SBI Takeover of Education Loan
This loan helps students who are struggling to pay their EMIs for Education Loans to transfer the loan to SBI and lower their EMIs. The minimum loan amount for the SBI Takeover Education Loan is Rs. 10 lakh and the maximum loan amount is Rs. 1.5 crore.
Features of SBI Takeover of Education Loans
Why this Loan?
- The loan is meant for you if you are having a tough time in paying your EMIs for your education loan and are looking to refinance your education loan to lower your EMIs
- You can also avail this SBI Takeover of Education Loan Facility if you are not satisfied with the policies of the bank and just want to transfer your loan to SBI
- The interest rate for takeover loans is usually lower than that of a fresh loan. The actual difference if any, depends on the bank from which you availed the Education Loan
- Students can also apply for a top-up loan from SBI for further study after availing the SBI Takeover of Education Loan
Loan Amount
- The minimum loan amount for the SBI Takeover of Education Loan is Rs. 10 lakh
- The maximum loan amount one can get is Rs. 1.5 crore
Interest
- The rate of interest for this SBI loan is a sum of 3-year MCLR and a factor of 2.00% where MCLR is the Marginal Cost of Funds-Based Lending Rate (MCLR). As of October 2020, the 3-year MCLR of SBI is 7.30% which brings the effective rate of interest at 9.30%
- Girl students get a 0.50% concession in the interest rate
Repayment
- The loan needs to be repaid in up to 15 years as EMIs subject to terms and conditions. As of October 2020, the terms of this loan for repayment are not clearly mentioned on the State Bank of India website. Please check with the bank for details
Security Needed
- This is a secured loan. This means that if the borrower has submitted a collateral with the previous bank for the education loan, the same is usually taken over by the new bank (SBI in this case). However, if the previous loan was an unsecured loan, the borrower must submit a collateral security more than or equal to the value of the proposed loan to SBI
Eligibility
- The borrower should be an Indian national
- The student/borrower should be above 18 years of age at the time of take over
- The education loan must be a fresh loan. This means that SBI Takeover Education Loan should be the first takeover loan availed by the borrower
- The disbursement of the loan should be complete and repayment of the loan should have started. EMIs should be regular in the records of the other bank
Processing and Other Charges
- There are no processing charges for this loan
Uses of the Loan
- The loan can be used to takeover the education loan from another bank to help lower the EMIs and ease the burden of education loan repayment on the borrower
- A top-up loan facility for further studies is available with SBI
Other Features to Know
- Borrowers can pay the EMIs of the SBI Takeover Loan through cheques, mobile banking or net banking as per their convenience
- There are no hidden charges for this loan
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 and Certificate 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