SBI Educational Loan, Higher Study, Career, Step

EDUCATION LOAN

A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured.
Eligible Courses
All courses having employment prospects are eligible.
Graduation courses/ Post graduation courses/ Professional courses
Other courses approved by UGC/Government/AICTE etc.

Expenses considered for loan
* Fees payable to college/school/hostel
* Examination/Library/Laboratory fees
* Purchase of Books/Equipment/Instruments/Uniforms
* Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees for the entire course)
* Travel Expenses/Passage money for studies abroad
* Purchase of computers considered necessary for completion of course
* 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 (with effect from 12.8.2008)
For loans up to Rs.4 lacs - 0.50% below SBAR i.e.13.25% p.a. Floating
For loans above Rs. 4 lacs and upto Rs.7.50 lacs - 1.00% above SBAR 14.75 % Floating
For loans above Rs.7.50 lacs - SBAR - 13.75% p.a. Floating

Processing Fees
No processing fee/ upfront charges
Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in the margin money

Repayment Tenure
Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier.
Place of Study - Studies in India
Loan Amount - Rs. 10.0 lacs
Repayment Period in Years - 5-7


Place of Study - Studies Abroad
Loan Amount - Rs. 20.0 lacs
Repayment Period in Years -5-7
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
For loans above Rs.4.0 lacs:
Studies in India: 5%
Studies Abroad: 15%
Documentation Required
Completed Education Loan Application Form.
Mark sheets of last qualifying examination
Proof of admission scholarship, studentship etc
Schedule of expenses for the specified course
2 passport size photographs
Borrower's Bank account statement for the last six months
Income tax assessment order, of last 2 years
Brief statement of assets and liabilities, of the Co-borrower
Proof of Income (i.e. Salary slips/ Form 16 etc)