SBI EDUCATION LOAN

A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured.

Eligible Courses

All courses having employment prospects are eligible, Graduation courses/ Post graduation courses/ Professional courses
Other courses approved by UGC/Government/AICTE etc.

Expenses considered for loan:-

-Fees payable to college/school/hostel
-Examination/Library/Laboratory fees
-Purchase of Books/Equipment/Instruments/Uniforms
-Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees for the entire course)
-Travel Expenses/Passage money for studies abroad
-Purchase of computers considered necessary for completion of course
-Cost of a Two-wheeler upto Rs. 50,000/-
-Any other expenses required to complete the course like study tours, project work etc.

Loan Amount Limit for SBI EDUCATION LOAN

For students studing in India, maximum Rs. 10 lacs
For Students studing abroad, maximum Rs. 20 lacs

Interest Rates for SBI EDUCATION LOAN:-

For Loans upto 4 lakh – 11.25%
For Loans above 4 lakh and less than 7.50 lakh – 12.75%
For loans above 7.50 lakh – 11.75 %

Processing Fees:-

-No processing fee and upfront charges
-Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in the margin money

Repayment Tenure:-

The repayment of the loan amount will commence one year after completion of course or 6 months after securing a job – whichever is earlier.
- If the education of the student is taking place in India of Rs. 10 lakhs loan amount then the loan must be repayed in 5-7 years
-If the education of the student is taking place outside India of Rs. 20 lakhs loan amount then the loan must be repayed in 5-7 years

Security:-

-Upto Rs. 4 lacs – No Security
-Above Rs. 4 lacs to Rs. 7.50 lacs – Collateral security in the form of suitable third party guarantee. The bank may, at its discretion, in exceptional cases, weive third party guarantee if satisfied with the net-worth/means of parent/s who would be executing the documents as “joint borrower”.
-Above Rs. 7.50 lacs. – -Tangible collateral security of suitable value, along with the assignment of future income of the student for payment of installments.
-All loans should be secured by parent(s)/guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law

Margin:-

For loans up to Rs.4.0 lacs : No Margin
For loans above Rs.4.0 lacs:
Studies in India: 5%
Studies Abroad: 15%