Education is a necessary investment. With rising inflation, the most convenient way to pursue higher studies in the reputed institutes is by availing education loans. This loan is one of the most reliable sources for availing funds for studies. SBI education loan rate of interest is relatively low and offers flexible repayment options, tenure including moratorium period, no penalty on prepayment of the loan.
SBI education loan for abroad studies offers a student to pursue higher education in their dream colleges. It has become easier, convenient, and faster to avail of education loans through SBI education loan online apply. If you have been thinking about applying for this loan, here’s a quick overview of the details of this loan including interest rate, loan application, eligibility, loan procedure, SBI education loan repayment, etc.
Table of Contents
SBI Education Loan Scheme
There are multiple loan schemes for education offered by State Bank of India. Check out the chart for the amount of loan and rate of interest.
| Scheme Name | Loan Amount (in INR) | Interest Rate |
| SBI Student Loan | Under 7.5 Lakhs | 8.65% |
| SBI Student Loan | 7.5 lakhs to 20 Lakhs | 8.65% |
| SBI Scholar loan | Up to 40 Lakhs | 6.85% to 8.15% |
| Part Time Courses | Up to 7.5 Lakhs | 8.65% |
| SBI Skill loan | Up to 1.5 Lakhs | 8.15% |
| SBI Global Ed-vantage | 20 Lakhs to 1.5 crores | 8.65% |
| SBI Takeover of Collateralised Education | 10 Lakhs to 1.5 crores | 8.65% |
SBI education loan rate of interest 2021
The nature of SBI education loan rate of interest is floating. Thus, the interest rate of this loan may change as per the economic changes in the country. Moreover, the interest rate of this loan may vary with loan amount and institute of study.
Girl students receive a concession of 0.50% on the interest rate. Additionally, one can avail further 0.50% concession on the interest rate if student avail SBI Rinn Raksha or any other life policy scheme favoring SBI. However, in the case of SBI skill loan, no such concession on interest rate is applicable. The effective interest rate for each scheme has been mentioned in the above chart.
Also Read: 10 Ways to Earn Money Online in India
Also Read: HDFC Bank Personal Loan: HDFC Personal Loan Interest Rates
SBI education loan eligibility
The eligibility criteria for availing these loans are as follows.
1. Individual must be an Indian National within the age of 35 years ( for unemployed students) or 45 years (for employed students)
2. Must have secured admission in any IIT, IIM, ISB, or any institute mentioned in the SBI education loan college list.
3. For this loan, the student must provide collateral as security.
4. For an SBI education loan abroad studies, the student must provide tangible collateral as security. Also, there is no restriction for country to pursue higher education.
SBI education loan documents required
1. Proof of Identity – Voter ID, Aadhaar, Driving license, or Passport
2. Letter of Admission
3. Statement of education expense
4. PAN card of student and co-borrower/parent/ guardian
5. Proof of Address – Electricity bill, telephone bill, passport, driving license
6. Bank statement of last 6 months of the student/parent/guardian
7. Co-borrower’s/ Parent’s/ student’s Income Tax return/ assessment order of last 2 years
8. Co-borrower’s/ Parent’s/ student’s Proof of Income- Salary slip or Form 16
9. A brief statement of assets and liabilities of the co-borrower, parent, or guardian.
10. Passport size photograph
SBI education loan procedure
Availing education loans has become easier with SBI education loan apply online. For applying online, follow these steps.
1. Go to SBI official website. Click here.
2. Click on the “Other Retail Loan” tab.
3. Select the type of loan scheme.
4. Fill up the required detail and click on the “submit” Tab.
Alternatively,
1. Go to https://sbi.co.in/web/personal-banking/loans/education-loans/student-loan-scheme
2. Click on the “Apply Now” tab.
3. Fill up the SBI education loan application form with correct information and click on the “submit” tab.
If you are willing to apply offline, you must visit the nearest SBI bank. Ask for an SBI education loan form from a bank representative. Submit the duly filled form along with the necessary documents.
Things to remember before availing this loan
1. No processing charge is applied for a loan up to 20 lakhs. For any loan above 20 lakhs, a processing fee of Rs.10000 + tax is charged.
2. This loan repayment starts one year after the completion of the course. The loan must be repaid within 15 years after commencement of repayment.
3. Every loan comes with specific terms and conditions. It is essential to read SBI education loan terms and conditions before availing of the loan.
SBI education loan status
After submitting the loan application, you can check the status of your application online.
1. Go to https://onlineapply.sbi.co.in/personal-banking/application-status
2. Select Track and retail loan boxes.
3. Enter the reference number and the given contact number.
4. Click on the ‘Track’ button.
5. The loan status will be shown along with your SBI education loan details.
SBI education loan customer care
For any query regarding education loans, you can dial the SBI education loan contact number, i.e., 1800 1234 (toll-free), 1800 11 2211 (toll-free), 1800 425 3800 (toll-free). Alternatively, you may dial 080-26599990 for assistance.
Also Read: 10 Best Websites to make money online as a freelancer
Also Read: 10 Best Instant Loan Apps in India
Frequently Asked Questions
1. How to calculate EMI and interest for State Bank of India education loans?
You can use the SBI education loan calculator to calculate the EMI. To use the SBI education loan EMI calculator, go to https://sbi.co.in/web/student-platform/student-loan-calculator. Fill up the required details and it will show the exact loan amount. Click on the EMI calculator and fill in the loan amount, tenure, and rate of interest to know the EMI.
2. How to get State Bank of India education loan?
To avail this loan, you can have to fill up the loan application form and submit it along with the necessary documentation. SBI education loan process can be done online or offline. The step-by-step process is given in the article.
3. Can I avail myself SBI education loan without collateral?
Yes, you avail this loan without collateral for a loan amount up to 7.5 lakhs. However, it is not recommended to avail the loan without collateral as it increases the loan margin and involves loads of paperwork.
4. Where can I find the SBI education loan interest rate calculator?
You can check EMI using the calculator by click this link https://sbi.co.in/web/student-platform/student-loan-calculator. You have to fill up the required details. For the interest rate, you can refer to the chart given in the article.
5. What expenses does the SBI education loan cover?
This loan covers the cost of study for the course including tuition fees, examination fees, laboratory fees, etc. that are payable to the institute. Moreover, it covers expenses for the purchase of books, equipment, and uniform. In the case of abroad study, travel expenses may be covered. In some cases, the loan may cover the cost of a two-wheeler (up to Rs.50000).
6. Is any interest charged during the moratorium period?
Yes, simple interest is charged during the moratorium period.
7. If my course requires the purchase of a computer, will the cost of computer purchase be covered by an education loan from SBI?
Yes, this loan covers the cost of buying a computer/laptop if the course demands so.
8. Can I get a concession on the SBI education loan interest rate?
This loan offers 0.50% concession on interest for girl students. You may avail 0.50% concession if you are availing Rinn Rakhsha scheme or any other life insurance policy from SBI. Additionally, you can avail 1% concession on interest if you pay back the interest amount during the moratorium period or within the course duration.
9. Is there any subsidy scheme on State Bank of India education loans?
Yes, this loan offers subsidy schemes such as Central Scheme for Interest Subsidy for Economically Weaker Sections (Family annual income lower than 4.5 lakhs), Padho Pardesh, and Dr. Ambedkar Central Sector Scheme.
10. How long does it take to get education loan from SBI?
It usually takes 35-50 days to get the loan application approved. The loan amount is disbursed in tranches over the course duration.
11. Can I take a second loan before the complete repayment of the first education loan from SBI?
Yes, you may avail of another loan before complete repayment of the previous loan. Under such circumstances, the tenure of the loans is extended to 15 years from the commencement of repayment for the second loan.
12. What is the loan margin for education loan from SBI?
There is no loan margin for loans up to 4 lakhs. For loan amounts above 4 lakhs, the loan margin is 5% and 15% for India and overseas education, respectively.
Final Thoughts
Interest rates serve as a vital parameter for loans, especially for education loans. In this article, we have tried to cover all the topics that you must be aware of while availing the loan. The interest rate stated is as per the SBI education loan interest rate 2021 declared by the bank. Hope this article provides you all the information required to pursue your education dream with the help of this loan.
Also Read: Top 10 Best Personal Finance Books
Also Read: MUDRA Loan Yojana: How to apply for MUDRA loan online