Getting an excellent education is essential. However, many of us can't afford to pay for college or university outright. Luckily, there are options available to help pay for your education. SBI Education Loan offers various loans and scholarships designed to help students save money in their educational endeavors.
From undergraduate and graduate degree programs to continuing education, they provide a wide range of opportunities for students who want an affordable way to attend college or university. Here are some steps you should take before applying for this loan option.
The State Bank of India
is India's largest public lender. Millions of students have achieved their dream
of studying overseas with their help over the years. Over the years, it has
simplified SBI Education Loans to make them more affordable for every student,
irrespective of their background.
What Is an Education Loan?
The Education loan refers to the Loan or funds gained by
an individual to study in India or abroad. Students repay their loans after
they complete their education, and it gives them a grace period of 6 months to
get a job or join one.
Depending on the loan interest you choose, the repayment
amount will be determined. During the time of the moratorium period or
afterward, if you would like to pay.
During the moratorium period, you have six months or 12
months to get a job after completing your education. The Loan isn't due
until after this period.
Since loan interest accrues when funds are dispersed, you
will have a large sum to repay by the time you graduate. Alternatively, your
parents or guardian can start paying the loan right during the moratorium,
where simple interest is calculated.
In this way, it will drastically reduce the number of
your student loans at graduation.
Education loans in India are classified into four types.
Under Graduate education loan
Higher education is available to those who have completed
secondary education. Either in India or overseas, it can be done.
Postgraduate education loan
Students taking a postgraduate course at a reputed
university/college are eligible for these education loans. A study abroad or
study in India loan is also possible here.
Parents availing education loan
When parents take out loans to help their children with
their education, unlike a graduate or postgraduate Loan, the money can be
used for elementary or higher secondary courses.
Career growth education loans
provide loans to young people seeking courses or
certifications that will benefit their career growth.
SBI Education Loan Overview
Our desire to live a successful life leads us to spend a lot of money on education. With SBI being one of the leading education loan providers, they understand the needs of students.
They offer incredibly competitive education loans with lower rates. Several students secure admission into top universities and colleges with SBI education loans every year.
State
Bank of India is Asia's largest and oldest commercial bank. It was founded in
1806. It is a primary financial services provider with over 24 thousand
branches and more than 59 000 ATMs. A genuine bank for every Indian, it has a
20% share of the deposits and loans market among commercial banks in India.
What are the benefits of an SBI Education loan?
There are some advantages to SBI education loans. No hidden fees or administrative fees apply. An SBI loan has fewer forms, to Education loans do not have processing fees.
There is no security requirement
for Female students to qualify for a 0.50% discount. With an SBI Education
loan, you can choose from a variety of options that suit your needs.
Not only can you get help pay for your tuition fees and living expenses. But you can also access a variety of grants that will reduce the amount of money you need to pay for your tuition.
These include
scholarships, bursaries, and cash awards from organizations such as Small
Enterprise Development Corporation. If you need extra funds to complete your
college and university education, an SBI Education loan can help you pay for
the other expenses.
For instance, you can get loans for travel and boarding
expenses, which you need to make while going to school. And you can even borrow
money for other projects that may help you pay for your education and earn some
extra income.
What are the risks of this Loan?
You must take all the steps to protect your Loan and reputation. The most significant risk of this Loan cannot meet your financial obligations.
This can mean defaulting on your payments and needing to pay a substantial penalty or fee to get out of the Loan. For a better chance at success, it's recommended you do your homework on your Loan and report any problems immediately.
What are the benefits of SBI Education Loan?
This loan program provides a multitude of benefits to college or university
graduates. As an eligible graduate, you can receive an SBI Education Loan up to
$5,000 per year for your first four years in college or university. From there,
you can earn additional amounts of up to $5,000 a year.
How to apply for an SBI Education loan?
Follow the steps below to apply for an SBI Education loan:
Fill out the application form carefully. Ensure that all your documents are filled out correctly and are complete.
A complete application form has to be submitted with all the necessary documents. Including the following: Oral Evidence for Academic and Educational Character and Qualifications.
Application form Two letters of recommendation from
faculty/staff Photocopies of diplomas and transcripts Bank statement with transaction
dates and amounts for both your current and previous loans. They can
submit-graduation Certificate Education Certificate Work Experience Certificate
Applications online or at any SBI office in India.
How do I know if I'm approved for the Loan?
Applying for SBI Education Loan can be a complicated process. Therefore, we recommend you read through the SBI Education Loan application and the loan approval process on the SBI Education Loan Website.
From the first page, you'll notice that they want to know all your loan application details, including your employment information and eligibility. By filling out your information correctly and thoroughly, you will know whether or not you'll be approved for the loan.
When is the application deadline? Several
deadlines can impact your application. The application deadline for an
undergraduate program is 30 days after you are accepted into a program. The
deadline for a graduate program is 30 days before you will begin your course.
Documents For SBI Education Loan
It will require borrowers and student applicants to
submit a list of supporting documents along with their duly filled-in Loan
Application Form to be eligible for a student education loan.
I) Student-applicant:
- Proof of Identity (anyone): PAN/ Driver’s License/ Voter ID card/ Passport.
- Proof of Address (any form): a recent telephone bill, electric bill, water bill, or piped gas bill, or a copy of a passport, driving license, or Aadhar card.
- A valid Passport to be mandatorily submitted in case of studying abroad.
Academic Records for
- 10th Result
- 12th Result
- Graduation Result- Semester-wise (if applicable)
- Entrance Exam Result through which admission has been taken (e.g., IELTS, GMAT, GRE, TOEFL, etc.)
- Offer Letter or Admission Letter from the Institution of choice. It would also consider a conditional admission letter in case of studying abroad as proof of admission.
- A detailed statement of the cost of study or Schedule of expenses
- Passport-size photographs
- If any previous loan from other Lenders or Banks, then Loan A/C statement details for the last one year
II) Co-applicant
- Proof of Identity (anyone): PAN/ Passport/ Driver’s License/ Voter ID card.
- Proof of Residence/ Address (anyone): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or a copy of Passport/ Driving License/ Aadhaar Card.
- Passport-size photographs.
- If any previous loan from other Banks/Lenders, then Loan A/C statement for the last one year.
III) Income Proof for Salaried Co-applicant/ Guarantor
- Salary Slip or Salary Certificate for the last three months is mandatory.
- Copy of Form 16 for the last two years or a copy of I.T. Returns for the previous two financial years, which I.T. Dept should acknowledge.
- Bank account statement for the last six months (in case of Salary Account)
IV) Income Proof for Self-employed Co-applicant/
Guarantor
- Business address proof (where applicable).
- I.T. returns for last two years (in case of I.T. payee).
- TDS Certificate (Form 16A, if relevant).
- Certificate of qualification (in case of C.A./ Doctor and other professionals).
- Bank account statement for the last six months.
Eligibility For SBI Education Loan
The bank provides a term loan to Indian nationals who
intend to study in India or abroad, where admission may have been secured. The
student must be an Indian citizen to get the benefits of this Loan.
Features Of SBI Education Loan
- Up to 15 years of Repayment after course completion plus 12 months of repayment holiday.
- Processing Charges.
- Loans up to Rs. 20 lacs: NIL.
- Loans above Rs. 20 lacs: Rs. 10,000 (plus taxes)
- Security
- up to Rs. 7.5 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee
- Above Rs. 7.5 Lacs: Parent/ Guardian as co-borrower and tangible collateral security
- Margin
- Up to Rs 4 Lacs - Nil
- Above Rs 4 Lacs - 5% for studies in India, 15% for studies abroad
- Repayment will commence one year after completion of the course.
- Loan to be repaid in 15 years after the commencement of Repayment
- If it took later additional education loans for higher education after the second course is completed.
- EMI Generation
- After the rate moratorium and course period, the accrued interest is added to the principle, and Repayment is fixed in Equated Monthly Installments (EMIs).
- A maximum EMI of only the principal amount is calculated if full interest has been paid before Repayment begins.
Pros and Cons Of SBI Education Loan
SBI Education loan benefits
- Educational loans are available to people of all classes regardless of their source of income.
- The value of education one receives isn't a middle ground that one can find.
- Students can instill a sense of responsibility through an Education Loan from the very beginning of their careers.
- Education Loans can now be easily accessed from banks and other private or public organizations. In general, Education Loans are issued within a week of all the document verification.
- To make Repayment easier for students, these loans have relatively low interest rates.
- A tax benefit on this Loan is an excellent way to invest the amount somewhere else.
- A loan borrower is given a holiday period commonly called the Moratorium period after completing the course to find a job for himself, after which he can start repaying the loan. In some cases, the repayment period is also extended at the special request of the borrower.
SBI Education loan Drawbacks
- It is crucial to maintain an excellent academic record before applying for a loan because the bank will ask for the mark sheet before granting it. (Now that you know, don't let this be a disadvantage for you.).
- Education Loans have a variable rate of interest linked to a variable index that changes over time. Interest rates may differ with banks and types of loans.
- There is no need for a guarantor for loans below four lakhs, but a guarantor is required above this amount.
- A college education loan is a complicated undertaking if the course does not promise much employment. If a student is only taking admission to "mere degree-granting colleges," banks can refuse this Loan.
- Some banks do not allow students to change courses or colleges after Repayment of loans. Don't apply for a loan until you have consulted the bank.
Vidya Lakshmi Educational Loan Portal
Students seeking education loans are offered an exclusive platform by Vidya Lakshmi. The Indian Banks Association (IBA) and Department of Financial Services (Ministry of Finance) developed this portal.
We at NSDL e-Governance Infrastructure Limited have developed and maintain the portal. The portal allows students to access, apply for, and track their education loan applications to banks from anywhere and at any time.
SBI Education Loan Disbursement Process
Are you a borrower who has applied for SBI home loans fixed deposit? If yes, then here is how the SBI repayment process works.
SBI
gives home loans to its customers for a fixed deposit, and Repayment terms are
decided after discussion with the customer. In case of nonpayment, SBI extends
the period they would return the amount plus interest charged on the amount. In
such cases, the lender requires the customer to pay a penalty fee.
SBI Education Loan Sanction Letter
The process of repaying SBI loans does not end at merely returning the amount to the bank account. SBI authorities issue SBI Education Loan Sanction Letter once a complaint has been received against the borrower.
The borrower can challenge the SBI Education Loan Sanction letter in an online forum if they feel the process is flawed. The borrower can also send SBI Education Loan Sanction Letter to SBI authorized personnel, fax copies of the SBI Education Loan Sanction Letter, and the letter in written format to SBI.
If
the complaint is ignored and no action is taken, the customer can approach the
court to take legal recourse.
SBI Education Loan Sanction Letter provides detailed information about SBI Education Loan Sanction Charge and the procedures followed for assessing SBI Education Loan Sanction Letter.
In simple words, if the loan amount offered is less than the required loan amount, the bank deducts an extra amount of interest from the loan amount.
For more significant loan amounts,
interest is added on the part of Loan and the Loan is made due. SBI
Education Loan Sanction Letter explains the process clearly. It is advised that
borrowers consider various factors before disbursing an SBI Education Loan.
There are many SBI Loan Finance charges associated with loan disbursement. One such charge is Service Release Charge (SRCC). This charge is charged for late Repayment of the SBI Education Loan.
Interest is
charged on the entire loan amount, and the amount of interest depends on the
loan tenure and the rate of interest fixed by SBI. SBI Education Loan Sanction
Letter explains the entire process of loan disbursement in detail.
First, the amount of the SBI Education Loan to be disbursed and the mode of disbursal must be explained to the borrower. The loan amount is advanced to the borrower on their request without considering their current financial condition.
Borrowers who want to avail Loan but have a
bad credit history may still apply for an SBI Education Loan. SBI may allow
such applicants to benefit loan amounts at a higher interest rate after some
negotiation.
SBI Education Loan Form Pdf
It may take several days or weeks for SBI Education Loan Sanction Letter to reach the concerned branch. Once the loan amount is disbursed, the borrower has to return the amount to SBI properly, as mentioned in the loan agreement. If you need SBI Education Loan Form Pdf then you can download it from official SBI website.
Borrowers have to return SBI Education Loan Sanction Letter with all relevant signatures. Suppose a borrower fails to repay the loan amount adequately or returns the loan amount after disbursing it.
In that case,
SBI may take legal action against him/her. In worst cases, the borrower may be
forced to sell off his assets and settle SBI Education Loan Sanction Letter.
Sometimes, the borrower fails to return the loan amount for some valid reasons. Borrowers who fail to repay the loan amount may be sanctioned a penalty fine.
However, the borrower has the right to appeal or
dispute SBI Education Loan Sanction Letter within two weeks from disbursing the
Loan.
As with all other SBI loans, the SBI Education Loan Sanction Letter contains conditions, terms, and conditions that the borrower must follow. In addition, there are some additional formalities that the borrower has to follow for SBI Education Loan Sanction Letter approval.
Before lending the education loan, SBI considers the borrower's current and future financial capabilities. In addition, SBI Education Loan Sanction Letter contains clauses related to penalties and fines if the borrower fails to return the loan amount.