SBI School Education Loan - Finance Studies

Enter Pincode

Personal Details

Features of SBI Education Loans for School Funding

Loan Purpose and Coverage: SBI education loans are designed to support students pursuing education, including school-level studies in certain cases, such as vocational courses, professional training, or specialized programs approved by regulatory bodies. The loans cover a wide range of expenses, ensuring comprehensive financial support:
- Tuition Fees: Fees payable to schools, colleges, or hostels, including on-campus accommodation facilitated by the institution.
- Examination and Other Fees: Costs for examinations, library access, and laboratory usage.
- Books and Equipment: Purchase of books, uniforms, instruments, and computers (capped at 20% of total tuition fees for the course).
- Caution Deposits: Building fund or refundable deposits, limited to 10% of the total tuition fees for the entire course.
- Travel Expenses: For studies abroad, passage money or travel costs are covered.
- Miscellaneous Expenses: Costs for study tours, project work, or thesis, capped at 20% of tuition fees.
- Two-Wheeler Costs: For domestic studies, expenses for a two-wheeler up to ₹50,000 can be included.

- Interest Subsidy Schemes: SBI offers full interest subsidy during the moratorium period for economically weaker sections (family income ≤ ₹4.5 lakh) through CSIS and 3% interest subvention under PM-Vidyalaxmi Scheme.
- No Collateral for Smaller Loans: Loans up to ₹7.5 lakh require no collateral or third-party guarantee, only a parent/guardian as co-borrower.
- Tax Benefits: Interest paid on SBI education loans is eligible for tax deductions under Section 80E of the Income Tax Act with no upper limit.
- Online Application: Students can apply through SBI's online portal (https://onlineapply.sbi.co.in) with fast processing (7-14 days for preliminary approval).
- Global Reach: With 200+ overseas branches, SBI supports students studying abroad through its Global Ed-Vantage Scheme (loans up to ₹1.5 crore).
- Skill Loan Scheme: Special loans up to ₹7.5 lakh for vocational/skill development courses at ITIs, polytechnics, or NSDC-affiliated centers, even for school dropouts.
- Flexible Repayment Options: Option to pay interest during moratorium to reduce principal or defer all payments until course completion.
- Course Extension Support: Repayment can be extended by up to 2 years if the course duration exceeds original estimates.
- For studies in India, including school-level courses, the maximum loan amount can be up to ₹50 lakh for premier institutions and ₹10 lakh for other courses.
- Medical courses at the school level (e.g., nursing diplomas) can avail up to ₹30 lakh.
- For studies abroad, loans range from ₹7.5 lakh to ₹1.5 crore under the Global Ed-Vantage Scheme.
- Skill loans for vocational courses have a maximum limit of ₹7.5 lakh.
- No margin for loans up to ₹4 lakh.
- For loans above ₹4 lakh, a 5% margin applies for studies in India, and 15% for studies abroad. Scholarships or assistantships can be included in the margin.
- Margin is paid on a year-on-year basis as disbursements are made.
- Moratorium Period: Course duration plus 6–12 months (grace period to secure employment).
- Repayment Tenure: Up to 15 years after the moratorium period, providing flexible repayment options.
- EMI Options: Equated Monthly Instalments (EMIs) include accrued interest during the moratorium period, added to the principal. If interest is serviced during the moratorium, EMIs are based on the principal alone.
- Extension for Second Course: If a student pursues another course after the first, the moratorium extends to cover the second course’s duration.
- Course Extension: If a course exceeds its scheduled duration due to unavoidable circumstances, repayment can be extended by up to two years with bank approval.
- 0.50% concession for female students.
- 0.50% reduction for students opting for SBI Rinn Raksha or other life insurance policies assigned to SBI.
- Special rates for premier institutions (e.g., IITs, IIMs) and high-demand courses.
- Central Sector Interest Subsidy (CSIS): Full interest subsidy during the moratorium period for students from economically weaker sections (annual family income up to ₹4.5 lakh) pursuing technical/professional courses in India.
- Dr. Ambedkar Interest Subsidy Scheme: For OBC and EBC students studying abroad.
- PM-Vidyalaxmi Scheme: Offers 3% interest subvention on loans up to ₹10 lakh for students with family income up to ₹8 lakh, studying in top 860 institutions.
- Vocational and Skill Development Courses: Loans support courses offered by Industrial Training Institutes (ITIs), polytechnics, National Skill Development Corporation (NSDC)-affiliated partners, and state skill corporations. These courses often align with the National Skill Qualification Framework (NSQF) and include certificates, diplomas, or degrees.
- Teacher Training and Nursing Courses: Approved by central or state governments, these programs are eligible for funding.
- Specialized School Courses: Regular degree or diploma courses like aeronautical, pilot training, or shipping, approved by relevant authorities (e.g., Director General of Civil Aviation or Shipping).
- Elementary and Higher Secondary Education: Parents can avail unsecured loans for their children’s school education, including elementary and higher secondary courses, under specific schemes.
- Tax Benefits: Interest paid on education loans is eligible for tax deductions under Section 80E of the Income Tax Act, reducing the financial burden.
- Online Application: SBI’s Apply Online facility allows convenient application from anywhere, anytime, with a user-friendly digital process.
- Global Reach: With 200+ overseas branches in 32 countries, SBI supports students studying abroad by providing accessible banking services.
- Early Approvals: Faster approval processes ensure timely financial support, critical for meeting admission deadlines.
- Takeover of Loans: Students can transfer existing education loans to SBI to benefit from lower EMIs or better terms under the Takeover of Education Loans scheme.

Benefits of SBI Education Loans for School Funding

Competitive Interest Rates: Attractive and Affordable Rates – SBI offers some of the most competitive interest rates for education loans, starting at 10.25% per annum (as of May 2025). Female students get an additional 0.50% concession.
Flexible Rate Options: SBI provides floating interest rates linked to MCLR, which can benefit from potential rate reductions. Special rates are available for premier institutions and high-demand courses.

- High Loan Amounts and Financing: Up to ₹50 lakh for premier domestic institutions, ₹30 lakh for medical courses, and ₹1.5 crore for international studies under the Global Ed-Vantage Scheme.
- Simplified Application Process: User-friendly online portal with preliminary approval in 7-14 days. Sanction letters can be issued before visa/I-20 for international studies.
- Tax Benefits: Interest paid is eligible for tax deductions under Section 80E with no upper limit, available for up to 8 years from repayment start.
- Flexible Repayment Options: Moratorium period (course duration + 6-12 months) with repayment tenure up to 15 years. Option to service interest during moratorium to reduce principal.
- Comprehensive Support: Specialized schemes like Skill Loan (for vocational courses), Scholar Loan (for premier institutions), and parental loans for elementary/higher secondary education.
- Government Backed Schemes: PM-Vidyalaxmi offers 3% interest subvention (family income ≤ ₹8 lakh), CSIS provides full interest subsidy (income ≤ ₹4.5 lakh), and CGFSEL guarantees loans up to ₹7.5 lakh.
- Global Banking Support: 200+ overseas branches in 32 countries provide seamless banking for international students.
- Loan Takeover Facility: Existing education loans from other banks can be transferred to SBI for better terms under the Takeover of Education Loans scheme.

How to Apply for SBI Education Loans for School Funding

Step 1: Verify Eligibility Criteria
Confirm you meet SBI's requirements: Indian nationality, age 18-35 (parents can apply for younger students), admission to recognized course/institution, and co-borrower with stable income.
Step 2: Choose the Appropriate Loan Scheme
Select from SBI Student Loan (up to ₹50 lakh), Skill Loan (up to ₹7.5 lakh for vocational courses), Scholar Loan (premier institutions), or Global Ed-Vantage (international studies up to ₹1.5 crore).
Step 3: Gather Required Documents
Prepare admission proof, academic records, identity/address proof, co-borrower's income documents, and collateral papers (for loans above ₹7.5 lakh).
Step 4: Submit the Application
Apply online at https://onlineapply.sbi.co.in or visit an SBI branch. Upload/submit documents and obtain acknowledgment.
Step 5: Loan Processing and Verification
SBI verifies documents (7-14 days) and evaluates collateral (if applicable). For international studies, sanction letter can be issued before visa.
Step 6: Loan Sanction and Disbursement
Sign loan agreement upon approval. Funds are disbursed directly to institution for fees and to student's account for other expenses within 15 days post-verification.

Eligibility Criteria for SBI Education Loans

Nationality: Must be an Indian national (resident or NRI with valid passport).
Age: Typically 18-35 years; parents can apply for younger students. Vocational courses have flexible age criteria.
Admission: Secured admission to recognized course/institution - vocational/skill (ITIs, NSDC), professional (nursing, teaching), specialized (pilot training), or elementary/higher secondary.
Academic Record: Satisfactory performance in 10th/12th or entrance exams. Relaxed for vocational courses under Skill Loan Scheme.
Co-Borrower: Parent/guardian with stable income (salary slips, ITR) and good credit score (CIBIL >700 preferred).
Financial Requirements: For loans above ₹7.5 lakh, tangible collateral (property, FDs) is mandatory. No collateral for smaller loans.
Income for Subsidies: Family income ≤ ₹4.5 lakh for CSIS, ≤ ₹8 lakh for PM-Vidyalaxmi interest subvention.
Eligible Courses (India & Abroad): Courses must be approved by AICTE/UGC/Government or relevant accreditation bodies. Includes engineering, medical, management, law, and international degree/diploma programs.
Loan Purpose: Covers tuition fees, exam/library/lab fees, travel expenses, cost of books/equipment/laptop, and living expenses for hostel/mess.

Documents Required for SBI Education Loans

Application Documents:
- Completed SBI Education Loan Application Form
- Passport-size photographs (student and co-borrower)
Identity and Address Proof:
- Aadhaar card (mandatory for subsidy schemes)
- PAN card (student and co-borrower)
- Passport (for international studies)
- Voter ID/Driving License (if Aadhaar unavailable)
Admission and Academic Documents:
- Admission letter/offer letter from institution
- Student ID card (if issued)
- 10th/12th mark sheets and certificates
- Entrance exam scores (IELTS/GRE for international studies)
- Gap certificate (if break in studies)
Financial Documents:
- Co-borrower's income proof (salary slips, ITR for last 2-3 years)
- Bank statements (last 6 months)
- Income certificate for subsidy schemes
- Fee structure from institution
Collateral Documents (for loans above ₹7.5 lakh):
- Property title deeds
- Valuation report

Factors Affecting SBI Education Loan Approval

Eligibility Criteria: Nationality, age, admission status, academic record, and co-borrower requirements.
Course and Institution: Recognition by UGC/AICTE/NSDC for domestic courses; accreditation for international institutions.
Loan Amount and Margin: Higher amounts require collateral (above ₹7.5 lakh). 5% margin for domestic, 15% for international studies.
Financial Profile: Co-borrower's income stability, CIBIL score (>700 preferred), and existing liabilities.
Interest Rates and Fees: Starting at 10.25% (May 2025), with concessions for females, insurance policyholders, and premier institutions.
Government Schemes: CSIS, PM-Vidyalaxmi, and CGFSEL can significantly impact approval chances and terms.
Documentation: Complete and accurate documents expedite processing. Missing/incomplete documents delay approval.
Collateral Quality: For loans above ₹7.5 lakh, property valuation, legal clarity, and marketability affect approval.
Repayment Capacity: Co-borrower's debt-to-income ratio and future earning potential of student.
Course Employability: Programs with better job prospects (e.g., nursing, ITI diplomas) have higher approval rates.
Loan History: Any past defaults or active education loans of the student or co-borrower can negatively impact approval.
Student's Academic Commitment: A well-prepared Statement of Purpose (SOP) and consistent academic track record improve loan credibility and approval chances.

Frequently Asked Questions (FAQs)

What is SBI school funding, and what does it cover?

SBI school funding refers to education loans offered by the State Bank of India to support expenses for school-level education, including elementary, higher secondary, vocational, and specialized courses (e.g., nursing, pilot training).

Coverage:

Tuition and hostel fees
Books, equipment, and uniforms (up to 20% of tuition fees)
Examination, library, and laboratory fees
Travel expenses (for international studies)
Two-wheeler costs (up to ₹50,000 for domestic studies)
Miscellaneous expenses like study tours or projects (up to 20% of tuition fees)

Who is eligible for SBI education loans for school funding?

Nationality: Indian nationals (residents or NRIs with valid passports)
Age: Typically 18–35 years for students; parents/guardians can apply for younger students
Admission: Secured admission to a recognized course/institution such as:
- Vocational/skill courses (ITIs, polytechnics, NSDC-affiliated)
- Professional courses (nursing, teacher training) approved by central/state governments
- Specialized programs (aeronautical, pilot training) approved by regulatory bodies
- Elementary/higher secondary education (via parental loans)
Co-Borrower: Parent/guardian with stable income or financial capacity
Academic Record: Satisfactory performance or merit-based admission (relaxed for vocational courses)
Collateral: Required for loans above ₹7.5 lakh; not needed for smaller loans

What types of courses are eligible for school funding?

Domestic Courses:

Vocational/skill development (e.g., ITI diplomas, NSDC certifications)
Professional courses (e.g., nursing, teacher training)
Specialized programs (e.g., pilot training, shipping) approved by authorities like DGCA
Elementary/higher secondary education (through parental loans)

International Courses:

School-level programs abroad (e.g., high school diplomas, preparatory courses) at recognized institutions

Courses must be recognized by UGC, AICTE, NSDC, or relevant authorities and lead to a certificate, diploma, or degree.

What are the different SBI loan schemes for school funding?

SBI Student Loan Scheme: For school-level professional/technical courses in India/abroad (up to ₹50 lakh domestically)
SBI Skill Loan Scheme: For vocational/skill courses at ITIs, polytechnics, or NSDC centers (up to ₹7.5 lakh)
SBI Scholar Loan Scheme: For preparatory programs at premier institutions (e.g., IITs, medical colleges; up to ₹50 lakh)
SBI Global Ed-Vantage Scheme: For school-level courses abroad (₹7.5 lakh to ₹1.5 crore)

What is the maximum loan amount for school funding?

Domestic Studies:

Up to ₹50 lakh for premier institutions
Up to ₹30 lakh for medical courses
Up to ₹10 lakh for other courses
Up to ₹7.5 lakh for skill/vocational courses

International Studies: ₹7.5 lakh to ₹1.5 crore (minimum ₹20 lakh for Global Ed-Vantage)
The amount depends on course fees, ancillary expenses, and collateral (for loans above ₹7.5 lakh).

What are the interest rates for SBI education loans?

Starting at 10.25% (floating, linked to MCLR) as of May 2025
Concessions:
- 0.50% for female students
- 0.50% for SBI Rinn Raksha/life insurance policyholders
- Preferential rates for premier institutions (e.g., 8.50% for Scholar Loans)
Subsidies:
- CSIS: Full interest waiver during moratorium (family income ≤ ₹4.5 lakh)
- PM-Vidyalaxmi: 3% interest subvention (family income ≤ ₹8 lakh, loans up to ₹10 lakh)
- Dr. Ambedkar Scheme: For OBC/EBC students studying abroad

What documents are required to apply for an SBI education loan?

Application Form: Duly filled and signed
Identity/Address Proof: Aadhaar, PAN, passport-size photos (student and co-borrower)
Admission Proof: Admission letter, fee structure, or student ID
Academic Records: 10th/12th mark sheets, entrance exam scores, gap certificate (if applicable)
Financial Documents:
- Co-borrower’s income proof (salary slips, ITR), bank statements (6 months)
- Income certificate for subsidies
- Asset-liability statement (loans above ₹7.5 lakh)
Collateral Documents (for loans above ₹7.5 lakh): Property title, fixed deposits, or life insurance papers
International Studies: Passport, visa, I-20/CAS form
Subsidy Documents: Aadhaar, income/caste certificate for CSIS or PM-Vidyalaxmi

How can I apply for an SBI education loan for school funding?

Online:

Visit https://onlineapply.sbi.co.in
Fill the application form, upload documents, and submit
Track status using the application reference number

In-Person:

Visit an SBI branch, obtain the form, submit with documents, and get an acknowledgment

Processing Time: 7–14 days for preliminary approval; additional time for collateral verification

Is collateral required for SBI education loans?

Up to ₹7.5 Lakh: No collateral or third-party guarantee; only a parent/guardian co-borrower is needed
Above ₹7.5 Lakh: Tangible collateral (e.g., property, fixed deposits, life insurance) is mandatory
Exception: PM-Vidyalaxmi offers collateral-free loans up to ₹10 lakh for top institutions

What is the repayment period for SBI education loans?

Moratorium Period: Course duration + 6–12 months (grace period)
Repayment Tenure: Up to 15 years post-moratorium, resulting in affordable EMIs
Extensions: Up to 2 years for course delays, with bank approval
Interest Servicing: Paying interest during the moratorium (optional) reduces the principal and EMIs

List of SBI Education Loan Banks for School Funding

SBI Student Loan Scheme
SBI Skill Loan Scheme
Specialized Course Funding
Credit Guarantee Fund Scheme for Education Loans (CGFSEL) Backed Loans

SBI Scholar Loan Scheme
SBI Global Ed-Vantage Scheme
PM-Vidyalaxmi Scheme Funding
Takeover of Education Loans

Parental Loans for Elementary Education
Parental Loans for Higher Secondary
Central Sector Interest Subsidy (CSIS) Supported Loans
International School-Level Program Funding

Vocational Course Funding
Professional Course Funding
Dr. Ambedkar Interest Subsidy Scheme Loans

Create Account

Sign In

Welcome Back!

Hello, Friend!

Reset Password

Reset Your Password

Change Password

Update Your Password

Logintoloans Assistant