Education Loan Interest Rates 20201432 views
- Worrying about how you will complete your overseas study?
- Think of SBI Education Loan schemes at affordable interest rates & fulfill your aspiration!
Getting admission to the right college or institute not only requires skills but also money. You may not be born in a family where you can go for higher studies without any financial hassle. So to give wings to your educational aspirations, State Bank of India (SBI) offers you the requisite funds. Your co-applicant in the SBI Education Loan should be your legal guardian or parents. The top public sector bank helps students get the required funds to pay the semester fees for their college/university.
Table of Contents
- 1 SBI Education Loan Schemes
- 2 Documents Required for SBI Education Loan
- 3 Apply for SBI Education Loan
SBI Education Loan Schemes
To select a suitable scheme for your educational needs, SBI offers a wide range of education loans. You can choose the scheme and apply for the best one to get the required funds for your higher education. Once you complete senior secondary education do you have set goals for what you need further in your future? You can trust the SBI Education Loan to bring you a step closer to your dreams. Have a look at the below-mentioned scheme of SBI for the higher studies.
SBI STUDENT LOAN SCHEME
You can study in India or abroad as per your qualification demands and approval from the college or institute. Because under this scheme, SBI offers you up to INR 20 lakh. And the loan amount includes all your expenses from college fees for the purchase of books, equipment, Uniforms, and Travel Expenses for overseas studies. All the additional charges such as tours or educational trips can be managed in the SBI Student Loan scheme. So you can apply for the loan, and pay for it in equated monthly installments. You can start repaying the loan a year after completing your course. And no-collateral is required for the SBI Education loan if you borrow up to INR 7.5 lakh. Loans above INR 7.5 Lakh will require tangible collateral.
The interest rate the SBI charges on your education loan is based on the 3-year marginal cost of lending rate. And SBI’s 3-year MCR is 8.05%, which will add a spread of 2% to become the eventual interest rate of 10.05%.
SBI SCHOLAR LOAN SCHEME
To pursue your higher studies like IIT, IIM, NIIT, you require funds further and SBI offers you 100% financing for your studies with the Scholar scheme. To apply for it, you first need to clear the entrance test of the examination. And as per your results, the bank provides you the loan amount. Look at the below table and know how much you can borrow from SBI for higher education as per your grades.
|Grades||Loan (INR)||With collateral (INR)||Co-Borrower (INR)|
|AA||40 lakh||40 lakh||40 lakh|
|A||20 lakh||30 lakh||20 lakh|
|B||20 lakh||20 lakh||20 lakh|
|C||7.5 lakh||30 lakh||7.5 lakh|
If you are married, your co-borrower can be your spouse or parent-in-law. Otherwise, your co-borrower can be your guardian or parent. You can also be asked to add a third-party guarantor to back the SBI Scholar Loan Scheme.
SBI Scholar scheme interest rate ranges from 7.95%-9.25% per annum and it is based on the 1-year MCLR which presently stands at 7.75%
SBI SKILL LOAN SCHEME
When you have a special skill in some courses and need a separate fund for it, SBI supports you with the Skill Loan Scheme, you can borrow from INR 5,000 to INR 1.5 lakh. There is no need for collateral or guarantor as other SBI Education Loans, and you can borrow the desired amount by adding your parent or guardian as a co-borrower. With a recognized institute, you can improve your skills, whether it is photography, journalism or polytechnic. As per National Skill Qualification Framework (NSQF) you are eligible for the loan if you have a certificate, diploma or degree from schools or Colleges recognized by Central or State Education Boards.
There are no-concessions available on this scheme, and the interest rate on your borrowed amount starts from 9.55% per annum. The fixed rate of interest is based on your loan tenure, which is based on your borrowed amount. Look at the below table to find out the interest rate charged on different loan amounts.
|Loan (INR)||Tenure (in months)||Interest rate||MCLR|
|5,000 to 50,000||36||9.55%||8.05%|
|50,0000 to 1 lakh||60||9.55%||8.05%|
SBI GLOBAL ED-VANTAGE SCHEME
For Graduate, Postgraduate and Doctorate degrees offered by foreign universities, you can get financial support from SBI to the tune of INR 1.5 crore. And the loan covers all your expenses required during the course period from books to examination along with the travel charges. Once, you get the visa approval for the i20/Visa from the university, you can apply for the loan. You need to submit the Scholarship or assistantship documents to the bank on a year to year basis, it is because that helps in deciding the margin of your SBI Education loan.
You can apply for SBI GLOBAL ED-VANTAGE SCHEME online, and there is no need for a co-borrower for the same. To apply for the loan, you can provide tangible collateral in the name of yours or third party guarantor. SBI charges a processing fee of INR 10,000 from the customer.
SBI Rinn Raksha:- To make your loan secure, you can add SBI Rinn Raksha insurance using it you can make your family secure for your liabilities. Also, there is additional coverage for the co-borrower of the loan. And with the help of Rinn Raksha, you can get up to 0.50% concession on your SBI Education Loan interest rates.
The interest rate on your Global Education Loan starts from 10.05% per annum and it is based on the SBI MCLR.
Note: SBI offers a 0.50% concession on the interest rate of SBI Education Loan for girls’ education. So, don’t make a comparison between education when it comes to whether a boy or girl. Because both can brighten their future by getting the right education.
Documents Required for SBI Education Loan
You need to have a proper list of documents to apply for a loan. Have a look at the below mentioned list of documents to apply for an SBI education loan.
- ID Proof: PAN card, Passport, Driving License and Voter ID card
- Residence proof: Copy of the Telephone Bill/, Electricity Bill, Water Bill, Piped Gas Bill or copy of Passport and Aadhaar Card
- Passport is mandatory for you to submit
- 2 passport-size photographs
Academic Records :
- 10th and 12th Result
- Semester-wise Graduation Result
- Entrance Exam Result via which you are applying for further studies eg. GMAT, GRE, TOEFL, etc.
- Admission Proof: Offer Letter or Admission Letter from the Institution or college. The conditional admission letters are also considered.
- Details of expenses that are needed for the course
- Loan statement for last 1 year if you borrowed a loan before from a bank or NBFC
- ID details: PAN,Passport, Driving License or Voter ID card
- Address Proof: The Telephone or Electricity Bill and Piped Gas Bill copy proof your residence details. And also submit the Aadhaar Card
- 2 passport-size photographs of co-borrower is also necessary
- The loan statement of the co-borrower for past 1 year
Income Proof for Salaried Co-applicant/ Guarantor :
- Salary Slip of previous 3 months is required for the income details. And if salary slip isn’t available at short notice, you can provide a salary certificate instead of the salary slip.
- Copy of the duly filled Form 16 for the last 2 years or the IT Returns statement of 2 years, approved by IT Dept.
- Bank account statement for the last 6 months (of Salary Account) of SBI or any other bank account.
Income Proof for Self-employed Co-applicant/ Guarantor :
- Business address proof
- IT return report for the last 2 years
- TDS Certificate (Form 16A, if applicable
- Certificate of qualification for Doctor, CA or other professionals
- 6 months bank statement
Apply for SBI Education Loan
You have both online and offline modes to apply for the loan. We have detailed both for you to look at.
You can visit the SBI official website and select the desired education loan and apply for it by filling up the online application form.
- Mention your details such as your relationship with the bank. If you are an existing bank customer, you provide your account number to proceed further. And if you aren’t an SBI customer then you need to fill up a form mentioning your course details along with the applicable charges.
- Select the loan and once SBI approves your online application, choose the desired amount. The loan will be dependent on the co-borrowers payment capacity and credibility.
- Complete the process by uploading documents mentioned above and pay the processing charge if it applies to your loan amount.
Go to your nearest SBI branch and from the bank representative chat for the education loan. You can follow the same online procedure, but you need to visit the bank branch and wait for the loan approval. If you have enough time to spend on every detail of the loan, the offline procedure is best for you. Go there with the necessary documents as well as the processing fee cheque.
Yono for SBI Education Loan
To get the loan approved quickly, you can apply for the education loan from SBI mobile app Yono. Only the bank customers are eligible to use this feature, and using it they can apply for the loan from their smartphones. So use the mobile app to submit your application quickly.