homepersonal finance NewsSBI student loan scheme: Eligibility, courses covered, loan amount, other details

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

SBI student loan scheme: Eligibility, courses covered, loan amount, other details
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By Anshul  Nov 7, 2020 11:36:22 AM IST (Updated)

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.

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.

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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
  • 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.
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