SBI Education Loan Rate of Interest
Loan amount offered varies for different category of institutes under SBI Scholar Loan Scheme
- For AA category institutes, the loan amount is INR 40 Lacs
- For A category institutes, it is INR 20 Lacs and can be extended to INR 30 Lacs under certain conditions
- For B category, it is INR 20 Lacs and INR 7.5 Lacs for Category C
- No Margin required; 100% finance available
Interest Rate charged varies for different categories of institutes.
- For List AA Institutes, the interest is 8.75% for loan amount up to INR 30 Lacs without collateral
- For List A Institutes, the interest is 9.05% for IITs and NITs and 9.55% for other institutes
- For List B Institutes, interest rate is 10.20% for loan amount up to INR 20 Lacs and 9.95% if collateral security value is greater than loan amount
- For List C Institutes, interest rate is 9.05% for NITs and 10.05% for others
CALCULATE YOUR EDUCATION LOAN EMI
1,000 per month
1,000
1,000
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SBI Education Loan Eligibility
- Indian National. Student must be a citizen of India or a holder of Indian passport.
- 10+2 qualified. One must have cleared 10+2 from a recognized board of institutions
- Premier Universities. Admission must be in the top global institutes through Entrance test/Selection process.
- Co-Signer. Applicant must have a credit worthy co-signer/ co-borrower to increase chances of getting a loan.
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| Bank / Financer |  Change bank |  Change bank |  Change bank |  Change bank |  Change bank |
| Applicable Rate of Interest | For List AA Institutes, the interest is 8.75% for loan amount up to INR 30 Lacs without collateral For List A Institutes, the interest is 9.05% for IITs and NITs and 9.55% for other institutes For List B Institutes, interest rate is 10.20% for loan amount up to INR 20 Lacs and 9.95% if collateral security value is greater than loan amount For List C Institutes, interest rate is 9.05% for NITs and 10.05% for others | up to 3 Years: BR+1.50% Above 3 Years :1.50% + Term Premium where BR is at the rate of 10.00%. | Upto 4 Lacs- 16.50% Upto 7.5 Lacs- 17.50% Above 7.5 Lacs- 15.50% | 12.10%+ floating rate(depends on the risks points of the applicant) | |
| Max Loan with Collateral | For AA Category: 40 Lacs For A Category: 20 -30 Lacs For B Category: 20 Lacs For C Category: 7.5 Lacs | 7.50 Lacs to 15 Lacs | 10Lacs | 10Lacs | |
| Max loan without collateral | For AA Category: 40 Lacs For A Category: 20 -30 Lacs For B Category: 20 Lacs For C Category: 7.5 Lacs | 7.50 Lacs to 15 Lacs | 10Lacs | 10Lacs | |
| Processing Fee | Upto INR 4 Lakhs: No Above INR 4 Lakhs: INR 5,000 | Nil | Nil | 1% of Loan | |
| Repayment Period | 15 years | 15 years | 7 Years | Loan amount upto INR 7.5 Lacs: 10 years Loan amount above INR 7.5 Lacs: 15 years | |
| Loan for top institutions | Yes, SBI Scholar Loan Scheme | Yes, PNB Pratibha | No | No | |
| Margin | Scholar Loan Scheme- Nil | 5%(above 4Lacs) | Upto loan 4 Lacs _ No margin Above 4 Lacs_ for India: 5% | Upto INR 4 Lacs: no margin Above INR 4 lacs: 5% | |
| Age Limit | No age criteria | No age criteria | No age criteria | Above 18 years of age | |
| Loan Security | Upto INR 4 Lacs: Parents considered as co-borrower Between INR 4 to 7.50 Lacs: Parent as well as third party guarantee is required Above INR 7.50 Lacs: Tangible security along with parents as co borrower | Co-obligation of parents/guardian as joint co-borrowers | Third party guarantee Collateral security Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount Assignment of Future salaries in favor of Axis Bank | ||
| Eligibility concession for SC/ST | No | 50% for SC/ST 60% for General category. | No | No | |
| Processing Time | 20 days | 15 Days | 14 Days | 7 Days | |
| Prepayment charges | Nil | Nil | Nil | Pre-closed within moratorium period: 4% of principal amount + taxes Foreclosed after moratorium period: No prepayment penalty | |
| Penal charges | Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period. | Nil | @ 2% per month on the overdue installment/s | @ 2% per month on the overdue installment/s | |
| Mandatory insurance cover | Yes | Yes | Yes | Not mandatory | |
| Travel expeneses | Yes | Yes | Yes | Yes (one way travel) | |
| Bank transfter allowance | Yes | Branch Transfer allowance is available | No such clause mentioned | No such clause mentioned | |
| Top up loan availability | Available. Also, takeover loan facility is also available | Available | No such clause mentioned | Unavailable | |
| Interest Subsidy Schemes | Skill Loan Scheme CSIS | Padho Pardesh CSIS Skill Loan Scheme | CSIS | CSIS | |
| Tax benifit | Yes | Yes | Yes | Yes | |
| Concession/benefits | Concession to girl students 1% concession if interest is serviced during moratorium period including course period | 0.5% concession to girl students 0.5% concession if interest is serviced during moratorium period including course period Online application | There is no processing fee charged No pre- payment charges are applied No pre- closure charges are applied Loan Disbursal period is 15 working days from the date of final submission of documents | Doorstep service Flexible loan terms Upto 100% finance Tax benefits Hassle-free documentation process |
How to apply for SBI Education Loan ?
SBI Education loan application form can be available online or offline at Bank branches.
Visit the official website and Click on SBI Education Loan
Select the particular loan scheme and click on Apply Online
Fill up the form with all the necessary details
Upload the signature, photograph other documents required
Submit the Form and take the print out
After that visit the nearby SBI Bank for the further proceedings
For offline procedure, student can visit the bank and ask for application form for education loan. The bank representative will then be able to guide you with all necessary details and information about margin money, interest rates, and eligibility criteria about the suitable loan for you.
SBI Education Loan Details
For A Category: 20 -30 Lacs
For B Category: 20 Lacs
For C Category: 7.5 Lacs
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Expenses covered under SBI Student Loan Scheme
- College Fee
- Hostel Fee
- Library + Laboratory Fee
- Books and Equipment
- Caution Deposit/Building Funds/Refundable Deposits _ Doesn?t exceed 10% of entire tuition fee
- Travel expenses
- Laptop Purchase
- Other expenditure related to course (Up to INR 1 Lac)
Courses Covered Under SBI Student Loan Scheme
In India
Regular Full Time Degree and Diploma Courses under which admissions are given through admission test or selection process.
Full Time Executive management courses like PGPX are also covered
It doesn't cover certificate and part time courses.
Note: List of colleges that fall under List AA, List A, List B and List C are mentioned towards the end of the article
Education Loan Documents Required ?
Admission letter with all essential details
Attested copies of age proof, residence proof and birth date
Self-attested passport size photograph
Copies of qualifying courses
Income proof and/or copy of income tax return file
Details of collateral security along with government approved valuation certificate (if any)
Bank account statement of the applicant.
Copy of passport and visa for abroad courses
Interest Subsidy Schemes
SBI Skill Loan Scheme
The bank offers Skill Loan Scheme for students who aspire to gain knowledge and specialized training in one specific field.
CSIS (Central Scheme for Interest Subsidy)
Central Government of India offered the scheme for economically weaker section for subsidy on education loan interest.
Frequently Asked Questions
What is Margin Money?
+ -Margin money is the amount which you have to pay from your own and the rest amount is paid by the bank.
In case of Student loan scheme the margin money will be considered when you loan amount is above Rs.4 lakhs. Below table shows the details:
| Margin for Above 4 Lakhs Loan in India | 5% |
| Margin For Above 4 Lakhs Loan in Overseas | 15% |
What are the documents Required while applying for the loan?
+ -Hi, below are the listed documents which you have to produce while applying for the Eduction loans at SBI
- Letter of Admission
- Completely filled Loan Application Form
- 2 passport size photographs
- Statement of cost of study
- PAN card of the parent, student or legal guardian
- Aadhar Card of the student and parent or guardian
- Identity proof which may be a copy of Driving License or Passport or Aadhar Card
- Residence Proof which may be copy of Driving License or Passport or Electricity Bill or Telephone bill
- Student/co-borrower’s/Guarantor’s bank account statement of the last 6 months
- IT Returns or IT Assessment Order of the last 2 years of parent or guardian or another co-borrower
- Brief Assets and Liabilities Statement of parent or guardian or another co-borrower
- Income proof which can be the salary slip or Form 16 of the parent or guardian
- And other educational documents listed by the bank for SBI Student scheme.
What is holiday Period?
+ -A holiday period is the maximum time which is provided to a student before the repayment of the principal loan in EMIs.
In case a student starts working immediately after completion of course then he will not enjoy the holiday period.
What is Moratorium Period?
+ -A moratorium period is the time duration when the borrower is required to pay the EMIs.
I want SBI Education loan for Studying in IIM? For which loan I should apply?
+ -Hi, if you want to study in IIMs then you can apply for the SBI Scholar loans. The bank will give you loan depending upon which IIM you are studying in. They have categorized IIMs into two categories AA and A.
- If you are taking admission in any of the IIM in AA category then you can get loan upto Rs.35 lakhs with any other security required.
- If you are taking admission in any of the IIM falling in A category then you can get loan of maximum Rs. 20 lakhs and it can be extend up to Rs.30 Lakhs if co-borrower also show any tangible security of the loan value.
If I want to study in NIT. For this which loan I can apply?
+ -Hi, if you want to apply for education loan for studying into NIT then you also can apply for SBI Scholar loan. Under this scheme all the NITs fall under B and C Category colleges.
- For B Category, you can get the loan of Rs.20 lakhs.
- For C Category, you can get loan of Rs. 7.5Lakhs and can be extended upto 30 Lakhs if any tangible security equivalent of loan amount is submitted to the bank.
What is security does one needs to provide while securing loan?
+ -- In most of the cases there is no need of security required for availing loan. But once the amount of loan is above the described amount then the person has to provide the tangible collateral security for the above loan amount.
- The security can a property papers, gold, vehicle, bonds, National saving certificates etc.
Cases when Security Required in various loan:
- In Student Loan - For loan amount above Rs.7.5 lakhs, a tangible security as well as the parents guarantee is required.
Is there any concession for girl students in interest?
+ -Yes, SBI provides a concession for the girl students in various loan schemes. In Student loan scheme and Global Ed-Vantage Scheme, girl students can avail 0.50% concession in interest.
Contact Details?
+ -Contact Number: 1800 425 3800, 1800 11 2211, 080-26599990
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