SBI Bank provide education loans to students to prsue their higher education. Loan is provided to cover the cost of tuition, books and supplies, and living expenses while the student is in the process of pursuing a degree.
Contents
Purpose of providing Education loans
The loan will be sanctioned for extending financial assistance to┬а deserving/ meritorious students for pursuing higher education in India and abroad.
Government is motivating students to persue higher education in various fields.
Many students want to study further, but cannot due to financial problems. To help those students Government decided to provide education loans at very less interest rate so that these students can get higher education.
In this article, IтАЩll try to provide you all necessary information regarding SBI Bank student loan scheme.
Student Eligibility
- Should be an Indian.
- NRIs are also acceptable.
- Secured admission to a recognized university/Institution.
- For PIOs/OCIs, loan to be extended for studies in India only.
Courses Eligible
Studies in India
- Courses leading to Graduate/Post-Graduate Degrees, post graduate Diplomas conducted by colleges/universities recognized by UGC/Govt./AICTE/ AIBMS/ ICMR, etc.
- Courses like ICWA, CA, CFA, etc.
- Courses conducted by IIM, IIT, IISc, XLRI, NIFT, NID, ISB, etc.
- Courses offered in India by approved reputed foreign universities.
- Regular Degree/Diploma Courses like Aeronautical, Commercial Pilot Training, shipping etc., Degree/Diploma in Nursing or any discipline approved by Director General of
Civil Aviation/Shipping/ respectively or any other regulatory body as the case may be, if the course is pursued in India.
Studies abroad
- Graduation: For job oriented professional/ Technical courses offered by reputed Institutions (including Foundation/Pathway/Integrated Courses)
- Post-graduation: MCA, MBA, MS, etc. Job oriented professional/ technical Post Graduate Diploma/ Certificate courses offered by reputed Institutions
- Doctorate Programmes (Ph.D.) courses
- Courses conducted by CIMA (Chartered Institute of Management Accountants) тАУ London, CPA (Certified Public Accountant) in USA etc.
- Degree/diploma courses like aeronautical, pilot training, shipping etc. provided these are recognized by competent regulatory bodies in India /abroad for the purpose of employment in India/abroad.
Expenses Considered for Loan
- Fee payable to college/school/hostel.
- Examination/Library/Laboratory fee.
- Purchase of books/ equipments/ instruments/ uniforms.
- Purchase of computers тАУ essential for completion of the course.
- Any other expense required to complete the course тАУ like study tours, project work, thesis, etc.
- Caution deposit /building fund/refundable deposit supported by Institution bills/receipts.
- Travel expenses/passage money for studies abroad.
- Cost of a two-wheeler upto Rs. 50,000 can be included in the expenses considered eligible for finance where the loan amount is secured by a suitable third-party guarantee and/or tangible collateral security.
- Premium of тАШRiNn RakshaтАЩ insurance policy: Finance for тАШRiNn RakhshaтАЩ will improve insurance-coverage of the loan.
Loan Amount
Studies in India:
- Medical Courses: Upto Rs. 30.00 lacs
- Other Courses: Upto Rs. 10.00 lacs
- Higher loan limit for studies in India may be considered on case-to-case basis, maximum upto Rs 50.00 lacs
Studies Abroad:
- Maximum Rs. 7.50 lacs
Margin
- Upto Rs.4 lacs: Nil
- Above Rs.4 lacs: Studies in India: 5 %
- Studies Abroad: 15 %
- For an education loan for more than Rs 4.00 lacs & upto Rs. 7.5 lacs for Studies abroad, applicant will be required to make a deposit of Rs 5000/-. If the applicant avails of the loan, the amount of Rs 5000/- will be adjusted against the contribution of margin money by him. If no margin is payable by him, the amount may be adjusted against the interest payable on the loan.
- If the applicant does not avail of the
loan within a period of 6 months of sanction of the loan, the amount will be appropriated by the bank. - The expenses connected with the Title investigation Report (TIR) of the borrower / Guarantor and valuation reports on the same will be borne by the borrower.
- Scholarship/ assistantship to be included in margin.
- Margin may be brought in as and when disbursements are made, on a pro-rata basis.
Security:
Upto Rs. 7.50 lacs
- Co-obligation of parent/ guardian
- No security
- No third-party guarantee
Above Rs.7.50 lacs
- Co-obligation of parent/ guardian together with tangible collateral security of suitable value, along with the assignment of future income of the student for payment of instalments.
- The security can be in the form of land/ building/ Govt. Securities/ Bonds issued by PSUs/LIC policy, Mutual Fund, Bank Deposit in the name of student/ parent/ guardian/ any other third party and such other tangible liquid securities as may be deemed appropriate by the sanctioning authority.
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- The documents should be executed by both the student and the parent/guardian as joint-borrower. We clarify that if the student is a minor, the documents will be signed by the
guardian acting `for selfтАЩ as well as `for and on behalf of the minorтАЩ. - The co-obligator should be parent/ guardian of the student borrower. In case of married person, co-obligator can be spouse or the parent(s)/parents-in-law.
Processing Charges
- Loans upto Rs. 7.50 lacs: NIL
Features
- Education Loans upto Rs. 1.5 Crores can be taken.
- Competitive Interest Rate.
- Flexible repayment tenure upto 15 years.
- No Processing Fee.
- No Hidden Charges.
- Facility to avail top up loan for further study.
- Pay EMIs through Net Banking/ Mobile Banking/ Cheques.
- Avail of top up loan after take over for pursuing further studies subject to submission of required documents with extended repayment period for that course.
- Quantum of Finance Minimum:Rs. 10 Lakhs
- Quantum of Finance Maximum:Rs. 1.5 Crores
- Quantum of Finance Covers Outstandingin the account +Limits sanctioned as Top Up Loan.
- Prepayment Penalty (if any)
Interest Rate
Upto Rs 7.5 lakhs
- 11.15%
- Concession of 0.50% in interest for Girl student.
Above Rs 7.5 lakhs
- 11.15%
- Concession of 0.50% in interest for Girl student.
- 0.50% Concession for students availing for SBI Rinn Raksha.
Repayment Period
- Repayment Period: Upto 15 years after completion of course.
- If the student is not able to complete the course within the scheduled time, extension of time for completion of course may be permitted for a maximum period of 2 years.
- In case the interest is not serviced during course, the accrued interest to be added to the principal and repayment to be fixed in Equated Monthly Installments (EMI).
Contact Service
State Bank of India, State Bank Bhavan, 16th Floor, Madam Cama Road, Mumbai 400 021
Tel: 022-22029456, Fax: 022 22742431
E-mail address тАУ customercare@sbi.co.in
Toll free number: 1800-11-2211, 1800-425-3800, 080-265999
Official website: sbi.co.in
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