State Bank of India, or commonly known as SBI, is one the biggest money lenders in our country. They offer a variety of education loans to Indian students for higher studies both within the country as well as outside the country at interest rates starting from 10.5 percent and a repayment period of up to 15 years. They also offer a 12-month repayment holiday.
The SBI student loans are easy to apply and offer good interest rates amongst other policies. We have put together a bunch of important points that you must consider before applying for a SBI student loan.
1. Can I apply for a loan?
If you are a citizen of India and want to pursue higher education in India or aboard, then you can apply for a loan without any additional processing fees.
2. How much interest does SBI charge?
State Bank of India charges 8.5 MCRL or Marginal Cost of Funds based Lending Rate with a spread of 2 percent per annum for a loan of up to Rs 7.5 lakh with an interest rate of 10.5 percent.
For loans above Rs. 7.5 lakh, SBI charges 8.5 per cent per annum MCLR or Marginal Cost of Funds based Lending Rate with a spread of 2.25 percent with an interest rate of 10.75 per cent per annum.
3. What are the different courses covered under the student loan?
The following courses are covered under the loan if you are studying within the country:
- Graduate and post-graduate courses, degree and diploma courses from UGC, AICTE, IMC or government approved universities or colleges. Courses offered by autonomous institutions like IIT and IIM can also be covered under the loan.
- Teacher and nursing courses approved by the central government or state government.
- Degree courses like pilot training and shipping approved by Director General of Civil Aviation or Shipping.
The following courses are covered under the loan if you want to study abroad:
- Professional graduate and post graduate courses like MCA, MBA, MS, etc
- Courses conducted by CIMA - Chartered Institute of Management Accountants, London, CPA - Certified Public Accountant in USA etc.
4. What are the varied expenses covered under SBI student loan?
State Bank of India's student loans cover a series of expenses like the college or tuition fee. They also cover hostel fee, library and lab fee, exam fee, travel expenses, uniform, books and equipment expenses etc, which may be essential to complete the course.
In addition to this, there is a cover of up to Rs 50,000 to cover the cost of a two-wheeler.
5. What is the maximum loan amount under SBI student loan?
State Bank of India offers a maximum loan amount of Rs. 10 lakh for studies within the country and a maximum loan of Rs. 20 lakh for studies abroad.