February 22, 2024
SBI Education Loan

How to Apply for SBI Education Loan. Education loans are a type of financial support that is available to students in the form of loans that can be used to pay for living expenses, tuition, fees, and other expenses related to their education. To help learners in achieving their academic goals, top Indian banks provide education loans. 

A variety of education loans are available from the State Bank of India (SBI), with interest rates starting at 7.95% per annum. After the course is over, there is a moratorium period included in the variable repayment schedules. Prepayment of the loan, which is permitted at any point during the loan term, has no penalties. Some loans also provide female students with interest reductions.

Read: How to get a Personal loan on Aadhaar Card?

Read: Difference Between Business Loan And MSME Loan

SBI provides loans for both domestic and foreign students. Both professional and vocational studies are eligible for financial aid. You can also replace your high-interest loans with SBI Education loans that have lower interest rates thanks to takeover loans.

SBI Education Loan Eligibility

Here is a list of requirements for education loan eligibility that applicants must meet to be approved for a loan:

  • The candidate must be an Indian citizen.
  • He or she must have received a letter of acceptance from a recognized educational institute, either in India or outside.
  • When applying for a loan, the candidate’s age must fall between the ages of 18 and 35.
  • He or she must be pursuing a graduate, postgraduate, or post-graduate diploma.
  • The candidate must already be enrolled in a school that is connected with the University Grants Commission (UGC), the All India Council for Technical Education (AICTE), the government, etc.
  • Full-time students must have a co-applicant, who may be either a parent, a guardian, a spouse, or a parent-in-law (in the case of married candidates).
  • A reliable source of income is required for the co-applicant.
  • A good academic history makes loan acceptance go more quickly.

How to Apply for SBI Education Loan Online/Offline?

Offline: 

Step 1: Walk into your nearest SBI branch with all the necessary documents. 

Step 2: Fill in and submit the application form that you can obtain from there. 

Online:

1: Visit the SBI official website

2: Go to the section on Education Loan. 

3: Select your preferred loan option. 

4: Click on “Apply Now”. 

5: You will be redirected to the Vidya Lakshmi website. 

6: Register yourself by filling up all your details. 

7: Apply for the loan. 

8: A bank representative will get in touch with you. 

SBI Education Loan Features

The general characteristics of the SBI education loan are as follows:

1- Credit Amount

According to studies carried out in India, the maximum amount is Rs. 50 lakh.

  • Courses in Medical: Up to Rs. 30 lacks, 
  • Additional Programs: Up to Rs. 10 lacks, 
  • Studies abroad: Up to Rs. 7.50 lakh
  • Under the Global Ed-vantage program: the upper limit is Rs. 1.50 crore.

2- Processing fees

  • Loans under 20 lakh rupees: NilLoans over 20 lakh rupees: Rs. 10,000 + tax.

3- Payment Duration

  • After the course period, up to 15 years, plus a 12-month repayment holiday.

4- Security

  • Only a parent or legal guardian may co-borrow up to Rs. 7.5 lakh. When borrowing more than Rs. 7.5 lakh, a parent or guardian must also serve as a co-borrower.

5- Margin

  • For amounts up to Rs.4 lakh, there is no margin. For amounts over Rs. 4 lahks, the margin for both national and international studies is 5.00% and 15%, respectively.

6- Courses included

India: certificate courses and government-approved graduation, post-graduation, and AICTE/IMC programs.

Regular or degree courses offered by autonomous universities like IITs, IIMs, etc.

Education programs for teachers or nurses must be approved by the central / state governments.

Regular degree or diploma programs allowed by the director general of civil aviation or shipping include shipping, pilot training, aeronautical, etc.

Abroad: courses leading to professional or technical degrees, post-graduate degrees, and diplomas, such as MCA, MBA, MS, etc.

7- Covered expenses

Hostel, college, or other fees, Charges for examinations, libraries, or laboratories. For books, equipment, instruments, or uniforms, 20% of the total tuition is used to purchase computers and other course-related necessities. The maximum caution deposit, building fund, and a refundable deposit is 10% of the total tuition fees. 

Travel costs associated with studying abroad: The cost of a two-wheeler can reach Rs. 50,000. 

Additional costs: project work and study tours, etc.

Note: No Collateral Security or Third-Party Guarantee on Amounts Over Rs.7.5 lakh 

Documents for an SBI Education Loan

  • Mark sheet of 10, 12, graduation, and entrance examination
  • Confirmation letter of your enrollment from the institution
  • Grade reports from your previous institutions of higher learning
  • Course expense details
  • Self-declaration for a gap in studies (if applicable)
  • PAN of student and parent, guarantor, or co-borrower
  • Proof of address
  • Proof of signature
  • Bank statements from recently updated
  • Co-applicant or guarantor asset-liability statements are required for loans over Rs 7.50 lacs.
  • For salaried applicants, the most recent pay slips and Form 16 or IT Return
  • A sales receipt or service tax return as proof of turnover
  • The application form that has been completed and signed
  • Most recent passport-size pictures
  • Right visa for studying abroad

Regulations for SBI Education Loan Repayment

Under the SBI education loan policy plan, there is a moratorium period for courses lasting longer than six months. There is no requirement to pay anything at this time. Under both the SBI Student Loan Scheme and the SBI Global Advantage Scheme, the repayment of your SBI Education loan begins six months after you have finished your studies.

The majority of commercial banks and NBFCs demand at least a partial payment of interest while your studies abroad are still ongoing. The concept of a moratorium period doesn’t exist.

Conclusion

Students who need financial assistance to pursue their higher education in India can become eligible for student loans, which are valuable financial tools for students. As a result, it is extremely important for students to exercise caution when taking out student loans and to take into account their available repayment choices very carefully.

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