State Bank of India has decreased its education loan interest rates by 0.05%, or 05 basis points with effect from Monday, February 10, 2020. This interest rate reduction will cut the cost of funds for those people who want to avail SBI education loans for their higher studies.
New Delhi (Delhi, India), February 07, 2020
The State Bank of India (SBI) has decreased its education loan interest rates by 0.05 percent, or 05 basis points with effect from Monday, February 10, 2020.
State Bank of India has revised its minimum education loan interest rate from 8.10 percent to 8.05 percent per annum (MCLR-1Year + 0.20%) for female students and from 8.10 percent to 8.05 percent per annum (MCLR-1Year + 0.20%) for male students for the education loan amount up to ₹750,000.
State Bank of India has also revised its minimum education loan interest rate from 8.10 percent to 8.05 percent per annum (MCLR-1Year + 0.20%) for female students and from 8.10 percent to 8.05 percent per annum (MCLR-1Year + 0.20%) for male students for the education loan amount above ₹750,000.
State Bank of India’s current interest rate reduction will cut the cost of funds for those people who want to avail SBI education loans for their higher studies.
State Bank of India’s education loan interest rate is based on fixed rate of interest with reset period of 1 year and the interest amount is computed on a monthly reducing method.
The education loans or student loans interest rate of State Bank of India is benchmarked or linked to its One-Year MCLR (Marginal Cost of Funds based Lending Rate). State Bank of India’s current One-Year MCLR, which is called MCLR-1Y, is 7.85 percent per annum with effect from Monday, February 10, 2020.
The minimum borrowing amount for State Bank of India’s education loan is ₹50,000 and maximum education loan amount is ₹1,000,000 for studies in India and ₹15,000,000 for studies abroad.
The minimum margin amount required for State Bank of India’s education loan is (1) Minimum 0% margin of the education expenses for loan up to ₹400,000, (2) Minimum 5% margin of the education expenses for loan above ₹400,000 for studies within India, and (3) Minimum 15% margin of the education expenses for loan above ₹2,000,000 for higher studies overseas.
Mode of loan amount disbursal for State Bank of India’s education loan is direct credit to the student’s educational institute.
There is nil documentation charges and processing fee for State Bank of India’s education loan.
The minimum age limit for getting State Bank of India’s education loan sanctioned is 18 years at the time of education loan commencement.
The maximum age limit for receiving State Bank of India’s education loan approval is 35 years for non-employed individuals and 45 years for working employees or executives at the time of education loan commencement.
The maximum loan tenure for State Bank of India’s education loan is 10 years for education loan up to ₹750,000 and 12 years for education loan sanctioned above ₹750,000.
There are no pre closure charges or prepayment penalty for State Bank of India’s education loan.
The bounce charges for State Bank of India’s education loan EMI cheque, SI, or ECS default is ₹500 plus applicable GST per instance.
EMI late payment charge for State Bank of India’s education loan is minimum 2% penal interest per year over and above the applicable interest rate on the EMI outstanding amount for the period of default.
For State Bank of India’s education loan a guarantor is required. The parent(s) or guardian of the student needs to be co-applicant(s) of the student loan.
State Bank of India Scholar Loan Scheme Interest Rate for Students of List AA Institutions: 8.05% Per Annum (MCLR-1Year + 0.20%)
State Bank of India Scholar Loan Scheme Interest Rate for Students of List A Institutions – All IIMs and IITs: 8.30% Per Annum (MCLR-1Year + 0.35%)
State Bank of India Scholar Loan Scheme Interest Rate for Students of List A Institutions – Other institutes: 8.35% Per Annum (MCLR-1Year + 0.50%)
State Bank of India Scholar Loan Scheme Interest Rate for Students of List B Institutions – All NITs: 8.35% Per Annum (MCLR-1Year + 0.50%)
State Bank of India Scholar Loan Scheme Interest Rate for Students of List B Institutions – Other institutes: 8.85% Per Annum (MCLR-1Year + 1.00%)
State Bank of India Scholar Loan Scheme Interest Rate for Students of List C Institutions – All NITs: 8.35% Per Annum (MCLR-1Year + 0.50%)
State Bank of India Scholar Loan Scheme Interest Rate for Students of List C Institutions – Other institutes: 9.35% Per Annum (MCLR-1Year + 1.50%)
Note: The interest rates for State Bank of India Scholar Loan Scheme for students will remain same (fixed rate of interest) for the entire period of education loan.
Eligible Courses for the State Bank of India Scholar Education Loan: Regular full-time degree and diploma courses in IITs, IIMs, NITs, AIIMS and other reputed institutions.
9.65% Per Annum for State Bank of India Education Loan Amount up to ₹750,000 (MCLR-3Year + 1.50%)
9.65% Per Annum for State Bank of India Education Loan Amount above ₹750,000 (MCLR-3Year + 1.50%)
State Bank of India Student Loan Scheme Interest Rate for Male Students:
10.15% Per Annum for State Bank of India Education Loan Amount up to ₹750,000 (MCLR-3Year + 2.00%)
10.15% Per Annum for State Bank of India Education Loan Amount above ₹750,000 (MCLR-3Year + 2.00%)
Note: The interest rates for State Bank of India Student Loan Scheme will remain same (fixed rate of interest) for the entire period of education loan.
Eligible Courses for the State Bank of India Student Education Loan: For studies in India, graduation and post-graduation technical courses (degree and diploma) conducted by the colleges approved by the UGC, AICTE, IMC and the Government of India are covered. For studies abroad, job-oriented professional graduate and post-graduate courses like MCA, MBA, MS, courses conducted by CIMA London, CPA USA are approved for the SBI education loan.
9.65% Per Annum for State Bank of India Education Loan Amount above ₹2,000,000 (MCLR-3Year + 1.50%)
9.65% Per Annum for State Bank of India Education Loan Amount up to ₹15,000,000 (MCLR-3Year + 1.50%)
10.15% Per Annum for State Bank of India Education Loan Amount above ₹2,000,000 (MCLR-3Year + 2.00%)
10.15% Per Annum for State Bank of India Education Loan Amount up to ₹15,000,000 (MCLR-3Year + 2.00%)