Higher education often becomes a problem for numerous students due to financial constraints. But higher education is highly recommended so that the students can have better chances of getting employed in this highly competitive job market. So what is it that one is supposed to do? Well, an education loan is certainly the answer to the problem and it is provided by lots of banks in India. State Bank of India also has provision for such loans to ensure that the youth of the country is well educated without having to worry about the expenses that are incurred. Given below are the details regarding the SBI education loans, the eligible courses, the rates of interest and everything that the students would want to know regarding these loans.
Courses eligible for SBI education loans: Education loans are sanctioned for all the courses that provide chances of employment. The degree courses that the students can go for under these education loans are Bachelors, Masters, Diploma, Vocational as well as Professional courses. But it is highly important to note that the institutes require recognition from either the government, or boards like AICTE or the UGC.
Upper Limits of the Education Loans: The maximum amount of the education loans varies according to where the student wants to pursue the degrees from. For courses outside the borders of India, the amount that can be granted is a maximum of INR 20 lakhs. For studies within India, the maximum amount can be up to INR 10 lakhs.
The education loan takes into consideration, expenses like: college fees, travel expenditure, purchase of uniforms, study materials (computers if required), caution money, refundable deposit and the cost of a two wheeler that can be up to INR 50,000. Project work as well as touring for the purposes of studies is also taken into account.
The Interest Rates for the SBI Education Loans: Take a look at the table below to know more about the interest rates of the SBI education loans:
|Amount (INR)||% of Interest per annum|
|Up to 4 lakhs||13.75 as per current market rate (Base Rate + 3.75%)|
|(4 – 7.50) lakhs||15.25 as per current market rate (Base Rate + 5.25%)|
|More than 7.50 lakhs||14.25 as per current market rate (Base Rate + 4.25%)|
Processing Fees Required: There are no processing fees required for the education loans provided by the State Bank of India. However the students who are looking forward to study abroad have to keep a security deposit amounting to INR 5,000. The amount will be adjusted with the margin money by the bank.
Repayment of the Education Loan: The repayment will begin a year after the students complete their courses or 6 months after they secure a job, whichever happens earlier. Whether the loan amount is INR 10 lakhs or INR 20 lakhs, the money has to be repaid to the bank within a time period of 5 to 7 years.