SBI Educational Loan System:
State Bank of India provides the educational loan to the Indian student willing to study in India as well as in abroad.It is one of the largest educational loan providing banks in India. The terms and condition for this aspect have changed from February 2013, new terms and conditions are listed below.
For Abroad Studies- Courses offered for graduation/ post graduation to the students applying for professional/ technical education in reputed universities.
For Education in India-
- Regular degree/diploma courses conducted for graduation/ post graduation level by universities/ colleges approved by UGC/AICTE/IMC/Govt., it also includes the Self governing institutes like IIT/IIM.
- Central/state government approved courses like teacher training/ nursing.
- Director General of civil aviation/ shipping approved regular Degree/ Diploma course like pilot training, shipping and aeronautical, etc.
- ‘Loans for vocational Education and Training’ is program launched to cover the expenses of vocational courses which are not covered under regular educational loans.
Amount of Loan and Repayment Period:
- For education in abroad the loan limit is up to Rs.30 lacs which can be returned in the time span of 5-7 years.
- For education in India the loan limit is up to Rs.10 lacs which can be returned in the time span of 5-7 years.
Repayment procedure will start after 1 year of the completion of the course or 6 months after a job is secured, whichever lies earlier.
For loan up to Rs.4 lacs interest rate is 13.20% p.a. which is 3.50% above base rate.
For loan more than Rs.4 lacs and up to Rs.7.50 lacs interest rate is 13.45% p.a. which is 3.75% above base rate.
For loan above Rs.7.5 lacs interest rate is 11.45% p.a. which is 1.75% above base rate.
For vocational education training interest rate is 13.20% p.a. which is 3.50% above base rate.
- For female students a concession of 0.5% in interest is available.
- 1% concession for full tenure is provided if the loan and rate of interest is provided on time.
Expenses considered for loan-
- College/hostel/School fees.
- Purchase of books/uniforms/instruments
- Library/laboratory/examination fees.
- Refundable deposits (maximum 10% of tuition fee)
- Travel expenses, loan for two wheeler up to Rs.50,000/- could be considered if distance of school and hostel is considerably long.
- Any other expenditure required to complete the course of education like training and project work are also financed.
For studies abroad the processing of loan costs Rs.5000/-.
For Indian educational loan there is no processing fee.
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