State Bank Of India Education Loan

State Bank Of India Education Loan

Quality education is one of the most important prerequisites that can help people live a complete, comfortable, and successful life. But, unfortunately, everyone cannot afford such an education as it comes with high costs. To help deserving students take advantage of the education provided by the top universities of the world and get the most out of their capabilities, the State Bank of India has provided education loans so that meritorious students can pursue their dream course efficiently and gain excellence in their fields.

State Bank of India education loan is extremely competitive for not only India’s reputed institutes but also for students who wish to test their capabilities in a foreign land. SBI overseas education loan interest rates are floating and can vary with the variations in MCLR. State Bank of India Education loan interest rates ranges from 8.85% and 10.75%.


State Bank of India was originated in the first decade of the nineteenth century with the establishment of the Bank of Calcutta on 2nd June 1806. After three years, the bank received its charter and was again re-designed as the Bank of Bengal on 2nd January 1809. Being one of the unique institutions, the bak was the first joint-stock bank of British India sponsored by the Government of Bengal. The other two banks namely the Bank of Madras (1 July 1843) and Bank of Bombay (15 April 1840) followed the Bank of Bengal remained at the tip of modern banking in India till their fusion as the Imperial Bank of India on 27 January 1921.

State Bank Of India Education Loan Key Features and Benefits


The main aim of the State Bank of India education loan Scheme is to provide loans to students from Indian nations for pursuing higher studies in India or at a foreign institution. This scheme is valid only for students who have secured admissions in premier institutions in India or in any other country. A separate loan scheme is offered for students pursuing vocational education and training in any country.

Expenses Considered for SBI Education Loan:

  • Tuition and course fee
  • Examination, laboratory, and library fees
  • Caution deposit
  • Cost of books, equipment, and other instruments.

Some expenses are considered only for the student loan scheme and not for the vocational training loan.

  • Cost of a two-wheeler for traveling up to Rs.50,000
  • Travel expenses and passage money for studies abroad
  • Caution deposit, other refundable deposit, and building fund which amounts up to 10 percent of the tuition fees for the entire semester
  • Any other expenses required to complete the coursework such as study tours, project, and thesis

Amount of Education Loan

  • SBI Student Loan Scheme
  • The bank offers State Bank of India education loans up to Rs.10 lakhs for studies in India. It also offers an SBI overseas education loan up to a maximum of Rs.1.5 crores.
Category of the educational institutionMaximum Loan Limit Without SecurityMaximum Loan Limit With Security
List ARa.20 lakhsRs.30 lakhs
List BRa.7.5 lakhsRs.30 lakhs
  • State Bank of India education loan for Vocational Education and Training up to six months is offered at a maximum of Rs. 50,000. For courses with a duration of more than six months, students get Rs. one lakh as a loan.

Interest Rates

  • SBI Student Loan Scheme
Loan AmountRate of Interest
Up to Rs.4 lakhs3.50% above the base rate
Above Rs.4 lakhs and up to Rs.7.5 lakhs3.75% above the base rate
Above Rs.7.50 lakhs1.75% above the base rate

The base rate for State Bank of India education loan is fixed at 9.85%. A concession of 0.50% is provided for female students and a one percent concession is offered for the full tenure of the State Bank of India education loan if the interest is serviced punctually during the moratorium and course period.

  • SBI Scholar Loan scheme
Type of InstitutionInterest Rate per annum
List AA25 bps above base rate (10.10% at present)
List A25 bps above base rate (10.10% at present)
List BFor unsecured loan up to Rs.20 lakhs, 50 bps above base rate (10.35% at present)
List C175 bps above base rate (11.60% at present)

For colleges listed in list B, the interest rate is 25 bps if the collateral security provided by the student is equal to or greater than the loan amount. This situation is also valid if the student’s work experience is greater than two years.

  • SBI Loan for Vocational Education and Training: The rate of interest is fixed at 3.50% above the base rate of 9.85%

Processing Fee

No processing fee is charged for State Bank of India education loans and SBI overseas education loans.

Repayment Tenure

  • SBI Student Loans
Maximum Loan AmountRepayment Period
Up to Rs.4 lakhsUp to 10 years
Above Rs.4 lakhs to up to Rs.7.5 lakhsUp to 10 years
Above Rs.7.5 lakhsUp to 12 years
  • SBI Scholar Education Loan
  • The maximum repayment tenure is 12 years.
  • The repayment period starts after 6 months of course completion.
  • In the case of SBI Loan for Vocational Education and Training, the repayment period for courses of duration up to one year can be up to three years. For courses of duration above one year, the repayment period can extend up to five years.


  • State Bank of India Education Loan
Loan AmountSecurity
Up to Rs.4 lakhsParent or guardian as co-borrower
Above Rs.4 lakhs to up to Rs.7.5 lakhsParent or guardian as co-borrower and collateral security in the form of a third party guarantee
Above Rs.7.5 lakhsParent or guardian as co-borrower and tangible collateral security
  • SBI Scholar Education Loan
  • The student’s parents or guardian who so ever sign the application as co-borrower needs to provide tangible collateral security of full value only to avail extra loan amount for list A and list C institutions. State Bank of India education loans can also be availed without security under the scholar scheme.
  • The bank does not take the guarantee of any collateral or third-party. But, parents or guardians will have to execute the loan documents as co-borrower.

For State Bank of India education loan Scheme, there is no margin for loans up to Rs.4 lakhs. For loans above Rs.4 lakhs, the margin is 5% for studies in India and 15% for SBI overseas education loans.

Eligible Courses

  • SBI Student Education Loan
  • For studies in India, undergraduate and post-graduate technical courses (degree and diploma) conducted by colleges that are approved by UGC, IMC, AICTE, and the government of India are covered. Also, teacher training and other diploma courses like pilot training and shipping as approved by the concerned regulatory authority are covered under the loan. For studies abroad, job-oriented professional graduate and post-graduate courses like MCA, MBA, MS, courses conducted by CIMA – London, CPA – USA are approved for the loan.
  • Regular full-time degree and courses for which the student is granted admission through merit-based admission process or entrance test are covered under the loan
  • Full-time executive management courses like PGPX are approved for the loan.
  • Skill development courses and vocational courses of duration between two months to 3 years run by a government department or any organization supported by National Skill Development Corporation leading to a recognized Government organization are approved for the loan

Documentation Required for SBI Education Loan

Some of the important documents needed to apply for a State Bank of India education loan are:
Student – Applicant: (Self-attested documents)
i. Academic Records: 10th Result 12th Result Graduation Result- Semester-wise (if applicable)Entrance Exam Result _____________________________ (mention the Test taken)
ii. Proof of admission: Admission Letter/ Offer Letter (studies abroad only) / ID card (for reimbursement cases)
iii. Copies of letter conferring scholarship, free-ship, etc.
iv. Schedule of expenses
v. Gap certificate, if applicable
vi. 2 passport-size photographs
vii. Passport to be mandatorily obtained in case of Studies Abroad
viii. PAN Card
ix. AADHAAR card, if available (mandatory for availing subsidy benefit)
x. OVD: _________________________
xi. If any other existing loan from other Banks/Lenders, then Loan A/C statement for last 1 year

Co-Applicant / Guarantor*: (Self-attested documents)
i. PAN Card
ii. OVD: _________________________
iii. 2 passport-size photographs
iv. If any other existing loan from other Banks/Lenders, then Loan A/C statement for last 1 year
v. Asset-Liability Statement * wherever applicable Income Proof for Salaried Co-applicant / Guarantor* (Self-attested documents)
i. Salary Slip or Salary Certificate of last 3 months
ii. Copy of Form 16 or copy of IT Returns for last 2 financial years, acknowledged by IT Dept (ITR-V)
iii. Bank account statement for last 6 months (of Salary Account) Income Proof for Self-employed Co-applicant / Guarantor* Self-attested documents)
i. Business address proof (If applicable)
ii. IT returns for last 2 years (if IT payee)
iii. TDS Certificate (Form 16A, if applicable) iv. Bank account statement for last 6 months * wherever applicable Major Documents for Collateralized Loans
For Land/ building offered as collateral-
i. Title Deed of the property
ii. Any other property related document(s) (if applicable)_____________________________
If Liquid Security offered as collateral, a photocopy of same to be enclosed
For Loans above Rs. 4 lacs and up to Rs. 20 Lacs for studies abroad: DD/ Cheque of Rs. 5000/-
Loan Processing Fee # : DD/ Cheque of Rs. 11,800/- (Rs. 10,000 processing fee +18% GST)
Advocate/ Legal Charges: As applicable for the center

State Bank Of India Overseas Education Loan/ State Bank Of India Student Education Loan Features

1. Loan Amount

The State Bank of India provides secured loans above 20 lakhs up to 1.25 crore with deviation for preferential list universities.

2. Percentage of Loan Against Collateral Provided

The bank provides a loan amount up to 90 percent of the Property’s Realizable Value and FD value and a loan up to 90 percent of the LIC Surrender value and KPV and NSC Value.

3. Collateral Property

The State Bank of India provides secured loans above 20 lakhs up to 1.25 crore with deviation for preferential list universities.

4. Student’s Profile

To provide a State Bank of India education loan to any applicant, the bank will check the academic background of the student (no. of KTs throughout his last education) along with the course and institution he is applying for.

5. Interest Rate

The current interest rate is 10.20 % (3 Yr.s MCLR + 2.00 % Spread). The interest rate varies with the change in MCLR. SBI further offers 0.50 % Concession (Girl Student) as well as a 0.50 % Discount against Rinn Raksha or any other existing policy assigned in favour of SBI(SBI Life) Insurance Policy. The Rin Raksha is generally 1 % of the Loan Amount.

6. Interest Paying During Moratorium Period

The bank also provides an option of paying the interest on SBI overseas education loan during moratorium period or along with EMIs.

State Bank Of India Education Loan Eligibility

ParametersSBI Education Loan Eligibility Criteria
Age of the Applicant
  • Up to 35 years for non-employed people
  • Up to 45 years in the case of working employees and executives
Who can apply
  • Indian Nationals with secured admission to any professional or technical course in a recognized institution.
  • Permanent employees who are employed at least for three years with any organization and wish to gain higher professional qualifications. These professionals should also have secured admissions in a reputed institute.
Maximum Loan Amount
  • Upto Rs. 1,000,000 for studies in India
  • Upto Rs. 1,50,00,000 under SBI Edvantage Scheme.
  • Upto Rs. 4,000,000 for studies at IITs, ISB’s, and IIM’s.
Repayment Frequency
  • Quarterly or monthly rests.
  • Repayment of State Bank of India education Loan typically starts one year after completing the course of six months after getting a job, whichever is earlier.
  • The repayment of loan interest will start immediately after the disbursement of the first installment of the loan.
Repayment Period
  • The entire tenure of a State Bank of India education loan includes Duration of Study, Grace Period after the Study, and Repayment Period.
  • For Indian courses, repayment tenure is a maximum of 12 years after the commencement of repayment.
  • Applicants applying for SBI overseas education loan have repayment tenure for a maximum of 15 years after the commencement of repayment.

State Bank Of India Education Loan EMI Calculator

State Bank of India Education Loan EMI which can also be said as equated monthly installment is a fixed amount of money paid by the applicant to the bank against the State Bank of India Education Loan taken. This is towards repayment of the student’s loan to the bank which every month, is due on a fixed day till the loan is fully paid back.

State Bank of India Education Loan repayment calculator calculates the EMI based on the loan amount applied for along with the interest charged on the loan and the tenure for which the applicant applied for the loan. State Bank of India offers convenient and affordable education loans with loan EMIs as low as Rs. 8,738 per lakh for a 12 years tenure and the lowest rate of interest of 8.85%.

SBI Overseas Education Loan FAQs

  1. What documents should be submitted to avail of the SBI overseas education loan subsidy?

     Along with all the necessary loan documents, the applicant needs to submit an income certificate issued by the Income Certifying Authority designated by the State Government.

  2. Can the applicant’s spouse sign up as a co-applicant for a State Bank of India education loan?

     Married applicants can designate their spouse as co-applicant.

  3. How the State Bank of India education loan is disbursed?

     The loan amount is disbursed directly to the educational institution or the vendor whenever required.

  4. What educational documents need to be submitted during an SBI overseas education loan application?

     The applicant is asked to submit the HSC and SSLC certificates along with the degree mark sheet and TOEFL and GRE score, whichever falls in the eligibility criteria. In case the student has given GRE/ TOEFL we can look to provide the same as well.

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