(FAQ) EDUCATIONAL LOAN

Q. What are the important documents that I need to provide?

A. You will need to furnish the following documents along with the completed application form. Relevant information would relate to the Student and Parent/ guardian both, when the loan is jointly taken.

  • Mark sheet of 10th, 12th , Graduation (if applicable), Entrance Exam Result

  • Proof of admission to the course

  • Schedule of expenses for the course

  • Copies of letter confirming scholarship, freeship, etc.

  • 2 passport size photographs

  • Statement of Bank account for the last six months of Parent / Guardian

  • Income tax assessment order not more than 2 years old

  • Brief statement of assets and liabilities of borrower/ co-borrower

If you are not an existing bank customer you would also need to establish your identity and give proof of residence.

Q. Are there any charges or processing fee?
  • There is no additional charge or processing fee for education loans upto ₹ 20 lakhs. For loans above ₹ 20 lakhs, processing fee of ₹ 10,000 + GST is applicable.

  • For Scholar loans, there is no additional charge or processing fee irrespective of the loan amount.

  • In case of land/ property offered as collateral, legal/ valuation/ mortgage charges will be applicable.

  • Applicant will also be liable to bear the actual expenses pertaining to Stamp duty as per State Stamp Act. There are no other hidden charges.

Q. Since there is a moratorium period, how will my repayments be determined?

A. The outstanding interest for the moratorium period will be added to the loan amount at the time of commencement of the repayment. The EMI will be determined on this amount at the time the repayment is to commence.

Q. What is EMI? How is it calculated?

A. The outstanding interest for the moratorium period will be added to the loan amount at the time of commencement of the repayment. The EMI will be determined on this amount at the time the repayment is to commence

Q. What is EMI? How is it calculated?

A. EMI stands for Equated Monthly Instalments. This instalment comprises both principal and interest components. Your EMI would be calculated depending on the tenor you choose, to repay your loan. The EMI would be higher if you choose to repay within a shorter period as against a longer-term loan. A shorter repayment period, however, reduces your interest cost over the term of the loan.

Q. What is the repayment schedule like?

A. Once repayment has commenced (i.e., after completion of course and moratorium period), you are expected to pay a minimum amount equivalent to the EMI on a monthly basis. However, you can choose to pay more than the EMI, and we do not charge any prepayment penalty.

Q. Where can I avail of a SBI educational loan?
  • You may apply for an education loan at a SBI branch nearest to the permanent residential address/ place of domicile.

  • Additionally, for customer convenience, Scholar Loans can be availed from campus/ mapped branches.