SBI Takeover of Education Loans Scheme: Features, Eligibility and Documents Required

Got your education loan approved? Congratulations! You have crossed one of the biggest bottlenecks of the study abroad journey. The loan approval certainly eases the financial stress; however, the repayment will also be upon you after studies, and what if we say that there is an easy way to trim down your repayment after studies. Loan transfer, also known as education loan refinancing, can help you pay your existing education loan with a new study loan with a lesser rate of interest. 

When you take an abroad education loan, you may settle for a loan at a higher interest rate as it is solving your current financial needs, and also your financial history is yet not sturdy enough. But once you complete your course and you get a job, you build your financial record and can then be easily eligible for an education loan at a lower interest rate. Though you are not going to study further, you can do a loan transfer and shorten the monthly and overall financial burden. Several government and private lenders in India offer loan transfer facilities. In this blog, we will talk about the education loan refinancing scheme of one of the largest banks in India- the State Bank of India. SBI's loan transfer product is known as SBI Takeover of Education Loans.

Without further ado, let's explore the features, eligibility criteria, required documents, and other details of the education loan transfer to SBI.

Key Features of SBI Education Loan Takeover

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  The maximum amount that can be considered is up to Rs. 1.5 Crores.
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  Interest rate starts around 9.55% p.a.
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  Total repayment tenure can go up to 15 years.
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  There is no processing fee or hidden charges.
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  Applicants can pay the EMIs through net banking, mobile banking, or cheques.
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  The minimum amount that can be refinanced is Rs. 10 Lakhs
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  The loan amount covers all outstanding in the account
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  The collateral security acceptable should be a minimum of 100% of the value of the requested loan amount.

SBI Loan Takeover Scheme Details 

Eligibility Criteria of the SBI Takeover of Education Loans Scheme

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  The loan should be a first-time takeover.
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  The borrower should be a major at the time of loan transfer.
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  The previous loan should have been fully disbursed at the time of the loan transfer.
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  The borrower should have started repaying the previous loan and EMIs are regular in the books of the other lender.

Documents Required for the SBI Takeover of Education Loans Scheme

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  Duly filled-in loan takeover application form
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  PAN card of the student and co-applicant
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  Aadhaar Card of the student and co-applicant.
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  Identity proof such as DL, Aadhar, voter ID, passport, etc.
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  Address proof such as DL, passport, telephone bill, gas bill, electricity bill, etc.
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  Last 6-month bank statement of the student and co-applicant.
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  2-year ITR of guarantor (if any) or parents.
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  A brief statement of assets & liabilities of the co-applicant.
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  Proof of income such as salary slips or Form 16 of co-applicant.
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  2 passport-size photos.

How to Apply for an SBI Takeover of Education Loan?

The process to refinance the SBI loan takeover is quite simple: 

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  Step 1: Approach the current lender and apply for loan foreclosure. 
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  Step 2: Apply to SBI for loan refinancing or contact GyanDhan. 
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  Step 3: Arrange all the required documents. 
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  Step 4: Once SBI approves your loan application, it will issue a cheque for the outstanding amount to the previous lender. 
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  Step 5: Once the cheque from SBI is cleared, the previous lender will foreclose your loan and will release all your original documents.

Key Tips for SBI Education Loan Takeover

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  Compare the pre-payment penalty to the previous lender and the difference in the total repayment of both the previous lender and SBI. Refinance only if you are saving good money. 
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  Your CIBIL score should be good, at least more than 700. 
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  Opt for education loan refinancing in the early stages of loan repayment. 

How GyanDhan Helps with SBI Loan Takeover?

GyanDhan endeavors to make abroad education loans easy and simple for everyone. We have partnered with leading lenders in India to make it easy for study-abroad aspirants to apply for loans. We have also partnered with SBI and by leveraging this partnership, we can help in education loan transfer to SBI. You can get in touch with GyanDhan and according to your profile, we will suggest you the best education loan balance transfer option available for you in the market.

Frequently Asked Questions