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State Bank of India Education Loan Scheme: Education Loan

What is the State Bank of India Education Loan Scheme? The State Bank of India offers several attractive educational loan schemes for domestic students, foreign-bound students, and students who want to take skill development classes, with interest rates ranging from 10.05% per annum. 

The flexible repayment period also includes a moratorium period after the end of the course. No penalties are charged for loan pre-payments that can be made at any time during the loan term. Some loans also provide concession in interest to female students.

State Bank of India education loan scheme is available for study in India and abroad. You can get a loan for vocational or professional courses. Takeover loans are also available there to help you repay your current high-interest rate loans with low-interest rate SBI loans.

State Bank of India Education Loan Interest Rates

The interest rates on different types of education loans are as follows:

Scheme Max. Loan Amount Rate of Interest
   Scholar Loan Rs. 40 Lakhs 7.95 to 9.25 %
   Global Ed-Vantage Loan Rs. 1.5 Crore 10.05 %
   Students Loan Rs. 20 Lakhs 10.05 %
   Skill Development Loan Rs. 1.5 Lakhs 9.55 %
   Take-Over Loan Rs. 1.5 Crore 10.05 %

There is a 0.5% concession in interest if the life insurance policy of SBI is taken (for SBI Students and Global Ed-Vantage Schemes).

For female students 0.5% concession in interest rates. 

SBI Education Loan Scheme Salient Features

The State Bank of India does not charge any processing fee when a student attends higher education in India or the loan amount required is less than 20.00 Lakh for overseas education.

The State Bank of India does not apply any hidden fees for the requested loan amount.

Realizing the potential of students that can secure admission in key institutions the SBI offers them special benefits. The maximum duration of SBI loans for education is 15 years.

Also, the State Bank of India is one of the oldest and most reliable banks in India, so applying for a loan from the bank for education is a matter of confidence.

Various Education Schemes Of SBI

The State Bank of India has published several schemes aimed to meet the different needs of Indian youth. These programs are designed for specific student groups in India who may want to study in India or abroad, or simply want to take professional courses. The schemes are:

SBI Scholar Loan 

The Bank has launched this State Bank of India Scholar Loan program to provide financial assistance to meritorious students who secure entry into a premium institution in India. Here is the list of approved institutions.

The maximum loan amount under this plan is as under:

  • List AA grade institutions Rs. 40 lakhs
  • List A grade institutions Rs. 20 lakhs
  • List B grade institutions Rs. 20 lakhs
  • List C grade institutions 7.5 lakhs

Documents Required For Scholar Loan

Certain documents are required by the bank under KYC (Know Your Customer) which are as under:  

  • For identity proof: Aadhaar Card, Voter ID Card, Passport, PAN Card, Driving License, Central and State Government issued Photo ID Card, etc.
  • For residential proof: Ration Card, Bank Account Statement, Passport, Aadhaar Card, Voter ID Card, Utility Bill (Electricity, Telephone, Water Bill) not more than 3 months old, etc

Other Details of This Scheme

  • 7.95 to 9.25 % Interest rate
  • No processing Fees 
  • Guarantee is required for list A and list C colleges only
  • 15 years is the loan term after the course completion plus a repayment holiday of 12 months
  • Any Indian citizen who is selected through the selection process/entrance test is eligible to apply for this loan

Also Read: SBI Annuity Deposit Scheme 2021

SBI Global Ed-Vantage Loan Scheme

This is another State Bank of India education loan scheme for students who want to go abroad to continue their studies. This plan only serves them, has a faster review of applications, and provides a better rate of interest.

Students under the Global Ed-Vantage scheme can get the loan before their I-20 visa/Visa is approved.

Document Required Under this Scheme

To provide you the loan the State Bank under KYC (Know Your Customer) policy requires some documents these include: 

For identity proof: Aadhaar Card, Voter ID Card, Passport, PAN Card, Driving License, Central and State Government issued Photo ID Card, etc

For residential proof: Ration Card, Bank Account Statement, Passport, Aadhaar Card, Voter ID Card, Electricity Bill, Telephone Bill, Water Bill (not more than 3 months old), etc

Apart from KYC documents, some additional documents are required by the bank these include:

  • Mandatory passport submission
  • Results of grades X, XII. Semester wise graduation results
  • Results of entrance exams that formed the basis of admission
  • For admission proof, a conditional application letter can be considered
  • Education cost, expenses on schedule
  • 2-photos of passport size
  • From the last 1-year loan account statement in the case, a loan is taken before 

Other Details of the Scheme

  • 10.05 percent interest rate
  • Rs. 10,000 as processing fees for one application
  • Tangible guarantee as security
  • 15 years is the loan tenure
  • Any Indian citizen is eligible to apply

SBI Student Loan Scheme

Under the student loan program of the State Bank of India, the bank lends to students who seek higher education but currently do not have sufficient funds or want to settle the financial burden for a longer period. Any potential student wishing to study in India or abroad is eligible for this student loan program.

If you are studying in India, the maximum loan amount is 10 lakh and if you wish to study abroad the loan amount is 20 lakh. A higher credit limit for homeschooling can be considered on a case-by-case basis.

In case the student is planning to move abroad for higher education and needs an additional loan amount, he or she can apply for the Global Ed-Vantage program.

Courses Eligible

Domestic Courses

Courses approved by AICTE, UGC, and Govt. etc and conducted by colleges and universities include graduation, post-graduation regular professional and technical degree or diploma courses. 

Degree or diploma regular courses offered by IIT, IIM like sovereign institutions.

Central government or state government approved courses for teachers or nursing.

Pilot training, shipping, aeronautical, etc like a regular degree or diploma courses approved by the Director-General of Civil.

International courses

Business-oriented professional courses, technical degree courses, postgraduate degree and diploma courses such as MBA, MCA MS, etc. offered by renowned universities. 

Chartered Institution of Management Accountants (CIMA) Landon conducted courses, and courses taught by certified Public Accountant (CPA) in the USA, etc. 

Document Requirement for This Scheme

Under know your customer (KYC) policy the bank requires certain documents from you that includes: 

Identity proof: Aadhaar Card, Voter ID Card, Passport, PAN Card, Driving License, Central and State Government issued Photo ID Card, etc

Residential proof: Ration Card, Bank Account Statement, Passport, Aadhaar Card, Voter ID Card, Letter from any recognized public authority, Electricity, Telephone, Water Bill (not more than 3 months old), etc

For Co-Applicant:

  • Voter ID Card Passport, Driving license, PAN Card, etc for identity proof
  • Aadhaar Card, Driving License, Utility Bill, etc for proof of residence or address. 
  • If a loan has been taken from another lender then a one-year loan account statement.
  • 2 photos of passport size

Apart from KYC documents, some additional documents are required by the bank these include:

  • If going abroad mandatory passport submission
  • Results of grades X, XII. Semester wise graduation results
  • Results of entrance exams that formed the basis of admission
  • For admission proof, a conditional application letter can be considered
  • Education cost, expenses on schedule
  • 2 photos of passport size
  • From the last 1-year loan account statement in the case, a loan is taken before 

State Bank Skills Loan Program

Another State Bank of India education loan scheme is skill development loan program to serve people who want to improve their future by acquiring professional skills. You can get this loan at an attractive interest rate.

Rs. 1.50 lakh is the maximum loan amount under this plan. However, you can apply for a loan of as little as Rs. 5,000.

Eligible Courses and Institutions

Courses offered by Industrial Training Institutes (ITI), polytechnics, National Skills Development Corporation affiliated training partners, (NSDC), Sector Skills Councils, State Skills Mission, State Skill Corporation, preferably leading to a certificate, diploma, degree issued by such organizations as per National Skill Qualification Framework (NSQF) are eligible for a Skill Loan.

Schools recognized by central or state education boards or colleges associated with a recognized university leading to a degree, certificate, diploma, awarded by that institution per the National Qualifications Framework for Skills (NSQF) are eligible to get skill development loan.

Document Requirement for This Scheme

  • Correctly filled application form
  • Last qualifying exam’s mark sheet
  • Admission proof like scholarship etc
  • Expense on schedule
  • 2 passport size photos
  • Student and Co-borrower’s Aadhaar card
  • Bank statement of Co-borrower from last six months
  • IT assessment order of last 2 years or tax returns of Co-borrower (if IT assessed) 
  • Asset and liabilities statement of co-borrower
  • Income proof such as salary slip or form 16  

Other Details

  • 9.55 % interest rate
  • No collateral required
  • 7 years of the loan term
  • Any Indian national is eligible 

SBI Take-Over of Education Loan Scheme

The State Bank of India is trying to help students achieve their academic careers by launching a program that will help families in financial difficulty, by buying their student loans from its creditors and charging a lower interest rate. 

The program is very useful for those who have got a school loan and are having difficulty finding a job after completing their course or have suffered a serious financial loss.

This scheme allows the user to offload the student’s burden and obtain a loan extension. The program covers an outstanding amount, limits sanctioned as Top-up Loan, and Prepayment penalty if any.

Documents Required

For residential and identity proof following documents are required

  • Aadhaar Card, Voter ID Card, Passport, PAN Card, Driving License, Central and State Government issued Photo ID Card, etc for identity proof
  • Ration Card, Bank Account Statement, Passport, Aadhaar Card, Voter ID Card, Letter from any recognized public authority, Electricity Bill, Telephone Bill, Water Bill (not more than 3 months old), etc for residential proof.
  • Bank statement, salary slip (not more than three months), Form 16, etc.

Other documents required by the bank include:

  • Last qualifying exam’s marks sheet for graduate and school course pursued in India.
  • Admission proof in the institution
  • Expenses of the schedule
  • Scholarship confirming copies
  • Foreign exchange permit copies, if want travel expenses
  • Guarantor’s bank account statement from last six months. 
  • You need to prove your identity and give residence proof in case you are not an existing customer of the bank. 

Other Details

  • 10.05 % interest rate
  • No processing fees
  • 100% collateral of the proposed loan’s value
  • 15 years of the loan term

State Bank of India Education Loan Form

You can apply offline for the SBI education loan in two ways which are:

  • Callback way
  • By visiting a bank branch

Callback Way 

If you wish to get a call back from the bank follow the below steps

  • Go to the SBI education loan platform 
  • Select loan type you want to apply for
  • Click on the Get a Callback tab on the new page
  • Duly fill the form and click submit
  • Click on confirm tab by entering the OTP

The loan specializing team of SBI will call you back, and you can discuss with them that how you want to go with the education loan. 

By Visiting Bank Branch

The second way for those students who wish to get the education is to approach the nearest State Bank branch. In the branch, you can contact the concerned official who will guide you through the education loan process. 

State Bank of India Education Loan Online Application Form

For SBI education loan you can apply online. Follow the following steps to get the loan online

  • Go to the SBI education loan web portal
  • Select the loan type you wish to apply for
  • Click apply online tab on a new page
  • With all required information fill the form and submit it

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