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SBI El Takeover Loan

Product Details
Bank Name

State Bank of India

Maximum Loan Tenure

15 Years

Maximum Loan Amount

1.5 Crores

Interest Rate

The effective rate of interest would be 11.15% per annum. The rate type would be floating depending on the reference rate.

Purpose/Field of Education Loan

It is a higher cost educational loan

Repayment Cycle

The repayment of EMI starts 12 months after the completion of the course or 6 months after getting the employment, whichever is earlier. 

Grace Period

12 Months after the completion of the Course

Minimum CIBIL Score

Not mentioned

Co-Borrower Required

Not Mentioned

Collaterals Required

The collateral security acceptable to the bank to be minimum 100% of the value of the proposed loan.

Fees & Charges
  • Pre-payment Charges: Nil 

  • Penal Interest in case of delayed payment: 2% + interest rate. 

  • No Processing Fee

  • Interest Rate: 9.15% (ERB) + 2.00% (CRP) = 11.15%. 

  • Legal and stamp duty charges: Differs from state to state.

Fees and Charges
Eligibility Criteria
  • Loan to be a fresh (first-time) takeover

  • The student-borrower should be a major at the time of switch over

  • The loan should have been fully disbursed at the time of takeover

  • Repayment should have been started & EMIs are regular in the books of other Bank/Financial Institution

Special Concession

There is a 0.50% concession for students availing of SBI Rinn Raksha or any other existing life insurance policy assigned in favour of our Bank. It also offers 0.50% concession for girl students.

Features, Eligibility and Concession
Special Features
  • SBI offers student loans for domestic and international study. 

  • You are eligible for financing to study for both professional and vocational courses. 

  • There are also takeover loans that enable you to replace your high-interest loans with SBI loans that have reduced interest rates.

Pros
Pros & Cons
Cons

As the loan has a floating interest rate, borrowers may be exposed to interest rate fluctuations, which could affect monthly repayments in the future.

  • State Bank of India (SBI) offers a wide range of education loans with interest rates that start at 11.15%. 

  • The flexible repayment tenures also include a moratorium period after course completion. 

  • There are no penalty charges for pre-payment of the loan, which can be done at any time during the loan tenure. 

  • Some loans also offer interest concessions for girl students.

Account Opening and Procedure
How to Apply?

You can apply through SBI Takeover Loan's website.

Documents Required

• Completely filled-in Loan Application Form 

• 2 passport size photographs 

• PAN Card of the student and Parent/ Guardian / other co-borrower 

• Aadhaar Card of the student and Parent/ Guardian/ other co-borrower 

• Proof of Identity (Driving Licence/Passport/Aadhaar/ any other acceptable photo identity as per KYC norms) 

• Proof of Residence (Driving Licence/Passport/Electricity bill/Telephone bill) 

• bank account statement of the Student/Co-borrower/Guarantor,for the last 6 months 

• IT return/ IT assessment order, pertaining to previous 2 years, of Parent/ Guardian/ other co-borrower (if IT Payee) • Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrowe Proof of Income (i.e. salary slips/ Form 16) of Parent/ Guardian/ other co-borrower

SBI El Takeover Loan

SBI's EL Takeover program can be a good option for borrowers with existing education loans who are paying high interest rates. However, it's important to compare interest rates, consider any prepayment penalties, and factor in the potential need for collateral before making a decision.

Abhijeet Saxena

Abhijeet Saxena

Abhijeet Saxena

Nalsar University of Law

Ex- Senior Associate, Shardul Amarchand Mangaldas, Delhi

Ex - Khaitan & Co. Bengaluru,

Ex - National Stock Exchange, Mumbai,

Ex - Argus Partners, Mumbai

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