Money Maya - Personal Financial Planning A/3, J1/14, KHIRKI EXTN, MALVIYA NAGAR, NEW DELHI 110017 -7982367598 EDUCATION lOAN FOR STUDENT May 10, 2017 SBI STUDENT LOAN SCHEME Student Loan in SBI is a term loan. And, this loan is granted to Indian Nationals for pursuing higher education in India or abroad. Where they have secured admission. ● Repayment period is upto 15 years after Course Period and 12 months of repayment holiday ● Most of all, there is no processing and upfront charges will be levied on Education loans. Eligibility: Since SBI Student loan is only for Indian Nationals. Therefore, you should be an Indian, if you want to get a Student Loan from SBI. Furthermore, you may opt for studying in India or abroad. For this, first of all, lets check out the courses you may opt for.
Courses Covered: You can choose to study in India or in Abroad. You may choose from either of the following: A. Studies in India: Graduation and Post-graduation such as ● regular technical and professional Degree or Diploma courses; conducted by colleges/universities approved by UGC/ AICTE/IMC/Govt. etc And, Regular Degree or Diploma Courses ● conducted by autonomous institutions such as IIT, IIM etc Also, Teacher training and Nursing courses approved by Central government or the State ● Government And, Regular Degree or Diploma Courses such as Aeronautical, pilot training, shipping ● etc. approved by Director General of Civil Aviation and Shipping concerned regulatory authority B. Studies abroad: Job oriented professional and technical Graduation Degree courses and Post Graduation ● Degree and Diploma courses such as MCA, MBA, MS, etc offered by reputed universities
And, Courses conducted by CIMA (Chartered Institute of Management Accountants) – ● London, CPA (Certified Public Accountant) in USA etc. Expenses Covered under Student Loan: First of all, Fees payable to college, school ● and hostel Another, Examination, Library and ● Laboratory fees And, Purchase of Books, Equipment, ● Instruments, Uniforms and Purchase of computers- essential for completion of the course (maximum 20% of the total tuition fees payable for completion of the course) Also, Caution Deposit, Building Fund and Refundable Deposit (maximum 10% of tuition ● fees for the entire course) And, Travel Expenses and Passage money for studies abroad ● In addition, Cost of a Two-wheeler upto Rs. 50,000/- ● Furthermore, Any other expenses required to complete the course such as study tours, ● project work etc
Loan Amount which you can avail under Student Loan: For studies in India – maximum Rs. 10 lacs; and ● Studies abroad – maximum Rs. 20 lacs ● Security: Particular Security Upto Rs. 7.5 Only Parent/ Guardian as co-borrower. No Collateral Lakhs: Security or third party guarantee Above Rs. Parent/ Guardian as co-borrower and tangible 7.5 Lakhs: collateral security In case of married person, co-obligator or co-borrower can be either spouse or the parent(s) or parents-in-law Margin: Upto Rs.7.5 Lacs: Nil ● And, Above Rs. 7.5 Lacs : 5% for studies in India; and 15% for studies abroad ●
Repayment: Especially relevant, Repayment will commence one year after completion of course ● Also, Loan to be repaid in 15 years after the commencement of repayment ● And, in case second loan is availed for higher studies later, you can repay the combined ● loan amount in 15 years after completion of second course EMI Generation: EMI (Equated Monthly Installments) : It is fixed by adding the accrued interest during the ● moratorium period and course period to the principal amount. If you repay the full interest, before the start of repayment; then your EMI will be fixed on ● the basis of principal amount only. Rate of Interest for Student Loan in SBI: 1 year MCLR is 9.10%, w.e.f. 01/08/2016. Loan Amount Rate of Interest*
For loans upto Rs.7.5 lacs 2% above MCLR, currently 11.10% p.a. Above Rs.7.50 lacs 1.70% above MCLR, currently 10.80% p.a. ● *And, (0.50% concession in interest for girl students) ● *Also, (1% concession for full tenure of the loan, if interest is serviced promptly as and when applied during the moratorium period, including course duration) Note: IT exemption under Section 80(E) in respect of interest paid in all Education Loans Documents Required: First of all, Letter of admission is required ● And, you will submit completely filled Loan Application Form ● 2 passport size photographs ● Also, Statement of cost of study ● PAN Card of the student and Parent or Guardian ● AADHAR Card of the student and Parent or Guardian ● Proof of identity (Driving Licence or Passport or Aadhar or any photo identity) ● And, Proof of residence (Driving Licence/Passport/Electricity bill/Telephone bill) ● Student, Co-borrower and guarantor’s bank account statement for last 6 months ● Also, IT return or IT assessment order of previous 2 years of Parent or Guardian or other ● co-borrower (if IT Payee)
In addition, Brief statement of assets & liabilities of Parent or Guardian or other ● co-borrower And, Proof of income (i.e. salary slips or Form 16) of Parent or Guardian or other ● co-borrower In addition, if Bank demands any other documents, you will have to provide. ●