The SBI (State Bank Of India) is one of the leading Nationalized Banks in India. SBI is actively engaged in community service banking. SBI also offers Student Loan to the desirous student Education Loan for higher studies in India or abroad. This facility provided by SBI has been giving a relieve to the needy student who is meritorious but want of money is in difficult situation to fulfill his desire to get higher education. Here comes forward SBI to help all those needy students to fulfill their ambitions by providing them Student Education loans.
Eligibility Criteria for grant of SBI Student Education Loan:
- Loan is granted to only Indian Nationals.
Eligible Courses for SBI Student Education Loan:
- All courses which are having employment prospects.
- All Graduate, Post-Graduate and Professional Courses offered by the approved Institutions or Universities in India or Abroad.
- Other courses leading to diploma, degree, etc. conducted by Colleges, Universities approved by UGC / Government / AICTE etc.
Expenses considered for SBI Student Education Loan:
- Fees payable to College, School and Hostel.
- Examination,Library and Laboratory fees.
- Purchase of Books, Equipment, Instruments and Uniforms.
- Caution Deposit, Building Fund and Refundable Deposit.
- Travel Expenses, Passage money for studies abroad.
- Purchase of Computer considered necessary for completion of course.
- Cost of two wheeler upto Rs.50,000/-
- Any other expenses required to complete the course like study tour, project work etc.
Limit of SBI Student Education Loan:
Student Loan is sanctioned to a limit of maximum:
- Rs. 10 Lacs for studies in India.
- Rs. 20 Lacs for studies in abroad.
Security Requirement For SBI Student Loan:
- For loan amount upto Rs 4 lacs no security is required.
- For loan amount above Rs.4 Lacs, the borrower should present a third party as a guarantee.
- For loan amount above Rs.7.5 Lacs, the borrower should produce a material collateral security and assign the the future income of the student for paying installment.
- The parent or guardian of the borrowing student should secure an education loan.
- If the borrower is married, his or her spouse, parent-in-law or parent can act as the co-obligator.
Repayment of SBI Student Loan:
Repayment of loan can be started 6 months after getting job or one year after the course of study is completed whichever is earlier.
- If the Place of Study is in India, then Education Loan amount is upto 7.5 Lacs, the repayment period is 5 to 7 years and if the education loan amount is above Rs. 7.5 lacs, the repayment period is 5 to 10 years.
- If the Place of Study is in abroad, then education loan amount is upto Rs. 15 lacs, the repayment period is 5 to 7 years and if education loan amount is above Rs. 15 lacs, the repayment period is 5 to 10 years.
SBI Student Loan Interest Rate:
With effect from 29.06.2009 (SBAR 11.75%)
- Loan amount upto Rs. 4 Lacs, the Rate of Interest is 0.50% below SBAR i.e. 11.25% p.a.
- Loan amount above Rs. 4 Lacs and upto Rs. 7.50 Lacs, the Rate of Interest is 1.00% above SBAR i.e. 12.75% p.a.
- Loan amount above Rs. 7.50 Lacs, the Rate of Interest is at SBAR i.e. 11.75%.
Note: An Interest Rate concession 0.50% is allowed to Girl Student availing SBI Student Education Loan.
SBI Student Loan Processing Fees:
- There is no processing fee or upfront charges for Student Education Loan.
- For Student Education Loan for studies abroad a deposit of Rs. 5000/- is required which is adjustable in the margin money.
SBI Student Loan Margin:
- For loans upto Rs. 4.0 Lacs : no margin
- For loans above Rs. 4.0 Lacs : (1) Studies in India : 5%, (2) Studies abroad : 15%
Documents Required For SBI Student Loan:
- 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.)
SBI Student Education Loan for ISM students:
SBI Student Education loans are also sanctioned to the students of ISB. An ISB student can take a loan upto 95% of the total costs. There is also a margin of 5% on the loan amount, and this needs to be repaid in 7 years. For detailed information on this SBI Student Loan scheme for ISB students, the branch at Hyderabad University Campus Branch may be contacted.
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