SBI Study Loans

As other banks offer the services of loans to its customers, in a similar manner, State Bank of India also caters the needs of its customers with a variety of personal banking services. The bank also provides educational loans to meritorious students who wish to pursue higher studies in India or abroad. However the loan is available only to an Indian National.

Courses Eligible for Education Loans:

Any graduate, professional or postgraduate program or any other course sanctioned by UGC, AICTE or the government undertaken with the prospects of employment, is considered eligible for the loan.

Expenses taken into account

  • The student loan covers school, college or hostel fees as well as cost for buying books and other necessary items.

  • Apart from the library, exam or library fees, even caution deposit, refundable deposit and building fund are considered for the loan.

  • Other expenses, which are mandatory for completing the course, travel expense as well as a maximum cost of Rs. 50, 000 for buying a 2 wheeler, are taken into account.

Quantum of Loan & Security

Maximum loan amount sanctioned for studies in India is Rs. 10 lacs while it is Rs. 20 lacs for studying in abroad. On a loan above Rs. 4 lacs, there is a margin of 5% and 15% for studying in India and abroad respectively.

  • No security is required for loan amount upto Rs. 4 lacs.

  • A borrower should present a 3rd party as guarantee for a loan amount above Rs. 4 lacs. However, on SBI discretion, this clause of 3rd party guarantee may be waived off in certain cases.

  • If you borrow a loan amount above Rs. 7.5 lacs, you need to offer a material collateral security and assign the future income of the student for paying installments.

  • The guardians or parents of a borrowing student should secure an education loan.

  • If the borrower is married, his or her spouse, parents-in-law or parents can act as the co-obligator.

Repayment of Education Loan

The borrower has to repay the loan within 5 − 7 years with repayment period beginning 6 months after getting job or one year after the course is completed, whichever happens earlier.

Education Loan for ISM students

Education loans are also sanctioned for ISB student. However only 95% of costs is sanctioned for these students. There is also a margin of 5% on the loan amount, which needs to be repaid in 7 years.

Further Information

If you want to know about the interest rates or other details of the Study Loan scheme of SBI, you can click on SBI

Discussions & Questions

  • I want to take education loan for upsc coaching. can take loan for this purpose? I have done my M.sc in biotechnology from IIT Roorkee ( - on ))

    1 Answer

    Kindly contact the bank for information on loans.

    - on

  • I want education loan for B TECH in electronics and telecommunication. ( - on ))

    1 Answer

    Please contact the nearest bank branch for the set of documents required.

    - on