Personal Finance

SBI student loan scheme: Eligibility, courses covered, loan amount, other details

Updated : November 07, 2020 11:36 AM IST

State Bank of India (SBI), the country's largest lender, offers term loans to Indian nationals for pursuing higher education in India or abroad where admission has been secured.

With this student loan, the bank offers a repayment period of up to 15 years after the course period plus 12 months of repayment holiday.

State Bank of India (SBI), the country's largest lender, offers term loans to Indian nationals for pursuing higher education in India or abroad where admission has been secured. With this student loan, the bank offers a repayment period of up to 15 years after the course period plus 12 months of repayment holiday.

Here are key things to know about SBI's student loan scheme:

Courses Covered

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 the 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

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Overseas Studies

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 the USA etc.

Expenses Covered

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 up to Rs 50,000
Any other expenses required to complete the course like study tours, project work etc.

Loan Amount

Studies in India

Medical Courses: Up to Rs 30 lakh
Other Courses: Up to Rs 10 lakh (Higher loan limit for studies in India may be considered on cases to case basis, maximum up to Rs 50 lakh)

Studies abroad

Up to Rs 7.50 lakh (Higher loan limit for studies abroad are considered under Global Ed-vantage Scheme, maximum up to Rs 1.50 crore)

Processing charges

Loans up to Rs 20 lakh: Nil
Loans above Rs 20 lakh: Rs 10,000 (plus taxes)

Security

Up to Rs 7.5 lakh: Only parent/guardian as co-borrower. No collateral security or third party guarantee
Above Rs 7.5 Lakh: Parent/ Guardian as co-borrower and tangible collateral security

Margin

Up to Rs 4 lakh- Nil
Above Rs 4 lakh- 5 percent for studies in India, 15 percent for studies abroad

EMI Generation

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

Other features

Repayment will commence one year after completion of the course.
The loan can be repaid in 15 years after the commencement of repayment.

SBI student loan scheme: Eligibility, courses covered, loan amount, other details

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