In India Education is the only option for most of the peoples. Getting a degree is of utmost important for getting high paid jobs. But in a country of billion where most of the population is poor it is difficult for the families to afford education of their children’s. If you go for degree courses like engineering, medical, law etc. fees for these courses is high. For this reason the Govt. of India started education loan scheme for those who cannot afford to pay the fees. Every bank provides education loan at different interest rates. SBI out of them has the lowest interest rates.
Here we will talk about different study finances provided by SBI, parameters for getting loan, interest rate of the loan and the necessary documents required to apply for the education loan.
“State Bank Of India” provides education loan for studying in India as well as for college students who want to study outside India. Education loan is granted for those courses that have employment scenarios. Courses that are eligible are Graduation/ Post Graduation and professional courses approved by Government of India/AICTE etc. you can either take loan on your name or can jointly take loan with your guardian.
Read More: mahaeschol Maharashtra State Government Scholarship
The amount of loan granted by SBI is based on following parameters:
1. Fees of the course in addition to hostel fees.
2. Fees required for exam forms, library and laboratory fees of the college.
3. SBI also considers money required for buying study material that includes books and equipments/instruments and college uniforms.
4. The loan also includes the Caution Money which is mostly refundable, building fund that is generally taken during the first year of any course. Most probably SBI considers max 10% of the total tuition fees for this purpose.
5. Travel expanses that accommodate daily travel expanse in case of studying in India and Passage money in case of abroad studies.
6. If the loan relates to courses in computer stream then money is provided for the purchase of computer if required by the applicant for completion of course.
7. SBI also gives the facility for purchasing two wheeler.SBI sponsors up to Rs.50,000/- on the purchase of vehicle.
The loan is granted to the applicant based on this parameters and any other expenses (study tours, project etc.) required for completing the course.
The loan issued by SBI for study in India and Abroad differs in accordance with the parameters.
Interest Rate:
Interest rate on education loan differs from bank to bank, with SBI providing the lowest interest rate. The interest rate for SBI depends on the loan amount.
Interest rate fluctuates according to government policies and RBI incentives.
For getting loan some form of security is needed to be given to bank. For loan up to Rs.4 lacs no security is needed. For loan above 4 lacs deposit security equal to 100% of loan amount in the form of property (includes home, land, jewellery or bank balance etc.) or guarantee of third person who the bank trust is required.
Margin for SBI education loan is 5% for India and 15% for Abroad studies for loan above Rs.4 lacs. There is no margin for loan up to Rs.4 lacs.
The loan needs to be repaid after completing of the course + 1 year or 6 months after getting the job. A period of 5 to 7 years after the start of earning is allocated to repay the complete loan. In case of joint loan if applicant fails to repay then the guardian has to pay the loan.
For more details you can visit SBI official website www.sbi.co.in.
Some of the important questions whose answers you must need to know.
What are the important documents you need to submit?
You will have to fill the application form and along with the form you need to submit proof of admission of the course and provide a schedule expenditure of the course. "Two Passport size photos, loan borrower bank account statement for last six month from the date of application". Record of borrowers’ assets and liabilities. Those who don’t have account in SBI they have to provide copies of identity and residence proof.
No charging or processing fees is needed to be paid to the bank. Total EMI is calculated based on the duration of the course and time before the repayment starts. This period is added to the loan and EMI (Equated Monthly Installment) is calculated.
You can apply for SBI loan at any nearest SBI branch. For more information regarding education loan you can directly met SBI branch manager. They will guide you regarding the procedure.
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“State Bank Of India” provides education loan for studying in India as well as for college students who want to study outside India. Education loan is granted for those courses that have employment scenarios. Courses that are eligible are Graduation/ Post Graduation and professional courses approved by Government of India/AICTE etc. you can either take loan on your name or can jointly take loan with your guardian.
Read More: mahaeschol Maharashtra State Government Scholarship
SBI Educational loan Application forms, Eligibility, Schemes, Interest Rate, Terms and Condition
The amount of loan granted by SBI is based on following parameters:
1. Fees of the course in addition to hostel fees.
2. Fees required for exam forms, library and laboratory fees of the college.
3. SBI also considers money required for buying study material that includes books and equipments/instruments and college uniforms.
4. The loan also includes the Caution Money which is mostly refundable, building fund that is generally taken during the first year of any course. Most probably SBI considers max 10% of the total tuition fees for this purpose.
5. Travel expanses that accommodate daily travel expanse in case of studying in India and Passage money in case of abroad studies.
6. If the loan relates to courses in computer stream then money is provided for the purchase of computer if required by the applicant for completion of course.
7. SBI also gives the facility for purchasing two wheeler.SBI sponsors up to Rs.50,000/- on the purchase of vehicle.
The loan is granted to the applicant based on this parameters and any other expenses (study tours, project etc.) required for completing the course.
The loan issued by SBI for study in India and Abroad differs in accordance with the parameters.
- For studies in India education loan granted by SBI is maximum of Rs.10 lacs.
- In case of Abroad studies maximum loan granted by SBI is Rs.20 lacs.
Interest Rate:
Interest rate on education loan differs from bank to bank, with SBI providing the lowest interest rate. The interest rate for SBI depends on the loan amount.
- Interest rate on loan up to Rs.4 lacs is 12.25% p.a.
- Interest rate on loan above Rs.4 lacs is 13.25% p.a.
Interest rate fluctuates according to government policies and RBI incentives.
For getting loan some form of security is needed to be given to bank. For loan up to Rs.4 lacs no security is needed. For loan above 4 lacs deposit security equal to 100% of loan amount in the form of property (includes home, land, jewellery or bank balance etc.) or guarantee of third person who the bank trust is required.
Margin for SBI education loan is 5% for India and 15% for Abroad studies for loan above Rs.4 lacs. There is no margin for loan up to Rs.4 lacs.
The loan needs to be repaid after completing of the course + 1 year or 6 months after getting the job. A period of 5 to 7 years after the start of earning is allocated to repay the complete loan. In case of joint loan if applicant fails to repay then the guardian has to pay the loan.
For more details you can visit SBI official website www.sbi.co.in.
Some of the important questions whose answers you must need to know.
What are the important documents you need to submit?
You will have to fill the application form and along with the form you need to submit proof of admission of the course and provide a schedule expenditure of the course. "Two Passport size photos, loan borrower bank account statement for last six month from the date of application". Record of borrowers’ assets and liabilities. Those who don’t have account in SBI they have to provide copies of identity and residence proof.
No charging or processing fees is needed to be paid to the bank. Total EMI is calculated based on the duration of the course and time before the repayment starts. This period is added to the loan and EMI (Equated Monthly Installment) is calculated.
You can apply for SBI loan at any nearest SBI branch. For more information regarding education loan you can directly met SBI branch manager. They will guide you regarding the procedure.
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