SBI Student Loan Scheme in Details
Overview
SBI Student Loan Scheme falls under the SBI education loan schemes that are created to financially support the students of India so that they can afford the high costs of education. The State Bank Of India has several loan schemes in the field of education, which fulfil the various specific needs of the students.
SBI is providing easy and fast online application processes, they have light and better interest rates along with high amounts of loan, the EMI options are secure, and the bank also provides Tax benefits and other options. Let's discuss the SBI student Loan scheme. It's eligibility criteria, courses covered, etc. SBI Student Loan Scheme is a term loan that is given to Indian students who are looking forward to taking up their higher education in India or abroad.
Eligibility Criteria
To be eligible for The State Bank Of India (SBI) Student Loan Scheme, the student must have admission to the desired educational institution before he applies for the loan under this scheme.
Courses Covered For Studies In India
- Courses of Graduation, post-graduation along a regular technical and professional degree or diploma, which is provided by Colleges and universities which are approved by UGC/ AICTE/IMC/Government, etc.
- Proper degree or diploma courses that are provided by independent institutions such as IIT, IIM, etc.
- Training and courses for becoming a teacher or a nurse, which are approved by the Central Government or State Government.
- Courses approved by unquestionable authorities and that provide courses in the field of Pilot training, aeronautical, etc.
Courses Covered For Studies Abroad
- With a focus on getting a job via reputed universities, professional or technical graduation degree courses or pg degree and diploma courses.
- Courses that are provided by Chartered Institute Of Management Accountants (CIMA) London and Certified Public Accountant (CPA), United States, etc.
Expenses Covered
- Fees of the School or College and Hostel fees.
- Examination Fees, fees of the books required from library or laboratory books.
- Cost of uniform.
- Computer, which is required for completing the course.
- A maximum of 20% of full tuition fees which is required to complete the course.
- Keeping aside funds for caution or refundable deposits- up to 10% of the full tuition fees of the course.
- All the expenditure that is done for travel or passage money is required for studies abroad.
- The cost of any two-wheeler, up to the amount of Rs. 50,000 INR.
- Any other miscellaneous expenses which are mandatory to be done, to pay for the course.
Amount And Security
- A maximum of Rs. 10 lacs INR, is offered for studying in India.
- A maximum of INR 20 lacs, is offered for studying abroad.
There is no requirement of any collateral security or any third party guarantee, and only the parent or a guardian is considered as a co-borrower if the loan amount does not exceed INR 7.5 lacs.
In case the loan amount is more than INR 7.5 lacs, tangible collateral security is considered along with the parent or guardian as co-borrower.
If a person is married, their spouse or their parent(s/, or parents in law can be considered as the co-borrower.
Interest Rates
- Up to the amount of INR 7.5 lacs, the interest rate of 10.45% is offered along with a concession of 0.50% for girl students.
- If the amount is more than INR 7.5 lacs, the interest rate of 10.70% is offered along with a concession of 0.50% for girl students and the students. They will avail the SBI RinnRaksha policy or any other policy which is allotted in favour of State Bank Of India (SBI).
Repayment
- Once the period of 1 year of the course has been completed, the repayment period of the student loan scheme begins. Once the repayment period begins, the loan has to be repaid within the next 15 years.
- If another loan is taken for higher studies, then the amounts of both the loans have to be repaid in 15 years, after the second course gets complted.
Documents Required
The Form
Loan form, after filling it correctly.
Any One Proof of Identity
- PAN Card
- Passport
- Voter ID
- Driver's License
Any One Proof of Residence
- The latest copy of the phone bill
- The latest copy of the Electricity Bill
- The latest copy of the water bill
- The latest copy of the gas bill
- Passport (compulsory in the case of studies abroad)
- Driving License
- Aadhaar Card
Your Academic Records
- Class 10th result
- Class 12th result
- Your graduation result
- The result of your entrance exam, which is being considered for the loan.
The Proof Of Admission
Admission Letter is given by the institution or the offer letter.
Other Documents
- The statement of cost of study or the schedule of expenses.
- Your passport size photographs (2)
- If you have taken any loans from other banks or any other lenders, then the loan A/C statement for the last 1 year.
Any One Proof of Identity
- PAN Card
- Passport
- Voter ID
- Driver's License
Any One Proof Of Residence
- The latest copy of the phone bill
- The latest copy of the Electricity Bill
- The latest copy of the water bill
- The latest copy of the gas bill
- Passport (compulsory in the case of studies abroad)
- Driving Licence
- Aadhaar Card
Other Documents
- Your passport size photographs (2)
- If you have taken any loans from other banks or any other lenders, then the loan A/C statement for the last 1 year.
- Income Proof for The Co-applicant Who Is An Employee.
- Income proof is required of the co-applicant or the guarantor in the form of salary slips of the last three months, a copy of Form 16 for the previous two years, or a copy of IT returns for the last 2 financial years which are recognized by the IT department. The bank account statement for the last six months is required as well.
- Income Proof For The Co-applicant Who Is Self-employed
- Income proof is required of the co-applicant or the guarantor in the form of the business address proof (if applicable), IT returns for last two years (if he is an IT payee), the TDS Certificate (Form 16A, if applicable), the certificate of qualification (Chartered Accountants/Doctors and other professions), and their bank account statement for last 6 months.
- All of these documents are required to be self-attested.
Official Website
You can visit the online portal to learn more.
Frequently Asked Questions
Q. What is the SBI student loan scheme?
SBI Student Loan Scheme is a term loan that is given to Indian students who are looking forward to taking up their higher education in India or abroad.
Q. What are the courses covered for studies abroad, under the SBI student loan scheme?
Courses Covered For Studies Abroad, Under State Bank Of India (SBI) Student Loan Scheme
- With a focus on getting a job via reputed universities, professional or technical graduation degree courses or pg degree and diploma courses.
- Courses that are provided by Chartered Institute Of Management Accountants (CIMA) London and Certified Public Accountant (CPA), United States, etc.
Q. What is the maximum amount and security offered under the State Bank Of India (SBI) student loan scheme?
Amount and Security Under State Bank Of India (SBI) Student Loan Scheme:
- A maximum of Rs. 10 lacs INR is offered for studying in India.
- A maximum of INR 20 lacs is offered for studying abroad.
Q. What are the academic records that are required to be submitted under the State Bank Of India (SBI) student loan scheme?
- Class 10th result
- Class 12th result
- Your graduation result
- The result of your entrance exam, which is being considered for the loan.
Q. What are the terms of repayment under the State Bank Of India(SBI) student loan scheme?
Once the period of 1 year of the course has been completed, the repayment period of the student loan scheme begins. Once the repayment period begins, the loan has to be repaid within the next 15 years.
If another loan is taken for higher studies, then the amounts of both the loans have to be repaid in 15 years, after the second course gets completed.