SBI Education Loan
State Bank of India (SBI) offers a variety of education loans with interest rates ranging from 6.90% p.a. to 9.90% p.a. These loans come with flexible repayment options, including a moratorium period after the course is completed.
There are no pre-payment penalty charges, allowing borrowers to repay the loan at any time during the loan tenure. Additionally, some loans offer interest concessions for female students.
SBI provides student loans for both domestic and international studies, covering professional and vocational courses. They also offer takeover loans, which allow you to replace your existing high-interest loans with SBI loans at lower interest rates. Read on to explore the features, interest rates, and application process for SBI education loans.
SBI Education Loan Schemes
Mentioned below are various education loan schemes offered by the State Bank of India, including details like rate of interest, processing fees, etc.
1. SBI Student Loan Scheme
Loan Amount | Details |
Up to Rs. 7.50 lakh without Security | Rate of Interest: 9.90% p.a. Concession: 0.50% concession in interest for girl students |
Above Rs. 7.50 lakh with Security | Rate of Interest: 9.40% p.a. Concession: 0.50% concession in interest for girl students. |
Takeover above Rs.10.00 lakh with Security | 9.40% p.a. |
Key points
- Purpose: Loan for higher education in India & abroad.
- Eligible Courses: UG/PG degrees, diplomas, professional courses (ICWA, CA, CFA), top institutes (IIM, IIT, NIFT, ISB); abroad: MCA, MBA, MS, Ph.D., recognized professional courses.
- Student Eligibility: Indian nationals (NRIs included); PIO/OCI only for India.
- Loan Amount: India: Rs.30 lakh to Rs.50 lakh; Abroad: up to Rs.7.5 lakh.
- Margin: No margin required up to Rs.4 lakh. For more than Rs.4 lakh: 5% margin is required for study in India and 15% for studies abroad.
- Security: Less than Rs.7.5 lakh requires only Parent/guardian co-obligation. For more than Rs.7.5 lakh, a Co-obligation plus collateral is required.
- Expenses Covered: Tuition, hostel, books, equipment, travel, projects, two-wheeler up to Rs.50,000.
- Repayment: After course completion plus 1 year or 6 months after job whichever is earlier, maximum 15 years.
- Top-up Loan: Allowed during moratorium and repayment within 15 years.
- Processing Charges: Loans upto Rs. 7.50 lacs - NIL
- Penalty: 2% per month will be charged on overdue amounts for loans above Rs.4 lakh.
2. SBI Scholar Loan Scheme
List | Rate of Interest |
For Select Institutions | 6.90% p.a. to 7.65% p.a. |
Takeover (Above Rs.10.00 lakh) | 6.90% p.a. to 7.65% p.a. |
Key Points
- Purpose: Loan for meritorious students to pursue higher education in selected premier institutes.
- Eligible Courses: Full-time degree/diploma courses, executive management programs (PGPX), and selected part-time UG/PG courses.
- Student Eligibility: Indian nationals (including NRIs), PIO/OCI only for studies in India, admission through entrance/selection process.
- Loan Amount: Up to Rs.40 lakh (List AA), Rs.30 lakh with collateral, Rs.20 lakh (List A/B), and Rs.7.5 lakh (List C).
- Margin: No margin up to Rs.4 lakh; 5% for loans between Rs.4 lakh and 7.5 lakh; no margin above Rs.7.5 lakh.
- Expenses Covered: Tuition & hostel fees, books, equipment, deposits, travel, laptop, and other education-related expenses.
- Repayment: Course period plus 1 year moratorium; repayment up to 15 years.
- Top-up Loan: Allowed for further studies within overall loan limits.
- Processing Charges: NIL
- Penalty: If the EMI is not paid on time, an additional interest of 2% per month will be charged on the overdue amount for loans above Rs.4 lakh.
- Application Timeline: Maximum 15 days after receipt of completed application and documents.
3. SBI Skill Loan Scheme
Loan Limit | Details |
Without Collateral (Upto ₹7.50 lakh) | 9.40% p.a. |
Key Points
- Purpose: Loan for skill development courses to improve employment.
- Eligible Courses: Courses offered by ITIs, Polytechnics, NSDC/Skill Councils, State Skill Missions, and recognized schools/colleges under NSQF.
- Loan Amount: Rs.5,000 to Rs.1.5 lakh.
- Margin and Processing fee: NIL
- Security: No collateral; only parent/guardian co-obligation; no third-party guarantor.
- Expenses Covered: Course fee, exam/library/lab fees, caution deposit, books, equipment, and other related expenses.
- Repayment: Loan amount of Rs.50,000 (up to 3 years), loan amount between Rs.50,000 and Rs.1 lakh (5 years), and Loan amount more than Rs.1 lakh (7 years).
- Moratorium: 6 months after course completion (if course is up to 1 year) and 12 months after completion (if course is more than 1 year).
4. SBI Global Ed-Vantage Scheme
Loan Limit | Details |
Above Rs. 7.50 lakh | Rate of Interest: 9.40% p.a. Concession: 0.50% concession for girl students |
Takeover (Above Rs.10.00 lakh) With Security | 9.40% |
For Select Institutions | |
Above Rs.7.50 lakh to Rs.50.0 lakh Without Security | 9.40% p.a. |
Above Rs.7.50 lakh to Rs.3.00 crore With Security | 8.90% p.a. |
Takeover (Above Rs.10.00 lakh) | 8.90% p.a. to 9.40% p.a. |
Key Points
- Purpose: Loan for meritorious students to pursue full-time courses in foreign universities.
- Eligible Courses: UG/PG/Doctorate degrees, diplomas, and certificate courses in countries like USA, UK, Canada, Australia, Europe, Singapore, Japan, Hong Kong, and New Zealand.
- Student Eligibility: Indian nationals (including NRIs) with confirmed admission in a foreign university.
- Loan Amount: Rs.20 lakh to Rs.1.5 crore.
- Margin: 10% (scholarship/assistantship included).
- Security: Parent/guardian as co-borrower plus tangible collateral security; third-party collateral also accepted.
- Expenses Covered: Tuition, hostel, travel, books, equipment, deposits, insurance premium, and other study-related expenses.
- Repayment: Up to 15 years after course completion + moratorium.
- Moratorium: Course period + 6 months after completion.
- Processing Charges: Rs.10,000 plus taxes.
- Penalty: Rs.500 plus taxes for missed EMI; 2% per month on overdue amount (for loans above Rs.4 lakh).
5. Shaurya Education Loan (For spouses or wards of Defence, Indian Coast Guard & Central Armed Police Personnel)
Loan Limit | Details |
Up to 7.50 lakh Without Security | Rate of Interest: 9.90% p.a. |
Above Rs. 7.50 lakh up to Rs.40.00 lakh Without Security | Rate of Interest: 9.40% p.a. |
Above Rs.7.50 lakh with security | 8.90% p.a. |
Takeover (Above Rs.10.00 lakh) | 8.90% p.a. to 9.90% p.a. |
Key Points
- Purpose: Loan for wards of DSP/ICGSP officers for studies in India & abroad.
- Eligible Courses: UG/PG/Doctorate, professional courses (ICWA, CA, CFA), top institutes (IIM, IIT, ISB), aviation, pilot, nursing, and recognized courses abroad (MCA, MBA, MS, CIMA, CPA).
- Student Eligibility: Wards of DSP/ICGSP officers; co-borrower must be Diamond/Platinum SBI account holder.
- Loan Amount: Up to Rs.40 lakh for studying in India and up to Rs.1.5 crore for studying in abroad.
- Margin: Up to Rs.4 lakh: NIL; Above Rs.4 lakh: 5%.
- Security: No collateral required up to Rs.7.5 lakh. If the loan amount is more than that, parent/guardian co-borrower with liquid/property collateral (100–110% of loan) is required. Also, EM must be created within six months.
- Expenses Covered: Tuition, hostel, books, instruments, computers, uniforms, travel, study tours, insurance, two-wheeler (up to Rs.50,000 with collateral).
- Processing Charges: Up to Rs.20 lakh: NIL; Above Rs.20 lakh: Rs.10,000 + GST.
- Penalty: 2% per month on overdue amounts above Rs.4 lakh.
- Moratorium: Course period + 1 year, or 6 months after job (whichever is earlier).
- Repayment Period: Up to 15 years after course & moratorium.
- Top-up Loan: You can take a second loan for further studies during the moratorium, and repayment can be delayed and combined until after the second course is completed.
SBI PM-Vidyalaxmi Scheme
Scheme | Interest Rate |
PMVL-Utkarsh | 6.90% |
PMVL- Uttam | 7.20% |
PMVL- Uday | 8.40% |
Key Points
- Purpose: Financial support for meritorious students in top institutes (India).
- Key Features: Collateral-free, guarantor-free loan with digital application process.
- Loan Amount: Maximum Rs.3 crore.
- Eligible Courses: UG/PG degree and diploma courses in selected top institutes in India.
- Margin: Up to Rs.4 lakh: NIL; between Rs.4.00 lakh to Rs.7.5 lakh: 5%; above Rs.7.5 lakh: NIL.
- Moratorium: Course period + 1 year.
- Tenure: 15 years excluding course period and moratorium under the scheme.
- Application Process: Apply through PM-Vidyalaxmi portal.
- Co-borrower: Not required up to Rs.75 lakh but mandatory for minors.
Documents Required for SBI Education Loan
The following is the list of documents required to avail State Bank of India (SBI) Education Loan:
Category | Documents Required |
Students Documents | Loan application form, ID proof, Address proof, Passport, Admission letter, Academic records, Statement of expenses, two passport-size photos, Bank account statements (if applicable) |
Co-applicant Documents | ID proof, Address proof, two passport-size photos, Bank statements, Previous loan statements (if any), Property/collateral documents |
Income Proof (Salaried) | Last three months' salary slips, Form 16 (last two years), Salary account statement (six months), Assets & liabilities statement, Cancelled cheque/passbook copy, Income Tax Returns (two years) |
Income Proof (Self-Employed) | Business address proof, Income Tax Returns (two years), TDS certificate (if applicable), Professional qualification certificate, Assets & liabilities statement, Bank statement (six months) |
Collateral Documents | Registered sale deed, Approved property plan, Ownership documents, Property tax receipt, Occupancy proof, Electricity bill, Mutation certificate |
SBI Education Loan EMI Calculator
You may better plan your costs and manage your student finances if you know exactly how much your Equated Monthly Instalment (EMI) on your SBI education loan will be. Get a full amortisation table with the breakdown of your EMIs by using the Education Loan EMI Calculator.
Here are the steps on how to use it:
- Enter the loan amount you wish to borrow.
- Select the loan tenure (repayment period).
- Enter the applicable interest rate offered by SBI.
- Add the processing fee, if applicable.
- Enter any planned prepayment amount (optional).
- Click on the "Calculate" button.
- View your monthly EMI, total interest payable, total repayment amount, and amortization schedule.
How to Apply for an SBI Education Loan (Online & Offline)
You can apply for an SBI education loan either online or offline
Offline:
Step 1: Walk into your nearest SBI branch with all the necessary documents.
Step 2: Fill in and submit the application form that you can obtain from there.
Online:
Step 1: Visit the SBI official website.
Step 2: Navigate to the section on Education Loan.
Step 3: Choose your preferred loan option.
Step 4: Click on 'Apply Now'.
Step 5: You will be redirected to the Vidya Lakshmi website.
Step 6: Register yourself by entering all your details.
Step 7: Finally apply for the loan.
Step 8: A bank representative will get in touch with you.
SBI Scholar Loans: Available in select campuses or mapped branches.
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FAQs on SBI Education Loan
1.What is SBI Education Loan?
SBI education loan is a student loan offered by State Bank of India to fund higher education in India and abroad. It covers tuition, hostel, travel, and other expenses with repayment starting after course completion.
2.Is there any interest rate concession available on SBI education loans other than for girl students?
An interest rate concession of 0.50% is available for students who buy the SBI Rinn Raksha or other life insurance policy from the bank. This is available for those students who are applying for the SBI Student Loan Scheme and SBI Global Ed-Vantage Scheme.
3.Will the SBI education loan cover expenses related to accommodation on campus?
Yes, fees for accommodation provided by the school or college authorities, or in a hostel provided by the educational institution, is covered under the education loan offered by State Bank of India.
4.Is there any way to get further concession on SBI education loan interest?
You can get a 1% concession in interest throughout your loan tenure if you pay back the interest amount during the period of your course and moratorium.
5.Will the moratorium period be extended if I join another course after completing the first one?
Yes. If you join another course, the moratorium period will be extended for the duration of the new course. Loan repayment starts one year after completing the second course or six months after getting a job, whichever is earlier.
6.Is the purchase of a computer required for the course covered under the education loan?
Yes, you can buy a computer or laptop that is required for your course as it is covered under the expenses of the education loan.
7.Will the SBI education loan be given as a lumpsum or in tranches?
The SBI education loan is usually disbursed in tranches and not as a lumpsum amount.
Kankana Mukherjee is an engineer and has over 4.5 of experience in content writing. Combining the expertise in financial content writing achieved in her 2 years association with BankBazaar, and a knack for clear and engaging content, Kankana simplifies complex financial concepts and offers practical insights to help readers make informed decisions and achieve financial success.
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