SBI Education Loan: Eligibility, Interest Rates, and How to Apply

The State Bank of India is India’s largest public sector bank, having its origin before the independence of India. Considering the demand, the bank has evolved its lending services over the years and launched special education loan products to fund both domestic and abroad study aspirants. Education loans provide financial assistance to students in pursuing higher education in India as well as abroad. SBI offers various education loan schemes to cater to the diverse requirements of the students.

SBI is known for its competitive interest rates, flexible repayment terms, and minimum processing fees. SBI particularly provides for simple interest during the period of moratorium, which reduces the financial burden on the students.

Applying for an education loan from SBI involves several stages that can take months to be processed. However, when students apply for an SBI education loan through WeMakeScholars, the process can be done much faster within 3 weeks. WeMakeScholars is an organization funded and supported by the Ministry of IT, Government of India, that is dedicated to support students in their education loan process.

State Bank of India Education Loans

The State Bank of India is one of the largest public banks in India that has specially designed various products for student loans. They provide education loans at interest rates starting from 8.15% and loan amounts ranging up to ₹3 Crores. SBI education loans can covers the entire education costs, including the tuition fees, living expenses, hostel fees, purchase of study materials, and course-related equipment.

They offer education loans for courses such as MBA, Masters, Bachelors, Ph.D, and Vocational courses based on the student’s eligibility. The education loan schemes offered by SBI are categorised based on whether the student needs an education loan for study in India or abroad:

SBI Education Loan schemes for study abroad

Under the special schemes of SBI education loans abroad, the bank offers financial support to students going to recognized universities in foreign countries. The various SBI education loan schemes for study abroad are:

• SBI Student Loan Scheme
• SBI Global ED-VANTAGE Scheme
• SBI Shaurya Education Loan (FOR WARDS OF DEFENSE AND INDIAN COAST GUARD PERSONNEL)

SBI Education Loan schemes for study in India

The State Bank of India offers both secured and unsecured loans to students to take admission to top colleges and universities in popular study hubs in India. These loans for study in India are offered under:

• SBI Student Loan Scheme
• SBI Scholar Loans
• SBI Shaurya Education Loan (FOR WARDS OF DEFENSE AND INDIAN COAST GUARD PERSONNEL)
• SBI Skill Loan Scheme

Eligibility for Education Loans for MBBS Abroad

To get an SBI education loan, other than being an Indian citizen, you also need to meet certain eligibility criteria laid down by the bank. The various requirements to get a student loan from SBI include:

• Admission status: 

Students should secure an admission to a recognized institute to get an education loan from SBI.

• The University:

To get a student loan from SBI, the university that you’re going to should be recognized by and come under the designated list of universities of the bank.

• Course Eligibility:

Graduate and post-graduate programs, including diplomas and professional courses, in India as well as abroad are eligible for education loans from SBI according to the scheme.

• Country Eligibility:

The amazing part of the SBI Global Edvantage scheme is that there is no restriction at all regarding the country or course. While the USA, Canada, UK, Australia and Ireland are the popular destinations for abroad studies, the SBI Global Edvantage scheme has sanctioned study loans even for unconventional countries.

• Academics:

Students should have a strong academic history with a minimum of 50% of marks in their previous academic records.

• Collateral Requirements:

When getting a secured education loan from SBI, you would need to pledge collateral that is accepted by the bank and has value according to the loan amount.

• The co-applicant’s profile:

The Co-applicant’s financial status, like their Income and CIBIL score, has to meet the requirements of the lender when you are planning to get a non-collateral education loan from SBI to pursue higher studies in India and abroad.

• Age:

Students typically aged between 18 to 35 can get an education loan from SBI.

Documents required for an SBI Education Loan

There is a long list of documents required for student loans in SBI. This section provides the list of some mandatory documents required by the State Bank of India :

1. 1. Completed Application Form provided by the bank.
   2. Admission Confirmation: Proof of admission from the student’s chosen university.
   3. Identification Copies: Copies of the student’s Passport, along with their and their co-applicant’s Aadhar car, PAN Card, Voter ID, or Driving Licence.
   4. Passport Photos: Two recent passport-size photographs of the applicant, co-applicant, and guarantor.
   5. Educational Records: The mark sheets of the latest qualified examination and the result of the entrance exam through which admission is being taken (e.g., CAT, GRE, GMAT, TOEFL, IELTS, etc.)

• Collateral documents:

The collateral document that banks require when you are taking a secured education loan from SBI includes:

• Property documents, 
• FD documents, or
• Any other documents specified by your lender.

• Financial Documents:

Documents proving the income of the financial co-applicant should be provided. These documents can vary depending on whether the co-applicant is salaried or self-employed.

• For Salaried Co-applicants:

• Last 2-3 years of ITR or Form 16,

• Recent payslips, and

• Bank statements 

• For Self-employed Co-applicants:

• Last 2-3 years of ITR,
• Business proof, 
• Bank statement, and
• Profit & Loss statement.

1. Course Expenses Plan: A Detailed breakdown outlining your anticipated course expenses.
2. Current Financial Obligations: Disclose details regarding existing loans and any scholarships received.
3. Institute Prospectus: Include a copy of the institute’s prospectus to estimate costs effectively.

How to apply for an Education Loan from SBI

• Visit your nearest State Bank of India branch and ask about the education loan schemes from the branch.
• Check your loan eligibility and fill out the application form 
• Ask for the document checklist
• Visit the bank again to submit the documents to get your education loan process started

Conclusion

Education loans make higher education accessible for many students. They provide financial aid to students who want to pursue higher education. The State Bank of India is one of the prominent public banks that offers various education loan schemes for both study in India and abroad.

This article covers the key insights of SBI education loans, including their various education loan schemes, the interest rate, eligibility criteria, documents required, and how to apply. SBI offers both collateral and non-collateral student loans under its loan schemes to cater the diverse needs and requirements of students.