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State Bank of India provides education loans for tenure up to 15 years. No processing fee is charged and no margin for up to Rs. 4 lakhs. No security is required for up to Rs. 7.5 lakhs. Check eligibility now and apply through CreditMantri!
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What Is an Education Loan?
An Education loan is the loan or funds acquired by an individual to pursue higher studies in India or abroad. The loan repayment commences for the student after completing the education and a period of 6 months is given as grace period to students to get or join a job.
The repayment amount will be determined by your choice of interest, you need to decide how you want to repay the loan. That is if you want to start paying during the time of moratorium period itself or after the moratorium period. The Moratorium period is the time of your education plus 6 months or 1 year given to get a job. It is only after this time that you are expected to pay the loan.
The loan interest starts to accrue at the time of dispersal of funds, so at the time of your graduation you have a huge amount to repay. The other option is your parents or guardian can start paying the loan during the moratorium period itself where it is calculated as a simple interest.
This way your loan amount at the time of graduation is drastically reduced.
There are 4 types of education loans in India
1. Under Graduate education loan - These are given to students who have completed their secondary education and looking to do higher studies in the form of under graduation. It can be done in India or abroad.
2. Post graduate education loan - These are education loans given to individuals who want to pursue post-graduation after completing under graduation course from a reputed university/college. Here also the loan can be for studying in India or abroad.
3. Parents availing education loan - This is the case where the parents take loan for the education purposes of their children. This is an unsecured loan and need not be for graduate or post-graduation courses but also for elementary and higher secondary courses.
4. Career growth education loans - These are loans provided to young people who want to pursue courses or trainings, certifications that will benefit their career growth.
The State Bank of India, founded in 1806 is one of the largest and oldest commercial banks in Asia. It is a major banking and financial services public sector company with more than 24,000 branches and 59, 000 ATMs. It is the largest bank in India which has a 20% market share in deposits and loans among commercial banks, truly being a bank for every Indian.
Education is one area where everybody is willing to spend a lot of money to live a prosperous life in the future. Being one of the major education loan providers, SBI understands the needs of the students and offers extremely competitive education loans at better interest rates. Every year, many students secure admissions in top universities and colleges in India and abroad with SBI education loans.
Following are some of the advantages of applying for an educational loan with SBI.
Objective: To provide term loan to Indian students for pursuing higher education in India and abroad where admission has been secured
Quantum of Loan: For studies in India, up to INR 10 Lakhs and for studies in abroad INR 20 Lakhs
Margin: No margin for up to INR 4 Lakhs and for above that limit, 5% of margin for studies in India and 15% for studies in abroad
Repayment Period: The tenure is up to 15 years after completing the course with 12 months of moratorium period.
Security: No security is required for up to INR 7.5 Lakhs and parents or a guardian can be a co-borrower. Tangible collateral is required for a loan above INR 7.5 Lakhs with parents or a guardian as a co-borrower.
Processing Fees: Nil
Studies in India:
Objective: To provide a loan to Indian students for pursuing higher education in select premier institutions
Quantum of Loan: Up to 35 Lakhs
Objective: To provide loan to Indian students who wish to pursue education overseas
Quantum of Loan: From INR 20 Lakhs to INR 1.5 Crore
Margin: Scholarship and assistantship can be included in the margin.
Repayment Period: The tenure is up to 15 years after completing the course with 6 months of moratorium period.
Security: Tangible collateral required, and third party’s collateral also accepted
Processing Fees: INR 10,000 per application
Regular Graduate/ Post Graduate/ Doctorate Courses in any discipline offered by foreign Institutes/ Universities in USA, UK, Canada, Australia, Europe, Singapore, Japan, Hong Kong and New Zealand
Objective: To provide term loan to Indian students for pursuing skill development courses in India
Quantum of Loan: Up to INR 1.5 Lakhs
Repayment Period: The tenure is up to 7 years after completing the course with 12 months of moratorium period for above 1-year courses and 6 months for up to 1-year course.
Security: No security is required, and third-party guarantee will be taken.
SBI education loan can be repaid in following three ways.
Standing Instruction (SI): If you are an existing account holder with SBI, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the SBI account you specify.
Electronic Clearing Service (ECS): This mode can be used if you have a non-SBI account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.
Post-Dated Cheques (PDCs): You can submit post-dated EMI cheques from a non-SBI account at your nearest SBI Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.
It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.
You can either apply online or visit a nearby SBI branch for the application. You can also download the education loan application form from the SBI official website, complete the form and submit it the bank representative.
You can also check your eligibility for an education loan through CreditMantri and apply for it.
1. What is the interest charged during moratorium period?
Only simple interest will be charged during the moratorium period. After the moratorium period the actual interest mentioned will be charged.
2. Can I take an education loan without a co-borrower?
No, a co-borrower is needed to take an education loan. The loan will be taken as a joint loan in collaboration with your parent/ guardian or spouse.
3. Is there a range on the rate of interest charged on Education Loan offered by SBI?
Yes, the interest rate ranges from 8.30 % - 10.45%. However, the it is subject to change at the sole discretion of the bank.
4. I am planning to study abroad. Am I eligible to apply for an Education Loan?
Yes, SBI offers up to INR 1.5 Crore for courses pursued abroad which also includes travel expenses and study tours.
5. Is there a processing fee for an education loan with SBI?
There are no processing fees for an education loan with SBI, except for SBI Global Ed-Vantage Scheme which will be INR 10,000 per application.
6. Is there a way I can reduce the interest paid?
There is special subsidy provided according to Central Government subsidy for education loans. SBI also provides special interest rates for some premier institutions. The other option is your parent/ guardian or spouse can pay the loan amount during the moratorium period due to which the loan amount you need to repay is less.
Get up to Rs 1.5 crore educational loan from SBI13 May 2019
With SBI's Global Ed-vantage Educational Loan you can avail up to Rs 1.5 crore for educational loans. These loans can be availed for regular graduate/ post graduate/ doctorate courses in any discipline offered by foreign Institutes/ universities in t...
With SBI's Global Ed-vantage Educational Loan you can avail up to Rs 1.5 crore for educational loans. These loans can be availed for regular graduate/ post graduate/ doctorate courses in any discipline offered by foreign Institutes/ universities in the nations including USA, UK, Canada, Australia, Europe, Singapore, Japan, Hong Kong, and New Zealand. The maximum tenure is 15 years which is decided based on the credit profile of borrowers & co-borrowers and the loan repayment history.
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