SBI Education Loan

State Bank of India (SBI) offers a wide range of education loans with interest rates that start at 8.15% . The flexible repayment tenures also include a moratorium period after course completion. There are no penalty charges for pre-payment of the loan, which can be done at any time during the loan tenure. Some loans also offer interest concessions for girl students.

SBI offers student loans for domestic and international study. You are eligible for financing to study for both professional and vocational courses. There are also takeover loans that enable you to replace your high-interest loans with SBI loans that have reduced interest rates. 

Compare SBI Education Loan Schemes for Students

Here is every detail about various education loan schemes offered by State Bank of India:

Features of SBI Education Loan

The following are the general features of the education loan offered by SBI:

Note: No Collateral Security or third-party guarantee on amount above Rs.7.5 lakh

Documents Required to Avail SBI Education Loan

The following is the list of documents required to avail State Bank of India (SBI) Education Loan:

• Mark sheet of 10, 12, graduation and entrance examination
• Admission Letter or offer letter as proof of admission to course
• Course expense details
• Documents confirming scholarship or free ship
• Self-declaration for gap in studies (if applicable)
• One passport size photograph each of the student and parent/co-borrower/co-applicant
• For loans above Rs 7.5 lakh, asset-liability statement of co-applicant or guarantor is required
• Latest salary slips and Form 16 or IT Return for salaried applicants
• Business address proof and latest salary slip for non-salaried applicants
• Last six months bank account statements of parent, guarantor, or guardian
• If immovable property offered as collateral security, then copy of Sale Deed is needed
• Permanent Account Number (PAN)  of student and parent, guarantor, or co-borrower
• Aadhar
• Passport

Officially Valid Documents (OVD)

1. Driving licence
2. Voter ID card
3. Passport
4. Aadhar
5. NREGA job card signed by a State Government officer
6. Letter containing name and address issued by the National Population Register

SBI Education Loan EMI Calculator

You may better plan your costs and manage your student finances if you know exactly how much your Equated Monthly Instalment (EMI) on your SBI education loan will be. Get a full amortisation table with the breakdown of your EMIs by using the  Education Loan EMI Calculator.

This user-friendly online EMI calculator shows your EMI information right away on the page. All you have to do is enter your requested or sanctioned loan amount, term, and the interest rate offered by SBI in the applicable boxes (use the slider for the loan amount and tenure and key in the values for the interest rate and processing fee) (use the slider for the loan amount and tenure and key in the figures for the interest rate and processing fee). Decide if you want to make any prepayments as well. When you select ‘Calculate’ , you can check your EMI details.

Here’s an example to illustrate this better:

If you are taking the SBI Student loan scheme for Rs.15 lakh, for a tenure of 15 years, and interest rate of 11.15% p.a., with no processing fee, the following will be your loan details and amortisation table:

• Monthly EMI: Rs.17,191
• Total interest due: Rs.15,94,291
• Total amount payable: Rs.30,94,291

How to Apply for SBI Education Loan Online/Offline

You can apply for an SBI education loan either online or 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: 

Step 1: Visit the SBI official website. 

Step 2: Navigate to the section on Education Loan. 

Step 3: Choose your preferred loan option. 

Step 4: Click on ‘Apply Now’. 

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

Step 6: Register yourself by entering all your details. 

Step 7: Finally apply for the loan. 

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

SBI Scholar Loans: Available in select campuses or mapped branches.

Subsidy Schemes on SBI Education Loan

SBI offers interest subsidy schemes for the education loan which helps deserving students to save money while ensuring continuity of their studies. Some of these schemes are as given below:

1. Central Scheme for Interest Subsidy for Economically Weaker Sections:
   The annual gross income of the parents or household cannot be higher than Rs. 4.5 lakh. This is applicable to programs in accredited technical and professional schools in India. The assistance is given throughout the EMI moratorium.
2. Padho Pardesh:
   For minority students, this scheme provides subsidy on the interest for overseas educational studies. This is for the Masters, M.Phil, and PhD levels.
3. Dr. Ambedkar Central Sector Scheme:
   This is for interest subsidy on educational loans for overseas studies for students from Economically Backward Castes (EBCs) and Other Backward Castes (OBCs).

SBI Education Repayment Rules

There is a moratorium period for courses lasting more than six months under the SBI education loan policy plan. There is no need to make any payments during this time. The repayment of your SBI Education loan starts six months after the completion of your education under both the SBI Student Loan Scheme and the SBI Global Ed vantage Scheme.

While your studies abroad are still ongoing, most private banks and NBFCs require at least a partial payment of interest. There is no such thing as a moratorium period.

FAQs on SBI Education Loan

1. Is there any concession on interest rate available other than for girl students?
   An interest rate concession of 0.50% is available for students who buy the SBI Rinn Raksha or other life insurance policy from the bank. This is available for those students who are applying for the SBI Student Loan Scheme and SBI Global Ed-Vantage Scheme.
2. Is there any way to get further concession on the interest?
   You can get a 1% concession in interest throughout your loan tenure if you pay back the interest amount during the period of your course and moratorium.
3. Will the SBI education loan cover expenses related to accommodation on campus?
   Yes, fees for accommodation provided by the school or college authorities, or in a hostel provided by the educational institution, is covered under the education loan offered by State Bank of India.
4. If boarding and lodging at the school or college are arranged outside the campus by the student, will the expenses for that be covered under the SBI education loan?
   In cases where boarding and lodging is arranged outside the campus of the educational institution, or are not connected to it, then the expenses will be covered under the education loan based on the student’s or parents’ estimate; however, it should not exceed the expenses incurred by students who avail boarding facilities of the educational institution.
5. If a student takes up another course after the completion of the first one, will the moratorium period be extended further?
   If the student enrols for another course after the first one is completed, then the moratorium period will be extended for the entire duration of the second course. The repayment of the education loan will then start only one year after the second course has been completed or six months after getting employed, whichever comes first.
6. If a student is not able to complete the course within its time duration, will an extension of time be permitted for its completion?
   If, for any reason that is beyond the control of the student, the course cannot be completed within its scheduled time duration, then the time required to complete it can be extended for up to two years; however, anything beyond the two years will require special sanction from the bank authorities and will be given according to their discretion.
7. If I require my own vehicle to travel to the educational institution, for lack of public transport, will the expenses to buy one be included in the education loan?
   In cases where you require your own vehicle to reach your educational institution, you are eligible for an amount of up to Rs.50,000 to buy a two-wheeler of your own, which will be covered under the expenses of the education loan.
8. Is the purchase of a computer required for the course covered under the education loan?
   Yes, you can buy a computer or laptop that is required for your course as it is covered under the expenses of the education loan.
9. Will the SBI education loan be given as a lumpsum or in tranches?
   The SBI education loan is usually disbursed in tranches and not as a lumpsum amount.