State Bank of India, the country's largest lender, offers education loans for higher studies. State Bank of India offers student loans to Indian citizens for pursuing higher education within the country or abroad, at interest rates starting from 10.5 per cent, according to the lender's corporate website, www.sbi.co.in. SBI student loans come with a repayment period of up to 15 years after the course period as well as 12-month repayment holiday, according to the SBI website. (Also read: What Latest Changes In SBI Interest Rates In Select Financial Products Mean For You)
Here are details of eligibility, loan amount and other things to avail SBI's student loan:
1. Who can apply for SBI student loan
State Bank of India's student loans can be availed by Indian citizens for pursuing higher education in India or abroad where admission has been secured. The bank does not charge any processing / upfront fees on education loans.
2. Interest rates on SBI student loan
State Bank of India charges 8.5 per cent per annum MCLR with a spread of 2 per cent on loans up to Rs 7.5 lakh with an effective interest rate of 10.5 per cent. While on the loans above Rs 7.5 lakh, SBI charges 8.5 per cent per annum MCLR with a spread of 2.25 per cent taking the effective interest rate to 10.75 per cent per annum, SBI said.
3. Courses covered unde SBI student loan
For studying within the country:
- Graduation, post-graduation including regular technical and professional degree/diploma courses conducted by colleges/universities approved by UGC/ AICTE/IMC/Government etc.
- Regular Degree/ Diploma Courses conducted by autonomous institutions like IIT, IIM etc.
- Teacher training/nursing courses approved by Central government or the State Government.
- Regular degree/diploma courses like aeronautical, pilot training, shipping etc. approved by Director General of Civil Aviation/Shipping/concerned regulatory authority.
For studying abroad:
- Job-oriented professional/technical Graduation Degree courses/ Post Graduation Degree and Diploma courses like MCA, MBA, MS, etc offered by reputed universities
- Courses conducted by CIMA (Chartered Institute of Management Accountants) - London, CPA (Certified Public Accountant) in USA etc.
4. Expenses covered under SBI student loan
State Bank of India's student loans cover expenses like fees payable to college/school/hostel, examination/library/laboratory fees, expenses for purchase of books, equipment, instruments, uniforms, purchase of computers and other essential things needed for completion of the course.
The student loans from SBI also cover expenses for travel for studies abroad and cost of a two-wheeler up to Rs 50,000, SBI noted on its website.
5. Loan amount under SBI student loan
For studies in India, State Bank of India offers maximum loan amount of Rs 10 lakh and for studies abroad a maximum loan of Rs 20 lakh is granted for studies abroad, according to SBI.