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
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SBI El Takeover 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
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.
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
Pros
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.
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.
Pros & Cons
HDFC Credilia USA Education Loan
HDFC Credila USA Education Loan can be a consideration, especially if you can qualify for an unsecured loan and get a competitive interest rate. However, the limited unsecured loan amount, potentially higher interest rates for secured loans, mixed reviews, and lack of advertised interest rates require careful exploration.
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
Product Review
Recommended Education Loans
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