State Bank of India Education Loans: All the Details That You Need to Know

State Bank of India offers numerous education loans for students who want to study in India or abroad. All the details related to the loans are discussed in detail

Education loan State Bank of India SBI banks study abroad sbi

Aishwarya Bhatt

A bookworm who transforms into a web-usability evangelist, when her favorite blend of coffee is flowing in her veins. Happiest in a bookstore and when she is painting with words on paper!

Updated on: 27 Sep 2022 | Reviewed By: Aman

Aman Jain graduated from IIT Kanpur, and currently functions as the CMO at GyanDhan. He is deeply passionate about creating equality in higher education and has directly interacted with 2 Lakh...

| 4.62K | 9 min read

It seems that current day educational institutions have taken the phrase “you can’t put a price on quality education” too literally, as education costs continually soar year on year, leaving students in the wake while pursuing their educational dream. Education loans come thus come as a great relief for students who can’t afford their tuition fees in full.

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The Education Loan market is very mature today and there are plenty of options available for students to choose from including Public Sector Banks, Private Banks and NBFCs. In this post, we will be taking a look at the features of the SBI Education Loan facility offered by the State Bank of India.

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Check Your SBI Education Loan Eligibility

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About SBI:

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The giant needs no introduction. SBI is India’s the largest bank and is majority owned by the Government of India. With assets in the range of several thousand crores, SBI ranks as one of the top financial institutions in the world. The Bank has been in existence since 1921 in its current form and is probably the most trusted financial brand in India.

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Features of the SBI Education Loan:

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Being a regulated entity, SBI, is restrictive in terms of the courses, countries, and institutions it offers loans for. SBI offers different products that suit the need of students who are aiming to study abroad or in India.

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Education Loan for Students who wish to Study in India:

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Following are the schemes that are suitable for courses in universities/institutes in India:

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1) SBI Student Loan Scheme

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This loan is targeted at students who aim to pursue their education in those approved institutes in India, which are not covered under the Scholar Loan scheme. Here are some key features of the scheme:

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Courses Covered: Post Graduation including degree & diplomas from UGC / Government or other authority approved institutions. Professional courses like Chartered Accountancy are also covered. However, SBI places an emphasis on courses that are job oriented.
Items Covered under the Loan: Fees to the Institute, Library Fees / Cost of Course Material, Purchase of a Computer (upto 20% of the total Fees payable), Caution Deposits and likes (upto 10% of the Fees), Cost of a Two Wheeler up to Rs. 50,000. Other ancillary expenses will also be covered subject to approval by SBI.
Maximum Loan Amount – Rs. 10,00,000
Margin Money – Margin Money is the amount that has to be borne by the student in addition to the Loan. For Loans upto Rs. 4,00,000 there needs to be no contribution, whereas for loans above Rs. 4,00,000/- 5% of the fees should be borne by the student.
Security – Only Parent / Guardian assurance for loans upto Rs. 7,50,000 but collateral is required for loans beyond that
Maximum Repayment Period – 15 Years
Marginal Cost of funds based on Lending Rate –The MCLR is 8.15% per year, plus a spread that is 2% for loans upto Rs. 7,50,000 and 2.75% for loans above that. The interest rates are variable every year and for the current rates, you can check out this link.
Processing Fee - NIL

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Apply SBI Education Loan to Study in India

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Education Loan for Students who Wish to Study Abroad:

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Following are the list of schemes that are aimed at students pursuing their education abroad:

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1) SBI Student Loan Scheme: If you’re looking for a loan < ₹20 lakh

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This loan is targeted at students who aim to pursue higher education either in India or abroad. Here are some key features of the scheme:

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Courses Covered: Courses offered by reputed institutions abroad for Graduate / Post Graduate educations are covered. Professional courses like Chartered Accountancy are also covered. However, SBI places an emphasis on courses that are job oriented
Items Covered under the Loan: Fees to the Institute, Library Fees / Cost of Course Material, Purchase of a Computer (upto 20% of the total Fees payable), Caution Deposits and likes (upto 10% of the Fees), Travel Expenses (when students study abroad),. Other ancillary expenses will also be covered subject to approval by SBI.
Maximum Loan Amount –Rs. 20,00,000
Margin – This is amount that has to be borne by the student in addition to the Loan. For Loans upto Rs. 4,00,000 there needs to be no contribution, whereas for loans above Rs. 4,00,000 15% of the fees should be borne by the student
Security – Only Parent / Guardian assurance for loans upto Rs. 7,50,000 but a collateral is required for loans beyond that
Maximum Repayment Period – 15 Years
MCLR – 8.15% per year, plus a spread that is 2% for loans upto Rs. 7,50,000 and 2.75% for loans above that. The interest rates are variable every year. Do can check out this link to get the latest rates.
Processing Fee – NIL

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2) Global Ed-vantage: If you’re looking for a loan > ₹20 lakh

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This loan is targeted at students who aim to pursue their higher education abroad. Here are some key features of the scheme:

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Courses Covered: Graduate / Post Graduate / Doctoral Courses from Recognized universities.
List of Countries Covered: USA, UK, Canada, Australia, Europe, Singapore, Japan, Hong Kong and New Zealand
Items Covered under the Loan: Fees to the Institute, Library Fees / Cost of Course Material, Purchase of a Computer or other equipment needed to complete the course (upto 20% of the total Fees payable), Caution Deposits and likes (upto 10% of the Fees), Travel Expenses, Premium for Mortgage Insurance Policy. Other ancillary expenses will also be covered subject to approval by SBI.
Minimum Loan Amount – Rs. 20,00,000
Maximum Loan Amount – Rs. 1,50,00,000
Margin – This is amount that has to be borne by the student in addition to the Loan. 15% will be the Margins. This will also consider any scholarships that a student is due.
Maximum Repayment Period – 15 Years
Processing Fees – Rs. 10,000 per application
Security – Collateral is required for all Loans. Third Party Collaterals are also accepted.
MCLR – 8.15% per year, plus a spread that is 2.5%. The interest rates are variable every year. Do can check out this link to get the latest rates.

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Apply SBI Education Loan to Study in Abroad

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Advantages of securing a Loan from SBI:

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The interest offered by SBI, being a Public Sector Bank is much lower than most other Banks and significantly lower than NBFC loans.
Sometimes subsidies are offered by the Government to students from the weaker sections of the economy and these are passed on by SBI. This feature isn’t available when securing a loan from an NBFC
With one of the largest network of branches, loan accounts can be managed without any geographical restrictions
Girl Students are offered a 0.5% concession on the interest rates by SBI
No pre-closure penalties are levied

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Disadvantages of securing a Loan from SBI:

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Processing procedure is often too elaborate.
Processing time & loan approvals also take significant amount of time as Banks are regulated entities.
Some Universities abroad insist that students show proof of funds/loans secured before they are offered admission. SBI will not approve a loan before a student is enrolled into the university.

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GyanDhan and SBI Education Loans:

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GyanDhan’s tie up with SBI has resulted in happy smiles all over as students no longer have to make countless rounds of the bank in order to submit documents, go for follow-ups and then resolve the roadblocks. Not only does GyanDhan offer a doorstep document pickup service for loan documents but also helps the students to get the education loan in the most stress-free way and at an attractive interest rate starting from 10.15% with an additional discount of 0.5% for girls. What's more, we also have a very informative webinar, "Secrets of getting an education loan from SBI" which will acquaint you with the tips to get an education loan from SBI in a jiffy!

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In case you would like to know more about SBI Education Loans, then please complete this quick form or request a callback.

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SBI Education Loan

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Check Your Education Loan Eligibility

Check Loan Eligibility

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