Education Loan: You can never be overdressed or overeducated. You educate a man; you educate a man. You educate a woman; you educate a generation. From securing admission in a prestigious university to getting an education loan Higher Studies require intensive planning. So, every year, thousands of students flock to foreign countries to pursue higher studies. Whereas students who require financial assistance can use education loans to pursue their higher education dreams. Depending on the lender and lending plan, there may be differences in the loan amount, repayment period, interest rate, and eligibility requirements.
Several banks in India such as State Bank of India, Punjab National Bank, Bank of Baroda, and others offer different types of education loans. In this article, we will discuss the eligibility criteria and interest rates you must double-check before taking an education loan. Read below.
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State Bank of India Education Loan
SBI Studies abroad (above Rs. 7.50 lakhs): Eligible Courses – Studies Abroad
According to the official website of SBI, Regular Graduate Degree/Post-Graduate Degree/Diploma/Certificate/Doctorate Courses in any discipline offered by foreign Institutes/Universities in USA, UK, Canada, Australia, Singapore, Japan, Hong Kong, New Zealand and Europe will be covered under the Studies Abroad scheme.
Eligible Expenses
- Higher: Loan amount Upto Rs. 1.50 Crores
- Easier: Repayment through EMI upto 15 years
- Early Approval: loan sanction prior to i20/Visa
- Tax Benefit: under section 80(E)
- Minimum Loan Amount: Above Rs. 7.50 Lacs
- Maximum Loan Amount: Rs. 1.5 Cr
- Margin: Scholarship/assistantship to be included in margin.
- Margin to be brought in on year-on-year basis as and when disbursements are made on a pro-rata basis.
- Processing Fee: Rs. 10,000/- per application.
- Simple Interest will be charged during Course Period + Moratorium Period
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SBI Student Loan Scheme
A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured.
- Repayment period of upto 15 years after Course Period + 12 months of repayment holidayProcessing Charges:Loans upto Rs. 20 lacs : NIL Loans above Rs. 20 lacs: Rs. 10,000 (plus taxes)
- Security: Upto Rs. 7.5 Lacs:Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee. Above Rs. 7.5 Lacs:Parent/ Guardian as co-borrower and tangible collateral securityMargin: Up to Rs 4 Lacs – Nil. Above Rs 4 Lacs – 5% for studies in India, 15% for studies in abroad
- 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.
| SBI STUDENT LOAN SCHEME | ||||
|---|---|---|---|---|
| Loan Limit | EBR | CRP | Effective Interest Rate | Rate Type |
| Upto Rs 7.5 Lakhs | 9.15% | 2.00% | 11.15% | Floating |
| Concession | 0.50% concession in interest for girl students | |||
| Above Rs 7.5 Lacs | 9.15% | 2.00% | 11.15% | Floating |
| Concession | 0.50% concession in interest for girl students | |||
| 0.50% concession for students availing of SBI Rinn Raksha or any other existing policy assigned in favour of our Bank |
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Punjab National Bank Student Loan Scheme: PNB Udaan
The main objective is to provide financial support to meritorious students for pursuing higher education abroad.
PNB Udaan – Check Eligibility Criteria
- Should be a resident Indian. Should have secured admission to a higher education course in recognized institutions Abroad through Entrance Test/ Merit Based Selection process after completion of HSC(10 plus 2 or Equivalent).
- Talking about Margin: Up to Rs. 4 lac – NIL Above Rs. 4 lac – 15% Scholarship/ assistantship be included in margin. Margin may be brought-in on year-to-year basis as and when disbursements are made on a pro-rata basis.
- Security: Upto Rs. 7.50 lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required. Above Rs.7.50 lacs: Parent(s)/guardian be joint borrower(s).Tangible collateral security of suitable value acceptable to bank.
- Repayment (Maximum): maximum upto 15 years.
- The rate of Interest is provided in the table below:
| Parameter | Rate Of Interest Based On RLLR (Other Than Female) | Rate Of Interest Based On RLLR (Female Customers) |
|---|---|---|
| Loan irrespective of amount to student getting admission into specific institutes as mentioned in Annexure – B (where minimum 100% collateral security is available) | RLLR+BSP (Presently 9.25%) | RLLR+BSP (Presently 9.25%) |
| Loan irrespective of amount (where minimum 100% collateral security is available) | RLLR+BSP + 1.25% (Presently 10.50%) | RLLR+BSP+0.75% (Presently 10.00%) |
| Loan upto Rs.7.50 lakhs (covered under CGFSEL Scheme) | RLLR+BSP+2.00% (Presently 11.25%) | RLLR+BSP + 1.50% (Presently 10.75%) |
| Loan above Rs.7.50 lakhs | RLLR+BSP+2.00% (Presently 11.25%) | RLLR+BSP+ 1.50% (Presently 10.75%) |
