Education loan has become a mandate for the deserving students who wanted to pursue their education abroad. The banks today are offering loans to deserving students who wanted to pursue their higher education in India as well as overseas. The terms of education loan are little different when compared to other types of loans available in the bank. People who take education loans for their children enjoy double benefits tax exemptions and repayment holiday period. Unlike other loans, the borrower starts repaying the loan either of 6 months of getting the job or one year of completing the course whichever is earlier.
SBI Loans for Higher Education
There are many banks that offer study loans for the students who wanted to pursue their higher education. Comparing the interest rates and other related terms of the loan is very important before choosing one. As the bank regulated by the government, SBI remains one of the top choices for the students to avail education loans. Take a look at the features of SBI study loans if you are going make a choice here.
The first concern you will have before applying for the education loan whether the chosen course is eligible to get the loan. The list courses accepted by SBI for study loan include graduation/ post graduation courses, professional courses, other courses approved by the government.
Education loan of SBI covers the expense related to tuition/ residence fee, equipment related to completion, of course, uniform fee, travel expenses like bus fare, project fee, purchasing books, lab fee, the cost of two- wheeler up to 50,000 if necessary.
Loan amount and tenure
Higher education in India can get a loan amount up to 10 lakhs. Students pursuing overseas education will get the loan up to 20 lakhs. You should start repaying the loan 6 months after getting the job or one year after the completion of the course whichever is earlier. The loan tenure is 5-7 years in both the cases.
Interest rate and processing fee
You will be charged floating interest of 12.25% for the loans up to 4 lakhs. For the loan above this price, you will be charged floating interest of 13.5%. Good news is that there is no processing fee on the SBI education loans.
- There is no security for the study loans taken up to 4 lakhs
- For the loans from 4 lakhs -7.50 lakhs, third party guarantee should be provided.
For the loans above 7.50 lakhs- property of the suitable value should be pledged along with the assignment of future income of the student to pay the instalments