State Bank of India Education Loan Scheme
A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured.
Eligible Courses:
All courses having employment prospects are eligible.
- Graduation courses/ Post graduation courses/ Professional courses
- Other courses approved by UGC/Government/AICTE etc.
Expenses considered for loan:
- Fees payable to college/school/hostel
- Examination/Library/Laboratory fees
- Purchase of Books/Equipment/Instruments/Uniforms
- Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees for the entire course)
- Travel Expenses/Passage money for studies abroad
- Purchase of computers considered necessary for completion of course
- Cost of a Two-wheeler upto Rs. 50,000/-
Any other expenses required to complete the course like study tours, project work etc.
Amount of Loan:
- For studies in India, maximum Rs. 10 lacs
- Studies abroad, maximum Rs. 20 lacs
Interest Rates: (w.e.f 01.01.2009)
|
Loan Amount |
Rate of Interest |
|
Loans upto Rs. 4.00 Lacs |
0.50% below SBAR i.e. 11.75% p.a. |
|
Loans above Rs. 4.00 Lacs and upto Rs. 7.50 Lacs |
1.00% above SBAR i.e. 13.25% p.a. |
|
Loans above Rs. 7.50 Lacs |
At SBAR i.e. 12.25% p.a. |
An Interest Rate concession of 0.50% to Girl Student availing Education Loans Processing Fees:
- No processing fee/ upfront charges
- Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in the margin money
Repayment Tenure:
Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier.
|
Place of Study |
Loan Amount |
Repayment Period
in Years |
|
Studies in India |
Rs. 10.0 lacs |
5-7 |
|
Studies Abroad |
Rs. 20.0 lacs |
5-7 |
Security:
|
Amount |
For loans upto Rs. 10.00 lacs for Studies in India and upto Rs. 20.00 lacs for studies abroad |
|
Upto Rs. 4 lacs |
No Security |
|
Above Rs. 4 lacs to Rs. 7.50 lacs |
Collateral security in the form of suitable third party guarantee. The bank may, at its discretion, in exceptional cases, weive third party guarantee if satisfied with the net-worth/means of parent/s who would be executing the documents as "joint borrower". |
|
Above Rs. 7.50 lacs. |
Tangible collateral security of suitable value, along with the assignment of future income of the student for payment of installments. |
All loans should be secured by parent(s)/guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law Margin:
- For loans up to Rs.4.0 lacs : No Margin
- For loans above Rs.4.0 lacs:
- Studies in India: 5%
- Studies Abroad: 15%
Documentation Required:
- Completed Education Loan Application Form.
- Mark sheets of last qualifying examination
- Proof of admission scholarship, studentship etc
- Schedule of expenses for the specified course
- 2 passport size photographs
- Borrower's Bank account statement for the last six months
- Income tax assessment order, of last 2 years
- Brief statement of assets and liabilities, of the Co-borrower
- Proof of Income (i.e. Salary slips/ Form 16 etc)
Website: www.statebankofindia.com
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