SBI Education Loan

✓ Apply for a loan of up to 1.5 Cr

✓ At starting interest rate of 9% P.A.

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State Bank of India is one of the largest lender banks in India. It has specially designed education loan products through which it offers education 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 education loan products of State Bank of India are:

  • SBI education 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 education 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

SBI Education Loan Scheme For Study Abroad

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

 

Loan Parameters

Details

Loan Limit

    • SBI education loan without collateral - up to Rs. 7.5 lacs
    • Collateralized loan - up to 1.5 Cr

A higher amount can also be offered, depending on the student’s profile.

Expenses covered

    • Fees payable for hostel
    • Cautionary deposit/ building funds/ refundable deposits 
    • Travel Expenses
    • Course fees
    • Expenses on student exchange programs
    • Purchase of a Laptop or computer
    • Examination fees
    • Insurance Premium
    • Purchase of required instruments and equipments
    • Purchase of Books

Accepted co-applicant

Parents, Parents in law, Siblings, Spouse

SBI education loan interest rate/rate of interest

    • For collateralized education loan 9-11%
    • For non-collateralized education loan 9.5-10.5% 

Interest rate discounts are available for girl children or students taking loan insurance.

Loan Margin

    • Up to Rs. 4 lacs - 0%
    • Above Rs 4 lacs - 15%

Moratorium Period

Course duration + 12 months

Repayment Duration

Up to 15 years after the moratorium period

Repayment Policy

Simple interest is charged in the moratorium period, however, it is optional to pay.

Eligibility Criteria

    • Indian National
    • The student should have secured admission in the university abroad through an entrance exam

Acceptable collateral securities for SBI Education loan

    • Immovable property - Non-agricultural land, building, flat
    • Liquid security - Govt. bonds, LIC policies, Fixed deposits

Value of Collateral (only if it is collateralized education loan)

    • In the case of immovable property - The minimum value should be 1.25 times the asked education loan
    • In the case of liquid security - The minimum value should be equal to the asked loan amount

Processing fees

    • Up to Rs 20 lacs : NIL
    • Above Rs 20 lacs: Rs 10,000 + TAX

 

 

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 

 

Loan parameters 

Details

Loan Limit

A higher amount can also be offered, depending on loan profile

Expenses covered

    • Tuition fees
    • Fees payable for hostel
    • Expenses on student exchange programs
    • Insurance Premium
    • Examination fees
    • Cost of equipments and instruments
    • Cost of Books and stationeries
    • Cautionary deposit/ refundable deposits/ building funds
    • Travel Expenses
    • Purchase of a Laptop or computer

Accepted co-applicant

Parents, Parents in law, Siblings, Spouse

SBI education loan interest rate/rate of interest

For collateralized education loan 9-11%

Interest rate discounts are available for girl child & students who have taken education loan insurance, under SBI Rinn Raksha.

Loan Margin

    • Above Rs 7.5 lacs - Rs 20 lacs  - 15%
    • Above Rs 20 - Rs 1.5 Cr - 10%

Moratorium Period

Course duration + 6 months

Repayment Duration

Up to 15 years after the moratorium period

Repayment Policy

Students are charged simple interest in the moratorium period, however, it is optional to pay.

Eligibility Criteria

    • The student should be an Indian national
    • Student should have secured admission in the university abroad through entrance exam

Acceptable collateral securities for SBI Education loan

    • Immovable property - Non-agricultural land, building, flat
    • Liquid security - Govt. bonds, LIC policies, Fixed deposits

Value of Collateral (only if it is collateralized education loan)

    • In case of  immovable property - Minimum value should be 1.25 times the asked education loan
    • In case of liquid security - Minimum value should be equal to the asked loan amount

Processing fees

Up to Rs 20 lacs : NIL

Above Rs 20 lacs: Rs 10,000 + TAX

 

 

SBI Shaurya Education Loan

This education loan scheme is for wards of DSP/ ICGSP officers in all ranks for studies abroad.

 

Loan Parameters 

Details

Loan Limit

    • SBI education loan without collateral - up to Rs. 7.5 lacs
    • Collateralized loan - upto 1.5 Cr

A greater loan amount can also be offered, on the basis of student’s profile

Expenses covered

    • Fees payable for hostel
    • Expenses on student exchange programs
    • Course fees
    • Travel Expenses
    • Purchase of equipments and instruments
    • Purchase of Books and stationeries
    • Insurance Premium
    • Examination fees
    • Cautionary deposit/ refundable deposits/ building funds
    • Purchase of Laptop or computer

Accepted co-applicant

Parents, Parents in law, Siblings, Spouse

SBI education loan interest rate/rate of interest

For collateralized education loan 9-11%

Interest rate discounts are offered for girl students & students who have taken education loan insurance, under SBI Rinn Raksha.

Loan Margin

    • Up to Rs. 4 lacs - 0%
    • Above Rs 4 lacs - 15%

Moratorium Period

Course duration + 12 months or 6 months after getting a job

Repayment Duration

Up to 15 years after moratorium period

Repayment Policy

Simple interest is charged in the course duration and moratorium period, however it is optional to pay.

Eligibility Criteria

    • Students should be ward of DSP/ ICGSP officers in all ranks for studies abroad.
    • Co-applicant must be Diamond/Platinum category DSP/ICGSP account holder in SBI Bank

Acceptable collaterals

    • In case of immovable property - Minimum value should be 110% of the asked education loan
    • In case of liquid security - Minimum value should be equal to the asked loan amount

Processing fees

Up to Rs 20 lacs : NIL

Above Rs 20 lacs : Rs 10,000 + TAX

 

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

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

 

Loan Parameters 

Details

Loan amount

Minimum upto - Rs 10 lacs

Maximum upto - Rs 1.5 Cr

Expenses covered

    • Prepayment penalty (if any)
    • Outstanding loan amount
    • Limit sanctioned as top up loan (if any)

New repayment duration

Upto 15 years

Processing fees

NIL

Rate of interest on takeover of education loan in SBI

Starts from 10.55%

Interest rate discount is offered to girl students

Collateral security

Asked loan amount cannot be more than 100% of the value of collateral

SBI Education Loan Scheme for Study in India

SBI Student Loan Scheme

 

Loan Parameters 

Details

Loan Limit

    • SBI education loan without collateral - upto Rs. 7.5 lacs
    • Collateralized loan - upto 100% of collateral value

Try for a higher amount with a better co-applicant

Expenses covered

    • Fees payable for hostel
    • Expenses on student exchange programs
    • Refundable deposits/ Cautionary deposit/ building funds
    • Course fees
    • Travel Expenses
    • Purchase of Laptop or computer
    • Insurance Premium
    • Examination fees
    • Purchase of equipments and instruments
    • Purchase of Books and stationeries

Accepted co-applicant

Parents, Parents in law, Siblings, Spouse

SBI education loan interest rate/rate of interest

For collateralized education loan 9-11%

Interest rate discounts are available for girl children or students taking loan insurance.

Loan Margin

    • Up to Rs. 4 lacs - 0%
    • Above Rs 4 lacs - 5%

Moratorium Period

Course duration + 12 months

Repayment Duration

Up to 15 years after moratorium period

Repayment Policy

Simple interest is charged in the course duration and moratorium period, however it is optional to pay.

Eligibility Criteria

Student should have secured admission in the university abroad through entrance exam

Acceptable collaterals

    • Immovable property - Non-agricultural land, building, flat
    • Liquid security - Govt. bonds, LIC policies, Fixed deposits

Value of Collateral (only if it is collateralized education loan)

    • In case of immovable property - Minimum value should be 1.25 times the asked education loan
    • In case of liquid security - Minimum value should be equal to the asked loan amount

Processing fees

Up to Rs 20 lacs                      NIL

Above Rs 20 lacs                    Rs 10,000 + TAX

 

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

 

Loan Parameters 

 Details

Loan Limit

    • SBI education loan without collateral - up to Rs. 50 lacs
    • Collateralized loan - up to 100% value of the collateral

A higher amount can also be offered, depending on the student’s profile

Expenses covered

    • Fees payable for accommodation
    • Expenses on student exchange programs
    • Refundable deposits/ Cautionary deposits/ building funds
    • Course fees
    • Purchase of equipments and instruments
    • Travel Expenses
    • Examination fees
    • Purchase of a Laptop or computer
    • Purchase of Books and stationeries
    • Insurance Premium

Accepted co-applicant

Parents, Parents in law, Siblings, Spouse

SBI education loan interest rate/rate of interest

With or without a co-applicant, starts from 7.95%

Loan Margin

Up to Rs. 4 lacs - 0%                       

Above Rs. 4 lacs - 5%

Moratorium Period

Course duration + 12 months

Repayment Duration

Up to 15 years after the moratorium period

Repayment Policy

Simple interest is charged in the course duration and moratorium period.

EMI is fixed only on the basis of the principal amount.

Eligibility Criteria

The student should have secured admission in the university abroad through an entrance exam

Acceptable collaterals

    • Immovable property - Non-agricultural land, building, flat
    • Liquid security - Govt. bonds, LIC policies, Fixed deposits

Value of Collateral (only if it is collateralized education loan)

    • In case of immovable property - The minimum value should be 1.25 times the asked education loan
    • In case of liquid security - The minimum value should be equal to the asked loan amount

Processing fees

NIL

 

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 an education loan without collateral or third-party guarantee to pursue skill learning courses in India, as per the following conditions

 

Parameter 

Details

Loan Limit

    • Minimum up to Rs. 5000
    • Maximum up to Rs. 1,50,000

Expenses covered

    • Tuition / Course Fee
    • Library/ Examination / Laboratory fee
    • Cautionary deposit fees
    • Purchase of books, instruments, equipments
    • Other reasonable expenses can also be covered

Accepted co-applicant

Parents, Parents in law, Siblings, Spouse

SBI education loan interest rate/rate of interest

Starts from 10.05%

Repayment Duration

    • Loans up to Rs 50,000 : Upto 3 years
    • Loans between Rs 50,000 to Rs 1 lacs Upto 5 years
    • Loans above Rs. 1 lac: Upto 7 years

 

Takeover of Education Loan

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

 

Loan Parameters 

Details

Loan amount

    • Minimum up to - Rs 10 lacs
    • Maximum up to - Rs 1.5 Cr

Expenses covered

Up to 15 years

Processing fees

NIL

Rate of interest on takeover of education loan in SBI

Starts from 10.55%

Interest rate discount is offered to girl students

Collateral security

Asked loan amount cannot be more than 100% of the value of the collateral

 

Eligible courses for the 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 the student’s loan profile.

SBI Education Loan College List And Other Eligibility Criteria

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 education 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 education loan for MBBS. Others wonder whether an SBI education loan for pilot training is possible. While other banks and NBFCs give preference only to conventional courses like MS or MBA, SBI education loans have financed PhD programs, medical studies, fashion designing and culinary courses.

You don't have to wait for everything to be perfect - take the first step towards your education goals now.

SBI Education Loan Processing Fee

Loan Amount

Processing Fee

Upto Rs. 7.5 lacs

NIL

Above Rs. 7.5 lacs

10,000 + TAXES

 

Moreover, if students are taking an education loan 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 education 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.

Documents Required For SBI Education Loan

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

Education Loan form

  • SBI 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 SBI education 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

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 an education 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 education loan with WeMakeScholars, your financial officer will provide you with a detailed documents checklist, after analyzing your education loan 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.

Your documents should work for you, not the other way around - contact us for a tailored solution.

Types Of Collateral Security Accepted For SBI Education Loan

A lot of students who wish to study abroad with the help of an SBI education loan are not very well aware of the types of collateral security that are majorly accepted by the bank for both the SBI education 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 education loan. In any secured education loan process, it is essential to get a rough idea about the three major types of collateral which are accepted by all banks for an abroad education loan.

Immovable Property: An immovable property is one of the most frequently pledged categories of assets as collateral against an abroad education 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 education 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 education 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 education 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 education 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 an abroad education 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 an abroad education 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 education 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 education loan, here is a list of properties that are not accepted by the SBI for an education 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 for abroad education 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 SBI education 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 education loan. The following Liquid assets which fulfill the following criteria can be accepted as collateral against an SBI education loan.

Type of Acceptable Liquid Assets

Value considered by SBI for Education Loans

Own bank deposit (TDR/STDR/RD)

For TDR - Face Value will be considered

For STDR/RD - Face value + Accrued interest

Insurance Policy (From SBI Life/LIC)

The surrender value of the insurance policy

Govt Securities /Bond issued by PSUs

Face value or Issue price, whichever is lower

Mutual fund schemes of SBI Mutual Funds (FMP/DAF)

Loan margin will be calculated on a case by case basis

 

Third-Party Collateral

A student may pledge both immovable properties as well as liquid assets belonging to a third party as collateral security against an SBI education loan. However, it is important to understand that an education 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 education loan concepts. In order to know more about the different factors of an easy education loan process, do get in touch with WeMakeScholars. Our team of Financial officers assists you with the entire education loan process until sanction, 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.

SBI Education Loan Insurance

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 education loans with collateral therefore it is not mandatory for students to take education loan insurance while taking loan from the State Bank of India.

However, if students take education loan 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 education loan repayment. It also provides coverage to not one but up to two co-borrowers of the education 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 an SBI education loan have often made claims that the bank has made it compulsory to purchase the SBI Rinn Raksha loan insurance while applying for their education loan.

Although it benefits you in a lot of ways,  If you plan on borrowing an SBI education 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 education 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 education 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 education loan insurance scheme ensures the timely repayment of the pending education loan amount within the stipulated time allocated to students. 

SBI Education Loan Margin Calculation

Study location

Loan margin

Below Rs 4 lacs

NIL

Above Rs 4 lacs to study in India

5%

Above Rs 4 lacs to study abroad

15%

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.

How To Apply For An Education Loan From State Bank Of India?

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 SBI education loan 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: An education 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 education loan 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 education loan 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 education loan 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.
Stop worrying about the loan disbursement process - let us do the heavy lifting for you.

Why And How To Transfer Your Education Loan To State Bank Of India?

Students can transfer their current education loan to State Bank of India and continue repaying the loan as per the new repayment plan according to SBI. The benefit of transferring education 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 education 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 EMI Calculation As Per Interest Rate

SBI education loan calculator is available on its website, but to get a detailed analysis along with repayment tips, you should use WeMakeScholars education loan 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 education loan 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
You don't have to overpay for your education loan - apply with WeMakeScholars and save on interest.

SBI Education Loan Repayment Process

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 education loan EMI calculator, but, if you use WeMakeScholars education loan EMI calculator you will get the most detailed EMI calculation. Let’s understand with an example: 

If suppose a student takes an education 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

Repayment cycle

EMI

Interest Portion

Principal portion

Loan Outstanding

Start of loan EMI

48357

37500

10857

4489143

End of year 1

48357

36462

11895

4363573

End of year 2

48357

35217

13141

4212860

End of year 3

48357

33841

14517

4046365

End of year 4

48357

32321

16037

3862436

End of year 5

48357

30641

17716

3659248

End of year 6

48357

28786

19571

3434783

End of year 7

48357

26737

21620

3186813

End of year 8

48357

21972

26385

2610259

End of year 9

48357

19209

29148

2275951

End of year 10

48357

16157

32200

1906637

End of year 11

48357

13838

31297

1813735

End of year 12

48357

12785

35572

1498650

End of year 13

48357

9060

39297

1047943

End of year 14

48357

4945

43412

550040

End of year 15

48357

400

47958

0

 

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

Don't let the education loan disbursement process derail your academic plans

Education Loan Interest Subsidy Schemes

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.

Education Loan FAQs

  • What is the education loan interest rate in the State Bank of India?

    The interest rate to get an education loan from SBI bank usually ranges from 9-11%. Depending on the student's loan profile and academic history, a student is also entitled to get an education loan at a cheaper rate of interest.

  • Where can I get the SBI education loan application form?

    You will get the SBI bank education loan form on WeMakeScholars website, fill the form to check your eligibility and start your education loan process in the State Bank of India with WeMakeScholars.

  • What is the online application process to get an education loan from the State Bank of India?

    To apply online for an education loan from WeMakeScholars, fill the SBI education loan form or request a callback to get in touch with your financial officer at WeMakeScholars. Submit your documents on WeMakeScholars documents portal to start your education loan sanctioning process with the best lender. Your assigned financial officer will be available to resolve your queries at any step during the process.

  • Where can I find the SBI education loan calculator?

    SBI education loan calculator is available on the official website of the bank, but we suggest students to use WeMakeScholars education loan calculator, as it is the most accurate of all and provides complete information along with analysis of your amortization schedule.