Eligibility, courses covered, loan amount, other details

The State Bank of India (SBI), the largest lender in the country, offers term loans to Indian nationals to pursue higher education in India or abroad where admission has been guaranteed. With this student loan, the bank offers a repayment period of up to 15 years after the course period plus 12 months of repayment leave.

Here are the key things to know about the SBI student loan program:

Covered courses

Studies in India

Diploma, post-diploma, including regular technical and vocational diploma / diploma courses offered by colleges / universities approved by UGC / AICTE / IMC / Govt. etc. Regular diploma / diploma courses provided by autonomous institutions such as IIT, IIM, etc.

Teacher training / nursing courses approved by central government or state government

Regular diploma / diploma courses like aeronautics, pilot training, navigation etc. approved by the director general of civil aviation / navigation / relevant regulatory authority

Study abroad

Job-oriented professional / technical degree courses / post-degree diplomas and degree courses such as MCA, MBA, MS, etc. offered by reputable universities

Courses offered by CIMA (Chartered Institute of Management Accountants) —London, CPA (Certified Public Accountant) in the United States, etc.

Covered expenses

Fees payable to college / school / hostel

Exam / library / laboratory fees

Purchase of books / equipment / instruments / uniforms, purchase of computers – essential for course completion (maximum 20 percent of total tuition fees payable for course completion)

Security deposit / construction fund / refundable deposit (maximum 10 percent of tuition fees for the entire course)

Travel expenses / Transition money for study abroad

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

All other expenses needed to complete the course like study trips, project work, etc.

Amount of the loan

Studies in India

Medicine course: up to Rs 30 lakh

Other courses: up to Rs 10 lakh

(A higher loan limit for studies in India can be considered on a case-by-case basis, maximum up to Rs 50 lakh)

To study abroad

Up to Rs 7.50 lakh

(A higher loan limit for study abroad is considered under the Global Ed-vantage Scheme, maximum up to Rs 1.50 crore)

Processing fee

Loans up to Rs 20 lakh: None

Loans above Rs 20 lakh: Rs 10,000 (plus taxes)

Security

Up to Rs 7.5 lakh: single parent / guardian as co-borrower. No pledge or third party guarantee

Above Rs 7.5 Lakh: parent / guardian as co-borrower and tangible collateral guarantee

Margin

Up to Rs 4 lakh – Nile

Above Rs 4 lakh – 5% for study in India, 15% for study abroad

Generation EMI

Interest accrued during the moratorium period and the course period is added to the principal and the repayment is fixed in equal monthly installments (EMI).

If the full interest is paid before the start of the repayment; The EMI is set on the basis of the principal amount only.

Other characteristics

The reimbursement will begin one year after the end of the course.

The loan can be repaid in 15 years after the start of repayment.

(Edited by : Ajay Vaishnav)

First publication: 02 Nov 2020, 16:44 STI