Features of SBI Unsecured Education Loan
- No Collateral Requirement: Loans up to ₹50 lakh for premier universities abroad and ₹7.5 lakh for domestic studies without any collateral or security. 5 bps interest rate discount for borrowers who opt for SBI Rinn Raksha or other life insurance policies.
- High Loan Amount: Loans can cover up to 100% of the education expenses including tuition, accommodation, travel and other related costs. Maximum loan amount of ₹50 lakh for international studies and ₹7.5 lakh for domestic studies under unsecured schemes.
- Flexible Repayment Tenure: Maximum repayment period of up to 15 years after course completion. Moratorium period includes course duration plus 12 months to allow students to find employment.
- Wide Course Coverage: Professional and technical courses in India and abroad including engineering, medicine, management, etc. Covers vocational and skill development courses under SBI Skill Loan Scheme.
- Competitive Interest Rates: SBI offers unsecured educational loans at competitive interest rates, starting at 10.25% per annum as of May 2025, with floating rates linked to the repo rate. Female students get a 0.50% interest concession, an additional 0.50% for SBI Rinn Raksha/life insurance, and a 1% concession during moratorium interest servicing. These benefits make repayment more manageable post-graduation.
- Flexible Repayment Tenure: Repayment can extend up to 15 years after the moratorium period (course duration + 6–12 months). EMIs start after the moratorium, and accrued interest is added to the principal, ensuring students can focus on studies without immediate financial stress.
- Wide Course and Institution Coverage: Loans cover graduate and postgraduate technical/professional courses in India (approved by UGC, AICTE, Govt.) and abroad (MBA, MS, CPA, etc.). Ancillary expenses like accommodation, travel, and equipment are also included, offering holistic financial coverage.
- No Processing Fees for Most Cases: No processing fee is charged for unsecured loans up to ₹20 lakh for domestic and international studies. For higher amounts under SBI Global Ed-Vantage Scheme, a nominal ₹10,000 fee applies, with no hidden charges, making the process student-friendly.
- Moratorium Period Flexibility: The moratorium covers the course period plus 6–12 months. During this time, students can optionally service interest to gain a 1% concession. This helps reduce the overall repayment burden post-education.
- Interest Subsidy Schemes: Loans are eligible for schemes like CSIS (for families with income up to ₹4.5 lakh), Padho Pardesh (for minority students studying abroad), and Dr. Ambedkar Scheme (for OBC/EBC abroad). These schemes offer full interest subsidy during moratorium for eligible applicants.
- Simplified Application Process: Applications can be submitted online via SBI or Vidya Lakshmi portal or at SBI branches. Required documents include admission proof, KYC, academic records, and co-borrower's income proof. SBI issues sanction letters within 15 days of complete application submission.
- Support for Premier Institutions: SBI’s unsecured loans are designed to support students admitted to top Indian and global institutions. The Scholar Loan Scheme and Global Ed-Vantage Scheme provide up to ₹50 lakh without collateral for institutions like IITs, IIMs, and reputed foreign universities.
- Tax Benefits: Under Section 80E of the Income Tax Act, the entire interest component of an education loan is tax-deductible for 8 years post-repayment start, with no upper limit. This significantly reduces the borrower’s taxable income.
- Collateral-Free Limit Expansion: SBI has raised the unsecured loan cap for international education from ₹7.5 lakh to ₹50 lakh under the Global Ed-Vantage Scheme, especially benefitting students from tier-2 and tier-3 cities and making global education more accessible.
