SBI Education Loan: Eligibility, Interest Rates, Documents Required

SBI Education Loan: With the increasing awareness of significance of education to succeed in the knowledge economy, the cost for it is also raising enormously the importance of higher education and a professional degree from reputed educational institutions is growing in India. Apart from most of the banks in India that  provide a scheme for education loans, but its public sector banks and especially State Bank of India, is at forefront in giving education loans with maximum benefits to the borrower. State Bank of India has a functional presence of over 14,000 branches in India, serving huge number of customers. SBI is one of the most trusted banks in the country. The bank has an assorted portfolio and apart from providing services in personal and international banking it also offers its very popular SBI education loan.

SBI Education Loan

The loans are designed to help students pursue higher studies both in India and abroad without having to worry about the necessary finance required for such studies since the bank takes care of the fees and other relevant course related expenses through the education loan. SBI education loan is divided into three different categories, offering three types of education loan to students, scholars and also for vocational training.

SBI Education Loan Eligibility Criteria:

Education loan eligibility is very simple and clear.

  • Loan is issued to Indian nationals for studies in India and abroad if admission is already secured.

SBI Education Loan Interest Rates:

Upto Rs 4 lac 3.65% above the base rate -13.35%
Above Rs. 4lac and upto Rs 7.5 Lac 3.90% above the base rate -13.60%
Above Rs. 7.5lac 1.90% above the base rate -11.60%

The Base Rate is 9.70% per annum for SBI education loan. Girl students are given a concession of 0.50% in interest rates. 1% concession is granted for the full loan tenure if interest is serviced promptly as and when applied during the moratorium period including the total course duration.

SBI Scholar Loan Interest Rate:

Category of Institutes Interest Rates
List AA 25bps above the base rate i.e. 9.95% p.a. for loans upto Rs. 30lacs without collateral
List A 25 bps above the Base Rate i.e. 9.95% p.a. for loans up to Rs. 20 lakh and Rs. 30 lakh without collateral
List B 50 bps above the Base Rate i.e. 10.20% p.a. for loans up to Rs. 20 lakh without collateral


25 bps above Base Rate i.e. 9.95% if collateral security’s value is greater than loan amount and/or work experience of the applicant is more than 2 years


List C 175 bps above the Base Rate i.e. 11.45% p.a. for loans up to Rs. 30 lakh with collateral and 7.5 lakh without collateral

Eligibility: The eligibility for this SBI student education loan is slightly different from its other SBI education loans.

  • The loan is granted to students who are Indian Nationals and wish to pursue higher education in one of the Select 105 Premier Indian Institutes.

SBI Loan for Vocational Education and Training

Eligibility: The student should be an Indian National and should have secured admission in a course run or supported by a Ministry or a Department or organization of the Government or a company, society or organization supported by National Skill Development Corporation (NSDC) or Skill Missions / State Skill Corporations preferable leading to a Certificate or Degree or Diploma issued by a Government organization recognized or authorized by the Government to do so.

Rate of Interest: 

The interest rate is 3.65% above the Base rate of 9.70% which makes the interest rate 13.35% p.a.

Documents Required:

The requirement of documents may vary from institution to universities. The basic documents required for SBI education Loan are as follows:

  • Letter of Admission
  • Completely filled Loan Application Form
  • 2 passport size photographs
  • Statement of cost of study
  • PAN card of the student and parent or guardian
  • Aadhar Card of the student and parent or guardian
  • Identity proof which may be a copy of Driving License or Passport or Aadhar Card
  • Residence Proof which may be copy of Driving License or Passport or Electricity Bill or Telephone bill.
  • Student / co-borrower’s/Guarantors bank account statement of the last 6 months.
  • IT Returns or IT Assessment Order of the last 2 years of parent or guardian or other co-borrower.
  • Brief Assets and Liabilities Statement of parent or guardian or other co-borrower.
  • Income proof which can be the salary slip or Form 16 of the parent or guardian.

List of Approved Educational Institutions:

  • For SBI Student education loan, educational institutions in India recognised under UGC / AICTE / IMC and are approved by Government of India. Recognized educational institutions in foreign countries and CIMA and CPA courses are approved for SBI education loans.
  • Vocational and skill development courses or any other specialised course offered by the government or an organization which is either approved or certified by the government are the only ones eligible for which students can get a loan for vocational education.
  • The SBI Scholar loan scheme is available for pursuing education courses in 105 premier educational institutions. You can always contact the bank to know the list of educational institutions which fall under this category.

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