The State Bank of India (SBI) has launched a student term loan product to provide customised financing solutions. The product offers a concession of 0.5 per cent in the interest rate for girl students.
Check out the features of the loan, the courses you can apply for using the loan and the documentation that you require.
Loan Features
- Interest rate of 8.65 per cent; a concession of 0.5 per cent is available for girls.
- Maximum loan amount available for domestic courses is Rs 50 lakh and for foreign courses Rs 1.5 crore.
- No collateral security for loans up to Rs 7.5 lakh. For loans above Rs 7.5 lakh, a tangible collateral security is needed.
- No processing charges for loans up to Rs 20 lakh. For Loans above Rs 20 lakh, the charges are Rs 10,000 plus tax.
- Repayment period of up to 15 years after the course period plus 12 months of repayment holiday
- Repayment will commence one year after the completion of the course.
- In case a second loan is available for higher studies, students after completion of second course, can repay the combined loan amount in 15 years.
- No margin payment required for loans up to Rs 4 lakh.
The Courses For Which The Loan Is Available
SBI has outlined the various courses for which you can take the loan.
India Courses:
- Graduation, post-graduation, including regular technical and professional degree or diploma courses conducted by colleges and universities approved by UGC/AICTE/IMC/government and others. Regular degree or diploma courses conducted by autonomous institutions like IIT, IIM and others.
- Teacher training and nursing courses approved by the Central or state governments.
- Regular degree or diploma courses like aeronautical, pilot training, shipping etc. approved by the Director General of Civil Aviation, Shipping or the regulatory authority concerned.
Foreign Courses:
- Job-oriented professional or technical graduation, post-graduation and diploma courses like MCA, MBA, MS and others offered by reputed universities.
- Courses conducted by the Chartered Institute of Management Accountants, London and Certified Public Accountant in the US and other
The education loan will cover all the expenses which are required for course completion.
What Are The Expenses Covered In This Loan?
The loan will cover fees payable to the college, school or hostel; fees for examinations, and library and laboratory usage; and cost of books, equipment, instruments and uniforms; cost of computers, which are essential for completion of the course (maximum 20 per cent of the total tuition fees payable for the course), according to the SBI press release.
The loan will also provide for the caution deposit, building fund or refundable deposit, up to a maximum of 10 per cent of the tuition fees for the course.
Besides, travel expenses and passage money for studies abroad will also be provided. Any other expenses required to complete the course like study tours and project work will also be provided for. Students can also buy a two-wheeler with the loan that costs up to Rs 50,000, the press release said.
What Are The Documents Required?
There are several supporting documents which you will need to submit along with this term loan’s application. Here’s the list:
- Mark sheet of 10th, 12th, graduation (if applicable) and entrance exam result.
- Proof of admission to the course.
- Schedule of expenses for the course.
- Copies of letter conferring scholarship, free-ship, others.
- Gap certificate, if applicable (self-declaration from student for gap in studies).
- Passport size photographs of the student, parent, co-borrower and/or guarantor.
- Asset-liability statement of co-applicant or guarantor (for loans above Rs 7.50 lakh).
- Six-month bank account statement of the parent, guardian or guarantor.
- Copy of sale deed and other documents of title to property in respect of immovable property offered as a collateral. Or a photocopy of the liquid security offered as collateral, if applicable.
- Permanent Account Number (PAN) of the student, parent, co-borrower and/or guarantor.
- Submitting Aadhaar is mandatory, if the borrower is eligible under any interest subsidy schemes of the government.
- Passport (mandatory for studies abroad).
- Submission of officially valid documents (OVD) as may be specified. Check which documents you’ll need at https://bank.sbi/web/personal-banking/loans/education-loans/student-loan-scheme
Salaried individuals will need to submit some additional documents. Here’s the list:
- Latest salary slip
- Form 16 or the latest IT return (ITR V)
Those with income apart from salary need to submit the following:
- Business address proof
- Latest IT returns
