State Bank Of India Education Loan

State Bank Of India Education Loan


A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured osperity.

Courses Covered

Studies in India

  • Graduation, Post-graduation including regular technical and professional Degree/Diploma courses conducted by colleges/universities approved by UGC/ AICTE/IMC/Govt. etc
  • Regular Degree/ Diploma Courses conducted by autonomous institutions like IIT, IIM etc
  • Teacher training/ Nursing courses approved by the Central government or the State Government
  • Regular Degree/Diploma Courses like Aeronautical, pilot training, shipping etc. approved by the Director General of Civil Aviation/Shipping/ concerned regulatory authority

Studies abroad

  • Job-oriented professional/ technical Graduation Degree courses/ Post Graduation Degree and Diploma courses like MCA, MBA, MS, etc offered by reputed universities
  • Courses conducted by CIMA (Chartered Institute of Management Accountants) - London, CPA (Certified Public Accountant) in the USA etc.

Expenses Covered

  • Fees payable to college/school/hostel
  • Examination/Library/Laboratory fees
  • Purchase of Books/Equipment/Instruments/Uniforms, Purchase of computers- essential for completion of the course (maximum 20% of the total tuition fees payable for completion of the course)
  • Caution Deposit/Building Fund/Refundable Deposit (maximum 10% of tuition fees for the entire course)
  • Travel Expenses/Passage money for studies abroad
  • The cost of a Two-wheeler up to Rs. 50,000/-


Any other expenses required to complete the course like study tours, project work etc

Loan Amount

  • For studies in India - a maximum of Rs. 10 lacs
  • Studies abroad - maximum Rs. 30 lacs


Particular 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 security

In the case of a married person, the co-obligator can be either the spouse or the parent(s)/ parents-in-law


  • Upto Rs.7.5 Lacs: Nil
  • Above Rs. 7.5 Lacs: 5% for studies in India, 15% for studies abroad


  • Repayment will commence one year after completion of the course.
  • Loan to be repaid in 15 years after the commencement of repayment
  • In case a second loan is availed for higher studies later, to refund the combined loan amount in 15 years after completion of the second course

EMI Generation

  • The accrued interest during the moratorium and course periods is added to the principle and repayment is fixed in Equated Monthly Installments (EMI).
  • If full interest is serviced before the commencement of repayment; EMI is fixed based on principal amount only.

Rate of Interest


Loan Amount Rate of Interest*
For loans upto Rs.4 lacs 2% above Base Rate, currently 11.15% p.a.
Above Rs.4 lacs and upto Rs.7.50 lacs 2% above Base Rate, currently 11.15% p.a.
Above Rs.7.50 lacs 1.70% above Base Rate, currently 11.15% p.a.
  • *(0.50% concession in interest for girl students)
  • 1% concession for full tenure of the loan, if interest is serviced promptly as and when applied during the moratorium period, including course duration#)

IT exemption under Section 80(E) in respect of interest paid in all Education Loans


Education Loans for Students securing admission in IITs, IIMs, NITs, AIIMS and other reputed institutions.

Rate of Interest:

Documents Required

  • Letter of admission
  • Completely fill in Loan Application Form
  • 2 passport-size photographs
  • Statement of cost of study
  • PAN Card of the student and Parent/ Guardian
  • AADHAR Card of the student and Parent/ Guardian
  • Proof of identity (Driving Licence/Passport/Aadhar/ any photo identity)
  • Proof of residence (Driving Licence/Passport/Electricity bill/Telephone bill)
  • Student/Co-borrower/ guarantor's bank account statement for the last 6 months
  • IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee)
  • Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
  • Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower

* Terms and conditions apply.

                                                                                                                             For further details, please click here