SBI Education Loans Cheaper by 1 Percent

SBI Education Loans Cheaper by 1 Percent

State Bank of India (SBI) plans to cut interest rates on education loans by up to 100 basis points-1% from Monday 20-02-2012.

Accordingly, for a loan of Rs 4 lakh, interest rate will be down by 25 bps to 11.75 per cent; for loans in the Rs 4-7.5 lakh range, the rate is down 100 bps to 12.50 per cent, while for loans above Rs 7.5 lakh, the rate is lower by 25 bps to 12.25 per cent.

State Bank of India-SBI is also offering a concession of 50 bps on interest rates for loans given to female students.

The government plans to have a central fund into which all banks will contribute from their earnings out of education loans. This fund will, in turn, provide guarantees to education loans. SBI's outstanding education loan portfolio grew 14% to Rs 12,402 crore from Rs 10,883 crore.

For more information visit : http://www.statebankofindia.com/

SBI Student Educational Loan

SBI Student Educational Loan

* Maximum loan of Rs.10 lacs for studies in India
* Maximum loan of Rs.20 lacs for studies abroad
* No processing fee
* Simple interest during moratorium/repayment holiday
* 1% interest rate concession for servicing interest during moratorium/repayment
* Repayment up to 7 years
* Repayment starts 1 year after completion of course or 6 months after getting job
* No security for loan upto Rs.4lacs and only parent/guardian as co-borrower
* No margin for loans upto Rs.4lacs
* Loans above Rs.4lacs,5% margin for studies in India and 15% for studies abroad
* Online registration of loan application

For more information contact-:
Helpline- 1800 11 22 11 or 080 26599990
Email- contactcenter@sbi.co.in
http://sbi.co.in/

Education Loan from SBI

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
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 Rate

For loans upto Rs.4 lacs - 12.75% p.a. Floating

For loans above Rs.4 lacs - 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 Loan Amount Repayment Period
in Years
In India Up to Rs. 7.5 lacs 5-7
Above Rs. 7.5 lacs 5-10
Abroad Up to Rs. 15 lacs 5-7
Above Rs. 15 lacs 5-10





Security

Amount Studies In India Studies Abroad
Upto Rs. 4 lacs No Security No Security
Above Rs. 4 lacs to Rs. 7.50 lacs Suitable third Party Guarantee Suitable third Party Guarantee
Above Rs. 7.50 lacs to Rs. 10 lacs(India)/ Rs. 15 lacs(Abroad) Tangible Collateral security for full value of loan
Tangible Collateral security of suitable value of loan or suitable third party guarantee.

Rs 15 lacs to Rs. 20 lacs ___ Tangible Collateral security for full value of loan




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)
pls check the latest interest rate from-www.statebankofindia.com