Further details under each scheme mentioned in above table

1. SBI Student Loan Scheme

The said loan scheme is for Indian national students wanting to pursue higher education in India or abroad and admission has been secured for the same.

Courses that the loan scheme covers in India are:

• UG/ Engineering/ PG/ MBA/ MCA/ PhD/ Specialized courses in recognized colleges / institutes like IITs, IIMs/ MBBS/ universities under AICTE/ UGC/ Union Govt/ State Govt/ ICMR.
• Technical Diploma course consisting of 3 years offered by any AICTE approved polytechnic institutes
• Special courses or diploma in pilot training, aeronautical sciences, maritime studies, nursing studies approved by Central or State Governments etc.
• Job oriented/ professional/ technical courses offered by institutes recognized by the government

Courses that the loan scheme covers abroad:

• Job oriented/ professional/ technical/ graduation or PG degree/ MCA/ MBA/ MS offered by reputed institutes
• Courses offered by CIMA, UK and CPA / CFA of USA

The quantum of loan amount for studies in India in the case of medical courses is up to ₹30 lacs and for other courses is up to ₹10 lacs. However, on a case to case basis, a higher limit may be considered for studies in India with a maximum cap of ₹50 lacs.

The quantum of loan amount for studies in abroad is up to ₹7.50 lacs. Any amount above the same will be covered under the Global Ed-Vantage scheme with a maximum cap of ₹1.50 crores.

No margin is applicable for any loan amount of up to ₹4 lacs and an amount above ₹4 lacs will attract a margin of 5% for studies in India and 15% for studies in abroad.

Almost all expenses of the course (including study tours, hostels, library, equipment, books, project work, examination, travel expenses for studies in abroad, etc.) are covered under the scheme. Also covered is the cost of a two-wheeler for up to ₹50,000 /-

For any loan amount up to ₹7.50 lacs, no collateral security is mandatory while parent(s) / guardian will be required to sign up as co-borrower. Amount that is more than ₹7.50 lacs will require collateral and tangible security equivalent to the amount availed.

The repayment period is of 15 years excluding the moratorium period which covers the entire course period with an additional 1 year.

In the case of EMI payments, the interest accrued at the time of course and moratorium period is added to the principle and EMI figure is computed accordingly. In case the interest amount is repaid at the time of course and moratorium period, the EMI figure is based only on the principle amount.

Below describes the rate of interest facility under this loan scheme:

2. Scholar Loan Scheme

This loan scheme can be availed by students who have secured admission to select premier institutes by way of merit – HSC scores and entrance examinations.

The list of these institutes can be viewed here Select Premier Institutions

Below states the quantum of loan amount along with details on collateral security, which is in accordance with the segregation of institutions as mentioned in the list:

No margin is applicable on this loan scheme and thus 100% financing is available.

The courses that are eligible for loan under this scheme would include:

• Regular full time Graduate degree/ PG degree/ technical degrees etc.
• Executive management courses like PGPX offered by IIMs
• Full time management courses like PGDM/ PGPM
• Part time management courses
• M.Tech or Doctoral courses from IIMs / IITs

Almost all expenses of the course (including study tours, hostels, library, equipment, books, project work, examination, etc.) are covered under the scheme.

The repayment period is of 15 years excluding the moratorium period which covers the entire course period with an additional 1 year.

In the case of EMI payments, the interest accrued at the time of course and moratorium period is added to the principle and EMI figure is computed accordingly. In case the interest amount is repaid at the time of course and moratorium period, the EMI figure is based only on the principle amount.

Below describes the rate of interest facility under this loan scheme:

3. Global Ed-Vantage Scheme

The scheme is applicable for Indian national students who have secured admissions to higher education in foreign universities abroad by way of merit – entrance exam scores. The universities can be of any of these following countries: USA, UK, Canada, Australia, Singapore, Japan, Hong Kong, New Zealand and Europe [Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland]

The courses covered under this scheme are full time regular graduation / PG/ MBA/ MS/ medical/ engineering etc.

The minimum loan amount that can be availed is ₹7.50 lacs and the maximum loan limit is up to ₹1.50 crores. A processing fee of about ₹10,000 /- per application is levied under this scheme.

Although there is no percentage of margin applicable under this scheme, the scholarship amount is included in the margin figure.

Almost all expenses of the course (including study tours, hostels, library, equipment, books, project work, examination, travel expenses for studies in abroad, etc.) are covered under the scheme.

As the minimum loan amount is more than ₹7.50 lacs, the application must be backed up by co-borrowers (parents), third party guarantee and tangible collateral security is mandatory whose value is equivalent to the availed loan amount.

The repayment period is of 15 years excluding the moratorium period which covers the entire course period with an additional 1 year.

Interest payments – Simple interest is applicable during the course and moratorium period.

***Insurance – The scheme Global Ed-Vantage is covered under the SBI Life Insurance policy – SBI RiNn Rakhsha, which covers the families of the loan borrowers from repayment liability.

Below describes the rate of interest facility under this loan scheme:

4. Skill Loan Scheme

In order to avail this facility, the applicant must have enrolled into courses offered by Industrial Training Institutes (ITIs) or any polytechnic institutes or any recognized centres for training of skill development or any training partners affiliated to NSDC or State Skill Corporation, which leads to issuance of degree / diploma / certificate as prescribed by the National Skill Qualification Framework.

The minimum and maximum loan facility that can be borrowed under this scheme is ₹5,000/- and ₹1,50,000/- respectively wherein for any course that is for a duration of up to 6 months, the loan amount is ₹50,000/- and for courses exceeding 6 months duration, the amount is up to ₹1,50,000/-

Although no collateral or third-party guarantee is required, the applicant’s parent will be required as joint borrower

Moratorium period under this scheme depends on the duration of the course.

• For any course that is up to 1 year – moratorium period will be for 6 months from the completion of course.
• For courses that are more than 1 year – the moratorium period will be applicable for 12 months from course completion.

Repayment period will be initiated after the completion of moratorium period.

• Loan up to ₹50,000 – 3 years
• ₹50,000 to ₹1 lac – 5 years
• More than ₹1 lac – 7 years

Documents Required for the above loan schemes

Along with the duly filled loan application form for the respective scheme, the following are the commonly requested documents that need to be submitted to the bank:

• SSC, HSC, Graduation (if applicable) marksheets, entrance exam scorecard sheet
• Admission proof copy (offer letter / admission letter) of the course applied to.
• Fee / expense schedule of the entire course period
• Copies of any scholarship certificates
• Gap certificate (if any – self declaration by applicant regarding gap in studies)
• Passport size photographs of applicant (student), co-borrower (parent), third party guarantor (if any)
• Co-applicant / guarantor’s asset liability statement (for any loan amount above ₹7.50 lacs)
• In case of salaried persons –

1. Latest salary slips
2. Copy of Form 16 / recently filed Income Tax Return

• In case of non-salaried persons –

1. Address proof of business (if applicable)
2. Copy of latest Income Tax Returns

• Bank account statements for the 6 months of Parent / Co-borrower/ guarantor
• Documents relating to collateral and tangible security
• PAN (Permanent Account Number) Card Copy for identity proof of applicant/ Co-borrower (parent)/ Guarantor (self-attested)
• Aadhar (UID) Card copy of student /co-borrower (parent)/guarantor for address proof (self-attested)
• Passport Copy (mandatory for loan availed towards studies abroad)
• Driving License copy (if any)
• Voter’s ID card issued by Election Commission of India
• Job card issued by NREGA and duly verified by a gazetted officer of government (in the case of Skill Loan Scheme)

How to Apply for the loan

Online process – Except for the Global Ed-Vantage loan scheme, the rest of the SBI Education loan schemes can be applied via online from Vidya Lakshmi Portal, which is a centralized portal specifically catering to students wanting to explore multiple options offered by various banks before choosing the appropriate loan scheme which is in tandem to the applicants’ needs.

The Global Ed-Vantage is a scheme purely designed and supported by SBI and hence the students wanting to avail this facility will have to apply via SBI website https://onlineapply.sbi.co.in/personal-banking/edvantage-loan

Offline process – The applicant will have to visit the nearest branch of SBI and file for application of loan by filling out the required forms and submitting the copies of mandatory documents.

***Insurance: State Bank of India has not yet come up with insurance cover for all of its education loan scheme except for the Global Ed-Vantage loan facility as it involves huge sum of money. The insurance cover here, is provided by the bank’s sister entity SBI Life Insurance under its policy – SBI RiNn Rakhsha which covers the family of the borrower from repayment liability.

Many banks are now resorting to include insurance on the same. This subsequently raises the interest rates on these loans.

Few major reasons for inclusion of insurance cover are –

• Covering of default risk rising due to poor job markets
• Exchange rate risks in the case of overseas education loans
• Below satisfactory campus placement records
• Possibility of discontinuation of course by student or debarring by institutions on disciplinary or academic grounds.

Note – At the time of enquiring about the various loan facilities, kindly confirm with the bank officials regarding the opening of savings bank account for loan disbursement.