Understanding the SBI Student Loan Scheme

SBI Education Loan or SBI Student Loan, an education loan scheme offered by the State Bank of India, is a term education loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured. This article provides a detailed understanding of SBI Education Loan key features, processing charges, security requirements, margin, and EMI Generation features.

A Look at Key Features

1. Repayment Period: The SBI Education loan offers a repayment period of up to 15 years after the Course Period plus a 12-month repayment holiday.
2. Processing Charges: For loans up to Rs. 20 lacs, no processing charges are levied. For loans above Rs. 20 lacs, a charge of Rs. 10,000 (plus taxes) is applicable.
3. Security Requirements and Margin: The security requirements for the SBI Education Loan or SBI Student Loan are bifurcated based on the loan amount. Let’s take a closer look:

Loan Amount	Security Requirement
Up to Rs. 7.5 Lacs	Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee.
Above Rs. 7.5 Lacs	Parent/ Guardian as co-borrower and tangible collateral security

The margin requirement for SBI education loan is also dependent on the loan amount and studies’ location:

1. For loan amounts up to Rs 4 Lacs – Nil margin
2. For loan amounts above Rs 4 Lacs – 5% margin for studies in India, 15% margin for overseas studies

Repayment and EMI Generation

The repayment of the SBI Education loan will commence one year after the completion of the course. The loan is to be repaid in 15 years after the commencement of repayment. In circumstances where a second loan is availed for higher studies later, the combined loan amount is to be repaid in 15 years after the completion of the second course.

A unique feature of SBI Education loan or SBI Student Loan is its EMI Generation method. Here’s how it works:

• The accrued interest during the moratorium period and course period is added to the principle, and repayment is fixed in Equated Monthly Installments (EMI).
• If the full interest is serviced before the commencement of repayment, EMI is fixed based on the principle amount only.

SBI Education Loan – Eligibility and Courses Covered

To qualify for the SBI Student Loan, one must be an Indian National pursuing higher education in India or abroad with secured admission.

The SBI Education Loan covers a variety of courses, both in India and abroad.

Education Loan for Studies in India:

• Graduation, Post-graduation including regular technical and professional Degree/Diploma courses conducted by colleges/universities approved by UGC/ AICTE/IMC/Govt. 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.

Education Loan for Studies 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.

Expenses Covered

The loan covers a host of expenses essential for a student’s academic journey. These include:

• 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% of the total tuition fees payable for completion of the course).
• Caution Deposit/Building Fund/Refundable Deposit (maximum 10% of tuition fees for the entire course).
• Travel Expenses/Passage money for studies abroad.
• Cost of a Two-wheeler upto Rs. 50,000/-
• Any other expenses required to complete the course like study tours, project work etc.

Loan Amounts

Studies in India:

• For Medical Courses: Up to Rs 30 lacs
• For Other Courses: Up to Rs 10 lacs
• Higher loan limit for studies in India may be considered on cases to case basis, maximum upto Rs 50 lacs

Studies Abroad:

• Up to Rs 7.50 lacs
• Higher loan limit for Studies abroad are considered under Global Ed-vantage Scheme, maximum upto Rs 1.50 Crores

Document Required for SBI Education Loan

CHECKLIST

Application for the SBI Student Loan necessitates a set of documents to support your application. Here’s a detailed checklist:

1. Mark sheet of 10th, 12th, Graduation (if applicable), Entrance Exam Result
2. Proof of admission to course [Offer Letter/ Admission Letter/ ID card if available]
3. Schedule of expenses for course
4. Copies of letter conferring scholarship, free-ship, etc.
5. Gap certificate, if applicable (self-declaration from student for gap in studies)
6. Passport size photographs of Student/Parent/Co-borrower/Guarantor (1copy each)
7. Asset-Liability Statement of Co-applicant/Guarantor (Applicable for loans above Rs 7.50 lacs)

For Salaried Persons

1. Latest Salary Slip
2. Form 16 OR latest IT Return (ITR V)

For Other than Salaried Person:

1. Business address proof (if applicable)
2. Latest IT Returns (if applicable)

Further Documentation

1. Bank Account Statement for the last six months of Parent/Guardian/Guarantor
2. Copy of Sale Deed and other documents of title to property in respect of immovable property offered as collateral security/Photocopy of Liquid Security offered as collateral
3. Permanent Account Number (PAN) of Student/Parent/Co-borrower/Guarantor
4. AADHAAR (mandatory, if eligible under various interest subsidy schemes of GOI)
5. Passport (mandatory for Studies Abroad)
6. Submission of OVD

In sum, the SBI Education Loan or SBI Student Loan unfolds a host of opportunities for aspiring students to pursue higher education in India or abroad. From its detailed features to coverage of various expenses, the loan aims to lighten the burden of academic expenses. Coupled with clear eligibility criteria and an extensive list of necessary documentation, the application process is straightforward and transparent. Make sure you are well-prepared with all documents and meet all eligibility criteria before applying. Have a successful academic journey ahead!

Official Website: SBI Student Loan