India's largest lender State Bank of India (SBI) offers education loan for an amount that can range upto Rs10 lakh for studies in India and Rs 20 lakh for studies in abroad. The loan along with interest can be repaid in a maximum time span of 15 years after the completion of programme. The state lender also offers 12 months of repayment holiday. In order to woo student borrowers, State Bank of India doesn't charge any processing/ upfront charges on education loans. Money can be borrowed for a range of programmes in India and abroad. The student borrowers must contribute a margin of 5 percent for studies in India and 15 percent for studies in abroad. However, for the loans upto Rs 4 lakh, there is no requirement of margin money.
SBI Education Loan: Important Things To Know
Programmes Covered: The programmes that enable students to seek education loan from State Bank of India (SBI) are divided into four broad categories:
A. Graduation/postgradution including regular technical and professional degree/diploma courses conducted by colleges/universities approved by UGC/AICTE/ government.
B. Regular degree/diploma courses conducted by autonomous institutions such as IIT/IIMs etc
C. Teacher training/ nursing courses approved by central government or state government
D. Regular degree/diploma courses such as aeronautical, pilot training, shipping etc approved by director general of civil aviation/shipping/concerned regulatory authority.
A. Job oriented professional/technical graduation degree courses/ post graduation degree and diploma courses like MCA, MBA, MS etc offered by reputed universities
B. Courses conducted by CIMA in London and CPA in USA
Expenses Covered: The SBI education loan will cover fees payable to college/school/hostel, examination/library/laboratory fees, purchase of books/equipment/instruments/uniforms, purchase of computers- essential for completion of the course (maximum 20 percent of the total tuition fees payable for completion of the course), caution deposit/building fund/refundable deposit (maximum 10 percent of tuition fees for the entire course), travel expenses/passage money for studies abroad, cost of a two-wheeler upto Rs 50,000
Loan Amount: One can seek a loan of upto Rs 10 lakh for studies in India and Rs 20 lakh for studies abroad.
Security: To be able to avail education loan from SBI, one would need to give guarantee from parent/ guardian as co-borrower in case the loan amount is upto Rs 7.5 lakh. There is no need of collateral security or third party guarantee. For an amount higher than Rs 7.5 lakh, parent/guardian are needed as co-borrower and tangible collateral security.
Margin Money: The student must contribute the margin of 5 percent for studies in India and 15 percent for studies in overseas. For a loan upto Rs 4 lakh, there is no requirement of margin.
Loan Repayment: The loan repayment will commence one year after completion of course. The loan is to be repaid in 15 years after the commencement of repayment.
Documents Required: Students need to submit the following documents to be able to apply for education loan:
A. Proof of Identity (Any one): PAN/ Passport/ Driver's License/ Voter ID card
B. Proof of Residence/ Address (Any one): Recent copy of telephone bill/ electricity bill/water bill/ piped gas bill or copy of passport/ driving license/ aadhaar card
C. Passport must be submitted in case of studies abroad
D. Academic Records: 10th Result, 12th Result, Graduation Result- Semester-wise, entrance exam result through which admission is being taken (e.g. CAT, CMAT, JEE, NEET, CET, GMAT, GRE, TOEFL, etc.)
E. Proof of admission: Offer letter or admission letter from the Institution. Conditional admission letter may be considered in case of studies abroad.
F. Statement of cost of study/ Schedule of expenses
G. Two passport-size photographs
H. If any previous loan from other banks/lenders, then loan a/c statement for last one year