How to Get Education Loan ? Eligibility Interest Rates – Complete Guide Documents -Apply Online

How to Get Education Loan ? Eligibility Interest Rates – Complete Guide Documents -Apply Online:

The Educational Loans Assistance (ELA) forms the Basis aimed at enabling the Deserving / Meritorious Students for pursuing Higher Education both in India and Overseas.

Almost all the Banks (Nationalized and Privatized) extend the Educational Loans Assistance to the Applicants meeting with the Requisite Eligibility Criteria in compliance with the Government of India framed Police Guidelines.  The Banks invariably follow Similar Procedures for offering the Educational Loans to the Students.

Tips to Get Education Loan ? 

And, thus, We would like to re-present India’s Numero Uno and Largest Nationalized State Bank of India lain down the Key Terms and Conditions for the Ready Reference of the Students aiming to seek Educational Loans Assistance:

Most Important Terms And Conditions 

The State Bank of India – Student Loan Assistance Scheme:

  1. Purpose for which the Education Loan Assistance may be availed of:

The Student Loan Assistance shall be sanctioned for extending the Financial Assistance to Deserving / Meritorious Students for pursuing Higher Education in India and Abroad / Overseas.

2. Courses Eligible:

  1. a) Studies in India:
  • Graduation, Post Graduation including Regular Technical and Professional Degree / Diploma Courses conducted by the Colleges / Universities approved by the University Grants Commission (UGC) / the All India Council for Technical Education (AICTE) / Indian Medical Council (IMC) / Government of India, State, etc
  • Regular Degree / Diploma Courses conducted by Autonomous Institutions like the Indian Institute of Technology (IIT), Indian Institute of Management (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 the Director General of Civil Aviation (DGCA) / Shipping Vocational Training (SVT) and the Skill Development Study Courses shall not be covered under the Education Loan Scheme (ELC), as the Scheme is framed to provide Bank Loans for Higher Studies.
  1. Studies abroad:
Graduation / Post Graduation for Job Oriented Professional / Technical Courses offered by Reputed Universities

3. Student Eligibility:

He / She

  • should be an Indian National
  • must have secured Admission into the Professional / Technical Courses through Entrance Test / Selection Process.
  • should have secured Admission into Foreign University/ies / Institutions.
  • No Minimum Qualifying Marks stipulated in the Last Qualifying Examination.

4Expenses Considered for Loan:

  • Fee Payable to College / School / Hostel: Where the Student shall be making his / her own Boarding and Lodging Arrangements, the Sanctioning Authority is authorized to fund Boarding and Lodging Expenses on the basis of Estimate submitted by the Student / Parent, provided such Expenses are not more than those charged by the Educational Institution for Boarders.
  • Examination/Library / Laboratory Fee.
  • Purchase of the Books / Equipment / Instruments / Uniforms.
  • Caution Deposit / Building Fund / Refundable Deposit supported by Institution Bills / Receipts, the Amount considered for the Education Loan Assistance should not exceed 10% of the Tuition Fee for the entire Educational Course.
  • Travel Expenses / Passage Money for pursuing the Studies Abroad.
  • Purchase of the Lap Tops / Personal Computers – Essential for completion of the Educational Course.
  • Any other Expense required to complete the Course – like Study Tours, Project Work, Thesis, etc.
  • Cost of a Two-Wheeler up to ₹ 50,000 may be included in the Expenses considered Eligible for Finance where the Education Loan Amount is secured by a Suitable Third Party Guarantee and / or Tangible Collateral Security. Two-Wheeler can be necessary in some cases where Hostel and College are far apart
  • Premium of the Insurance Policy covering the Life of the Borrower for Loan
  1. Maximum Loan Amount:
  • Studies in India – Maximum ₹ 00 Lac
  • Studies Abroad – Maximum ₹ 00 Lac

6.  Margin:

Up to ₹ 4.00 Lac:      Nil

Above ₹ 4.00 Lac:    Studies in India: 05%

                                    Studies Abroad: 15%

  • Scholarship / Assistantship to be included in Margin.
  • Margin may be brought in on Year-to-Year basis as and when Disbursements are made on a Pro-rata basis

7. Security:

  1. a) Up to ₹00 Lac
  • Co-obligation of Parents
  • No security
  1. b) Above ₹00 Lac and up to ₹ 7.50 Lac
  • Co-obligation of Parents together with Collateral Security in the form of Suitable Third Party Guarantee (TPG). The State Bank of India may, at its discretion, in exceptional cases, waive Third Party Guarantee, if satisfied with the Net-Worth / Means of Parent/s who would be executing the Documents as the “Joint Borrower”.

            c) Above 50 Lac:

  • Co-Obligation of Parents together with tangible Collateral Security of Suitable Value, along with the Assignment of Future Income of the Student for Payment of Installments
  • The Documents should be executed by both; the Student and the Parent / Guardian as the Joint-Borrower. We clarify that if the Student is a Minor, then the Documents shall have to be signed by the Guardian acting `for Self’ as well as`for and on behalf of the Minor’.
  • The Co-Obligator should be Parent(s) / Guardian of the Student Borrower. In case of Married Person, Co-Obligator may be Spouse or the Parent(s) / Parents-in-Law.

8. Processing Charges:

  • No Processing / Upfront Charges may be collected on the Educational Loans.
  • For the Loans to Students going abroad:
  • All those Students, who approach Us (State Bank of India) for an Education Loan of more than ₹00 Lac for Studies abroad shall be required to make a deposit of ₹ 5000/-, which will be adjusted against the Contribution of the Margin Money or the Interest payable on the Loan, in case the Loan is availed by the Applicant. If the Applicant does not avail the loan within a period of 04 Months of sanction of the Educational Loan, the Amount will be forfeited.

9. Interest Charges:

For Interest Charges, Detailed Update Available in the State Bank of India Website.

  1. 50% Concession in the Interest Rate for Girl Students availing the Education Loans with effect from 2nd Date of March 2009
  2. 1% Concession in rate of Interest to be provided for Full Tenure of the Educational Loan, if Full Interest is serviced during the Moratorium Period (including the Course Duration).
  3. Simple Interest to be charged during Moratorium Period.
  4. Penal Interest @ 2% to be charged for the loans above ₹ 4.00 Lac for the Overdue Amount and Overdue Period.

10. Sanction & Disbursement:

  • The Educational Loans are generally sanctioned at the State Bank of India Branch nearest to the Permanent Residential Address / Place of Domicile of the Student / Parents.
  • The Educational Loan to be disbursed in the Stages as per the Requirement / Demand directly to the Institutions / Vendors of Books / Equipment / Instruments to the extent possible.

11. Repayment:

  • Repayment Holiday / Moratorium:

Course Period +01 Year, or 06 Months after getting Employment / Career Job, whichever is earlier.

  • Repayment:

The Educational Loan is to be repaid in 05 – 07 Years, after Commencement of Repayment.

  • If the Student is not able to complete the Course within the Scheduled Time, Extension of Time for completion of Course may be permitted for a Maximum period of 02 Years. If the Student is not able to complete the Course for the reasons beyond his / her control, the Sanctioning Authority, at its discretion, may consider such Extensions, as may be Deemed Necessary to complete the Course.
  • The Accrued Interest during the Moratorium Period / Repayment Holiday Period to be added to the Principal and Repayment to be fixed in Equated Monthly Installments (EMI).

12. Top Up Loan:

  • Second Loan (Top Up) Loan within the Overall Limit is now permitted to pursue a Professional Course in India or abroad provided the Projected Income of the Student, after Placement, is sufficient to cover Full Loan Repayment, and subject to the Second Loan being allowed with the Security Requirements as applicable to the Aggregate Loan Limit. Since the Student shall not be able to take up any Employment / Career Job after completion of the First Course, his / her Obligation to repay the Loan after One Year of completion of the First Course would also need to be deferred. In such cases, the Moratorium Period may be extended for the Duration of the Second Course and the Combined Repayment shifted to One (01) Year after Completion of the Second Course, or 06-Months after taking up An Employment / Career Job, whichever is Earlier.

Customer Service:

For any Service related Issue, Customer may get in touch with the State Bank of India:

In case any Customer is not satisfied with the Handling of Grievance by the Local Head Office (LHO), a Communication may be sent (Enclosing along with the Message Sent earlier to Local Head Office) to

The Deputy General Manager (Customer Service),

Customer Service Department

State Bank of India

State Bank Bhawan, 4th Floor;

Madame Cama Road,

Mumbai – 400 021,

Telephone No. 022 2202 9456, 2202 9451 2274 0432, 2274 0431, 2274 0433

Fax No. 022 2274 2431.

e-mail Idn – .


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