Bank Loan - SBI Student Education Loan Scheme

SBI Education Loan Scheme, a term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured. Maximum amount of the loan limited to 10 lakhs for students studies in India and 20 lakhs for students studies in abroad. There will not be any security if the loan amount does not exceed 4 lakhs and girl student will get 0.50% relaxation on interest rate. Repayment should be commenced one year after completion of course or 6 months after securing a job, whichever is earlier and to be completed within 5 to 7 years maximum.

Main Highlights of This Article

  1. Eligible Courses if Studies in India
  2. Eligible Courses if Studies Abroad
  3. Expenses considered for loan
  4. Maximum Amount of Loan
  5. Processing Fees
  6. Repayment Tenure
  7. Security
  8. Margin
  9. Documentation Required

Eligible Courses if Studies in India

  • Graduation, Post-graduation including regular technical and professional Degree/Diploma courses conducted by colleges/universities approved by UGC/ AICTE/IMC/Govt. Etc.
  • Regular Degree/ Diploma Courses conducted by autonomous institutions like IIT, IIM etc.
  • Teacher training/ Nursing courses approved by Central government or the State Government
  • Regular Degree/Diploma Courses like Aeronautical, pilot training, shipping etc. approved by Director General of Civil Aviation/Shipping
  • Vocational Training and skill development study courses will not be covered under the Education Loan Scheme, as the scheme is framed to provide bank loans for higher studies.

Eligible Courses if Studies Abroad

  • Graduation/ Post-graduation for job oriented professional/ technical courses offered by reputed universities.

Expenses considered for 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.

Maximum Amount of Loan

  • For studies in India, maximum Rs. 10 lacs
  • Studies abroad, maximum Rs. 20 lacs

Interest Rates - It depends bank's policy and RBI's regulations

Processing Fees

  • No processing fee/ upfront charges
  • Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in the margin money

Repayment Tenure

Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier and to be completed within 5 to 7 years.


  • For loans upto 4 lakhs - No security required.
  • For loans above 4 lakhs upto 7.50 lakhs - Collateral security in the form of suitable third party guarantee. The bank may, at its discretion, in exceptional cases, waive third party guarantee if satisfied with the net-worth/means of parent/s who would be executing the documents as "joint borrower".
  • For loans above 7.50 lakhs upto 20 lakhs - Tangible collateral security of suitable value, along with the assignment of future income of the student for payment of instalments.
  • All loans should be secured by parent(s)/guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law


  • For loans up to Rs.4.0 lacs - No Margin
  • For loans above Rs.4.0 lacs: Studies in India - 5%; Studies Abroad - 15%

Documentation Required

  • 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 Certificate / Salary slips / Form 16 / IT return etc)