The State Bank of India (SBI) offers the Student Loan Scheme to help students finance their higher education, whether in India or abroad. This initiative is designed to cover a wide range of educational expenses, ensuring that financial limitations do not stand in the way of academic aspirations.
Eligibility Criteria
- Nationality: Applicants must be Indian citizens.
- Admission: Students must have secured admission to professional or technical courses through entrance exams or merit-based selection processes.
Loan Amount
- For Studies in India: Up to ₹50 lakh.
- For Studies Abroad: Up to ₹1.5 crore.
Note: Loans up to ₹7.5 lakh do not require collateral, but a co-borrower is mandatory.
Interest Rates
- Base Rate: SBI’s 1-year Marginal Cost of Funds-Based Lending Rate (MCLR) plus a spread.
- Concessions:
- 0.50% concession for female students.
- Additional 0.50% concession if the borrower opts for the SBI Rinn Raksha or any other existing policy assigned in favor of the bank.
Repayment Terms
- Moratorium Period: Course duration plus 12 months.
- Repayment Tenure: Up to 15 years after the moratorium period.
Expenses Covered
- Tuition fees.
- Examination, library, and laboratory fees.
- Purchase of books, equipment, instruments, and uniforms.
- Travel expenses for studies abroad.
- Other course-related expenses, such as study tours and project work.
Security Requirements
- Up to ₹7.5 lakh: No collateral required, but a parent or guardian must act as a co-borrower.
- Above ₹7.5 lakh: Tangible collateral security is required, along with a co-borrower.
Processing Fees
- For Studies in India: No processing fees.
- For Studies Abroad: A deposit of ₹5,000 is required for loan amounts exceeding ₹4 lakh. This amount is adjusted against the margin money or interest payable. If the loan is not availed within four months of sanction, the deposit is forfeited.
How to Apply
- Offline Application:
- Visit the nearest SBI branch with the required documents.
- Fill out and submit the application form available at the branch.
- Online Application:
- Visit the SBI official website.
- Navigate to the ‘Education Loans’ section and select the preferred loan option.
- Click on “Apply Now,” which redirects to the Vidya Lakshmi portal.
- Register on the portal and complete the loan application.
- A bank representative will contact you for further processing.
Required Documents
- For Students:
- Identity proof (e.g., PAN card, passport).
- Address proof (e.g., Aadhaar card, utility bills).
- Admission letter from the educational institution.
- Academic records (mark sheets, certificates).
- Passport-sized photographs.
- For Co-applicants (Parents/Guardians):
- Identity and address proof.
- Income proof (salary slips, income tax returns).
Conclusion
The SBI Student Loan Scheme is a well-structured initiative aimed at making quality education accessible to all. With flexible repayment terms, competitive interest rates, and coverage for a wide range of expenses, this scheme ensures that deserving students can pursue their academic dreams without financial stress. Whether you’re studying in India or abroad, SBI’s Student Loan Scheme provides the necessary support to help you achieve your educational goals.