SBI Education Loan

State Bank of India is one of the largest lender banks in India. It has specially designed products through which it offers students loans at interest rates starting from 9%. The SBI bank has merged with several banks like the State Bank of Travancore, Bhartiya Mahila Bank, State Bank of Hyderabad, State Bank of Mysore, and State Bank of Patiala. The loan products of State Bank of India are:

• SBI loan scheme for study abroad

1. SBI Student Loan Scheme
2. SBI Global ED-VANTAGE Scheme
3. SBI Shaurya Education Loan
4. Takeover of Education Loan

• SBI loan scheme for study in India

1. SBI Student Loan Scheme
2. SBI Scholar Loans
3. SBI Skill Loan Scheme
4. Takeover of education loan

Let’s understand the products in detail

Be sure to watch the 5th episode of Loanflix, where our co-founder provides a comprehensive overview of the essential fundamentals you need to know when applying for an SBI Abroad study loan

Under the special schemes of SBI education loans for abroad, the bank offers a loan amount of up to the maximum value of collateral under the following schemes

SBI Student Loan Scheme

Eligible courses under SBI Student Loan Scheme 

• Graduation: For job-oriented professional/ Technical courses offered by reputed Institutions
• Post-graduation: MBA, MCA, MS, etc. Job-oriented technical/ professional courses
• Post Graduate Diploma/ Certificate courses offered by reputed Institutions
• Degree/diploma courses like pilot training, aeronautical, shipping, etc.
• Doctorate Programmes (Ph.D.)
• Courses conducted by the Chartered Institute of Management Accountants in London, Certified Public Accountant in the USA, etc.

SBI Global ED-VANATGE Scheme 

Eligible courses for Global Ed-Vantage Scheme

• Standard Graduate Degree and Post- Graduate Degree/ Certificate/ Diploma/ Doctorate Courses in top study haven countries including the USA, the UK, Australia, Canada, Japan, France, Germany etc.
• If the course is in any other country other than the above mentioned countries, the loan offer may be considered based on student’s loan profile

SBI Shaurya Education Loan

This scheme is forwards of DSP/ ICGSP officers in all ranks for studies abroad.

Eligible courses under SBI Shaurya Education Loan

• Graduation: For job oriented professional/ Technical courses offered by reputed Institutions
• Post-graduation: MS, MCA, MBA, etc. Job oriented technical/ professional courses
• Post Graduate Diploma/ Certificate courses offered by reputed Institutions
• Diploma/degree courses like pilot training, aeronautical, shipping etc. 
• Courses conducted by Chartered Institute of Management Accountants in London, Certified Public Accountant in USA etc.
• Doctorate Programmes (Ph.D.)

Takeover of Education Loan

The takeover facility is offered to students who want to transfer their academic loan from their existing bank to the State Bank of India. The conditions for student loan takeover in State Bank of India are as follows:

State Bank of India offers collateralized academic loans to students to take admission in top colleges and universities in popular study hubs like Hyderabad, Andhra Pradesh, Mumbai, Karnataka,Tamil Nadu, West Bengal, Delhi, Gujarat, Pune, Jaipur, Kerala, Goa, Amritsar, Jharkhand, MP and Chattisgarh.

SBI Student Loan Scheme

Eligible courses under SBI Student Loan Scheme

• Regular Degree/Diploma Courses like Aeronautical, Commercial Pilot Training, Shipping, etc.,
• Graduate and postgraduate degree courses, post-graduate diploma courses conducted by colleges or universities recognized by UGC,/AIBMS/ AICTE/ ICMR, or any other Government approved educational institution, etc.
• Courses like CFA, CA, ICWA, etc.
• Courses conducted by IIM, XLRI, IIT, NID, IISc, NIFT, ISB, etc.  
• Degree or diploma in nursing or any discipline approved by the Director General of Shipping, Civil Aviation, or any other regulatory body as per the case, if the course is completed in India.
• Courses conducted by prestigious foreign universities in India.

SBI Scholar Loans

Eligible courses under Scholars Loan

• Full-time degree and diploma courses are available through entrance tests and the selection process.
• Full-time Executive Management Courses like PGPX
• Part-time graduate and post-graduate courses offered by selected institutes

SBI Skill Loan Scheme

Students can get study loan without collateral or third-party guarantee to pursue skill learning courses in India, as per the following conditions

Takeover of Education Loan

Students can apply for their study loan transfer under this scheme, as per the following parameters

What are the countries and courses eligible under SBI Education Loan policy?

The amazing part of SBI Global Edvantage scheme is that there is no restriction at all regarding the country or course. While the USA, Canada, UK, Australia and Ireland are the popular destinations for abroad studies, SBI Global Edvantage scheme has sanctioned study loans even for unconventional countries. Poland, South Korea, Israel and South Africa are some examples.

Many students have asked us if it is possible to get an study loan for MBBS. Others wonder whether an SBI provide fianancial aid for pilot training? the answer is "YES". While other banks and NBFCs give preference only to conventional courses like MS or MBA, SBI student loans have financed PhD programs, medical studies, fashion designing and culinary courses.

Moreover, if students are taking educational assistance with collateral, then they will have to pay an additional amount between Rs 7,500 to 10,000 for their legal and valuation reports.

But, WeMakeScholars being a government funded-initiative, does not charge any type of fees from its students. Yes, all our premium services related to educational assisatance, loan sanctioning are totally free of cost.  To avail benefits of our student-friendly services, request a callback or fill the SBI education loan form.

There is a long list of documents required for student loan in SBI, to process the loan, check out the list of the mandatory documents here:

Education Loan form

• Education loan application form with 2-4 passport-size photographs (online copy generated by WeMakeScholars is also acceptable)

Basic documents of student, co-applicant, and/or Guarantor

• PAN Card or Passport (of the student) will be required as proof of identity to apply for student loan for abroad
• Address Proof–documents may include Voter ID Card/ Electricity Bill/ Passport/ Telephone Bill/ / Aadhar card Ration card/ Bank account statement. (2 different proofs if current and permanent residence is different)
• Recent 6 months’ personal or salary bank account statement of salary crediting. If the co-applicant is self-employed then last 1 year’s business transaction
• Statement of personal asset and liabilities

All the papers should be self-attested.

Students Academic records

• Marksheets of class 10th, 12th, and degree along with a certificate 
• Student’s admission proof into the university of their choice
• Fee structure
• Entrance exam scorecard provided by the responsible authority

Income documents of co-applicant

If Salaried

• ITR of last 2 years
• Recent 3 months' slips of salary
• ID card of the company in which the applicant is working
• Form 16 of the last 2 years.

If Self-employed

• ITR of last 3 years
• Proof of Business address
• Balance sheet showing profit and loss statement
• Last 3 years' balance sheet and profit & loss account 

Other Documents

• Declaration by the co-applicant, that pending expenses will be taken care of by them(as per the format will be provided by your financial officer at WeMakeScholars)
• Notarised joint affidavit with the student and co-applicant in Bank’s standard format, which will be provided by your financial officer at WeMakeScholars ( to understand the affidavit format and the key component of afffidavite you can read our article "affidavite for education loan"

Additional docs (if applicable)

• Proofs of any payment if made in advance
• Pending loan account statements of the last 1 year
• Gap certificate on Rs 100 stamp paper stating the reason for the break in academic degrees

Collateral Documents

Only those students who are pledging their collateral, immovable property, or liquid security to get the loan will have to submit their collateral documents. The collateral documents checklist depends on students' loan profiles and the state in which they reside.

When you process your higher studies loan with WeMakeScholars, your financial officer will provide you with a detailed documents checklist, after analyzing your profile. To get your own document checklist, get in touch with your financial officer at WeMakeScholars by requesting a callback or filling up the SBI education loan form.

A lot of students who wish to study abroad with the help of an SBI loan are not very well aware of the types of collateral security that are majorly accepted by the bank for both the SBI loan schemes. The types of collateral listed in this article are acceptable not only by the SBI but also by almost all major government banks which offer an abroad study loan. In any secured loan process, it is essential to get a rough idea about the three major types of collateral which are accepted by all banks.

Immovable Property: An immovable property is one of the most frequently pledged categories of assets as collateral against an abroad study loan. It involves assets like a house, a residential flat, a plot with defined boundaries, an independent house, a non-agricultural land, etc.

Liquid Security: Did you know that government banks do accept liquid assets as collateral against an abroad study loan? Assets such as Fixed Deposits, government bonds, life insurance policies from government-approved lenders, etc. are accepted by government banks like the SBI, BoB, etc. as collateral security.

Third-Party’s Assets: In case a candidate does not possess any of the above assets or if their values do not cover the required student loan amount, then they can pledge a third party’s assets as collateral security. This third party essentially refers to individuals who are not part of the candidate’s immediate family. For e.g., uncle, aunt, friends of the candidate or the primary co-applicant, etc.

Now that you have gained sufficient understanding of the three major types of collateral which are accepted for an SBI loan, let us take a look at the legal acceptability of these categories of assets.

Immovable Property

As mentioned in the previous section, immovable property is one of the most commonly pledged assets in the loan process. Despite possessing an immovable property whose value meets the requirements prescribed by the SBI, a lot of candidates are still not able to get loan easily. A major reason for this is that many of them are unaware of the legal restrictions on the immovable property owned by their co-applicants. 

Before agreeing to grant loan against immovable property, many government banks, including the SBI, give due consideration to certain factors of the asset which has been pledged as collateral security. 

• If the property was co-owned before and has been divided between two people of the same family, then it has to have clear, defined boundaries separating both sides.
• If the property in question is part of a bigger plot that was later divided into different sections, then loan applicants will be required to submit the registration documents of the bigger plot or the motherland, as is known in bank terms. 
• If the property being pledged as collateral was gifted to the candidate or their co-applicants, then the gift deed of the property has to be submitted Gift deed and Will should have been registered and now the property should be registered on New owner's name. 
• If the value of the loan or that of the property being pledged as collateral exceeds INR 1 Cr., then the bank will require two legal and two valuation reports.

Immovable Properties not Accepted for an SBI Education Loan

Before we list out the different criteria that your immovable property needs to fulfill to get an SBI loan, here is a list of properties that are not accepted by the SBI for study loan under any conditions.

• Agricultural lands are not acceptable, even if someone has built a house on them, it is still not acceptable. If that area is converted to residential, then get a “conversion document”.
• Gram panchayat properties are not usually acceptable. Property has to be under Municipal Corporation. According to the SBI circular, Gram Panchayat property is not accepted. 
• Cantonment Area property is not acceptable.  It includes- temporary quarters for troops and a permanent military station in India.
• Properties used for social causes like a hospital, a school, etc can not be pledged.

Immovable Properties Accepted by SBI for Student Loan

• The bank prefers immovable properties located in urban cities as opposed to those located in rural areas.
• Residential properties are given greater preference as opposed to commercial properties. It is recommended that you pledge commercial property as collateral only if you do not possess a residential property.
• Empty lands are often less preferred by most SBI bank branches. Properties that have a building/house on them are often accepted by SBI loans.
• If you plan on pledging an empty plot as collateral, candidates need to bear in mind that plots whose boundaries are clearly defined are given preference over those which do not have one.

As mentioned in the above paragraph, SBI mostly prefers properties that are located in urban cities as opposed to those located in rural areas. However, even within the cities, SBI only accepts properties that fulfill certain criteria. Read one of our previous articles where we've mentioned the City-specific collateral requirements.

If you are facing any problems in your loan process, do get in touch with the SBI Digital Team for guidance regarding the same.

Liquid Security

Unlike immovable properties, SBI has set relatively easier criteria for liquid security which is being pledged as collateral against an SBI loan. The following Liquid assets which fulfill the following criteria can be accepted as collateral against student loan.

Third-Party Collateral

A student may pledge both immovable properties as well as liquid assets belonging to a third party as collateral security against student loan. However, it is important to understand that the loan taken against third-party collateral and loans against FD which is less than 6 months old are not accepted as funding proof by the embassies of Australia and New Zealand.

The process of getting a government bank education loan in India is considered by many students to be a painful affair because very few students have a good knowledge of some of the basic student aid concepts. In order to know more about the different factors of an easy loan process, do get in touch with WeMakeScholars. Our team of Financial officers assists you with the entire loan process until you get sanction letter, disbursement, and beyond. All the services offered by WeMakeScholars are free of cost as this initiative is supported by the IT Ministry, Govt. of India.

State Bank of India bestows the option to take education loan insurance by paying 1-2% of the loan amount. But since, the State Bank of India mostly offers loans with collateral therefore it is not mandatory for students to take the insurance while taking loan from the State Bank of India.

However, if students take the insurance as per the SBI RinnRaksha plan, they will be offered an additional 0.5% discount, on their effective rate of interest.

SBI Rinn Raksha Loan Insurance

The SBI Life Rinn Raksha scheme provides the assurance of an uninterrupted loan repayment. It also provides coverage to not one but up to two co-borrowers of the loan. Applicants have the flexibility to choose the cover amount, the loan cover term, and the frequency of premium payments according to their convenience under the SBI Rinn Raksha scheme. 

Now, a lot of students who have directly approached their nearest branches for the study loan have often made claims that the bank has made it compulsory to purchase the SBI Rinn Raksha loan insurance while applying for their student loan.

Although it benefits you in a lot of ways,  If you plan on borrowing an SBI  loan for abroad studies and are asked to purchase the SBI Rinn Raksha loan insurance by your lending branch, please keep in mind that this formality is not compulsory.

It is solely the student’s choice to opt for it. Do get in touch with the WeMakeScholars team if any bank official instructs you to do otherwise.

Benefits of Purchasing Rinn Raksha Education Loan Insurance

One of the biggest concerns voiced by most students who apply for the SBI Global Ed-Vantage loan scheme, which involves the pledging of collateral, is the safety of their assets. In the wake of an unfortunate event such as death or an accident which could render the students or their co-borrowers unable to repay the loan amount, the SBI Rinn Raksha loan insurance ensures that these assets are not affected in any way by helping such families pay off the remaining balance of the loan. You also have a reduction of 0.5% in the interest on availing Rinn Riksha Loan insurance.

The SBI Rinn Raksha education loan insurance scheme is reliable in a lot of ways. It repays the outstanding loan amount as per the sum assured schedule. This means that the insurance scheme ensures the timely repayment of the pending loan amount within the stipulated time allocated to students. 

Sometimes the loan margin amount is beyond the bearing capacity of students, and that is where they feel stranded in between their loan sanctioning process. But, do you know that you can even get your loan margin reduced? Yes, to know your loan margin for your loan profile, or how to get it reduced, request a callback or fill your details in the SBI education loan form.

Offline Application Process

• Visit your nearest State Bank of India branch, and ask about the education loan products from the designated loan officer 
• Check your loan eligibility and, fill out the application form 
• Ask for the documents checklist from the loan officer
• Visit the bank again to submit the documents, to get your education loan process started.

Online Application process with WeMakeScholars

• Get in touch with your financial officer, by requesting a callback or filling up the SBI education loan form.
• Provide your loan requirement details to your assigned financial officer, over the call

After analyzing your eligibility, your financial officer will connect you to the best education loan lender, so that you can start your online application process to get an SBI education loan, at the earliest.

• Submit your documents on the WeMakeScholars documents portal, to start your loan process
• Your financial officer will take care of the process from here, you can take updates from them regarding your loan sanctioning process.
• You can get your loan sanctioned within 15-20 days from the date you submit your documents.

The process of applying for an education loan is already simple, and it further gets simplified if you process your education loan with WeMakeScholars because with WeMakeScholars you get the following benefits:

• Expert guidance: After analysis of your loan profile, your financial officer will connect you with the best possible lenders, as per your eligibility, and guide you at every step of the process.
• Minimal Processing time: Student loan from a public bank will get sanctioned in around 21 days and it would take around 7 days to get a sanction letter from a private bank or NBFC, both deadlines are 50% less than the usual processing time.
• Negotiation support: Whenever possible, your financial officer will try to negotiate on your behalf with the lender's team, to get you the best possible deal.
• End-to-end support: Your financial officer will stay with you even after you loan is sanctioned, to provide you help in disbursement and even while repayment. even when you are on the opposite side of the earth.
• Better Interest rates: We are the largest loan partners of the banks in India and that is why, the interest rates when students process their through WeMakeScholars are 0.5% to 2% lower than the bank’s average.
• Free of cost services: All our premium services are free of cost for students as we are funded and supported by the IT Ministry under the Digital India Campaign.
• Digitized application process: Our online application process makes it hassle-free for students to apply for education loans. Moreover, the WeMakeScholars documents portal reduces the stress of going multiple times to the bank just to submit the documents.
• Tax benefits: We make sure that you save maximum tax by taking advantage of Section 80E, 80C, etc of the Income tax department, along with the tax collected at source (TCS).
• Cashback offer: You stand a chance to get a cashback of up to Rs 3,000 from us, at the time of your loan disbursement.

Students can transfer their current student loan to State Bank of India and continue repaying the loan as per the new repayment plan according to SBI. The benefit of transferring the loan to SBI are:

1. Cheaper rate of interest
2. Easy repayment conditions
3. Student-friendly bank policies
4. Easy accessibility to bank
5. Faster customer services

But how to transfer your education loan to SBI?

Step 1 Collect your outstanding loan amount’s proof from your current lender

Step 2 Get in touch with your financial officer at WeMakeScholars, stating that you want to get your study loan transferred to SBI Bank

Step 3 Submit your documents to the bank according to the documents checklist provided by your financial officer.

SBI education loan calculator is available on its website, but to get a detailed analysis along with repayment tips, you should use WeMakeScholars EMI calculator. To know the effective rate of interest applicable on your education loan, ask your financial officer at WeMakeScholars. 

Advantages of using WeMakeScholars education loan EMI calculator:

• 100% accuracy: The calculator is specially designed to consider every possibility while repayment. You get 100% accurate numbers when it comes to EMI calculation
• Strategic advantage : By getting an idea of the repayment statistics you can plan your EMI repayment strategy according to your paying capacity.
• No cost : Like all other services of WeMakeScholars, the EMI calculator is also free of cost
• Detailed Explanation : You get the semester-wise division of disbursement along with interest and principal amount component mentioned separately

Education loan repayment process in SBI Bank starts after the moratorium period ends, however, students (if they are willing to) can pay simple interest on their taken loan amount in the moratorium period as well. But the real EMI starts only after the moratorium period ends. Though there is an SBI EMI calculator, but, if you use WeMakeScholars EMI calculator you will get the most detailed EMI calculation. Let’s understand with an example: 

If suppose a student takes loan of say Rs 40 lacs at 10% rate of interest for 15 years of duration to study abroad. Then the student will have to pay their EMI as per the following amortization schedule

This is just an example, your amortization table will depend on your loan amount, rate of interest, and repayment period. To seamlessly process your higher studies loan from the State Bank of India, while getting the best study loan deal in the comfort of your home, request a callback or fill out the SBI education loan form on our website.

Padho Pardesh Scheme

Launched by the Ministry of Minority Affairs, to benefit abroad study aspirants, belonging from EWS of notified minority communities.

Eligibility criteria for Padho Pardesh Scheme:

1. Students should have taken the loan from a scheduled bank as per the Indian Banks Association guidelines.
2. Students should pursue courses at M.Phil, Masters, and Ph.D. levels. 
3. Government-approved income certificate is mandatory.
4. The total family income of the student should not be more than Rs 6 lacs per annum.

Note: The scheme has been discontinued by the authorities from 1st April 2022, but the beneficiaries who have applied to take benefit under the scheme till 31st March 2022 will continue to enjoy the interest subsidy benefits.

Central Government Interest Subsidy Scheme (CSIS)

MHRD announced the scheme then, but now being run under the Ministry of Education to offer interest subsidies to students belonging to the EWS category on their education loan

Eligibility criteria for CSIS 

1. Students should have proof of belonging from the EWS section of society.
2. The student’s total family income should not be more than Rs 4.5 lacs in one year.
3. Students are permitted to take benefit of this scheme only if they pursue any approved course in India.

Benefit: Eligible students need not pay any interest for their education loan taken to study in India, in the moratorium period.

Dr. Ambedkar Interest subsidy scheme for OBC and EWS students

Launched by the Ministry of Social Justice and Empowerment, for eligible students hailing from  EBC and OBC sections of the society. Under this scheme, students will not have to pay any interest to their lender's banks during the moratorium period. This scheme is for abroad study aspirants.

Eligibility criteria for Dr. Ambedkar Interest subsidy scheme for OBC and EBC students

1. Students' admission must be confirmed in any of the approved courses like M.Phill, Masters, or Ph.D. level course abroad
2. Student’s gross family income should be less than Rs 8 lacs per annum for both OBC and EBC category students
3. Student loans should be taken as per the IBA guidelines, and only from Scheduled banks in India. Caste certificate is mandatory for students belonging to the OBC category.