SBI Education Loan

✓ Apply for a loan of up to 1.5 Cr

✓ At a starting interest rate of 8.15% P.A.

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Table of content

  1. Education loan products of State Bank of India
  2. Comparision of All The SBI Education Loan Schemes
  3. SBI Education Loan Scheme For Study Abroad
  4. SBI Education Loan Scheme for Study in India
  5. SBI Education Loan College List And Other Eligibility Criteria
  6. Expenses Covered Under SBI Education Loan
  7. Documents Required For SBI Education Loan
  8. Types Of Collateral Security Accepted For SBI Education Loan
  9. SBI Education Loan Insurance
  10. How To Apply For An Education Loan From State Bank Of India?
  11. Why And How To Transfer Your Education Loan To State Bank Of India?
  12. SBI Education Loan Repayment Process
  13. Education Loan Interest Subsidy Schemes
  14. FAQ's
  15. Need Help? Ask Here!

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Document

Education loan products of State Bank of India

State Bank of India is one of the largest lender banks in India. It has specially designed products through which it offers student loans at interest rates starting from 8.15% and loan amounts ranging up to 1.5 Crores. They offer education loans for courses such as MBA, Masters, Bachelors, Ph.D and Vocational courses based on the student's eligibility.

  • SBI loan scheme for study abroad
    • SBI Student Loan Scheme
    • SBI Global ED-VANTAGE Scheme
    • SBI Shaurya Education Loan (FOR WARDS OF DEFENSE AND INDIAN COAST GUARD PERSONNEL)
    • Takeover of Education Loan
  • SBI loan scheme for study in India
    • SBI Student Loan Scheme
    • SBI Scholar Loans
    • SBI Shaurya Education Loan (FOR WARDS OF DEFENSE AND INDIAN COAST GUARD PERSONNEL)
    • SBI Skill Loan Scheme
    • Takeover of education loan

Let’s understand the products in detail

Banks

Comparision of All The SBI Education Loan Schemes

Here is the brief details of all the education loan schemes offered by SBI

Loan Scheme Loan Limit  Interest Rate India or Abroad 
SBI Student Loan Scheme

Up to 1.5 Crores (Abroad Studies)

Up to 50 Lakhs (Study in India)

10.15% (including interest rate concession*) Both
Shaurya Education Loan (FOR WARDS OF DEFENSE AND INDIAN COAST GUARD PERSONNEL)

Maximum 1.5 Crores (Abroad Studies)

Maximum 40 Lakhs (Study in India)

10.15% (including interest rate concession*) Both
Scholar Loans (IITs, IIMs, NITs, etc.)

No upper limit

8.15% India
Skill Loan

Up to 1.5 Lakhs 

10.65% India
SBI Global Ed- Vantage

Up to 1.5 Crores

10.15% (including interest rate concession*) Abroad

* You will get complete detail about interest rate concession in the later section of this article. Keep reading for better understanding.

This is just to give you an idea about the maximum loan amount and average interst rate of these SBI education Loan schemes. In the further sections of this article, we have properly explained each and every schemes in details that will help you easing your education loan process through State Bank of India.

Pointer 1

SBI Education Loan Scheme For Study Abroad

Under the special schemes of SBI education loans abroad, the bank offers financial support to cover various academic expenses, including tuition fees and living costs.

With flexible repayment plans and competitive interest rates, these schemes ensure that students can pursue their educational goals without any financial burden.

Loan Parameter SBI Student Loan Scheme

SBI Global ED-VANTAGE Scheme 

SBI Shaurya Education Loan Takeover of Education Loan
Loan Limit Up to 1.5 crore

Minimum - more than 7.5 lacs

Up to 1.5 crore

Up to 1.5 crore

Minimum - more than 10 lacs

Up to 1.5 crore

Interest Rate 10.15% (including interest rate concession) 10.15% (including interest rate concession) 10.15% (including interest rate concession) 10.15% (including interest rate concession)
Interest Rate Concession

0.50%- For girls student

0.50%- SBI Rinn Raksha* or Any other policies related to the bank

0.50%- For girls student

0.50%- SBI Rinn Raksha* or Any other policies related to the bank

0.50%- For girls student

0.50%- SBI Rinn Raksha* or Any other policies related to the bank

0.50%- For girls student

0.50%- SBI Rinn Raksha* or Any other policies related to the bank

Loan Margin

Up to Rs 4 lacs - 0%

Above Rs 4 lacs - 15%

Above 7.5 lacs - 10%

Margin is based on year-to-year, when disbursements are made proportionally

Up to Rs 4 lacs - 0%

Above Rs 4 lacs - 5%

Above 7.5 lacs - 10%
Processing Fees**

Loans upto Rs. 20 lacs - Rs. 0

Loans above Rs. 20 lacs - Rs. 10,000+TAX

Loan above Rs. 7.5 - Rs. 10,000+TAX

Loans upto Rs. 20 lacs - Rs. 0

Loans above Rs. 20 lacs - Rs. 10,000+TAX

Zero
Moratorium Period Course Duration + 12 months Course Duration + 6 months Course Duration + 6 months Course Duration + 6 months
Repayment Duration Up to 15 years after completion of moratorium period  Up to 15 years after completion of moratorium period Up to 15 years after completion of moratorium period

Up to 15 years after completion of moratorium period

* You will get complete detail about SBI Rinn Raksha in the later section of this article. Keep reading for better understanding.
** Apart from SBI education loan processing fee, If students are taking a 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 services related to educational assistance, and loan sanctioning are free of cost. To avail benefits of our student-friendly services, request a callback or fill out the SBI education loan form. 

If you are facing any problem understanding any terms or schemes, you can just write your queries in the comment down below.

Acceptable Collateral

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

Value of collateral

  • In case of Immovable Property - Minimum value of the collateral should be more than the asked loan amount. So, we often suggest students to keep collateral value of approx 1.25 times the asked financial aid for all schemes except 110% for the SBI Shaurya Education Loan scheme.
  • In case of Liquid Security - Minimum value should be equal to the asked loan amount.

Acceptable Co-Applicant

The co-applicants must be the parent(s) or guardian,siblings, parent’s siblings,or first cousins of the student borrower. If the borrower is married, the co-applicant can be the spouse or the parent(s) or parents-in-law.

Repayment Policy

In all the schemes mentioned above, you will be charged Simple Interest during the moratorium period, however it is optional to pay. You can opt out and can start your EMI after the moratorium period ends.

Eligible Courses

  • 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.
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Pointer 2

SBI Education Loan Scheme for Study in India

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.

In this section, you will get to know all the minute details of SBI Education Loan Scheme for Study in India that is very hard to find all together in one place. Let’s get started.

Loan Parameter SBI Student Loan Scheme SBI Scholar Loans SBI Shaurya Education Loan SBI Skill Loan Scheme Takeover of Education Loan
Loan Limit

Medical Courses - Up to Rs 30 lacs

Other Courses - Up to Rs 10 lacs

(maximum Up to Rs 50 lacs, cases to case basis)

No Security, only Parent/ Guardian as co-borrower - Rs. 50 lacs (List AA), Rs. 40 lacs (List A), Rs. 30 lacs (List B), Rs. 7.5 lacs to Rs 30 lacs (List C)

With tangible collateral of full value and Parent/ Guardian as co-borrower - No upper limit (All Lists)

Up to  40 lacs

Minimum Up to Rs. 5000

Maximum Up to: Rs. 1,50,000

Minimum - more than 10 lacs

Up to 1.5 crore

Interest Rate 10.15% (including interest rate concession)

AA list - IITs - 8.15%
Other institutions - 8.20%

A list - IITs - 8.15% 
Other institutions - 8.65%

B list - NITs -  8.65%
Other institutions -  9.15%

C list - NITs - 8.65%
Other institutions -  9.65%

10.15% (including interest rate concession) 10.65% 10.15% (including interest rate concession)
Interest Rate Concession

0.50%- For girls student

0.50%- SBI Rinn Raksha* or Any other policies related to the bank

0.50%- For girls student

0.50%- SBI Rinn Raksha* or Any other policies related to the bank

0.50%- For girls student

0.50%- SBI Rinn Raksha* or Any other policies related to the bank

No additional concession

0.50%- For girls student

0.50%- SBI Rinn Raksha* or Any other policies related to the bank

Loan Margin

Up to Rs 4 lacs - 0%

Above Rs 4 lacs - 5%

Zero

(But bank charge margins depend on the ranking of colleges.)

Up to Rs 4 lacs - 0%

Above Rs 4 lacs - 5%

Zero

Up to Rs 4 lacs - 0%

Above Rs 4 lacs - 5%

Processing Fees

Loans upto Rs. 20 lacs - Rs. 0

Loans above Rs. 20 lacs - Rs. 10,000+TAX

Zero

Loans upto Rs. 20 lacs - Rs. 0

Loans above Rs. 20 lacs - Rs. 10,000+TAX

Zero Zero
Moratorium Period Course Duration + 6 months Course Duration +  12 months after the completion of the course or 6 months after getting the employment, whichever is earlier Course Duration + 6 months

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

Course Duration + 6 months
Repayment Duration Up to 15 years after completion of moratorium period Up to 15 years after completion of moratorium period  Up to 15 years after completion of moratorium period 

Loans Up to Rs 50,000 - Up to 3 years

Loans between Rs 50,000 to Rs 1 lacs Up to 5 years

Loans above Rs. 1 lac - Up to 7 years

Up to 15 years
after completion of moratorium period 

Note- If you're looking for information on Acceptable Collateral, Collateral Value, Acceptable Co-Applicants, and Repayment Policies for these schemes, simply scroll up to find the section titled 'SBI Education Loan Scheme for Study Abroad.' There, you'll find all the details you need, as these parameters remain consistent for both studying abroad and within India.

Eligible Courses

  • Completion of undergraduate and graduate studies, including standard technical and professional programs offered by colleges/universities endorsed by UGC/AICTE/IMC/Government authorities.
  • Participation in standard degree/diploma programs offered by autonomous institutions such as IIT, IIM, etc.
  • Completion of teacher training/nursing courses sanctioned by either the Central or State Government.
  • Enrolment in standard degree/diploma programs like Aeronautical studies, pilot training, shipping, etc., approved by the Director General of Civil Aviation/Shipping authorities.

Eligible Courses under SBI Skill Loan Scheme

  • Training institutions or courses eligible for a Skilling Loan include:
    • Industrial Training Institutes (ITIs)
    • Polytechnics
    • Training partners associated with National Skill Development Corporation (NSDC) or Sector Skill Councils
    • State Skill Mission or State Skill Corporation
  • Preferably, these courses should result in a certificate, diploma, or degree issued by the respective organization according to the National Skill Qualification Framework (NSQF).
  • Schools recognized by Central or State Education Boards, as well as colleges affiliated with recognized universities, are also eligible for a Skilling Loan if they offer certificates, diplomas, or degrees according to NSQF.

NOTE -  There is no minimum duration requirement for the courses.

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.

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Student Eligibility

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 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 a study loan for MBBS. Others wonder whether an SBI provides financial 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. Read the above sections to know the complete list of eligible courses.

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

Expenses Covered Under SBI Education Loan

The expenses covered under SBI education loan is almost same for all the schemes as well as for abroad studies and study in India. Here is the complete list of expenses:

  • The fee payable to college/school/hostel, hoarding & lodging/examination/library/laboratory fee, travel expenses/passage money for studies abroad, purchase of books/equipments/instruments/uniforms/computer at reasonable cost, if required for course completion, and any other expense required to complete the course (like study tours, project work, thesis, etc.) considered for loan should be capped at 20% of the full amount of total tuition fee payable by the students who do not get any concessions/remissions.
  • The caution deposit/building fund/refundable deposit supported by institution bills/receipts, the amount considered for loan should not exceed 10% of the tuition fees for the entire course.
  • If borrowers choose insurance, the premium amount will be included in the loan.
  • For Management Quota seats in approved courses, fees set by the State Government or government-approved regulatory body will be applicable.
  • Cost of a two-wheeler not exceeding Rs. 50,000.
Document

Documents Required For SBI Education Loan

There is a long list of documents required for student loans in SBI to process the loan, you can check out this blog “Documents Required for an Education Loan”, there we have provided you the complete list of the mandatory documents required for processing your education loan. In this section, we will provide you the list of some mandatory documents asked by the State Bank of India :

  1. Completed Application Form provided by the bank or you can ask from our financial officer by requesting a callback.
  2. Admission Confirmation: Proof of admission from your chosen university.
  3. Identification Copies: Provide copies of Passport, Voter ID, Driving Licence, or PAN Card.
  4. Passport Photos: Two recent passport-size photographs of the applicant, co-applicant, and guarantor.
  5. Educational Records: Present the mark sheet of your latest qualified examination and result of the entrance exam through which admission is being taken (e.g. CAT, GRE, GMAT, TOEFL, IELTS, etc.)
  6. Financial Records:
    1. Income Proof: Furnish the income proof of parents/guardians, supported by the last 2 years' income tax statements.
    2. Financial Statements: Provide six months' bank statements or recent salary slips.
  7. Course Expenses Plan: Detailed breakdown outlining your anticipated course expenses.
  8. Current Financial Obligations: Disclose details regarding existing loans and any scholarships received.
  9. Institute Prospectus: Include a copy of the institute's prospectus to estimate costs effectively.
Your documents should work for you, not the other way around - contact us for a tailored solution.
Pointer 1

Types Of Collateral Security Accepted For SBI Education Loan

A lot of students who wish to study abroad with the help of an SBI loan are not 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 have 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 having an immovable property whose value meets the requirements given by the SBI, a lot of candidates are still not able to get loans 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 sanctioning a loan against immovable property, many government banks, including the SBI, consider certain factors of the property 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 applicants will be required to submit the registration documents of the bigger plot or the motherland.
  • 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 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

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 cities as opposed to those located in rural areas.
  • Residential properties are given greater preference than commercial properties, so it is recommended that you use commercial property as collateral only if you do not have 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 for SBI loans.
  • If you plan on pledging an empty plot as collateral, candidates need to know that plots whose boundaries are clearly defined are given preference over those which do not have one.

Note: 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 to know more.

Liquid Security

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

Type of Acceptable Liquid Assets

Value considered by SBI for Education Loans

Own bank deposit (TDR/STDR/RD)

For Term Deposit (TDR) - Face Value will be considered
For Special Term Deposit/ Recurring Deposit (STDR/RD) - Face value + Accrued interest

Insurance Policy (From SBI Life/LIC)

The surrender value of the insurance policy

Govt Securities /Bond issued by Public sector undertakings (PSUs)

Face value or Issue price, whichever is lower

Mutual fund schemes of SBI Mutual Funds like Fixed Maturity Plans/ Dual Advantage 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 student loans. 

Note- 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.

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Loan/Money

SBI Education Loan Insurance

State Bank of India gives the option to take education loan insurance by paying 1-2% of the loan amount. But since they mostly offer loans with collateral therefore it is not mandatory for students to take the insurance while taking a 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 provides coverage to 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 said that the bank has made it compulsory to get the SBI Rinn Raksha loan insurance while applying for their student loan.

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 it is not compulsory.

It is 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

  • SBI Global Ed-Vantage loan scheme involves pledging collateral, raising concerns about the safety of students' assets.
  • SBI Rinn Raksha loan insurance addresses concerns related to unforeseen events like death or accidents affecting loan repayment ability. So, it helps families pay off the remaining balance of the loan and protect pledged assets.
  • Availing Rinn Raksha Loan insurance also offers a 0.5% reduction in the interest rate.
  • The insurance scheme prioritizes timely repayment within the allocated period, providing financial security to students and their families.
Idea/Solution/Tip

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 branch manager
  • Check your loan eligibility and, fill out the application form 
  • Ask for the documents checklist
  • 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 financial officer, over 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 here you will 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 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.
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Stop worrying about the loan disbursement process - let us do the heavy lifting for you.
Banks

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

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

Repayment

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

Suppose a student takes a 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 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.

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Don't let the student loan disbursement process derail your academic plans
Pointer 1

Education Loan Interest Subsidy Schemes

Here is a brief summary of the three Education Loan Interest Subsidy Schemes:

Padho Pardesh Scheme: This scheme provides interest subsidies to minority students who are pursuing master’s, M.Phil, or Ph.D. degrees abroad. The objective of the scheme is to award interest subsidy to meritorious students belonging to economically weaker sections of notified minority communities so as to provide them better opportunities for higher education abroad and enhance their employability. 

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): This scheme provides interest subsidy during the moratorium period of the education loan for students from economically weaker sections (EWS) and other backward classes (OBC) who are pursuing technical/professional courses in India. The scheme aims to provide financial assistance to students from economically weaker sections to pursue higher education and enhance their employability

Dr. Ambedkar Interest subsidy scheme for OBC and EWS students: This scheme provides interest subsidy on education loans for overseas studies to pursue approved courses of studies abroad at Masters, M.Phil. and Ph.D. level. The scheme provides interest subsidy to the students belonging to the OBCs and EBCs on the interest payable for the period of the moratorium for the Education Loans for overseas studies.

FAQs:

  • What is the interest rate of SBI education loan?


  • What is the EMI for education loan in SBI?


  • How can I reduce my education loan interest in SBI?


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


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


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


  • Where can I find the SBI education loan calculator?


NEWS

SBI Plans to Sell 2% Stake in NSDL through IPO via OFS

The State Bank of India (SBI) has announced plans to sell a 2% stake in the National Securities Depositories Limited (NSDL) through an Initial Public Offering (IPO) by way of an Offer For Sale(OFS), offloading 40 lakh shares. SBI presently possesses a 5% ownership in NSDL and plans to sell off 2% of its stake through the IPO, pending agreement on the specified terms and conditions.

Similarly, HDFC Bank will also sell a 2% stake in the NSDL IPO. NSDL is a depository handling securities and instruments, and its IPO will involve sales of 57.3 million shares by six shareholders, including IDBI Bank, the National Stock Exchange, Union Bank of India, SBI, Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI), and HDFC Bank.

Last Updated On - 11/07/2023

SBI launches a new education loan  processing center in Mumbai

The State Bank of India (SBI) has recently unveiled its latest office in Borivali West, a locality situated in the western suburbs of Mumbai. This new establishment will serve as the designated hub for processing and sanctioning home loans and education loans. The inauguration ceremony of the processing cell was officiated by notable figures including P.C. Kandpal, the Deputy Managing Director of SBI, Usha Gautam, Chief General Manager of the REH Department at SBI's Corporate Centre, and Joohi Smita Sinha, General Manager of the Mumbai Metro Circle within SBI. Through this initiative, SBI aims to streamline and enhance its loan processing operations, furthering its commitment to providing efficient financial solutions to its customers in the region.

Last Updated On - 25/01/2024

Our Education Loan team will help you with any questions

14 Comments

  1. Swati Srivastava

    hey. i applied for the educational loan at sbi but they rejected saying your cibil statement is not good although my cibil score is 721. I did report the fraudulent loan transaction in cibil but it is a closed account with money already settled. so should this affect my eligibility of taking educational loan.
    22 Apr, 2024 at 12:53 AM REPLY
    1. Harish Dammannagari

      Hello Swati,

      Your loan rejection despite a good CIBIL score of 721 may stem from a reported fraudulent transaction on your CIBIL statement, even if the account has been settled. Such issues can affect loan eligibility as lenders consider overall creditworthiness and risk factors. Rest assured, your designated financial officer, Pavan Joel, is well-equipped to assist you in resolving this matter. I recommend discussing this with him to seek a resolution or an alternative.

      23 Apr, 2024 at 05:38 PM REPLY
  1. Muhammed Nabeel

    I submitted all the required documents to the SBI branch in Tanur, Kerala, and the legalization process is completed. However, the valuation for my application hasn't been completed yet. I need to pay the university fee by the end of this month, but the branch informed me that applications submitted since March haven't had their valuations completed. What steps can I take to expedite my process?
    19 Apr, 2024 at 06:40 PM REPLY
    1. Harish Dammannagari

      Hello Nabeel,

      I understand your concern. Your financial officer, Aleena George, has initiated the process by raising a ticket with the head. It's currently in progress, so I recommend waiting for your financial officer's response as she is well-equipped to support you in the loan process. If you have any questions or concerns, feel free to discuss them further with your financial officer. It could be helpful to communicate your urgency in paying the university fee by the end of the month with the bank executive, so they can prioritize your application accordingly.

      29 Apr, 2024 at 05:51 PM REPLY
  1. Ramyanantham G M

    Waiting for Call back from your finance Officer to fasten the educational loan process so Admission process can be met smoothly.
    11 Apr, 2024 at 04:09 PM REPLY
    1. Harish Dammannagari

      Hello Ramyanantham,

      Your concern has been forwarded to the relevant team, and you can expect a call from Naveen Kumar, your assigned financial officer, shortly.

      18 Apr, 2024 at 06:23 PM REPLY
  1. Ansh Tayal

    How do I talk to your representative?
    22 Jan, 2024 at 12:26 PM REPLY
    1. Sneha Krishna

      Hi Ansh,

      As per your request, we have assigned the experienced financial officer, Shruti Upadhyay, to assist you. She will soon connect with you and guide you through the loan process. If you require more information on "Education Loan" and "Education Loan Interest Rates," please click on the highlighted link. Feel free to comment if you need further assistance.

      22 Jan, 2024 at 05:11 PM REPLY
  1. Kawaljeet Kaur

    Hii can apply loan for diploma course?
    23 Aug, 2022 at 04:57 PM REPLY
    1. Hritik Jain

      Hi Kawaljeet! Yes, you can get an education loan for a diploma course, But We would require a few more details to evaluate your profile and check your eligibility for the same. Please connect to our loan team by requesting a callback on this link:http://bit.ly/education-loan Once you fill out the form, they will get back to you to guide you further.
      24 Aug, 2022 at 01:35 PM REPLY
Abhinav Raj
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