Educational loans

State Bank of India

Bank Type : Goverment Bank
No. Of Branches : 13000

About Bank

The Bank is actively involved since 1973 in non-profit activity called Community Services Banking. All our branches and administrative offices throughout the country sponsor and participate in large number of welfare activities and social causes. Our business is more than banking because we touch the lives of people anywhere in many ways

Our commitment to nation-building is complete & comprehensive.

Loan Procedures


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

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 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 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. 4 lacs loan amount:

Only Parent/ Guardian as co-borrower

Above Rs. 4 lacs to Rs. 7.50 lacs loan amount:

Parent/ Guardian as co-borrower and Collateral security in the form of suitable third party guarantee.

Third Party Guarantee can be replaced with Parent/Guardian as co-borrower provided the Gross Annual Income of Parent/Guardian (co-borrower) as given in latest Income Tax Return is 3 times of the loan amount.

Above Rs. 7.50 lacs loan amount:

Parent/ Guardian as co-borrower and tangible collateral security

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


For loans up to Rs.4.0 lacs:

No Margin

For loans above Rs.4.0 lacs:

Studies in India:


Studies Abroad:



Upto Rs. 4 Lacs:

Upto 10 years

Above Rs. 4 Lacs and upto Rs. 7.5 Lacs:

Upto 10 years

Above Rs. 7.5 Lacs:

Upto 12 years

Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier.

In case second loan is availed for higher studies later, to repay the combined loan amount in 12 years after completion of 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 principle amount only.

Rate of Interest:

For loans upto Rs.4 lacs:

3.50% above Base Rate, currently 13.50% p.a.

Above Rs.4 lacs and upto Rs.7.50 lacs:

3.75% above Base Rate, currently 13.75% p.a.

Above Rs.7.50 lacs:

1.75% above Base Rate, currently 11.75% p.a.

0.50% concession in interest for girl students

1% concession for full tenure of the loan, if full interest is serviced during the moratorium period and including course duration. The interest should be serviced promptly soon after application but not later than the following month to avail the concession

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

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

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)

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

To Apply for Education Loan Online Click Here

Education Loan Application Can Be Download From The  Documents Below


State Bank Bhavan, 11th Floor, Madam Cama Road, Mumbai 400 021

022 2202 2799
022 22742431

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