India, the second most populated country, has 50% of its population below the age of 25 which makes it the youngest nation in the world. If the power of youth is properly channelized, the nation will see unprecedented growth in the economic sector. Education is the basic requirement for the masses that can drive splendid growth across all sectors. Realising this, the Government of India has launched several schemes to provide education for all.  

State Bank of India (SBI), the largest lender in the country, has designed multiple education loans catering to varying needs of the people. Let us explore in detail the different types of education loans offered by SBI.  

SBI Student Loan Scheme 

This education loan is aimed at providing funds for individuals who like to pursue their higher studies in India and abroad. One must have secured the admission in a recognized educational institution to get the loan.  

Loan Amount: For studies in India, you can get up to Rs.10 Lakhs and for overseas education, you can get up to Rs. 20 Lakhs.  

Courses Covered: 

For studies in India 

  • Regular technical and professional courses offered by institutions approved by UGC/AICTE/IMC/Government etc., for pursuing graduation and post-graduation degree.  

  • Regular degree and diploma courses offered by premier institutions, such as IIT, IIM etc. 

  • Teacher training and nursing courses approved by Central and State Government 

For Overseas Education: 

  • To pursue job-oriented professional and technical courses like MCA, MBA, MS, etc., from reputed universities 

  • Courses conducted by CIMA (Chartered Institute of Management Accountants) - London, CPA (Certified Public Accountant) in USA, etc. 

Expenses Covered: 

  • College and hostel fees 

  • Fees to be paid for examination, library and laboratory  

  • Essentials such as books, computer, uniform, equipment, etc. 

  • Caution Deposit/Building Fund/Refundable Deposit (maximum 10% of tuition fees for the entire course) 

  • Travel Expenses and passage money for overseas education  

  • Cost of a two-wheeler up to Rs. 50,000 

Repayment:  

The SBI Student Loan Scheme can be repaid in maximum of 15 years. The bank provides 1 year as moratorium period after completion of the course.  

Interest Rate: 

For loans up to Rs.7.5 Lakhs, the interest rate starts from 10.55% and 10.80% for above that limit. Girl students get a concession of 0.50% on the interest rate.  

SBI Global Ed-vantage Scheme 

This education loan is exclusively for students who wish to pursue their higher education abroad. Though you can get funds under SBI Student Loan Scheme for the same purpose, this loan scheme comes with extra benefits and higher loan amount for eligible candidates.  

Loan Amount: You can get minimum of Rs. 20 Lakhs and maximum of Rs. 1.5 crore to fund your overseas education.  

Courses Covered: 

All regular graduate, post-graduate and doctorate courses offered by foreign universities in USA, Canada, Europe, Singapore, Japan, Australia, Hong Kong and New Zealand. 

Expenses Covered: 

  • College and hostel fees 

  • Fees to be paid for examination, library and laboratory  

  • Essentials such as books, computer, uniform, equipment, etc. 

  • Caution Deposit/Building Fund/Refundable Deposit (maximum 10% of tuition fees for the entire course) 

  • Travel Expenses and passage money for overseas education  

  • Insurance coverage 

Repayment:  

The SBI Global Ed-vantage Loan can be repaid in maximum of 15 years. The bank provides 6 months as moratorium period after completing the course.  

Interest Rate: 

The interest rate starts from 10.80%, and girl students get a concession of 0.50% on the interest rate.  

Processing Fee: Rs. 10,000 per application 

SBI Scholar Loan Scheme 

This is a special education loan scheme that is provided to individuals who have secured admission into select premier educational institutions such as IIM, IIT, NIT, MIT etc.  

Loan Amount: You can get minimum of Rs. 7.5 Lakhs and maximum loan amount of Rs. 40 Lakhs. No collateral is required for AA category institutions.   

Courses Covered: 

  • All regular graduate and diploma courses 

  • Full time executive management courses 

Expenses Covered: 

  • College and hostel fees 

  • Fees to be paid for examination, library and laboratory  

  • Essentials such as books, computer, uniform, equipment, etc. 

  • Caution Deposit/Building Fund/Refundable Deposit (maximum 10% of tuition fees for the entire course) 

  • Travel Expenses and passage money for overseas education  

Repayment:  

The SBI Scholar Loan Scheme can be repaid in maximum of 15 years. The bank provides 12 months as moratorium period after completing the course.  

Interest Rate: 

The interest rate starts from 8.75% onwards, however, it might vary depending on the category of institutions.  

Processing Fee: Nil 

SBI Skill Loan Scheme 

This loan is provided for individuals who like to study skill development courses in India.  

Loan Amount:  

Under this loan scheme, you can get minimum of Rs.5000 and maximum of Rs. 1,50,000.  

Courses Covered: 

  • Courses run by Industrial Training Institutes (ITIs), Polytechnics, training partners affiliated to National Skill Development Corporation (NSDC), Sector Skill Councils, State Skill Mission, State Skill Corporation, preferably leading to a certificate, diploma, degree issued by such organization as per National Skill Qualification Framework (NSQF) are eligible for SBI Skill Loan.  

  • Schools recognized by Central or State Education Boards or Colleges affiliated to recognized universities.  

Expenses Covered: 

  • Fees to be paid for tuition and courses 

  • Caution deposit 

  • Purchase of books, instruments and equipment 

  • Fees for examination, library and laboratory 

Repayment:  

The minimum repayment period is 3 years and maximum period is up to 7 years which depends on the loan amount.  

Interest Rate: Starts from 10.05% onwards 

Apart from the above education loans, SBI also lets you transfer your existing education loan from another bank for lower interest rates. Education loan up to Rs. 1.5 Crore is considered for balance transfer with SBI. The maximum tenure is 15 years, and there are no processing fees for the transfer.  

Central Sector Interest Subsidy Scheme 

The Government of India has launched a subsidy scheme for students belonging to economically weaker section, who otherwise would not be able to get an education loan. Under this scheme, the borrower can get interest subsidy during the moratorium period. The parents of the student should have maximum income of Rs. 4.5 Lakhs per annum to avail this scheme, and proper income proof to be submitted by the applicant.  

Last Word 

Education is the important part of your life that acts as the driving force for your career. If you have no funds to pursue your studies, an education loan is the best option. Moreover, you can also get tax benefits under the section 80E of the Income Tax Act.