New Delhi: State Bank of India (SBI) offers student loan to Indian citizens who wish to pursue higher education in India or abroad. The SBI student loan is granted for courses covered for study in India and abroad.
Features and Benefits of SBI Student Loan
· Lower interest rates
Concession of interest for female students
No collateral for loans up to Rs. 7.5 million
No processing fees for loans up to Rs. 20,000,000
Reimbursement will start one year after course completion
Repayment period up to 15 years after course period + 12 months repayment holiday
In case the second loan is used for higher education, students after completing the second course, can repay the combined loan amount in 15 years
No margin for loans up to Rs. 4,000,000
SBI student loan amount:
Students can avail this loan up to Rs 50 lakh for study in India and up to Rs 1.50 crores for study abroad
SBI Student Loan Interest Rate:
Effective interest rate – 8.65%
0.50% interest reduction for female students
SBI Student Loan Processing Fee:
Loans up to Rs. 20 lacs – Nil
Loans over Rs.20 lakh – Rs.10,000 (plus tax)
SBI Student Loan Guarantee:
For loans up to Rs.7.5 lakh – None
For Loans Above Rs.7.5 lakh – Tangible Collateral
Expenses covered by the SBI student loan:
Fees payable to college/school/hostel
Purchase of books/equipment/instruments/uniforms, purchase of computers – essential to complete the course (maximum 20% of total tuition payable to complete the course)
Security deposit/building fund/refundable deposit (maximum 10% of tuition fees for the entire course)
Travel costs/passage money for study abroad
Cost of a two-wheeler up to Rs. 50,000/-
All other expenses necessary to complete the course, such as study trips, project work, etc.
SBI Student Loan Eligibility:
SBI student loan is offered for graduation, post-graduation, including regular technical and vocational diploma/diploma courses from colleges/universities approved by UGC/AICTE/IMC/Govt. etc Regular degree/diploma courses provided by autonomous institutions such as IIT, IIM, etc. Teacher training/nursing courses approved by central government or state government. It also covers regular degree/diploma courses like aeronautics, pilot training, navigation, etc. approved by Director General of Civil Aviation/Navigation/Relevant Regulatory Authority.
While for study abroad, SBI student loan is granted for vocational/technical graduation courses/post-graduation and degree courses such as MCA, MBA, MS, etc. offered by reputable universities. Courses provided by CIMA (Chartered Institute of Management Accountants) – London, CPA (Certified Public Accountant) in the United States, etc. are also included.