SBI or State Bank of India is a government owned banking company. It has around 14,000 branches all over in India to serve its customers. SBI provides various products to help its customers. Among their various products, SBI Education Loan provides financial aid to the students to pursue their higher education.

SBI Education Loan are categorized as- SBI Student Loan, SBI Skill Loan, SBI Scholar Loan, SBI Global Ed-Vantage Loan and SBI Takeover of Collateralised Education Loan. 

Here we will discuss the SBI Student Loan in details.

SBI STUDENT LOAN

State Bank Of India provides Student Loan to boost monetary support to meritorious students willing to seek higher education in India and abroad. Students with a goal to achieve success and build a great career can be achieved with the help of SBI Student Loan.

ELIGIBILITY CRITERIA

• The student should be an Indian National.
• No boundary of minimum marks secured in last qualifying exam.
• The student must be able to secure admission in a regular Technical/Professional/Management courses through Entrance Test/Merit list.
• The student must secure admission in any reputed institute, in case there is no Merit List/Entrance Test.
• Students opting to pursue the course under Management Quota(no admission due to low ranking after securing passing marks in the Entrance Test) are also eligible.
• Students resume their discontinued studies (stating valid reason), who failed in the last qualifying exam but subsequently cleared are also eligible.
• Many times students are required to deposit a part of the fee on the day of the counseling, then SBI will sanction and release the loan if the admission is scheduled on the basis of the results of entrance tests like- JEE-IIT, AIEEE etc are announced, the students securing a good position in the merit list and will surely secure admission after the counseling. (The payment will be released on the name of the institution where admission is granted.)
• Secured admission to foreign universities. Sometimes the students have to pay a part of the fee before the formal admission, SBI then sanctions and release the loan in the name of the institution given the condition- admission is secured in any top-rated institution or B-school, tangible collateral security equal to the value of the loan.

Loan covering the Courses

For India

• UGC/IMC/AICTE/ICMR approved regular technical/professional courses for graduation and post graduation.
• Nursing/Teacher’s training courses under Central/State Govt.
• Full-time degree/diploma courses under premier institutions like IITs, IIMs, IISC etc.
• Under the approval of Director General of Shipping/Civil Aviation for the full-time degree/diploma courses like pilot training, shipping etc.
• Computer Certified courses from reputed institutes affiliated to a university.

Abroad

• SBI mainly focuses on job-oriented professional/technical courses offered by reputed universities for graduation/post graduation.
• Courses offered by CPA (Certified Public Accountant) in the USA, CIMA (Chartered Institute of Management Accountants) in London.

Expenses eligible to the Loan

1. Fees payable to College/Universities/Hostel (Boarding and lodging expenses).
2. Books/Notebooks/Essentials/uniform related to the studies.
3. Fees of Library/Lab/Exam.
4. Purchase Electronic gadget like Laptop for the study purpose.
5. Expenses related to an excursion, assignment or projects, or any kind of study related exhibition.
6. Points 2-5, up to 20% of the total fees payable.
7. Expenses on traveling for the purpose of education.
8. Refundable deposits/Maintenance bill/Caution money (up to 10% of the tuition fees).
9. Cost of two-wheeler up to Rs. 50000.

DOCUMENTS REQUIRED

Applicant- Candidate

• Duly filled application form.
• ID proof- AADHAR card, PAN card or Driving License.
• Residence proof- Any utility bill, Passport.
• Passport size photos.
• Passport is mandatory
• Academic Reports- Entrance Exam Result for the assigned admission, Under-graduation result, Higher Secondary result, Secondary result.
• Schedule of the expenses of the study
• Admission documents- Admission letter, Statement specifying the duration of the course.

Co-Applicant/Guarantor

• ID proof- AADHAAR card, PAN card or Driving License.
• Residence proof- Any utility bill, Passport.
• Passport size photos.
• If any previous loan been taken, then the statement of the loan a/c in last 1 year.
• Income proof
  • For Salaried Co-Applicant- Bank a/c statement for last 6 months, Last 3 months Salary slip, the copy of IT Returns for the last 2 financial years or last 2 years Form 16 copy.
  • For Self-Employed Co-Applicant- Last 6 months Bank a/c statement, address proof of business, IT return copy, Certificate of TDS, Certificate of Qualification (for professionals)

Quantum Of Finance

For India

Maximum loan amount- Rs.10 lakhs.

Abroad

Maximum loan amount- Rs. 20 lakhs

Security/Collateral

Particulars	Security/Collateral
Up to Rs. 7.5 lakhs	Parent/Guardian as co-borrower, No collateral security is required.
Above Rs. 7.5 lakhs	Parent/Guardian as a co-borrower and tangible collateral security

Rate Of Interest

SBI STUDENT LOAN SCHEME

Loan Limit	1-year MCLR	Spread	Effective Rate of Interest	Reset Period
Up to Rs.7.5 lakhs	8.25%	2%	10.25%	1 year
Concession	0.50% concessions in favor of female students
Above Rs. 7.5 lakhs	8.25%	2.25%	10.50%	1 year
Concession	0.50% concession in favor of female students 0.50% concession for students benefiting from SBI Rinn Raksha or any other prevailing policies of SBI.

Margin

Margin Money is the additional money which the student has to bear along with the loan.

Up to Rs. 7.5 lakhs- It is not applicable.
Above Rs. 7.5 lakhs- Student has to bear 5% of the fees.

Repayment

• Maximum Repayment period is 15 years.
• Repayment will start 1 year after the completion of the course.
• Any second loan for higher studies later, loan repayment will be within 15 years after the completion of the second course.
• The borrower needs to pay EMI on monthly basis.