion to waive this third party guarantee in exceptional cases if satisfied with the net-worth/means of parent/s who would be executing the documents as "joint borrower".

  3. Security for SBI education loan above Rs.7.50 lacs: You need to provide tangible collateral security of suitable value, along with the assignment of future income of the student for payment of installments of the SBI education loan.

Note: The SBI education loan must be secured by parent(s)/guardian of the student borrower. In case you are a married person, co-obligator can be either the spouse or the parent(s)/ parents-in-law.

Margin of SBI education loans

For SBI education loans up to Rs.4.0 lacs, there is no margin. For SBI education loans above Rs.4.0 lacs it is 5% for loans for studies in India; and 15% for loans for studies abroad.



Documents required for SBI education loans


You need to submit the following documents when applying for an SBI loan:
  1. The SBI education loan application form completed in all respects

  2. The mark sheets of the last qualifying examination

  3. Tangible proof of admission scholarship / studentship

  4. A list of expenses which will be incurred for the course

  5. 2 photographs (passport-size only)

  6. Bank account statement of the borrower for the last 6 months

  7. Last 2 years' Income Tax Assessment order

  8. A brief statement of the co-borrower's assets and liabilities

  9. Tangible proof of income, such as salary slips, Form 16, etc.


Contact Phone Number for SBI Education Loans

Call: 1800112211 (Toll-free from BSNL/MTNL)


Article by Vandana
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Comments

Guest Author: Naga24 Jul 2017

SBI provides 9.5% interest rate if you apply through this SBI global-Edvantage scheme launched recently. You can avail loan amount minimum of 20 lakhs to maximum of 1.5 crore. Simple Interest will be charged during Course Period + Moratorium Period. You can get time up to 15 years post-completion of your course to repay the SBI loan. Not all the SBI branches are able to process this scheme. Your application will be assigned to the respective branch near to you.

Hope it is helpful!



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