How to get Education Loan SBI

Education loan

What is a ‘Loan’?: A loan is a term which defines the act of giving property, money, or other material goods to another party in exchange for near future repayment of the principal amount along with some interest or other finance charges set by the party. A loan may be taken for a specific, one-time amount or can be accessed as an open-ended line of credit up to a mentioned limit or ceiling amount. Further, Read How to get Education Loan SBI?

The duration of a loan is agreed to by each party in the transaction before any property or money changes hands. If the donor or banker requires collateral, that will be outlined in the loan documents or papers. Most of the loans have provisions regarding and concerning the maximum amount of interest, as well as other agreements such as the length of time before repayment is needed. Now read below complete article for Education Load.

Quality and proper education is an absolute necessity for an entire and effective life. For many, it is equal to graduating from a top institution or Universities. The value and charges of education are, however, increasing quickly. We must Keep this in mind, parents, who want to offer their children with the best and complete possible education, spend their money in fixed deposits (FDs), mutual funds (MFs), unit-linked insurance plans (ULIPs), etc., for the long duration.

Who can apply for the loan?

Education Loan is offered to the student because he/she is the main borrower. A sibling, parent or spouse can be the co-applicant.

Who is the loan offered to?
The loan is provided to students who want to study in India or continue higher education overseas. The maximum amount granted for studies in India and overseas is different and diversifies from one bank to another.

SBI EDUCATION LOAN divided into five parts: How to get Education Loan SBI

1- Scholar Loan: Scholar Loan is offered for courses at selected leading Institutions in India like  IIMs, IITs, NITs, AIIMS and other premier Institutions. Loan amount up to Rs. 30 lacs is offered.

Eligibility

  • Applicant must be Indian National
  • You must have secured admission to any of the Professional/Technical courses in Select Premier Institutions through proper Entrance Test/Selection procedure

Expenses Covered

  • Fees payable to School/College/Hostel
  • Caution building fund/deposit/refundable deposit followed by Institution bills/receipts
  • Travel expenses/expenses on some exchange programme
  • Purchase of Books/Instruments/ Equipment
  • Library/Examination/Laboratory fees
  • Purchase of computer/laptop

Keep reading about How to get Education Loan SBI?

Loan Amount & Security

Category
Maximum Loan Limit
No Security, only Guardian/Parent as co-borrower With tangible collateral of full value and Parent/Guardian as co-borrower
List AA  Rs. 35 lacs
List A  Rs. 20 lacs Rs. 30 lacs
List B Rs. 20 lacs
List C Rs. 7.5 lacs Rs. 30 lacs

Repayment of Loan

  • You can repay in 15 years after the course is completed + 12 months
  • In case if you want to take the second loan for higher studies later than you have to repay the combined loan amount in 15 years after completion of the second course

Documents Required

  • Letter of admission to the institution
  • Student/Co-borrower/guarantor’s bank account statement for last 6 months
  • IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee)
  • Aadhaar Card of the student and Parent/Guardian
  • Proof of identity (Driving Licence/Passport/Aadhaar/ any photo identity)
  • Completely filled in Loan Application Form
  • 2 passport size photographs
  • Statement of cost of study
  • PAN Card of the student and Parent/ Guardian
  • Proof of residence (Driving Licence/Passport/Electricity bill/Telephone bill)
  • Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
  • Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower

2- Global Ed-Vantage: Education loan exclusively provided for full-time regular courses at foreign Colleges/Universities. Loan amount processed from Rs 20 lacs up to Rs 1.5 Crores.

Keep reading about How to get Education Loan SBI?

Eligible Courses

  • You can any of the course mentioned like Regular Graduate/Post Graduate/ Doctorate Courses in any discipline offered by foreign Institutes/Universities in UK, Canada, USA, Singapore, Australia, Europe, Japan, Hong Kong and New Zealand

Eligible Expenses

  • Fee payable to college/school/hostel.
  • Examination/Library/Laboratory fee.
  • Purchase of books/equipments/instruments/uniforms/ computer at reasonable cost, if required for course completion and any other expense required to complete the course– like study tours, project work, thesis, etc. can be considered for loan subject to the condition that these should be capped at 20% of the total tuition fees payable for completion of the course.
  • Caution deposit /building fund/refundable deposit supported by Institution bills/receipts the amount considered for the loan should not exceed 10% of the tuition fees for the entire course.
  • Travel expenses/passage money for studies abroad.

Repayment And Repayment Holiday (Moratorium)

  • Increased interest during the moratorium to be added to the principal and repayment in EMI fixed.
  • Repayment will be started 6 months after completion of course
  • You can Repay up to maximum of 15 years

Processing Fee

  • You have to pay Rs. 10,000/- per application as a processing fee.

Documents Required

  • Letter of admission
  • Proof of residence (driving license/passport/electricity bill/Telephone bill)
  • Statement of cost of study
  • PAN Card of the student and Parent/ Guardian
  • Aadhaar Card of the student and parent/ Guardian
  • Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
  • Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower
  • Completely filled in Loan Application Form
  • 2 passport size photographs
  • Proof of identity (driving license/passport/any photo identity)
  • Student/Co-borrower/ guarantor’s bank account statement for last 6 months
  • IT return/ IT assessment order, of last 2 years of Parent/ Guardian/ other co-borrower

3- Student Loan: Education loan is given to pursue higher education in India or abroad. Loan amount offered up to Rs. 10 lacs to continue study in India & upto Rs. 20 lacs for studies abroad.

Eligibility:

Only Indian Nationals who are desired to pursue higher education in India or abroad are eligible for this loan.

Courses Covered

a. In India Courses:

  • Graduation, Post-graduation involving regular technical and professional Degree/Diploma courses organized by colleges/universities approved by AICTE/UGC/IMC/Govt. etc
  • Regular Degree/Diploma Courses like pilot training, Aeronautical, shipping etc. certified by Director General of Civil Aviation/concerned regulatory authority/Shipping
  • Teacher training/ Nursing courses certified by Central government or the State Government
  • Regular Degree/ Diploma Courses managed by autonomous institutions like IIM, IIT etc

b. Studies abroad Courses:

  • Job oriented professional/management/Post Graduation Degree/technical Graduation Degree courses and Diploma courses like MBA, MCA, MS, etc offered by reputed universities
  • Courses directed by CIMA (Chartered Institute of Management Accountants) – London, CPA (Certified Public Accountant) in the USA etc.

Expenses Covered

  • Fees payable to school/hostel/college
  • Caution Deposit/Refundable Deposit (maximum 10% of tuition fees for the entire course)/Building Fund
  • Travel Expenses/Passage money for studies abroad
  • Examination/Laboratory fees/Library
  • Purchase of Books/Uniforms/Equipment/Instruments Purchase of computers- essential for completion of the course (maximum 20% of the total tuition fees payable for completion of the course)
  • Cost of a Two-wheeler up to Rs. 50,000/-

4- Skill Loan: A term loan to Indian Nationals for pursuing Vocational/Skill development Education and Training in India where admission has been secured

Eligibility: How to get Education Loan SBI?

  • This loan is offered to such Indian national who wants to pursue Skill development courses in India.
  • Loan to be granted to the first-time takeover
  • The student-borrower should be a major at the time of switchover
  • The loan should have been fully paid at the time of takeover
  • Repayment should have been started & EMIs are continuous in the books of other Bank/Financial Institution

Courses and Institution Eligibility

  • Training Institutes/Courses: Such courses operated by Polytechnics, Industrial Training Institutes (ITIs), training partners affiliated to National Skill Development Corporation (NSDC)/Sector Skill Councils, State Skill Corporation, State Skill Mission, preferably leading to a diploma/certificate/degree assigned by such organization as per National Skill Qualification Framework (NSQF) are acceptable for a Skilling Loan.
  • Schools affiliated by Central or State Education Boards or Colleges affiliated by recognized university leading to a diploma/certificate/degree allotted by such organization as per National Skill Qualification Framework (NSQF) is eligible for a Skilling Loan.

You can read this article on How to get Education Loan SBI? for further changes.

Expenses considered for loan

  • Tuition/Course Fee
  • Caution deposit
  • Examination/Library/Laboratory fee
  • Purchase of books, equipment and instruments

5- Take-over of Education Loans: With SBI Take-over of Education Loans, you can shift your current high-cost Education Loan to SBI and decrease your monthly EMIs

Advantages

  • You can easily Switch to SBI and decrease your monthly obligation
  • You can pay your EMIs through Cheques/Net Banking/Mobile Banking
  • You have the chance to avail of top-up loan after taking over for continuing further studies subject to
  • submission of needed documents with extended repayment period for that course.

For further detailed information about How to get Education Loan SBI, you can visit Online Sbi website.