State Bank of India (SBI) is an Indian multinational, public sector banking and financial services company. It is a government owned bank and currently has headquarters in Mumbai, Maharashtra. State Bank of India is in the list of Big Four Banks of Indi along with ICICI Bank, Bank of Baroda and Punjab National Bank. State Bank of India is a banking behemoth and has 20% market share in deposits and loans among Indian commercial banks. Being the best bank all over the country, its services are affordable to common people and there are no excess charges applied with them.
Higher education and professional degrees which students usually pursue after XII standard are quite expensive now. So the students come up with the need of taking up educational loans. Any student who has the required academic qualification but cannot pursue further studies due to financial constraints can take this loan. This concept was initially started by State Bank of India itself.
Although the education loan is available for all kinds of higher studies but the majority of loans are given for management degree or advanced technological degrees. Banks don’t prefer to give a loan to study arts. The bank also takes in consideration the income of the parents to give loans for studying subjects.
Things to know about educational loans
- It is mandatory to apply for a full-time course. No loan is provided by the bank for distance education courses or correspondence courses.
- Usually given for Graduate or post graduate courses in medicine, technology, engineering, management, architecture, pure and applied sciences, mathematics, statistics etc.
- The course can be pursued in India or abroad.
- The loans are tax deductible. Keep in mind all the tax angles when it comes to repayment of the loan.
- The repayment period of the loan is 15 years after course period.
- The loan amount of India is 10 lakh whereas for abroad is 20 lakh.
- The margin for a loan is Nil up to 7.5 Lakh, 5% for India, 15& for abroad in case of 7.5 lakh above.
- Loan amount in case of scholar loan is maximum 30 lakh.
- The loan amount under skill loan scheme is 50000 – 150000.
- You must be citizen of India
- You should have high and consistent academic records.
- The age limit maintained by the bank is 30 years.
- You must be doing your course from a recognized institution.
- You should have the letter of admission beforehand.
- Your parent or co-applicant should have enough income or there should be sufficient family assets.
- Admission Letter
- Application Form
- Passport size photographs
- Statement if cost of study
- Parents Pan card or Aadhaar card
- Proof of Identity
- Proof of Residence
- 6 months bank statement of Student/Co-borrower/ guarantor’s
- Last 2 years IT return/ IT assessment order of Parent/ Guardian/ other co-borrower (if IT Payee)
- Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
- Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower
Courses Covered under SBI Education loan Scheme
- Studies in India:
Graduation, Post-graduation including regular technical and professional Degree/Diploma courses conducted by colleges/universities approved by UGC/ AICTE/IMC/Govt. etc
Regular Degree/ Diploma Courses conducted by autonomous institutions like IIT, IIM etc
Teacher training/ Nursing courses approved by Central government or the State Government
Regular Degree/Diploma Courses like Aeronautical, pilot training, shipping etc. approved by Director General of Civil Aviation/Shipping/ concerned regulatory authority
- Studies abroad:
Job oriented professional/ technical Graduation Degree courses/ Post Graduation Degree and Diploma courses like MCA, MBA, MS, etc offered by reputed universities
Courses conducted by CIMA (Chartered Institute of Management Accountants) – London, CPA (Certified Public Accountant) in the USA etc.
How to apply for the educational loan?
You can apply online by visiting the official site of State Bank of India. Begin by clicking on the link given https://www.sbi.co.in/portal/web/personal-banking/education-loans.
Select from the various categories of education loans enlisted. After you select one a new page will be displayed. The page will show all the details regarding the loan. Go through them carefully before applying then move forward to the application form.
Or you can visit any branch of the bank or SBI bank loan center.