.:: State Bank of India ::.

A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured.

Eligible Courses

All courses having employment prospects are eligible.
Graduation courses/ Post graduation courses/ Professional courses
Other courses approved by UGC/Government/AICTE etc.

Expenses considered for loan

• Fees payable to college/school/hostel
• Examination/Library/Laboratory fees
• Purchase of Books/Equipment/Instruments/Uniforms
• Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees for the entire course)
• Travel Expenses/Passage money for studies abroad
• Purchase of computers considered necessary for completion of course
• Cost of a Two-wheeler upto Rs. 50,000/-

Any other expenses required to complete the course like study tours, project work etc.

Amount of Loan

• For Studies in India, maximum Rs. 10 lacs

Interest Rates:

Base Rate 8.00 % w.e.f. 03.01.2011

SBI Student Loan Scheme

Loan Amount	Rate of Interest
For loans upto Rs.4 lacs	3.75% above Base Rate, currently 11.75% p.a.
Above Rs.4 lacs and upto Rs.7.50 lacs	5.25% above Base Rate, currently 13.25% p.a.
Above Rs.7.50 lacs	4.25% above Base Rate, currently 12.25% p.a.

(0.50% concession in interest for girl student) 

Education Loan Scheme for students of ISB, Hyderabad 

2.75% above Base Rate, currently 10.75% p.a. 

(0.50% concession in interest for girl student) 

SBI Scholar Loan Scheme 

2.75% above Base Rate, currently 10.75% p.a. 

(Irrespective of the loan amount) 

(0.50% concession in interest for girl student) 

Note: Interests rates etc are revised by the banks from time to time. Applicants are advised to check thoroughly the terms and conditions of educational loan scheme of respective bank at the time of application.

To know for current Interest Rates Click here

Processing Fees

• No processing fee/ upfront charges
• Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in the margin money

Repayment Tenure

Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier. 

Security for loans upto Rs. 20.00 lacs for studies in abroad.

• Upto Rs. 4 lacs: No Security
• Above Rs. 4 lacs to Rs. 7.50 lacs: Collateral security in the form of suitable third party guarantee. The bank may, at its discretion, in exceptional cases, weive third party guarantee if satisfied with the net-worth/means of parent/s who would be executing the documents as "joint borrower".
• Above Rs. 7.50 lacs: Tangible collateral security of suitable value, along with the assignment of future income of the student for payment of installments.

All loans should be secured by parent(s)/guardian of the student borrower. In case of married person, co-obligator can be spouse or the parent(s)/ parents-in-law

Margin

• For loans up to Rs.4.0 lacs : No Margin
• For loans above Rs.4.0 lacs:
• Studies Abroad: 15%

Documentation Required

• Completed Education Loan Application Form.
• Mark sheets of last qualifying examination
• Proof of admission scholarship, studentship etc
• Schedule of expenses for the specified course
• 2 passport size photographs
• Borrower's Bank account statement for the last six months
• Income tax assessment order, of last 2 years
• Brief statement of assets and liabilities, of the Co-borrower
• Proof of Income (i.e. Salary slips/ Form 16 etc)

For more details: Click here