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State bank of India provides loans to students wanting to pursue higher education in India and abroad. Unlike other banks which maintain a list of courses which they are ready to finance, the State Bank considers every course which has employment prospects. To gain a rough idea, Graduation courses, Post graduation courses, Professional courses as well as other courses approved by UGC/Government/AICTE are considered. The bank also offers SBI career loan upto a maximum of 20 lakhs for individuals wishing to undertake commercial Pilot training courses and Airhostess Training courses in India and abroad, from institutes recognized by the Ministry of Civil Aviation/DGCA. The loan can be secured through mortgage of Immovable Property/Govt.Securities, Public Sector Bonds,NSCs/KVPs/RBI Relief Bonds/Bank's TDR/LIC Policies etc. In this case, the applicant should be atleast 18 years old, while the co-applicant, less than 60. What the loan covers : * Fees payable to college/school/hostel * Examination/Library/Laboratory fees * Purchase of Books/Equipment/Instruments/Uniforms * Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees for the entire course) * Travel Expenses/Passage money for studies abroad * Purchase of computers considered necessary for completion of course Apart from these expenses, the bank will also finance the purchase of a two-wheeler upto Rs. 50,000. Other expenses required to complete the course are also covered. These may include study tours, project work etc. Details : A student can avail of a maximum of 10 lakhs loan if he is studying in India. For studies abroad, the limit is 20 lahks. The repayment period for both the loans is 5-7 years including the duration of the course. Repayment period begins 1 year after the completion of the course, or 6 months after obtaining a job - whichever is earlier. In case of the Career Loan, the amount has to repaid in 36 equated monthly installments with a maximum moratorium of one year after the completion of the course. Processing fee of 0.5 % is also applicable. The interest rates depend on the amount of loan. SBI Educational Loan Upto 4 lakhs - 11.75% p.a 4 lakhs to 7.5 lakhs - 13.25 % p.a Above 7.5 lakhs - 12.25 % p.a SBI Career Loan
The securities and margins which need to be provided to take the loan also depend on the amount. For SBI Educational Loan Upto 4 lakhs : No securities/margins required. 4 lakhs to 7.5 lakhs : The bank will require collateral security in the form of a suitable third party guarantee. In some cases the bank may waive third party guarantee if it is satisfied with the net-worth/means of parents who would be applying for the loan as a "joint borrower". In case the student is studying in India, the margin is 5%, otherwise 15%. Above 7.5 lakhs : The bank requires "tangible" securities of appropriate value. Land property, real estate, jewellery etc. qualify as "tangible" assets. Apart from that, the future income of the student is to be assigned to the bank for payment of the installations. Again, if the student is studying in India, the margin is 5%, otherwise 15%. For SBI Career Loan
Documents Required : * Completed Education Loan Application Form. * Mark sheets of last qualifying examination * Proof of admission scholarship, studentship etc * Schedule of expenses for the specified course * 2 passport size photographs * Borrower's Bank account statement for the last six months * Income tax assessment order, of last 2 years * Brief statement of assets and liabilities, of the Co-borrower * Proof of Income (i.e. Salary slips/ Form 16 etc) To Apply : To download the application form for educational loan, click here. |
Education Loan
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