State Bank of India (SBI) is offering 100 per cent financing on education loans up to Rs 30 lakh with a repayment period of up to 15 years. SBI's "scholar loans" offer an interest rate between 8.5 per cent and 10.6 per cent. This was said in a tweet by India's largest lender SBI, which recently adopted a new brand identity after merger with five associate banks and Bharatiya Mahila Bank. Under SBI's offering, Indian students can apply for term loans up to Rs 30 lakh for pursuing higher education in select 120 premier institutions in the country - including Indian Institute of Management - Ahmedabad, Indian Institute of Management - Bangalore, Indian Institute of Technology - Mumbai and Indian Institute of Technology - Delhi, as per the bank's website.
- SBI offers 100% finance on education loans up to Rs 30 lakh
- Scholar loans offer interest rate of 8.5%-10.6%, says SBI
- Students can apply for education loans in select 120 institutions
The scholar loan scheme, which provides 100 per cent financing without any processing fee, covers regular full-time degree/diploma courses through entrance test/selection process, full time executive management courses and no certificate/part time courses.
Here are few other things to know about SBI's Scholar Loan Scheme as per its website:
SBI's scholar loans cover a multitude of courses from institutions under four categories: "AA", "A", "B" and "C". Seven "AA" institutions - for which Indian students can apply for up to Rs 30 lakh of loans - include four IIMs and Indian School of Business, Hyderabad. Loans up to Rs 30 lakh with collateral and up to Rs 20 lakh without collateral are available under category A, which includes 44 colleges including 16 IIMs and 22 IITs, besides Birla Institute of Technology & Sciences or BITS, Pilani (Rajasthan).
Indian students can apply for loans up to Rs 20 lakh without collateral and up to Rs 30 lakh with collateral under categories "B" and "C", respectively.
Here's a look at different interest rates being offered by India's largest bank under its scholar loan scheme:
Repayments against SBI scholar loans can be made over 15 years, starting 12 months after completion of course. "In case second loan is availed for higher studies later, to repay the combined loan amount in 15 years after completion of second course," SBI added on its website.