Student Education Loan

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My dear friends Now a days, All banks offering Student Loan to Indian Nationals for pursuing higher education in India or abroad where admission has been secured. Now i am discussing SBI Education loan based on Guidelines provided by SBI.

• For this Repayment Period is 15 Years (Commence form 12 months after Completion of Secured Course).
• No processing / upfront charges will be levied on Education loans.

Eligibility Criteria:

• Student must be Indian
• The student should have secured an admission in one of the 93 premier Indian institutions.Similarly, for Vocational Education loan, the student should have obtained an admission in a government certified training institute.
• Parent Assets security(if loan exceeds 7.5 laks)
• Courses Covered.

o    Studies in India:(as per SBI Guidelines)

§  Graduation, Post-graduation (degree and diploma) conducted by colleges approved by UGC, AICTE, IMC and the government of India are covered

§  Regular Degree/ Diploma Courses conducted by autonomous institutions like IIT, IIM etc.,

§  Teacher training/ Nursing courses approved by Central Govt or State Govt.

§  Regular Degree/Diploma Courses like pilot training, shipping etc. approved by Director General of Civil Aviation/Shipping/ concerned regulatory authority.

o    Studies abroad:(as per SBI Guidelines)

§  Job oriented professional/ technical Graduation Degree courses/ Post Graduation Degree and Diploma courses like MCA, MBA, MS, etc offered by reputed universities

§  Courses conducted by CIMA (Chartered Institute of Management Accountants) - London, CPA (Certified Public Accountant) in USA etc.

Expenses Covered:

• Fees payable to college/school/hostel
• Examination/Library/Laboratory fees
• Purchase of Books/Equipment/Instruments/Uniforms, Purchase of computers- essential for completion of the course (maximum 20% of the total tuition fees payable for completion of the course)
• Caution Deposit/Building Fund/Refundable Deposit (maximum 10% of tuition fees for the entire course)
• Travel Expenses/Passage money for studies abroad
• Cost of a Two-wheeler upto Rs. 50,000/-

Any other expenses required to complete the course like study tours, project work etc

Loan Amount:

•  For studies in India - maximum Rs. 10 Laks.
• Studies abroad - maximum Rs. 20 Laks.

Rate of Interest:

• Rate of Interest will be depending upon Bank. For Example Rate of Interest in SBI Bank is as follows
  • SBI Student Loan Scheme

  Loan Amount	Rate of Interest
  Up to Rs.4 laks	3.50% above base rate
  Above Rs.4 laks and up to Rs.7.5 laks	3.75% above base rate
  Above Rs.7.50 laks	1.75% above base rate

  "The base rate is fixed at 9.85%. Do make an enquiry with the bank about the prevailing base rates. A concession of 0.50% is provided for girl students and a 1% concession is offered for full tenure of loan, if the interest is serviced promptly during moratorium and course period. "

Margin:

 For SBI Student Loan Scheme, there is no margin for loans up to Rs.4 laks. For loans above Rs.4 laks, the margin is 5% for studies in India and 15% for studies abroad.

Security:

Particular	Security
Upto Rs. 7.5 Laks:	Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee*
Above Rs. 7.5 Laks:	Parent/ Guardian as co-borrower and tangible collateral security*

"*In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law"

Repayment Procedure:

•  Repayment will commence one year after completion of course. 
•  Loan to be repaid in 15 years after the commencement of repayment.
• In case second loan is availed for higher studies later, to repay the combined loan amount in 15 years after completion of second course.

EMI Generation:

              The accrued interest during the moratorium period and course period is added to the principle and repayment is fixed in Equated Monthly Installments (EMI). If full interest is serviced before the commencement of repayment; EMI is fixed based on principle amount only.
 

Documents Required:

• Letter of admission
• Completely filled in Loan Application Form.
  
• 2 passport size photographs.
  
• Statement of cost of study.
  
• PAN Card of the student and Parent/ Guardian.
  
• AADHAAR Card of the student and Parent/ Guardian.
  
• Proof of identity.
  
• Proof of residence.
  
• Student/Co-borrower/ guarantor's bank account statement for last 6 months.
  
• IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee)
  
• Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower.
  
• Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower.
  
  

  More Information about SBI Education Loan:State Bank of India

  More Information about Education Loan :vidyalakshmi

     

  Thank you friends next time we will meet in another post..........Bye....

  
  

  

  --All the above contents only for Public reference and not for any other purpose. Therefore, I can not take any responsibility for the results or consequences of any attempt to use or adopt any of the information presented on this blog--- 
  
  

  Thanks & Regards
  S. Praveen Kumar Reddy. 

  
  

  (source:State Bank of India guidelines)