State Bank of India

State Bank of India’s Education Loan

Objective of the Scheme:

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

Eligibility of the Student:

  • The student should be an Indian National
  • The student  should have secured admission to a higher education course in recognized institutions in India or Abroad through Entrance Test / Merit Based Selection process after completion of HSC ( 10 plus 2 or equivalent ).

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
  • Vocational Training and Skill Development Study Courses will not be covered under the regular Education Loan Schemes. A separate scheme for ‘Loans for Vocational Education and Training’ has been launched which covers financing for such Vocational courses

Studies over a Wide Area :

  • Job oriented professional / technical Graduation Degree courses / Post Graduation Degree and Diploma courses like MCA, MBA, MS, etc offered by reputed universities
  • Expenses considered for 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% 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.

Liability of Finance :

Quantum of Finance :

For studies in India, maximum Rs. 10 lacs

Studies abroad, maximum Rs. 30 lacs

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%

Processing Fee / Mortgage Charges :

No processing fee/ upfront charges

Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in the margin money

Rate of Interest :

Loan Amount

 Rate of Interest*

For loans upto Rs.4 lacs

3.50% above Base Rate, currently 13.50% p.a.

Above Rs.4 lacs and upto Rs.7.50 lacs

3.75% above Base Rate, currently 13.75% p.a.

Above Rs.7.50 lacs

1.75% above Base Rate, currently 11.75% p.a.

Repayment Period of the Loan :

Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier.

Maximum Loan Limit

Repayment Period

Upto Rs. 4 Lacs

Upto 10 years

Above Rs. 4 Lacs and upto Rs. 7.5 Lacs

Upto 10 years

Above Rs. 7.5 Lacs

Upto 12 years

For more Details, Kindly refer the following link :

https://www.sbi.co.in/user.htm

To download Application Form, Visit the following Link :

https://www.sbi.co.in/webfiles/uploads/files/1210328302454-FORMAT_EDUCATION_LOANS.pdf

State Bank of India’s Scholar Loan Scheme

Objective of the Scheme :

SBI Scholar Loan provides financial support to meritorious students for pursuing higher education in the Premier Institutions

Eligibility of the Student  :

  • Sanction of Term Loan to students ( Indian Nationals ) for pursuing higher education in India in the Select 114 Premier Institutions
  • Education Loans for Students securing admission in the country’s best Engineering and Medical colleges, top B-Schools, Law colleges & other reputed institutions

Courses Covered

Regular full time Degree / Diploma Courses through entrance test / selection process. Full time Executive Management Courses like PGPX are also covered. No Certificate / Part time courses are covered under this scheme.

Liability of Finance :

Expenses allotted for the Loan :

  • Fees payable to college / school / hostel
  • Examination / Library / Laboratory fees
  • Purchase of books / equipments / instruments
  • Caution deposit / building fund / refundable deposit supported by Institution bills / receipts [ not to exceed 10% of the tuition fees for the entire course ].
  • Travel expenses / expenses on exchange programme*
  • Purchase of computer / laptop*
  • Any other expenses related to education*
  • No voucher / receipt insisted upon. Purpose ( end use ) need to be self-certified for these expenses. Such expenditure ( without voucher / receipt ) will not exceed 25% of the loan amount( upto a lumpsum amount of max Rs. 1 lac ). If any expenditure for these purposes is required to be made beyond the 25% cap, it can be permitted subject to production of voucher / receipt.

Quantum of Finance :

Category

Maximum Loan Limit

No Security, only Parent/ Guardian as co-borrower

With tangible collateral of full value and Parent/ Guardian as co-borrower

List ‘A’

( 59 institutions )

Rs. 20 lacs

Rs. 30 lacs

List ‘B’

( 55 institutions )

Rs. 7.5 lacs

Above Rs. 7.5 Lacs & upto Rs. 30 Lacs

 

Margin : Nil

Processing Fee : Nil

Rate of Interest :

List A

100bps above base rate i.e., 11.00% p.a. at present

Further concessions:

5 bps - work experience of more than 2years

50 bps – with parent/ spouse/ guardian as co-borrowers

75 bps - collateral security >= the loan amount

List B

175bps above Base rate i.e. 11.75% p.a.

 

1% concession for full tenure of the loan, if interest is serviced promptly as and when applied during the moratorium period, including course duration

Repayment Period of the Loan :

  • Course Period duration plus six months moratorium
  • Repayment period upto 12 years.

Visit the following link to see the list of institutes.

http://www.sbi.co.in/webfiles/uploads/files/1374836398343_LIST_OF_INSTITUTIONS.pdf

For more Details, Kindly refer the following link :

https://www.sbi.co.in/user.htm

To download the Application Form :

https://www.sbi.co.in/webfiles/uploads/files/1210328302454-FORMAT_EDUCATION_LOANS.pdf

State Bank of India’s Education Loan for Vocational Education and Training

Objective of the Scheme :

A term loan granted to Indian Nationals for pursuing Vocational Education and Training in India where admission has been secured

Eligibility of the Student  :

  • The student should be an Indian National
  • The student should have secured admission in a Course run or supported by a Ministry / Dept. / Organisation of the Govt. or a Company / Society / Organization supported by National Skill Development Corporation or State Skill Missions / State  Skill Corporations, preferably leading to a Certificate / Diploma / Degree, etc. issued by a Govt. Organization or an Organization recognized / authorized by the Govt. to do so.

Eligible Courses :

Vocational / Skill Development Courses of duration from 2 months to 3 years run or supported by a Ministry / Dept. / Organisation of the Govt. or a Company / Society / Organization supported by National Skill Development Corporation or State Skill Missions / State Skill Corporations, preferably leading to a Certificate / Diploma / Degree, etc. issued by a Govt. Organization or an organization recognized / authorized by the Govt. to do so.

Liability of Finance :

Expenses allotted for the Loan :

  • Tuition / Course Fee
  • Examination / Library / Laboratory fee
  • Caution deposit
  • Purchase of books, equipments and instruments
  • Any other reasonable expenditure found necessary for completion of the Course. ( As such courses are localized boarding, lodging may not be necessary. However, wherever it is found necessary, the same could be considered on merits )

Quantum of Finance :

For Courses of duration Upto 6 months Rs. 50,000/-       

For Courses of duration above 6 months Rs. 1,00,000/-

Processing Fees: Nil

Margin: Nil

Moratorium :

Course Duration

Moratorium Period

Courses of duration upto 1 year

6 months from the completion of the course

Courses of duration above 1 year

12 months from the completion of the course

Rate of Interest :

3.50% above Base Rate, currently 13.50% p.a.

1% concession for full tenure of the loan, if interest is serviced promptly as and when applied during the moratorium period, including course duration#

Repayment Period of the Loan:

Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier.

Course Duration

Repayment Period in Years

Courses of duration upto 1 year

Upto 3 years

Courses of duration above 1 year

Upto 5 years

For more Details, Kindly refer the following link :

https://www.sbi.co.in/user.htm

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