Overview of SBI Education Loan
SBI Education Loans are designed to support students who aspire to pursue higher education in India and abroad through well-established, government-backed lending schemes. With decades of experience in education financing, SBI has emerged as one of the most trusted lenders for students and parents.
EduFi simplifies this journey by acting as a structured support system—helping students understand eligibility, select the right SBI scheme, complete documentation correctly, and move through the approval process with clarity and confidence.
What Is an SBI Education Loan?
An SBI Education Loan is a term loan offered to Indian nationals pursuing full-time higher education at recognized institutions in India or overseas. These loans cover a wide range of academic programs, including undergraduate, postgraduate, professional, and doctoral courses.
The loan is structured to support the entire academic journey, with repayment beginning only after the completion of studies and the moratorium period. Funds can be used for essential academic and living expenses, with options for collateral or non-collateral structures depending on the loan amount and institution.
Why SBI Is a Preferred Choice for Students
SBI remains a preferred lender for education loans due to its strong government backing, nationwide branch network, and student-friendly policies. The bank offers competitive interest rates, long repayment tenures, and zero prepayment penalties, making it suitable for long-term education planning.
With collateral-free loan options available up to ₹50 lakh for eligible premier institutions and flexible repayment schedules, SBI has supported the education journeys of more than 25 lakh students across India and abroad.
SBI Education Loan Schemes
SBI Student Loan Scheme (Domestic & Abroad)
This scheme supports students studying in India (up to ₹50 lakh) and abroad (amount based on course cost). It is applicable for all recognized institutions and courses. Students benefit from a moratorium period covering the course duration plus an additional 6 to 12 months, allowing time to secure employment before repayment begins.
SBI Global Ed-Vantage Loan (Overseas Studies up to ₹3 Cr)
Designed specifically for overseas education, this scheme offers loans up to ₹3 crore for higher-value programs. Students admitted to premier global institutions may be eligible for collateral-free loans up to ₹50 lakh. The loan covers tuition, living expenses, travel, and other study-related costs.
Other SBI Schemes (Scholar Loan, Skill Loan)
The Scholar Loan Scheme is tailored for students admitted to top-tier Indian institutions such as IITs, IIMs, NITs, and ISB, offering unlimited loan amounts at lower interest rates starting from 8.30%.
The Skill Loan Scheme supports vocational and skill-based programs aligned with NSQF, offering loans up to ₹1.5 lakh without collateral, making it accessible for short-term employability-focused courses.
Loan Amount & Coverage
Maximum Loan Amounts and Limits
For domestic education, students can avail loans up to ₹50 lakh. For overseas studies, SBI offers loans up to ₹3 crore under the Global Ed-Vantage scheme. Students enrolled in premier institutions may access higher or uncapped limits depending on eligibility.
What Expenses Are Covered
SBI education loans cover tuition fees, hostel charges, examination fees, books, equipment, caution deposits, and travel expenses for overseas education. Living expenses abroad are covered up to a defined percentage of the total cost. Personal expenses unrelated to education are excluded.
Interest Rates & Repayment Terms
Current SBI Interest Rates (as of Dec 2025)
Interest rates for SBI education loans range between 8.15% and 11.15% per annum, linked to the Repo Linked Lending Rate (RLLR). Domestic loans typically start at 10.15%, while overseas loans are around 10.65%. Scholar loans for premier institutions are offered at lower rates between 8.30% and 9.80%. Female students receive a 0.50% interest concession.
Repayment Options and Tenure
Repayment tenure extends up to 15 years after the moratorium period. During the study period and grace period, simple interest is applicable. EMIs begin after the moratorium, and borrowers can make partial or full prepayments without penalty after six EMIs.
Moratorium and EMI Details
The moratorium includes the course duration plus 6 months for domestic courses and 12 months for overseas programs. EMIs are calculated on a reducing balance basis. Students can estimate EMIs using SBI’s official calculator for accurate planning.
Eligibility Criteria
Student Eligibility Requirements
Applicants must be Indian nationals with confirmed admission to a recognized full-time course at an approved institution or university, either in India or abroad.
Co-applicant Requirements
A parent, legal guardian, or spouse with a stable source of income is required as a co-applicant. The co-applicant must meet SBI’s age and income criteria.
Course Types and Countries Covered
SBI covers undergraduate, postgraduate, doctoral, and professional courses across all major study destinations. Premier global universities may qualify for special concessions and higher loan limits.
Margin Requirements & Collateral Details
Loan Margin Explained
No margin is required for loans up to ₹4 lakh. For domestic loans above ₹4 lakh, a 5% margin applies. For overseas education, margins range between 15% and 20% depending on the institution category.
When Collateral Is Required
Collateral is generally required for loans above ₹7.5 lakh. However, students admitted to premier institutions may access collateral-free loans up to ₹50 lakh.
Unsecured / Non-Collateral Options (Up to ₹50 Lakhs)
Unsecured loan options are available for select institutes based on academic merit and co-applicant income strength, particularly for IITs, IIMs, and top international universities.
Documents Required for SBI Education Loan
Checklist for Student Documents
Students must submit admission letters, fee structures, identity proof, academic records, and visa documents (for overseas education).
Checklist for Co-applicant Documents
Required documents include KYC proofs, income statements, salary slips or ITRs, and recent bank statements.
Additional Collateral Documents (If Applicable)
Property-related documents, valuation reports, and legal opinions are required when collateral is involved.
Application Process (Step-by-Step)
How to Apply with EduFi
EduFi evaluates your profile, identifies the right SBI scheme, assists with documentation, submits the application, and follows up with the bank until sanction.
Timeline from Application to Sanction
Standard processing takes 15–30 days. With EduFi’s structured support, approvals can be achieved in 7–15 days. Disbursement is made directly to the institution in stages.
Common Benefits of SBI Education Loans
Interest Concessions (e.g., for Female Students)
Female students receive a 0.50% interest concession. Additional benefits may apply for merit-based or premier courses.
Flexible Repayment Terms
Borrowers benefit from long tenures, grace periods, and zero prepayment charges after initial EMIs.
Coverage of Living and Travel Expenses
Overseas students receive coverage for living and travel expenses within defined limits, while domestic students receive hostel support.
How EduFi Supports Your SBI Loan Application
Expert Eligibility Assessment
EduFi provides a free profile evaluation to determine the most suitable SBI scheme.
Documentation Assistance
Customized document checklists and verification reduce delays and errors.
Personalized Lender Matching and Follow-Up
EduFi tracks the application closely with SBI branches until final disbursement.
SBI Education Loan for Study Abroad
Popular Study Destinations Covered
SBI supports education loans for the US, UK, Canada, Australia, Germany, New Zealand, and more.
Country-Specific Loan Tips
For the US and UK, premier universities qualify for higher limits. For Canada, strong post-study work prospects strengthen co-applicant confidence.
Loan Margin & Disbursement for Abroad Studies
Margins range from 15–20%, with disbursement made in semester-wise installments post-visa approval.
Frequently Asked Questions (FAQ)
What Is the Maximum Loan SBI Provides?
SBI offers up to ₹3 crore for overseas education under Global Ed-Vantage.
How Long Does SBI Loan Processing Take?
Typically 15–30 days from submission of a complete application.
Can I Get a Loan Without Collateral?
Yes, up to ₹50 lakh for eligible students at premier institutions.
How Is the Loan Disbursed?
Funds are disbursed directly to the institution in semester-wise tranches.
Tools & Resources
SBI’s official EMI calculator helps students estimate monthly repayments. Additional resources on repayment norms, subsidies, and scholarships are available on SBI portals.
