✓ Apply for a loan of up to 1.5 Cr
✓ At starting interest rate of 9% P.A.
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:
Let’s understand the products in detail
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
Loan Parameters |
Details |
Loan Limit |
A higher amount can also be offered, depending on the student’s profile. |
Expenses covered |
|
Accepted co-applicant |
Parents, Parents in law, Siblings, Spouse |
SBI education loan interest rate/rate of interest |
Interest rate discounts are available for girl children or students taking loan insurance. |
Loan Margin |
|
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 |
|
Acceptable collateral securities for SBI Education loan |
|
Value of Collateral (only if it is collateralized education loan) |
|
Processing fees |
|
Eligible courses under SBI Student Loan Scheme
Loan parameters |
Details |
Loan Limit |
A higher amount can also be offered, depending on loan profile |
Expenses covered |
|
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 |
|
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 |
|
|
|
Value of Collateral (only if it is collateralized education loan) |
|
Processing fees |
Up to Rs 20 lacs : NIL Above Rs 20 lacs: Rs 10,000 + TAX |
This education loan scheme is for wards of DSP/ ICGSP officers in all ranks for studies abroad.
Loan Parameters |
Details |
Loan Limit |
A greater loan amount can also be offered, on the basis of student’s profile |
Expenses covered |
|
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 |
|
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 |
|
Acceptable collaterals |
|
Processing fees |
Up to Rs 20 lacs : NIL Above Rs 20 lacs : Rs 10,000 + TAX |
Eligible courses under SBI Shaurya 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 |
|
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 |
Loan Parameters |
Details |
Loan Limit |
Try for a higher amount with a better co-applicant |
Expenses covered |
|
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 |
|
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 |
|
Value of Collateral (only if it is collateralized education loan) |
|
Processing fees |
Up to Rs 20 lacs NIL Above Rs 20 lacs Rs 10,000 + TAX |
Loan Parameters |
Details |
Loan Limit |
A higher amount can also be offered, depending on the student’s profile |
Expenses covered |
|
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 |
|
Value of Collateral (only if it is collateralized education loan) |
|
Processing fees |
NIL |
Eligible courses under Scholars Loan
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 |
|
Expenses covered |
|
Accepted co-applicant |
Parents, Parents in law, Siblings, Spouse |
SBI education loan interest rate/rate of interest |
Starts from 10.05% |
Repayment Duration |
|
Students can apply for their education loan transfer under this scheme, as per the following parameters
Loan Parameters |
Details |
Loan amount |
|
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
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.
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.
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
Basic documents of student, co-applicant, and/or Guarantor
All the papers should be self-attested.
Students Academic records
Income documents of co-applicant
If Salaried
If Self-employed
Other Documents
Additional docs (if applicable)
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.
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.
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.
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.
Immovable Properties Accepted by SBI for Student Loan
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.
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 |
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.
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.
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.
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.
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.
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.
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:
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:
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 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:
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.
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:
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
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
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.