SBI Foreign Education Loan

04 Aug, 2016


SBI Foreign Education Loan – State Bank of India is an Indian international financial facilities company that was initiated in 1921. State Bank of India has a functioning manifestation of over 14,000 branches in India aiding billions of happy clienteles. The bank has a much diversified assortment that comprises services in business banking, personal banking, and international banking services.

State Bank of India Education Loan is of three categories – for education in India and abroad, for education in premier Indian institutions and loan for pursuing job-related education and training.


SBI Foreign Education Loan Features


State Bank of India Student Loan scheme is accessible to Indian nations for pursuing higher studies in India or at a foreign institute. SBI Scholar Loan scheme is obtainable to candidates who have secured admissions in foremost Indian associations. A separate loan system is offered for pursuing career education and training in India.

Expenses Considered for SBI Education Loan:

The following expenditures are covered for both the student loan scheme and loan for professional education.

  • Tuition and course fee
  • Scrutiny, library and laboratory fees
  • Caution deposit
  • Cost of books, equipment and other instruments.

 Amount of SBI Foreign Education Loan

  • State Bank of India Student Loan Scheme

A maximum of Rs.10 lakhs is accessible for education in India. For studies abroad, a maximum of Rs.30 lakhs is offered as loan.

  • SBI Scholar Loan Scheme
Category of the educational institution Maximum Loan Limit
Without Security With Security
List AA Rs.30 Lakhs NA
List A Rs.20 lakhs Rs.30 lakhs
List B Rs.20 lakhs NA
List C Rs.7.5 lakhs Rs.30 lakhs
  • Loan Scheme for Career Education and Training

For courses of duration up to 6 months, loans up to Rs. 50,000 are provided. A maximum of Rs.1 lakh is provided as loan for courses of period above 6 months.

SBI Foreign Education Loan Interest Rates

SBI Student Loan Scheme

Loan Amount Rate of Interest
Up to Rs.4 lakhs 3.50% above base rate
Above Rs.4 lakhs and up to Rs.7.5 lakhs 3.75% above base rate
Above Rs.7.50 lakhs 1.75% above base rate

The base rate is fixed at 9.85%. Do make an analysis with the bank about the prevalent base charges. A concession of 0.50% is provided for lassie students and a 1% concession is accessible for full tenancy of loan, if the interest is serviced promptly during moratorium and course period.


  • SBI Scholar Loan scheme
Type of Institution Interest Rate per annum
List AA 25 bps above base rate (10.10% at present)
List A 25 bps above base rate (10.10% at present)
List B For unsecured loan up to Rs.20 lakhs, 50 bps above base rate (10.35% at present)
List C 175 bps above base rate (11.60% at present)

For list B institutes, the interest rate is 25 bps if the collateral security provided is equal to or greater than the loan total amount or if the candidate’s work knowledge is greater than two years. You can contact the bank for a comprehensive arrangement of the educational institutions as per the type AA, A, B or C.

  • SBI Loan for Job-related Education and Training

The rate of interest is fixed at 3.50% above the base rate of 9.85%

Processing Fee

No processing fee is charged for SBI education loans.

SBI Foreign Education Loan Repayment Tenure

  • SBI Student Loans
Maximum Loan Amount Repayment Period
Up to Rs.4 lakhs Up to 10 years
Above Rs.4 lakhs to up to Rs.7.5 lakhs Up to 10 years
Above Rs.7.5 lakhs Up to 12 years
  • State Bank of India Scholar Education Loan

The maximum reimbursement tenancy is 12 years. The repayment duration starts after 6 months of course completion.

  • SBI Loan for Vocational Education and Training

For courses of period up to 1 year, the reimbursement duration can be up to 3 years. For courses of period above 1 year, the compensation period can prolong up to 5 years.

Security for SBI Foreign Education Loan

  • SBI Student Education Loan
Loan Amount Security
Up to Rs.4 lakh Parent or guardian as co-borrower
Above Rs.4 lakhs and to Rs.7.50 lakhs Parent or guardian as co-borrower and collateral security in the form of a third party guarantee
Above Rs.7.50 lakhs Parent or guardian as co-borrower and tangible collateral security
  • SBI Scholar Loan Scheme

Noticeable warranty security of full cost is to be provided and parental or guardian should emblem up as co-borrower only to avail extra loan amount for list A and list C institutes. Loans can be availed without security also under the scholar scheme.

SBI Foreign Education Loan Documentations

The following documents are to be submitted to complete the application process.

  • Letter of admission
  • Duly filled and signed loan application form
  • 2 recent passport size photographs
  • Statement of cost of study
  • PAN Card, AADHAR card of student and parent/guardian
  • Proof of identity and proof of residence
  • IT returns or IT assessment order of previous two years of the co-borrower
  • Statement of assets and liabilities of parent/guardian
  • Proof of income of parent/guardian


For SBI Student Loan Scheme, there is no boundary for loans up to Rs.4 lakhs. For loans above Rs.4 lakhs, the margin is 5% for studies in India and 15% for education in abroad.

SBI Foreign Education Loan Eligible Courses

  • SBI Student Education Loan

For education in India, graduation and post-graduation technical courses (degree and diploma) accompanied by institutions sanctioned by UGC, AICTE, IMC and the government of India are covered. Also, nursing courses, teacher training and other diploma courses like pilot training, shipping etc. as applicable by the concerned regulatory authority are covered under the loan. For education in abroad, job-oriented professional graduate and post-graduate courses like MCA, MBA, MS, courses conducted by CIMA – London, CPA – USA are approved for loan.

  • SBI Scholar Loan Scheme

Consistent full-time degree and diploma courses for which the candidate is granted an admission through merit based admission procedure or entrance test is covered under the loan. Also, full time executive management courses like PGPX are sanctioned for loan.

  • SBI Vocational Education and Training Loan

Vocational courses and skillfulness development courses of period 2 months to 3 years run by a government department or an association maintained by National Skill Development Corporation leading to a documented Government organization are approved for the loan.

List of Approved Educational Institutions

  • For the SBI Student System, educational institutes in India documented by UGC/AICTE/IMC and government of India are sanctioned. Reputed foreign institutes abroad, CIMA and CPA courses are also sanctioned for loan.
  • SBI Scholar Loan structure is provided for education in 93 premier Indian institutes. Contact the bank for the list of institutes that fall under the leading category.
  • Job-related, skill development courses accessible by the government or an association expert by the government is sanctioned for loan under the SBI Vocational Education and training loan category.



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