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Educational Loan
pursuing higher education in India or abroad
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Various banks give educational loans to Indian Nationals to pursue
their studies in Indian & Abroad. The terms and conditions and the rate
of interest varies among Banks. The following are the terms used by
State Bank of India to give Educational Loans.
Eligible Courses
All
courses having employment prospects are eligible.
-
Graduation
courses/ Post graduation courses/ Professional courses
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Other
courses approved by UGC/Government/AICTE etc.
Expenses considered for loan
-
Fees payable to
college/school/hostel
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Examination/Library/Laboratory fees
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Purchase of
Books/Equipment/Instruments/Uniforms
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Caution
Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees
for the entire course)
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Travel
Expenses/Passage money for studies abroad
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Purchase of
computers considered necessary for completion of course
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Cost of a
Two-wheeler upto Rs. 50,000/-
Any
other expenses required to complete the course like study tours, project
work etc.
Amount
of Loan
-
For studies in
India, maximum Rs. 10 lacs
-
Studies abroad,
maximum Rs. 20 lacs
Interest
Rates
w.e.f. 29.06.2009 (SBAR 11.75%)
SBI
Student Loan Scheme
|
Loan
Amount |
Rate of
Interest |
|
Loans upto
Rs. 4.00 Lacs |
0.50% below
SBAR i.e. 11.25% p.a. |
|
Loans above
Rs. 4.00 Lacs and
upto Rs.
7.50 Lacs |
1.00% above
SBAR i.e. 12.75% p.a. |
|
Loans above
Rs. 7.50 Lacs |
At SBAR i.e.
11.75% p.a. |
An
Interest Rate concession of 0.50% to Girl Student availing Student Loans
Processing Fees
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No processing
fee/ upfront charges
-
Deposit of Rs.
5000/- for education loan for studies abroad which will be adjusted
in the margin mone
Repayment Tenure
Repayment will commence one year after completion of course or 6 months
after securing a job, whichever is earlier.
|
Place of
Study |
Loan
Amount |
Repayment
Period
in Years |
|
Studies in India |
Rs. 10.0
lacs |
5-7 |
|
Studies
Abroad |
Rs. 20.0
lacs |
5-7 |
Security
|
Amount |
For loans
upto Rs. 10.00 lacs for Studies in India and upto Rs. 20.00 lacs for
studies abroad |
|
Upto Rs. 4
lacs |
No Security |
|
Above Rs. 4
lacs to Rs. 7.50 lacs |
Collateral
security in the form of suitable third party guarantee. The bank
may, at its discretion, in exceptional cases, weive third party
guarantee if satisfied with the net-worth/means of parent/s who
would be executing the documents as "joint borrower". |
|
Above Rs.
7.50 lacs. |
Tangible
collateral security of suitable value, along with the assignment
of future income of the student for payment of installments. |
All
loans should be secured by parent(s)/guardian of the student borrower.
In case of married person, co-obligator can be either spouse or the
parent(s)/ parents-in-law
Margin
-
For loans up to
Rs.4.0 lacs : No Margin
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For loans above
Rs.4.0 lacs:
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Studies in India: 5%
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Studies
Abroad: 15%
Documentation Required
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Completed
Education Loan Application Form.
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Mark sheets of
last qualifying examination
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Proof of
admission scholarship, studentship etc
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Schedule of
expenses for the specified course
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2 passport size
photographs
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Borrower's Bank
account statement for the last six months
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Income tax
assessment order, of last 2 years
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Brief statement
of assets and liabilities, of the Co-borrower
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Proof of Income
(i.e. Salary slips/ Form 16 etc
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