All about SBI Education Loan: Eligibility, Documents required, Interest Rates & more.

This article covers all the details of availing SBI Education loans such as Courses covered, Expenses covered, Interest rates and more. All the details are given below.



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


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 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
  • Cost of a Two-wheeler upto Rs. 50,000/-


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


Loan Amount

  • For studies in India – maximum Rs. 10 lacs
  • Studies abroad – maximum Rs. 30 lacs






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



  • 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 course.
  • Loan to be repaid in 15 years after the commencement of repayment
  • In case the second loan is availed for higher studies later, to repay the combined loan amount in 15 years after completion of the second course


EMI Generation

  • The accrued interest during the moratorium period and course period 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 up to Rs.4 lacs

2% above Base Rate, currently 11.30% p.a.

Above Rs.4 lacs and upto Rs.7.50 lacs

2% above Base Rate, currently 11.30% p.a.

Above Rs.7.50 lacs

1.70% above Base Rate, currently 11.00% p.a.


  • (0.50% concession in interest for girl students)
  • 1% concession for the 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.

Documents Required

  • Letter of admission
  • Completely filled 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 last 6 months
  • IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee)
  • A 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

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