Procedure and Steps to get Education Loan From SBI
Educational loans are sanctioned for extending financial assistance to admirable students for pursuing higher education in India and abroad. Education loans were first started by SBI.
State Bank of India (SBI) is an Indian multinational, public sector banking and financial services company. It is a government-owned corporation with its headquarters located in Mumbai, Maharashtra.
Eligible Courses for educational loan
Studies in India,
- Graduation, Post-graduation including regular technical and professional Degree/Diploma courses conducted by colleges/universities approved by UGC/ AICTE/IMC/Govt. etc
- Teacher training/ Nursing courses approved by Central government or the State Government
- Regular Degree/ Diploma Courses conducted by autonomous institutions like IIT, IIM etc
- Vocational Training and skill development study courses will not be covered under the Education Loan Scheme, as the scheme is framed to provide bank loans for higher studies.
- Regular Degree/Diploma Courses like Aeronautical, pilot training, shipping etc. approved by Director General of Civil Aviation/Shipping/ concerned regulatory authority
Studies in Abroad,
- Graduation/ Post-graduation for job oriented professional/ technical courses offered by reputed universities
Eligibility criteria for students
- Applicant should be an Indian citizen
- Secured admission to Professional/Technical courses through Entrance Test/Selection process.
- Secured admission to foreign university/Institutions.
Documents to be submitted
- Loan Application Form
- 2 passport size photographs
- Fees structure provided by collage/ school
- Admission letter
- AADHAR Card of the student and Parent/ Guardian
- PAN Card of the student and Parent/ Guardian
- IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower
- Proof of identity
- Proof of residence
- Proof of income Parent/ Guardian/ other co-borrower
- Bank account statement of student/Co-borrower/ guarantor’s
- Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
- college/school/hostel fee
- Purchase of Books/Equipment/Instruments/Uniforms and Purchase of computers fee
- Cost of a Two-wheeler up to Rs. 50,000/-
- Caution Deposit/Building Fund/Refundable Deposit
- Examination/Library/Laboratory fee
- Travel Expenses/Passage money for studies abroad
Loan amount sanctioned for study in India will be maximum Rs. 10 lacs and for studying abroad maximum of Rs. 20 lacs. Up to Rs. 7.5 lacs Parent/ Guardian as co-borrower and no Collateral Security or third party guarantee is needed. But for above Rs. 7.5 lacs need Parent/ Guardian as co-borrower and a tangible collateral security.
Repayment of the loan will commence from one year after the completion of course and it should be repaid in 15 years after the commencement of repayment.
Upto Rs. 7.5 lacs – 10.00%
Above Rs. 7.5 Lacs – 10.75%
- 0.50% concession in interest for girl students.
- 1% concession in rate of interest to be provided for full tenure of the loan if full interest is serviced during the moratorium period (including course duration).
- Simple interest to be charged during moratorium period.
- Penal interest at 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period.