SBI Scholar Education Loan

SBI Education Loan for Premier Institutes (Higher Study in India)

This loan is meant for students pursuing graduate, postgraduate and professional studies from premier institutes in the country such as IIM, IIT, NIT, IISc, ISB, etc. The maximum loan amount is capped based on the bank’s categorisation of institutes. This loan scheme is also known as the SBI Scholar Loan.

Features of State Bank of India Scholar Education Loan

Why this Loan?

• The loan is meant for you if you have gained admission into a Bachelors, Masters, Doctorate (PhD) or a professional studies programme at select premier institutes in the country
• The SBI Education Loan for Premier Institutes is disbursed to the institution as required to pay the fees or other approved charges
• Students can avail quick sanction facility offered by SBI by visiting the designated campus branches or select branches in the country
• Top up loan can be availed from SBI for further studies

Loan Amount

• The maximum loan amount is Rs. 40 lakh for institutes in Category AA, Rs. 30 lakh for institutes in Category A, Rs. 20 lakh for institutes in Category B and Rs. 30 lakh for institutes in Category C. Check out the list of the eligible premier institutes for the SBI Scholar Education Loan here.

Interest

• List AA Institutes: The interest rate for this loan is equal to 1-month MCLR where MCLR is the Marginal Cost of Funds-Based Lending Rate (MCLR) and a factor of 0.20%. As of October 2020, the MCLR of SBI is 6.70%. This brings the effective interest rate at 6.90%
• List A Institutes: The interest rate for this loan for IITs and IIMs is equal to 1-month MCLR + 0.35%. As of October 2020, the MCLR of SBI is 6.70%. This brings the effective interest rate at 7.05%. For all other institutes in List A, the effective interest rate is 7.20%
• List B Institutes: The interest rate for this loan for NITs in List B is 7.20%. For all other institutes in List B, the effective interest rate is 7.70%
• List C Institutes: The interest rate for this loan for NITs in List C is 7.20%. For all other institutes in List C, the effective interest rate is 8.20%

Repayment

• The repayment moratorium is for the course duration and an additional grace period of 12 months
• The loan needs to be repaid in 15 years in equated monthly instalments (EMIs) after the moratorium ends

Security Needed

• List AA Institutes: For loans up to Rs. 40 lakh, no collateral security is required. Parents must be joint borrowers
• List A Institutes: For loans up to Rs. 20 lakh, no collateral security is required. Parents must be joint borrowers. For loans above Rs. 20 lakh up to Rs. 30 lakh, parents must be joint borrowers and a tangible collateral worth the loan amount must be submitted
• List B Institutes: For loans up to Rs. 20 lakh, no collateral security is required. Parents must be joint borrowers
• List C Institutes: For loans up to Rs. 7.5 lakh, no collateral security is required. Parents must be joint borrowers. For loans above Rs. 7.5 lakh up to Rs. 30 lakh, parents must be joint borrowers and a tangible collateral worth the loan amount must be submitted

Eligibility

• The borrower should be an Indian national
• The student must have secured admission in one of the select premier institutes in India

Eligible Courses

• Full-time Degree or Diploma courses through Entrance Test or Merit-based Selection
• Full-time Executive Management Courses
• Part-time Graduate and Post-graduate Courses by select premier institutes

Borrower Contribution to Total Cost (Margin Money)

• No margin money is needed

Note: Margin money refers to the amount the borrower contributes to the overall amount required. Suppose course fees and costs add up to Rs. 40 lakh. Then if margin money is needed and the borrower has to provide a margin percentage of say 10%, then they have to contribute Rs. 4 lakh.

Processing and Other Charges

• There are no processing charges for this loan

Uses of the Loan

• The loan amount can be used to pay any fees or other charges that are a part of the standard tuition, hostel or any other institution-approved cost that are necessary to complete the course
• The loan can also be met to cover any travel expenses, study tours and so on

Other Features to Know

• A top-up loan can be approved under this scheme for further studies if the total amount of the two loans does not exceed the maximum allowed under the Scholar Loan Scheme for that institution category where further studies are being taken up. E.g. if the first course was in a Category B institute where the maximum loan allowed is Rs. 20 lakh and the further studies are done in a Category A institute, then the total of the two loans will be the maximum loan allowed for Category A institute.
• The loan is disbursed directly to the college, book seller or publisher, computer seller, and so on and not to the applicant
• The bank may ask for the submission of the student’s progress report at regular intervals during the course

Documents Needed

• Application Form duly filled and signed by applicant and/or guarantor along with details of applicant and/or guarantor and family
• Two Passport Size Photographs of student, applicant and/or guarantor
• Personal Identification Proofs (Any One) of the Student and Co-borrower: Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
• Residential Address Proof (Any One) of the Student and Co-borrower: Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
• Admission Letter, Course Details and Prospectus
• Statement of the cost of study and Fee Details with Demand of Fee by the Institution
• All Proofs of Past Academic Record including Mark Sheets and Certificates
• Copy of Passport is mandatory
• Proof of Income of the Co-borrower (Salaried): Salary Slip of last 3 months, Copy of Form 16 of last 2 years and Bank Account Statement of last 6 months
• Proof of Income of the Co-borrower (Self-employed): Business Address Proof, IT return of last 2 years, TDS Certificate, Bank Account Statement of last 6 months andCertificate of Qualification if Doctor, CA, etc.
• All documents must be self-attested

Reference Facts

• State Bank of India Website: www.sbi.co.in and www.onlinesbi.com (net banking)
• Headquarters: Mumbai, Maharashtra
• Call Centre Toll-Free Number: 1800 11 2211, 1800 425 3800