State Bank of India, popularly known as SBI, is India’s largest commercial bank. It has a customer base of more than 50 crore, which is more than the cumulative population of the US and Russia. Therefore, any loan product of SBI is bound to impact the lives of millions.
The different types of loans for education and skill upgradation from SBI are the following: SBI Student Loan Scheme, SBI Scholar Loan Scheme (Including takeover and part-time courses for select institutes), SBI Skill Loan Scheme, SBI Global Ed-vantage Scheme, SBI Takeover Education Loan Scheme and Shaurya Education Loan Scheme. Let’s have a look at the details of each category.
SBI Student Loan Scheme
The SBI website says that up to a loan amount of Rs 7.5 lakh, the effective interest rate for this scheme is 11.15% per annum. The interest rate is the same for education loan more than Rs 7.5 lakh. Both the categories feature a floating rate of interest. One should note that the interest rate for girl students is 50 basis points less – 10.65%.
SBI Scholar Loan Scheme
(Including takeover and part-time courses for select institutes)
As the name of this category of loan implies, these are given to those who have got admissions to IITs, NITs and other professional courses of repute. The interest rate is 8.10% or 8.05% for students pursuing courses in IITs and other similar institutes (marked AA by SBI). Other rates of interests in this category are 8.15%, 8.65% (A category institutes), 8.65%, 9.15% (B category institutes) and 8.65% and 9.65% (C category institutes). All these loans carry floating rates of interest.
SBI Skill Loan Scheme
The upper limit of this category of loan is Rs 1.5 lakh. The rate of effective interest is 10.65% and has no concession. This is a floating rate of interest. It is a financial aid program for Indian citizens who want to pursue skill development courses.
SBI Global Ed-vantage Scheme
Under this category the amount of loan can be anywhere between Rs 7.5 lakh and Rs 1.5 crore. The effective interest rate is 11.15% and it is a floating rate of interest. The SBI website mentions, “0.50% concession for students availing of SBI Rinn Raksha or any other existing life insurance policy assigned in favour of our Bank.” It also writes about a 50 basis points additional concession for girl students.
SBI Takeover Education Loan Scheme
The takeover amount can range between above Rs 10 lakhs and up to Rs 1.5 crore. The concessions available under SBI Global Ed-vantage Scheme are available in this category too. The interest rate is the same too.
Shaurya Education Loan Scheme
This scheme is exclusively for spouse/wards of Defence, Indian Coast Guard & Central Armed Police Personnel. The interest rate is 11.15% (secured loan) up to a loan amount of Rs 7.5 lakh and up to Rs 1.5 crore with additional concession of 50 basis points for girls. If the loan is unsecured the interest rate can go up to 11.75%.
In a sense, education loans are the biggest enablers and value generators of all financial assistance. They not only add value to the individual but also make him/her market ready. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
