SBI Education Loan

State Bank of India (SBI) Educational Loan
SBI provides loan for graduation, post graduation, professional courses approved by UGC, AICTE/government offering prospects for employment.
Expenses covered on SBI Education Loan:Fee payable towards college/School/hotel, examination/library/laboratory expenses, purchase of books/equipment/instrument/uniform, caution deposit/building fund/refundable deposit(maximum 10% tuition fee for the entire course), travel expenses/passage money for studies abroad, purchase of computers considered necessary for completion of the course, cost of a two wheeler up to Rs.50,000. Bank provides any other expenses required to complete the course like study tours, project work etc.
SBI Education Loan provides Rs. 10 Lakhs for higher study in India and Rs. 20 Lakhs for higher study abroad.
SBI Education Loan repayment and interest rates: The repayment has to begin one year after the course period or six months after you get a job, whichever is earlier. Also you are expcted to pay a minimum amount equivalent to the EMI on a monthly basis. Moreover, if you choose to pay more than the EMI, the bank does not charge any prepayment penalty. The interest rate is 11.75% p.a. for loan up to 4 Lakhs; 13.25 % p.a. for loan above Rs. 4 Lakhs and below 7.5 Lakhs; 12.25% p.a. for loans above Rs.7.50 lakh. You need to deposit Rs. 5,000 for education loan for studies abroad that would be adjusted in the margin money.
Security for SBI Education Loan: For loan up to 4 Lakhs no security required. For loan above Rs.4 Lakhs and below 7.5 Lakhs collateral security in the form of suitable third party guarantee is required. The bank may, at its discretion, in exceptional cases, waive third party guarantee only the case of satisfaction with the net worth/means of parent/s who would be executing documents as joint borrower. For Loan above 7.5 Lakhs tangible collateral security suitable value, along with the assignment of future income of the student for the payment of installments is required. Moreover, all loans need to be secured by parents/guardian of the student borrower.