SBI Education Loan Interest Rate 2020

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SBI education loan interest rateThe SBI education loan interest rate is one of the most searched terms by candidates who wish to study abroad as the SBI is one of the most prominent banks functioning in India that offers education loans to students at affordable interest rates. This article will give you a complete account of the SBI education loan details related to SBI education loan interest rate for the different SBI education loan schemes.

The SBI education loan interest rate is never fixed. The SBI education loan interest rate is never constant, the values are revised from time to time. However, the best part about SBI education loan interest rates is the fact that the SBI education loan interest rate implied on a candidate’s education loan does not change with respect to the timely revisions. In short, candidates need not worry about these timely revisions being made to the SBI education loan interest rate as these revisions will not affect their SBI education loan repayment in any way.

SBI Education Loan Interest Rate 2020: How is it Calculated?

The SBI education loan interest rate, as well as the interest rates of most other government banks, is calculated on the basis of something called MCLR. The MCLR can be interpreted as Marginal Cost of Funds-Based Lending Rate. This figure is often considered to be the benchmark on the basis of which most Indian lenders of education loans, calculate their respective education loan interest rates. The MCLR is calculated by taking into account, the various factors such as the tenure premium, the marginal cost of funds, the operating cost, etc.

Another important factor which is considered while calculating the SBI education loan interest rate is the spread. In the SBI education loan interest rate, a spread is the percentage of money charged by SBI for the education loan.

So, the SBI education loan interest rate is calculated as MCLR + Spread.

Read More About Margin Money: Loan Margin in Education loan

 

SBI Education Loan Interest Rate For Different SBI Education Loan Schemes

As specified in the previous paragraphs, the SBI education loan rate of interest varies depending on the type of SBI education loan scheme chosen by candidates. The SBI education loan details of the interest rates for the different SBI education loan schemes are as follows.

The SBI Education loan interest rate for the different SBI education loan schemes are set at different figures. The SBI education loan interest rate levied for certain SBI education loan schemes also come with certain concessions.

SBI offers education loans under four different SBI education loan schemes. Each of these SBI education loan schemes is designed to cater to the financial requirements of students who wish to pursue various different streams of higher education.

The five different SBI education loan schemes are:

  1. SBI Student Education loan scheme
  2. SBI Scholar Education loan scheme
  3. SBI Skill Education loan scheme
  4. SBI Global Ed-Vantage Education loan scheme
  5. SBI Takeover of Collateralised Education loans scheme

The SBI education loan interest rates prescribed for each of these schemes will be explained in the paragraphs further ahead.

abroad education loan

 

SBI Education Loan Interest Rate 2020 

 

SBI Student loan scheme

This SBI education loan scheme has been put together for the purpose of helping candidates who wish to pursue their higher studies within India, as well as abroad. The only condition to avail an education loan under this scheme is that a candidate’s total education loan requirement must not exceed INR 20 Lakhs. The SBI education loan rate prescribed for this SBI education loan scheme are

Total Education Loan Limit

MCLR

Spread

Total SBI Education Loan Interest Rate

Up to INR 7.5 Lakhs  8.20% 2.00% 10.2%
Above INR 7.5 Lakhs, up to INR 20 Lakhs 8.20% 2.00% 10.2%

SBI also grants a concession of 0.5% on the total SBI education loan interest rate for female candidates.

Candidates may also get to enjoy a concession of another 0.5% on the total SBI education loan interest rate if they choose to purchase the Rinn Raksha education loan insurance or any other insurance scheme of the SBI.

In order to know any further details about the SBI education loan eligibility or SBI education loan process, do get in touch with the financial officers of WeMakeScholars. You can get your education loan sanctioned within a short span of time with the help of their expertise and prompt response.

SBI Scholar Education Loan Scheme

The SBI offers education loans to students who have been enrolled into prestigious universities within India for a postgraduate degree course. The bank has categorized the various institutions into different categories based on their overall ranking. The SBI education loan interest rates for each of these categories are set at different values.

Institute Category List Type of Institutions MCLR Spread Total Interest Rate
AA Refer to the list 7.90 0.20% 8.10%
A All IITs & IIMs 7.90 0.35% 8.25%
Other Institutes 7.90 0.50% 8.40%
B All NITs 7.90 0.50% 8.40%
Other institutes 7.90 1.00% 8.90%
C All NITs 7.90 0.50% 8.40%
Other Institutes 7.90 1.50% 8.40%

Education loans for part-time courses are also granted under the Scholar loan scheme to students who have been enrolled into part-time courses in certain, select institutes.

SBI Scholar loans granted for part-time courses 

Loan Limit MCLR Spread Effective Interest Rate
Up to INR 7.5 Lakhs 8.20% 2.00% 10.20%

A 0.5% concession on SBI interest rates is granted to female candidates. No other concessions are applicable to these interest rates.

The next education loan scheme is specifically designed for students who require an education loan to study abroad.

 

The SBI Global Ed-Vantage Education Loan Scheme

SBI offers collateral-based education loans under this scheme to students who have been accepted into graduate as well as post-graduate streams of prestigious colleges in countries like the UK, USA, Australia, Canada, Germany, New Zealand, Japan, Malaysia and Hong Kong. The maximum available education loan amount is INR 1.5 Cr. The SBI education loan interest rates for abroad education loans borrowed under this loan scheme are as follows.

 

Loan Amount Limit MCLR Spread Effective Interest Rate
From INR 20 Lakhs to INR 1.5 Cr. 8.20% 2.00% 10.20%

Female candidates who borrow an education loan under this education loan scheme are granted a 0.5% concession on their education loan interest rate.

A Further concession of 0.5% is granted to students who choose to purchase the Rinn Raksha loan insurance scheme. In order to get further information about the SBI education loan process, do get in touch with the WeMakeScholars team. Their financial team has an excellent grasp of various aspects of the abroad education loan process and hence, they will help you get your abroad education loan within a stipulated time period.

Read More About Education Loan Benefits: A Complete Study

SBI Skill Loan Scheme

SBI grants an education loan to students who wish to pursue courses that contribute to their overall skill development. The SBI education loan interest rates for this education loan scheme are as follows.

Maximum Loan Limit MCLR Spread Total Interest 
Up to INR 1.5 Lakhs 8.20% 1.50% 9.70%

The SBI grants no more concession to candidates who wish to borrow an education loan under this scheme.

abroad education loan

SBI Takeover of Collateralised Education Loans Scheme

The following SBI education loan interest rates are applicable to education loans from other banks which have been taken over by the SBI.

Loan Limit MCLR Spread Total Interest
Above INR 10 Lakhs & up to INR 1.5 Cr. 8.20% 2.00% 10.20%

All the female candidates are eligible for a 0.5% concession on their interest rates for education loans taken over by the SBI.

Despite all their student-friendly policies, one of the major drawbacks of applying for an education loan through the SBI is that more often than not, a lot of bank officials are unaware of the different courses/colleges which are eligible for an SBI abroad education loan and hence, a lot of students end up missing out on the crucial phases of their abroad education process. One alternative to this method is to apply through WeMakeScholars, an organization that helps students with their abroad education loan process. They have even developed Loanflix which is a mini web-series which conveys important information about the education loan process in India. Do watch all of the Loanflix episodes in order to get a thorough knowledge about the education loan system in India.

Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 10+ public/Pvt banks/ NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it’s at free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, China, France among others

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Bibliophile, wanderer, major foodie. I write too :)

 

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