State Bank of India provides its customers with a variety of personal banking services. SBI, which is actively engaged in Community Services Banking, also offers education loans to students aspiring to continue higher studies.

Eligibility

• Should be an Indian National.
• Secured admission to Professional / Technical courses in India or abroad through Entrance Test / Merit based Selection process.

Courses Eligible
All courses having employment prospects are eligible.

• Graduation courses/ Post graduation courses/ Professional courses
• Other courses approved by UGC/Government/AICTE etc.

Documents to be Submitted

• 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)

Maximum Amount of Loan

• Studies Abroad : Maximum Rs. 20.00 Lac.
• Studies in India : Maximum Rs. 10.00 Lac

Expenses Covered by the Loan

• Fees payable to college/school/hostel
• Examination/Library/Laboratory fees
• Purchase of Books/Equipment/Instruments/Uniforms
• Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tuition fees for the entire course)
• Travel Expenses/Passage money for studies abroad
• Purchase of computers considered necessary for completion of course
• Cost of a Two-wheeler upto Rs. 50,000/-
• Any other expenses required to complete the course like study tours, project work etc.

Security

• Upto Rs. 4 lacs - No Security
• Above Rs. 4 lacs to Rs. 7.50 lacs - Collateral security in the form of suitable third party guarantee. The bank may, at its discretion, in exceptional cases, weive third party guarantee if satisfied with the net-worth/means of parent/s who would be executing the documents as "joint borrower".
• Above Rs. 7.50 lacs. - Tangible collateral security of suitable value, along with the assignment of future income of the student for payment of installments.

Rate of Interest

• Loans upto Rs. 4.00 Lacs - 0.50% below SBAR i.e. 11.75% p.a.
• Loans above Rs. 4.00 Lacs and upto Rs. 7.50 Lacs - 1.00% above SBAR i.e. 13.25% p.a.
• Loans above Rs. 7.50 Lacs - At SBAR i.e. 12.25% p.a.

Repayment
The loan will be repaid in 5-7 years after the commencement of repayment. There will be moratorium for repayment during the course period +1 year or 6 months after getting job, which ever is earlier.