Student should be an Indian National
Secured admission to professional/ technical courses through Entrance Test / Selection process
Secured admission to foreign University / Institution
Completed Education Loan Application Form.
Mark sheets of last qualifying examination
Proof of admission scholarship, studentship etc.
Schedule of expenses for the specified course
2 passport size photographs
Borrower’s Bank account statement for the last six months
Income tax assessment order, of last 2 years
Brief statement of assets and liabilities, of the co-borrower
Proof of Income (i.e. Salary slips/ Form 16 etc.)
Studies in India:
Graduation, Post-graduation including regular technical and professional Degree/Diploma courses conducted by colleges/ universities approved by UGC/ AICTE/ IMC/Govt., etc.
Regular Degree/ Diploma Courses conducted by autonomous institutions like IIT, IIM, etc.
Teacher training/ Nursing courses approved by Central government or the State Government.
Regular Degree/Diploma Courses like Aeronautical, pilot training, shipping etc. approved by Director General of Civil Aviation/Shipping.
Vocational Training and skill development study courses will not be covered under the Education Loan Scheme, as the scheme is framed to provide bank loans for higher studies.
Maximum loan limit is Rs.10.00 lacs for studies in India; and
Maximum loan limit is Rs.20.00 lacs for pursuing education abroad.
The interest accrued during the moratorium period is added to the principal and when the moratorium period is over, repayment is fixed in the form of EMI. The current interest rates that are applicable are:
For loans up to Rs. 4.00 Lacs - 11.50%
Loans ranging from Rs. 4.00 Lacs up to Rs.10.00 Lacs – 12.50%
Loans above Rs.10.00 Lacs - 13.00%
The repayment tenure begins within one year after completion of the course or six months after procuring a job, whichever is earlier.
For School / College education in India: Loans are to be repaid within 36 months, and installments are to be paid immediately after loan disbursal, by the student’s parents or guardian.
For Technical / Professional education in India and abroad: The loan is to be repaid within 60 months after the completion of the course or securing a job, whichever is earlier. Quarterly interest should be paid consistently during the period of study.
For loans up to Rs.4.00 Lacs there is no processing charges for studies in India and Abroad.
In case of loans above Rs.4.00 Lacs for studies abroad the following charges are applicable:
At the time of giving the sanction letter to the student/guardian, Rs. 5000/- is collected by the Bank.
Rs.1000/- is charged as processing fees.
Rs.4000/- is levied as student's margin when the loan is released.
In case the loan is not availed by the student, Rs.4000/- is refunded to the student without interest.
Processing charges are not levied on the loans to the wards of Bank's staff members including retired staff.
There is no margin on education loans up to Rs.4.00 Lacs.
For loans above Rs. 4.00 Lacs, the margin applicable is 5% for studies in India, and for studies abroad, the margin applicable is 15%.
Scholarship will be included in the margin.
Security is not required to if the loan taken is less than Rs. 4.00 Lacs but co-obligation of parent /guardian is mandatory. However, if the education loan is above Rs.4.00 Lacs and within Rs.7.50 Lacs, a suitable third party guarantee should be given as collateral.
If the loan is above Rs.7.50 Lacs, either co-obligation of parents, guardians/ third party guarantee or, collateral security of suitable value is to be provided, along with a assignment of future income of the student for paying instalments.
The security can be offered in the form of gold, land / buildings / Govt. securities / Public Sector Bonds / Units of UTI, KVP, NSC, life policy, shares/debentures, bank deposit in the name of student / parent / guardian with a suitable margin for loaning against the securities.
The Ministry of HRD has initiated the Central Scheme for Interest subsidy on education loans and this scheme is offered by SBH to its customers. Students from financially weaker sections of the society who wish to pursue their Graduation or Post Graduation studies in Technical / Professional disciplines, are eligible to avail this subsidy.
Expenses considered for SBH education loan:
College, school or hostel fees.
Fees payable for Examination, Library and Laboratory.
Amount required for purchase of books, equipment, instruments as well as uniforms.
Deposits such as Caution Deposit, Building Fund or Refundable Deposit.
Travel expenses for studies abroad.
Purchase of computers if needed for completion of the course.
Miscellaneous expenses required to complete the course like study tours, project work, etc.