SBI Student Loan: All you need to know

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SBI Student Loan is a term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured. This loan provides customized financing solution to the students – who are in-road to transform the future of India. 

Courses covered:

  • For 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. Regular Degree/ Diploma Courses conducted by autonomous institutions like IIT, IIM etc.
    • Teacher training/ Nursing courses approved by Central government or the State Government
    • Regular Degree/Diploma Courses like Aeronautical, pilot training, shipping etc. approved by Director General of Civil Aviation/Shipping/ concerned regulatory authority
  • For studies abroad:
    • Job oriented professional/ technical Graduation Degree courses/ Post Graduation Degree and Diploma courses like MCA, MBA, MS, etc. offered by reputed universities.
    • Courses conducted by CIMA (Chartered Institute of Management Accountants) – London, CPA (Certified Public Accountant) in USA, etc.

 Features and Benefits:

  • Lower interest rates
  • Concession in interest for girl students
  • No Collateral Security for loans uptoRs. 7.5 lakh
  • No processing charges for loans up to Rs. 20 lakh
  • Repayment will commence one year after completion of course
  • Repayment period of up to 15 years after Course Period + 12 months of repayment holiday
  • In case second loan is availed for higher studies, studentsafter completion of second course, can repay the combined loan amount in 15 years
  • No margin for loans up to Rs. 4 lakh

Loan Amount: 

Students can avail this loan of upto Rs. 50 lakh for studies in India and up to Rs.1.50 crores for studying overseas 

Interest Rate:

  • Effective interest rate – 8.65%
  • 0.50% concession in interest for girl students 

Processing fee:

  • Loans up to Rs. 20 lacs –Nil
  • Loans above Rs.20 lakh – Rs.10,000 (plus taxes)

Collateral: 

  • For loans up to Rs.7.5 lakh – None
  • For loans above Rs.7.5 lakh – Tangible collateral security 

Expenses covered in SBI Student Loan: 

  • Fees payable to college/school/hostel
  • Examination/Library/Laboratory fees
  • Purchase of Books/Equipment/Instruments/Uniforms, Purchase of computers- essential for completion of the course (maximum 20% of the total tuition fees payable for completion of the course)
  • Caution Deposit/Building Fund/Refundable Deposit (maximum 10% of tuition fees for the entire course)
  • Travel Expenses/Passage money for studies abroad
  • Cost of a Two-wheeler upto Rs. 50,000/-
  • Any other expenses required to complete the course like study tours, project work etc.

Website link for documents required and further details – https://bank.sbi/web/personal-banking/loans/education-loans/student-loan-scheme

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