SBI Student Loan: All You Need To Know

Under education loans, students can borrow money from banks to carter the need for their higher studies. Students go for this type of loan mostly for specialised courses of reputed institutions within and outside the country.

Lakhs of students get through some of the top universities for higher education and find it difficult to arrange a huge amount of money to complete the course.

Some courses and institutions are expensive and require large amount in tuition and other fees which many students can’t afford without financial backing from lending institutions like banks. Since getting an education loan is easy and terms and conditions are also flexible, it helps deserving students pursue their higher studies in top colleges in India and abroad.

SBI Student Loan is a term loan granted to students for pursuing higher education in India or abroad where admission has been secured. This loan provides customized financing solution to the students – who are in-road to transform the future of India. 

This loan covers various courses which include Graduation, Post-graduation including regular technical and professional Degree and Diploma courses conducted by colleges and universities approved by University Grants Commission (UGC) andAll India Council for Technical Education (AICTE) etc.

Other Courses Covered By SBI Loan Plan In India

1. Regular Degree or Diploma Courses conducted by autonomous institutions like IIT, IIM.
2. Teacher training and Nursing courses approved by central government or the state government
3. Regular Degree and Diploma Courses like Aeronautical, pilot training, shipping etc. approved by Director General of Civil Aviation and Shipping and concerned regulatory authority.

For Studies Abroad

1. Job oriented professional or technical Graduation Degree courses and Post Graduation Degree and Diploma courses like MCA, MBA, MS offered by reputed universities.
2. Courses conducted by Chartered Institute of Management Accountants (CIMA) London, Certified Public Accountant (CPA) in USA

Features And Benefits

SBI provides a number of benefits to students which help them in smooth repayment of the loan. The benefits include lower interest rates, concession in interest for girl students, no collateral security for loans uptoINR 7.5 lakh, no processing charges for loans up to INR 20 lakh.

Under this loan plan, the repayment commences one year after completion of course. It also provides features such as repayment period of up to 15 years after course period and 12 months of repayment holiday.

In case second loan is availed for higher studies, students after completion of second course, can repay the combined loan amount in 15 years.

Students can avail this loan of up to INR 50 lakh for studies in India and up to INR 1.50 crores for studying overseas with interest rate of 8.65 per cent and 0.50 per cent concession in interest for girl students.

If one wants to avail the loan, there is no collateral security for loans up to INR 7.5 lakh; tangible collateral security will be needed to avail loan above INR 7.5 lakh.

Expenses Covered In SBI Student Loan:

1. Fees payable to college or school or hostel
2. Examination or Library or Laboratory fees
3. Purchase of Books or Equipment or Instruments or Uniforms, Purchase of computers- essential for completion of the course (maximum 20 per cent of the total tuition fees payable for completion of the course)
4. Caution Deposit or Building Fund or Refundable Deposit (maximum 10 per cent of tuition fees for the entire course)
5. Travel Expenses or Passage money for studies abroad
6. Cost of a Two-wheeler up to INR 50,000.
7. Any other expenses required to complete the course like study tours, project work.

Real Time Xpress Credit From On YONO

Meanwhile, State Bank of India (SBI) has announced the introduction of Real Time Xpress Credit (RTXC) on YONO with an aim to digitally empower customers and offer additional convenience.

Customers can now avail RTXC from the comfort of their homes through YONO app– which is going to be 100 per cent paperless and digital. The end-to-end eight step journey would be easy and instant for the customers.

Dinesh Khara, Chairman, SBI said, “We are pleased to introduce Real Time Xpress Credit (RTXC) Loan facility for our eligible salaried customers on YONO. The Xpress Credit product will enable our customers to experience a digital, hassle-free, and paperless loan process. We at SBI constantly endeavour to offer technology-led enhanced digital banking experience to the customers in order to simplify banking.”