SBI offers slew of educational loans
India’s largest public sector bank, State Bank of India is offering a slew of education loans. Basically, the bank provides term loan to Indian citizens after securing admission in educational institutions either in the country or abroad. There are five categories of loans such as scholar loan, global ed-vantage, student loan, skill loan and take-over of education loans from other financial lending firms. Students will start repaying the loan one year after completion of the course. The loan has to be repaid in 15 years time after the commencement of repayment. Let us see the different kinds of loans offered by SBI.
Here are the different kinds of SBI education loans in detail:
This loan is available for courses at select leading institutions in India like IITs, IIMs, NITs, AIIMS and other premier institutions and you can avail a loan up to Rs. 30 lakh.
This loan is exclusively for full-time regular courses at overseas colleges and universities. You can avail a loan from Rs. 20 lakh up to Rs. 1.5 crore.
This loan is for pursuing higher education in India or abroad. You can avail a loan amount up to Rs. 10 lakh for studies in India and Rs. 20 lakh for overseas studies.
This is a term loan given to Indian nationals for pursuing vocational education and training in India where admission has been secured.
Take-over of Education Loans
Under this option, you can switch your existing high-cost education loan to SBI from other financial institutions from where you had already availed loan. Once you switch to this scheme, you can reduce your monthly Equated Monthly Instalments considerably.
Here are the details you need to know in order to avail SBI’s education loans:
For studies in India: maximum Rs. 10 lakh
Studies abroad: maximum Rs. 20 lakh
However, higher loan limit for studies in India are considered on case-to-case basis, as well. Higher loan limit for studies abroad are considered under SBI’s Global Ed-Vantage Scheme.
Rate of Interest
For the loan limit of up to Rs.7.5 lakh, the one year MCLR is 8.15%, spread is 2.00%, effective interest rate is 10.15% and the reset period is one year. Loan amount above Rs.7.5 lakh the one year MCLR remains the same with the spread amounting to 2.75% and the effective interest rate is 10.90% and the reset period is also same.
There are concessions for girl students. Girl students will get 0.50% concession in interest and 1% concession for full tenure of the loan, if interest is serviced promptly as and when applied during the moratorium period, including course duration.
For availing loan of up to Rs.7.5 lakh, only the parent or guardian can be a co-borrower. No collateral security or third party guarantee is required. For the loan amount in excess of Rs.7.5 lakh only parent or guardian can be a co-borrower and tangible collateral security is required. If the candidate is a married person, then the co-obligator can either be the spouse or the parent (s)/parents-in-law.
A margin is the cash you need to pay from your own source, while the rest is paid by the bank. The margin amount for up to Rs.4 lakh it is nil, while above Rs.4 lakh, 5% for studies in India and 15% for studies abroad will have to be borne by the candidate.
In case second loan is availed for higher studies later, you have to repay the combined loan amount in 15 years after completion of second course.