SBI launches 15-year student term loans; Know all the details here


The State Bank of India (SBI) has launched a student term loan product to provide customized finance solutions. The product offers a 0.5% discount on the interest rate for female students.

Find out the features of the loan, the courses you can apply for using the loan, and the documentation you need.

Characteristics of the loan

  • Interest rate of 8.65%; a 0.5% discount is available for girls.
  • The maximum loan amount available for domestic courses is Rs 50 lakh and for foreign courses Rs 1.5 crore.
  • No collateral for loans up to Rs 7.5 lakh. For loans above Rs 7.5 lakh, tangible collateral is required.
  • No processing fees for loans up to Rs 20 lakh. For loans above Rs 20 lakh, the fee is Rs 10,000 plus tax.
  • Repayment period up to 15 years after course period plus 12 months repayment holiday
  • Reimbursement will begin one year after course completion.
  • In the event that a second loan is available for higher education, students, after completing the second course, can repay the combined loan amount in 15 years.
  • No margin payment required for loans up to Rs 4 lakh.

The courses for which the loan is available

SBI has outlined the different courses for which you can take the loan.

India course:

  • Graduation, post-graduation, including regular technical and vocational courses leading to a degree or diploma from colleges and universities approved by UGC/AICTE/IMC/Government and others. Regular courses leading to a degree or diploma offered by autonomous institutions such as IIT, IIM and others.
  • Teacher training and nursing courses approved by central or state governments.
  • Regular courses leading to a degree or diploma like aeronautics, pilot training, navigation, etc. approved by the director general of civil aviation, navigation or the regulatory authority concerned.

Courses abroad:

  • Job-oriented professional or technical degrees, post-graduation and degree courses such as MCA, MBA, MS and others offered by reputable universities.
  • Courses taught by the Chartered Institute of Management Accountants, London and Certified Public Accountant in the United States and elsewhere

  • The study loan will cover all expenses necessary for the completion of the course.

What expenses are covered by this loan?

The loan will cover fees payable to the college, school or home; fees for examinations and the use of the library and laboratory; and the cost of books, equipment, instruments and uniforms; cost of computers, which are essential to complete the course (maximum 20% of the total tuition fee payable for the course), according to the SBI press release.

The loan will also cover the security deposit, building fund or refundable deposit, up to a maximum of 10% of the course tuition.

In addition, travel expenses and passage money for studying abroad will also be provided. Any other expenses necessary to complete the course, such as study trips and project work, will also be covered. Students can also buy a two-wheeler with the loan which costs up to Rs 50,000, the press release said.

What documents are required?

There are several supporting documents that you will need to submit with the application for this term loan. Here is the list :

  • 10th, 12th grade sheet, diploma (if applicable) and entrance exam result.
  • Proof of admission to the course.
  • Schedule of expenses for the course.
  • Copies of letter conferring scholarship, free ship, others.
  • Gap certificate, if applicable (student self-declaration for study gap).
  • Passport size photographs of student, parent, co-borrower and/or guarantor.
  • Asset-liability statement of co-applicant or guarantor (for loans above Rs 7.50 lakh).
  • Half-yearly bank account statement of the parent, guardian or guarantor.
  • Copy of the deed of sale and other title documents relating to the real estate offered as security. Or a photocopy of the liquid title offered as collateral, if applicable.
  • Permanent Account Number (PAN) of student, parent, co-borrower and/or guarantor.
  • Aadhaar submission is mandatory if the borrower is eligible for any of the government interest subsidy schemes.
  • Passport (compulsory for studies abroad).
  • Presentation of officially valid documents (OVD) according to specifications. Check the documents you will need at

Employees will be required to submit additional documents. Here is the list :

  • Last payslip
  • Form 16 or the latest IT declaration (RTI V)

Those with income other than salary must submit the following:

  • Proof of business address
  • Latest computer feedback

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