SBI Student Loan: Your Path to Educational Excellence

SBI Student Loan Overview

SBI Student Loan is for Indian students to help pay for higher education in India or abroad, once they have been accepted into a course.This loan helps with paying for things like college fees, exam costs, and buying books or gear you need for your course. How much you get depends on what you’re studying. If it’s medicine in India, you might get more cash compared to other courses. And if you’re heading overseas, there are schemes that can get you even bigger amounts.

After you finish your studies, you’ve got up to 15 years to pay it back, which gives you plenty of time. But before you apply, you’ll need to gather some paperwork, like your school results, proof that you got into your course, and info about your income. It’s a simple checklist to help you through the process so you can focus on your studies without worrying about money.

SBI Student Loan Features

  1. Repayment Period:
    • You have up to 15 years to repay the loan.
    • Repayment starts 12 months after finishing your course.
  2. Processing Charges:
    • No charges for loans up to Rs. 20 lakhs.
    • Rs. 10,000 plus taxes for loans above Rs. 20 lakhs.
  3. Security Requirements:
    • For loans up to Rs. 7.5 lakhs: Only a parent or guardian needs to co-sign. No additional security or guarantee needed.
    • For loans above Rs. 7.5 lakhs: A parent or guardian must co-sign and you need to provide collateral (like property or other valuable assets).
  4. Margin (Your Contribution):
    • No contribution needed for loans up to Rs. 4 lakhs.
    • For loans above Rs. 4 lakhs:
      • 5% contribution for studies in India.
      • 15% contribution for studies abroad.
  5. Repayment Details:
    • Repayment starts one year after completing the course.
    • You have 15 years to repay the loan after repayment starts.
    • If you take another loan for further studies later, you still have 15 years to repay both loans after finishing the second course.
  6. EMI (Equated Monthly Installment) Generation:
    • The interest that accumulates during your study and the one-year waiting period is added to the principal amount. Your monthly payment (EMI) is then calculated.
    • If you pay all the interest before starting repayment, your EMI will be based only on the principal amount.

SBI Student Loan Key Points to Remember

  • Loans can be used for higher education in India or abroad.
  • Repayment can stretch up to 15 years after you finish studying and get a 12-month grace period.
  • Minimal or no upfront charges for processing.
  • Co-signer and collateral requirements depend on the loan amount.
  • Contribution requirements vary based on loan amount and study location.
  • Monthly repayments are calculated based on interest and principal, but can be lower if you pay interest early.

SBI Student Loan Eligibility and Details of the Education Loan for Indian Nationals


This loan is available to Indian Nationals who have secured admission to higher education courses in India or abroad.

Courses Covered

1. Studies in India:

  • Graduation and Post-Graduation:
    • Regular technical and professional degree/diploma courses approved by UGC, AICTE, IMC, or government bodies.
    • Courses at autonomous institutions like IITs, IIMs.
    • Teacher training/nursing courses approved by the Central or State Government.
    • Specialized courses like aeronautical, pilot training, shipping, etc., approved by relevant authorities (Director General of Civil Aviation/Shipping).

2. Studies Abroad:

  • Professional and technical graduation or post-graduation degree and diploma courses (e.g., MCA, MBA, MS) offered by reputed universities.
  • Courses like CIMA (London) and CPA (USA).

Expenses Covered

  • Tuition fees to college/school/hostel.
  • Examination, library, and laboratory fees.
  • Cost of books, equipment, instruments, and uniforms.
  • Purchase of computers (up to 20% of total tuition fees).
  • Caution deposit/building fund/refundable deposit (up to 10% of tuition fees).
  • Travel expenses for studying abroad.
  • Cost of a two-wheeler (up to Rs. 50,000).
  • Any other necessary expenses like study tours and project work.

Loan Amount

1. For Studies in India:

  • Medical Courses: Up to Rs. 30 lakhs.
  • Other Courses: Up to Rs. 10 lakhs.
  • Higher loan limits (up to Rs. 50 lakhs) can be considered on a case-by-case basis.

2. For Studies Abroad:

  • Up to Rs. 7.50 lakhs.
  • Higher loan limits (up to Rs. 1.50 crores) are available under the Global Ed-Vantage Scheme.

SBI Student Loan Summary

This education loan supports Indian students pursuing higher education in India or abroad by covering various educational expenses. The loan amount and conditions depend on the course and location of study, with specific provisions for different types of educational programs and associated costs. The eligibility criteria ensure that students admitted to recognized institutions can benefit from this financial assistance.

SBI Student Loan: Your Path to Educational Excellence
vSBI Student Loan: Your Path to Educational Excellence

SBI Student Loan Checklist of Documents for Education Loan Application

To apply for the education loan, ensure you have the following documents ready along with the filled loan application form:

Academic Documents

  1. Mark sheets:
    • 10th standard
    • 12th standard
    • Graduation (if applicable)
    • Entrance exam result
  2. Proof of admission:
    • Offer letter
    • Admission letter
    • ID card (if available)
  3. Course expense details:
    • Schedule of expenses
  4. Scholarship documents:
    • Copies of letters conferring scholarship, free-ship, etc.
  5. Gap certificate (if applicable):
    • Self-declaration from student for any gap in studies

Personal Documents

  1. Photographs:
    • Passport-size photographs of the student, parent, co-borrower, and guarantor (1 copy each)
  2. Asset-Liability Statement:
    • For co-applicant/guarantor (applicable for loans above Rs. 7.50 lakhs)

Income Proof

For Salaried Persons: 8. Income Proof:

  • Latest salary slip
  • Form 16 or latest Income Tax Return (ITR V)

For Self-Employed/Business Owners: 9. Business Proof (if applicable):

  • Business address proof
  • Latest Income Tax Returns (if applicable)
  1. Bank Account Statement:
    • Last six months’ statement of parent, guardian, or guarantor

Collateral Security Documents (if applicable)

  1. Property Documents:
    • Copy of sale deed and other title documents for immovable property offered as collateral
    • Photocopy of liquid security offered as collateral

Identity and Address Proof

  1. Permanent Account Number (PAN):
    • Of the student, parent, co-borrower, and guarantor
    • Mandatory if eligible under various interest subsidy schemes of GOI
  3. Passport:
    • Mandatory for studies abroad
  4. Officially Valid Documents (OVD):
    • At least one self-attested copy for identity and address proof:
      • Passport
      • Driving license
      • Proof of possession of Aadhaar number
      • Voter’s identity card issued by Election Commission of India
      • Job card issued by NREGA signed by an officer of the State Government
      • Letter from the National Population Register with name and address details
  5. Additional Address Proof (if OVD doesn’t have updated address):
    • Utility bill (electricity, telephone, post-paid mobile phone, piped gas, water bill) not older than two months
    • Property or municipal tax receipt
    • Pension or family pension payment orders (PPOs)
    • Letter of allotment of accommodation from employer (State/Central Government, statutory bodies, public sector undertakings, scheduled commercial banks, financial institutions, listed companies) or lease/license agreements with such employers

Note: If the provided OVD does not contain the current address, you must update the OVD with the current address within three months of submitting the above documents.

Ensure all documents are up-to-date and self-attested where necessary. This checklist will help streamline your loan application process.

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Anu Radha Sharma
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