EDUCATION LOAN

STATE BANK OF INDIA

 PURPOSE

The Scheme provides loans to deserving and

meritorious students for pursuing higher
education in India and abroad.
 ELIGIBILITY CRITERIA

 Should be an Indian National

STUDENT
 Should have secured admission to
professional/Technical courses through
entrance test/selection process.
 Should have secured admission at
reputed foreign University/Institution.
 ELIGIBILITY CRITERIA
STUDIES IN INDIA
-Graduation courses; Post Graduation courses;
Ph.D & professional courses
-Diploma/Computer Certificate courses of reputed
Institutions accredited to DoE or Institutes
affiliated to universities.
-Courses like ICWA,CA,CFA etc. -Courses offered
by National Institutes & other reputed private
institutes.
 ELIGIBILITY CRITERIA(contd.)
STUDIES IN INDIA(contd.)
-Courses conducted by IIM,IIT,IISc,XLRI,NIFT,
courses offered in India by reputed foreign
universities
-GNIIT, ANIIT & AAE conducted by NIIT
-Evening courses of approved institutes.
-Courses approved by
UGC/Govt./AICTE/AIBMS/ICMR etc.,
 ELIGIBILITY CRITERIA(contd)

STUDIES ABROAD:
-GRADUATION: For job oriented
professional/ Technical courses by reputed
universities.
-POST GRADUATION: MCA, MBA, MS
etc.
-Courses conducted by CIMA-London, CPA in
USA etc.
EXPENSES CONSIDERED FOR LOAN
 Fee payable to School/College/Hostel/
Examination/ Library/Laboratory.
 Purchase of books/equipment/ instruments/
Uniforms/Maintenance costs.
 Caution deposit/building fund/refundable
deposit supported by Institution bills.
 Travel expenses/Passage money for studies
abroad
 Purchase of computers essential for the
course
EXPENSES CONSIDERED FOR LOAN

 Admission Fee payable at CET Cell for

seeking admission to Engineering / Medicine
and other courses
 Any other expenses required to complete the
course like study tours, project work, thesis
etc.
 Cost of two wheeler, premium for edu-shield,
captation fee, boarding and lodging(if own
arrangements are made)-Subject to certain
conditions
 QUANTUM OF FINANCE

Need based finance subject to the repaying

capacity of the parents/students, Ceilings as
below:
Studies in India – Max Rs. 10.00 lacs.
Studies Abroad - Max Rs. 20.00 lacs.
 MARGIN
Upto Rs. 4.00 lacs – No margin is insisted
upon
Above Rs. 4.00 lacs-
i) Studies in India – 5 %
ii) Studies abroad - 15%
 Scholarship/assistant-ship to be included in
margin. Margin may be brought in year to
year basis as and when disbursements are
made on a pro-rata basis.
 SECURITY
 Upto Rs.4.00 lacs – No security is insisted
upon.
 Above Rs. 4.00 lacs & upto Rs.7.50 lacs –
guarantee of third person for the loan amount.
 Above Rs.7.50 lacs –
For Studies in India -
Tangible Collateral Security for full value
For Studies Abroad -
In addition to Tangible Collateral an
assignment of future income of the student
The loan documents to be executed by both
the student and the parent/guardian.
 SECURITY

The security can be in the form-

land/building, Govt. Securities/ Public sector
Bonds/KVP/Units of UTI, LIC Policy, Gold/
Shares/Debentures, bank deposits in the name
of student/ parent/ guardian or any third party
guarantee acceptable to the bank.
Assignment of future income of the student
may be obtained
 RATE OF INTEREST
Upto Rs.4.00 lacs : 0.25% above SBAR*
i.e.12.00 % p.a.
Above Rs.4.00 lacs: 1.25% above SBAR* i.e
13.00% p.a.
Simple interest during moratorium period
Loans to be given only on floating rate basis.
1% concession for full payment of interest
during the said moratorium period.
 RATE OF INTEREST(contd.)

Simple interest will be debited monthly during

the repayment holiday/moratorium period.
Penal interest @ 2% will be charged for loans
above Rs.4 lacs for the overdue amount and
overdue period.
 REPAYMENT
• 1 year from the completion of the Course or 6
months after getting job, whichever is earlier.
• The loan will be repaid in 5-7 years after
commencement of repayment for loans upto
Rs.7.50 lacs for studies in India and upto
Rs.15.00 lacs for studies abroad
• For loans over Rs.7.50 lacs it will be 5 to 10
years.
 PAPERS TO BE SUBMITTED
i. Proof of admission to the course.
ii. Mark sheets/Certificate of the last exam.
iii. Application form(Student &
parent/guardian)
iv. Statement of Bank account for the last 6
months.
v. 2 Passport size photographs of each.
vi. Signature identification from existing
Bankers.
vii. Address Verification-passport/Voter ID
viii.For Salaried Persons:
a) Latest salary slip b) Latest form – 16
c) Employment details.
 SBI SCHOLAR LOAN
•Loans to deserving meritorious students for full time course in
India at select premier and reputed institutes
•Secured admission to professional/technical courses through
entrance test/selection process
•Maximum Loan amount is Rs.7.50 lacs
•Margin – 5% for loans over Rs.4.00 lacs to be brought in on
year to year basis on pro rata basis
•Only floating rate of interest
•Upto Rs.4.00 lacs – 9 % p.a. and over Rs.4.00 lacs - 9.25 %
•Simple interest during moratorium
•Accrued interest during moratorium will be added to the loan
amount and EMI arrived at.
 SBI SCHOLAR LOAN(contd.)

•Penal interest of 2% for loan above Rs.4.00 lacs on the

entire outstandings for the period of default
•No Security and no collateral
•Loan in the students name only
•No processing fee
•Repayment period 5 to 7 years
•Loan sanctioned only on the basis of the student having
secured admission in a reputed/top rated institute
•Some of the institutes covered for this scheme are – all
IITs; BITS, Pilani; IISc, Bangalore; all IIMs; XLRI,
Jamshedpur; AIIMS, Delhi; CMC,Vellore; KMC,
Manipal; BMC, Bangalore; National Institute of Design,
Ahmedabad etc.
 RBI EDUCATIONAL LOAN

• Family income not to exceed Rs.1.00 lac

• Rs.15,000/- for merit students and Rs.50,000 for
payment seat or the fees paid whichever is less
•Margin is NIL
•Moratorium- 2 years after course or 6 months after
obtaining a job
•Repayment not to exceed 5 years from course
completion.
•Security – NIL
•Interest – 12%
 SBI EDUCATION PLUS
•A personal loan for distance education and
part time courses
•Courses conducted by
UGC/Govt./AICTE/AIBMS/ICMR/IGNOU etc.
•Permanent Employees of
State/Central/PSUs/Reputed Institutes with
minimum 2 years service and should have
secured a seat
•Consent letter from the employer for
pursuing the proposed course is a must
•Age should be below 45 years
SBI EDUCATION PLUS(contd.)
• Loan amount will be 15 NMI with a max. of
Rs.1.00 lac and a min. of Rs.25,000/-
•Margin – NIL
•Interest – 0.25% above SBAR* min 11%
•Repayable in 60 EMI
•No penalty for early repayment
•Check off/PDC along with third party
guarantee will be required
•Processing Fee – NIL
*SBAR 10.75% AS ON DATE
 LOANS FOR APTECH LTD COURSES
•Loans to working/earning student to take
computer courses with ACE-Aptech Computer
Education, Arena Multimedia, SSI Education of
atleast 3 months duration and where the tuition
fee is atleast Rs.10,000/-
•A confirmed/permanent employee with NMI of
Rs.3000/- are eligible
•If non salaried, two years of IT return with NAI
of Rs.40,000/-
•Loan subject of EMI/NMI ratio less than or
equal to 0.5
•Loan amount – Min Rs.10,000/- Max. 12 times
NMI or Rs.1.00 lac
LOANS FOR APTECH LTD COURSES(contd.)

•Repayment Commences one month after

disbursement and should be repaid within 6
months of completion of the course subject to a
maximum of 42 months.
•Interest 1.75% above SBAR*
•Processing Fee – Rs.200/- for loans less than
Rs.50,000/- otherwise Rs.400/-
•Disbursements in 4 instalments during the
course period

*SBAR AS ON DATE IS 10.75%