Education loans - State Bank of India

A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured.

Eligible Courses

All courses having employment prospects are eligible.

Application Forms Now Available
  • Graduation courses/ Post graduation courses/ Professional courses
  • Other courses approved by UGC/Government/AICTE etc.

Expenses considered for Loan

  • Fees payable to college/school/hostel
  • Examination/Library/Laboratory fees
  • Purchase of Books/Equipment/Instruments/Uniforms
  • Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tuition fees for the entire course) 
  • Travel Expenses/Passage money for studies abroad
  • Purchase of computers considered necessary for completion of course
  • Cost of a Two-wheeler upto Rs. 50,000/-

Any other expenses required to complete the course like study tours, project work etc.

Amount of Loan

  • For studies in India, maximum Rs. 10 lacs
  • Studies abroad, maximum Rs. 20 lacs

Read:Education loans in India

SBI Student Loan Scheme

Loan Amount

Rate of Interest

For loans upto Rs.7.5 lacs

2% above MCLR, currently 11.10% p.a.

Above Rs.7.50 lacs

1.85% above MCLR, currently 10.75% p.a.

  • *(0.50% concession in interest for girl students)

  • *(1% concession for full tenure of the loan, if interest is serviced promptly as and when applied during the moratorium period, including course duration#

Repayment Tenure

Repayment will commence one year after completion of course or  6 months after securing a job, whichever is earlier.

 Place of Study Loan Amount Repayment Period in Years
 Studies in India   Rs. 10.0 lacs   5-7
 Studies Abroad   Rs. 20.0 lacs   5-7


Security

 Amount
For loans upto Rs. 10.00 lacs for Studies in India and upto Rs. 20.00 lacs for studies abroad
 Upto Rs. 4 lacs  No Security
 Above Rs. 4 lacs to Rs. 7.50 lacs Collateral security in the form of suitable third party guarantee. The bank may, at its discretion, in exceptional cases, weive third party guarantee if satisfied with the net-worth/means of parent/s who would be executing the documents as "joint borrower".


All loans should be secured by parent(s)/guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law.

Read: Education loans from Allahabad bank

Margin

  • For loans up to Rs.4.0 lacs : No Margin
  • For loans above Rs.4.0 lacs:
    • Studies in India: 5%
    • Studies Abroad: 15%

Documentation Required

  • Completed Education Loan Application Form.
  • Mark sheets of last qualifying examination
  • Proof of admission scholarship, studentship etc
  • Schedule of expenses for the specified course
  • 2 passport size photographs
  • Borrower's Bank account statement for the last six months
  • Income tax assessment order, of last 2 years
  • Brief statement of assets and liabilities, of the Co-borrower
  • Proof of Income (i.e. Salary slips/ Form 16 etc)

* Conditions Apply

For details on Education Loans, click here.

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