PROCESS OF STUDENT LOAN
PROCESS OF STUDENT LOAN

PROCESS OF STUDENT LOAN: Every parent has a dream to send their child for higher studies in the best institution either abroad But not all those families have enough financial resources to send them to the best institute in the country and study abroad in a good institution.

SBI Bank helps underprivileged families and students to fulfil their dreams of higher studies at home and abroad through education loans.

Today we will try to give you information on how to get a student loan, the Documents required for taking a loan and how to repay, How much is the processing fee for the loan, what security you need for the loan, What collateral will you need while taking a loan, subsidy and how much interest will be charged on the PROCESS OF STUDENT LOAN? how will the bank pay the college fee?

Concept of Education Loan

First of all, let us know what an education loan is. how will we get the loan? how will the bank pay the college fee? So let’s understand through an example

Suppose your 12th standard results are out and you take an education loan of Rs 600,000 to pay your college fees. To complete your graduation, you have to study 6 semesters and according to the fee payment rules of the college, you have to pay Rs100000 per semester. at the time of beginning the semester.

This means once your loan is sanctioned the bank will deposit your fee of Rs 100000 directly into your college account when your new semester starts.

one semester fee = Rs 100000

Total semester = 6

Total loan amount = Rs 600000

Now the thing to understand is that if the bank gives Rs100000 per semester fee, how will they take the interest The answer is that just as banks give loans in installments, they also charge interest only on paid money. Since the fee of that semester, the simple interest of 10,0000 will be charged and after the second semester, simple interest will be charged of 20,0000………..

SemesterfeeAmount subject to
simple interest rate
Semester 1Rs 100000Rs 100000
semester 2Rs 100000Rs 200000
Semester 3Rs 100000Rs 300000
Semester 4Rs 100000Rs 400000
Semester 5Rs 100000Rs 500000
Semester 6Rs 100000Rs 600000
PROCESS OF STUDENT LOAN

Important thing is that compound interest rate is not charged in education loan

PROCESS OF STUDENT LOAN

Tenure of Education Loan

Now your studies are over but still, the bank will not ask you to return the loan, we will give you 1 year so that you can find your job and be eligible to pay off our up loan. That is, the bank will not recover the loan from you for three of your degree. years + 1 year = 4 years this 4 years is called the moratorium period. During the moratorium period, the bank charges only simple interest.

The bank does not pressurize you to repay the loan during the moratorium period. But if a student saves some money by doing a job along with their studies, then he can pay the interest on his own.

When your moratorium period ends after 4 years, the bank will start loan recovery from you. The bank will give you a maximum of 15 years to repay the loan. When you pay the EMI of the loan, it includes the principal amount as well as the interest amount and our government gives tax rebates in the interest amount. The government gives tax rebates only for 8 years, if you take a loan for 15 years, then you will get tax rebate benefits only for 7 years.

Margin Money (PROCESS OF STUDENT LOAN )

If you need a loan up to Rs 400000 then no margin money will have to be given. And if you need an education loan above Rs400000, then the bank will also ask you for some amount as a margin from your side.

Loan Amount

The loan amount mostly depends on the bank, some private banks also give more. If you want to take a loan for studies in India, then you can get a maximum loan of 15 lakhs. If you want to take a loan for studies abroad, then you can get a maximum loan of 75 lakhs.

Collateral (PROCESS OF STUDENT LOAN )

1: If you want an education loan up to Rs 400000 then you have to join only your parents as co-borrowers. And you don’t have to pledge anything

2: If you want an education loan between 4 lakhs to 7.5 lacs, you will also need a third-party guarantor with your parents as co-borrower.

3: If you want an education loan above 7.5 lacs, the bank will ask you to take any collateral with a third-party guarantor and co-borrower. You can give your house, jewellery, fixed deposit, or any valuables as collateral.

Subsidy In Education Loan (PROCESS OF STUDENT LOAN )

The interest charged during the moratorium period can be waived off if you fall under the economically weaker section and your annual income is less than 4 lakhs.

So far we have tried to explain the concept of education loans to you. Now we will give you information on how SBI Bank offers education loans.

SBI Bank mainly offers three types of loans for studying in India, for studying abroad, and for studying in higher institutions like IIT and NIT.

1: SBI STUDENT LOAN FOR STUDY IN INDIA (PROCESS OF STUDENT LOAN )

DOCUMENTS (PROCESS OF STUDENT LOAN )
  1. ADHAR card
  2. Permanent Account Number (PAN) of Student / Parent / Co-borrower / Guarantor
  3. Bank Account Statement for the last six months of Parent / Guardian/ Guarantor
  4. Passport size photographs of Student / Parent / Co-borrower / Guarantor (1copy each)
  5. Proof of admission to course Offer Letter/ Admission Letter
  6. 10th, 12th, Graduation mark sheet
  7. Salaried Persons(a) Latest Salary Slip,(b) Form 16 OR latest IT Return (ITR V)
  8. For other than Salaried Person:  Business address proof (if applicable) and  Latest IT Returns (if applicable)
  9. At least one self-attested copy of the Officially Valid Documents like an Adhar card, voter id, driving license, etc
REPAYMENT (PROCESS OF STUDENT LOAN )

Course years + 1 year (moratorium period)+ 15 years

You have to pay the SBI Student Loan through the EMI within a maximum of 15 years after the moratorium period.

PROCESSING FEES (PROCESS OF STUDENT LOAN )

Loan up to 20 lacs – no processing fees

Above 20 lacs – 10 k

If your loan amount is up to 20 Lacs then you don’t have to pay any fee. And If your loan amount is more than 20 lacs, then you have to pay a fee of up to Rs10 K.

MARGINE (PROCESS OF STUDENT LOAN )

Loan amount up to 4 lacs – no margin required

loan amount above 4 lacs- 5 % of the loan amount

If your loan amount is up to 4 lac then you don’t have to give any margin bank will give you 100 % of the loan and if your loan amount is more than 4 lacs you have to pay 5 % of the loan amount for study in INDIA and 15 % of the loan amount for study abroad.

SECURITY (PROCESS OF STUDENT LOAN )

Loan amount up to 7.5 lacs – only parents as co-borrower

If you want a student loan up to 7.5 lakhs, only your parents have to be attached as co-borrowers as security.

If you want an education loan of more than 7.5 lacs then you have to join your parents as co-borrower and need additional tangible collateral security. In this tangible security, you can give your house, fixed deposit, jewellery, or bank-approved property.

RATE OF INTEREST (PROCESS OF STUDENT LOAN )

SBI Student loan rate of interest staring at 9.15 % but rates of interest may be different according to your CIBIL score

SUBSIDY (PROCESS OF STUDENT LOAN )

The interest charged during the moratorium period can be waived off if you fall under the economically weaker section and your annual income is less than 4 lakhs.

2: SBI STUDENT LOAN FOR STUDY ABROAD(PROCESS OF STUDENT LOAN )

DOCUMENTS (PROCESS OF STUDENT LOAN )
  1. ADHAR card
  2. Passport
  3. Permanent Account Number (PAN) of Student / Parent / Co-borrower / Guarantor
  4. Bank Account Statement for the last six months of Parent / Guardian/ Guarantor
  5. Passport size photographs of Student / Parent / Co-borrower / Guarantor (1copy each)
  6. Proof of admission to course Offer Letter/ Admission Letter
  7. 10th, 12th, Graduation mark sheet
  8. Salaried Persons(a) Latest Salary Slip,(b) Form 16 OR latest IT Return (ITR V)
  9. For other than Salaried Person:  Business address proof (if applicable) and  Latest IT Returns (if applicable)
  10. At least one self-attested copy of the Officially Valid Documents like an Adhar card, voter id, driving license, etc
REPAYMENT (PROCESS OF STUDENT LOAN )

Course years + 1 year (moratorium period)+ 15 years

You have to pay the SBI Student Loan through the EMI within a maximum of 15 years after the moratorium period.

PROCESSING FEES

10 K Processing fees for SBI student loan for study abroad

LOAN AMOUNT

If you have taken a loan to study abroad, you can get a loan from 7.5 lakhs to 1.5 crores in SBI student loan.

MARGINE

In SBI Student Loan For Study Abroad you have to deposit 15%margine of the loan amount to the bank.

SECURITY

If you want an education loan of more than 7.5 lacs then you have to join your parents as co-borrower and need additional tangible collateral security. In this tangible security, you can give your house, fixed deposit, jewellery, or bank-approved property.

RATE OF INTEREST

SBI Student loan for study abroad rate of interest starting at 11.25 % but rates of interest may be different according to your CIBIL score

3: SBI STUDENT LOAN FOR STUDY IN IIT, NIT (PROCESS OF STUDENT LOAN (

DOCUMENTS

  1. ADHAR card
  2. Permanent Account Number (PAN) of Student / Parent / Co-borrower / Guarantor
  3. Bank Account Statement for the last six months of Parent / Guardian/ Guarantor
  4. Passport size photographs of Student / Parent / Co-borrower / Guarantor (1copy each)
  5. Proof of admission to course Offer Letter/ Admission Letter
  6. 10th, 12th, Graduation mark sheet
  7. Salaried Persons(a) Latest Salary Slip,(b) Form 16 OR latest IT Return (ITR V)
  8. For other than Salaried Person:  Business address proof (if applicable) and  Latest IT Returns (if applicable)
  9. At least one self-attested copy of the Officially Valid Documents like an Adhar card, voter id, driving license, etc
  10. Asset-Liability Statement of Co-applicant / Guarantor
REPAYMENT

Course years + 1 year (moratorium period)+ 15 years

You have to pay the SBI Student Loan through the EMI within a maximum of 15 years after the moratorium period.

PROCESSING FEES

no Processing fees for SBI student loans for study in IITs and NITs

LOAN AMOUNT

If you have taken a loan to study in IITs and NITs, you can get a 100 % loan of your course fee and an SBI student loan.

MARGINE

No margin money is required in an SBI student loan to study in IITs and NITs

SECURITY

If you want an education loan of more than 7.5 lacs then you have to join your parents as co-borrower and need additional tangible collateral security. In this tangible security, you can give your house, fixed deposit, jewellery, or bank-approved property.

RATE OF INTEREST

SBI Student loan for study IIT’s and NIT’s rate of interest starting at 8.5 % but rates of interest may be different according to your CIBIL score

HOW TO APPLY ONLINE (PROCESS OF STUDENT LOAN )

  1. Click the below link
  2. APPLY ONLINE SBI STUDENT LOAN
  3. Select category
  4. Click apply online
  5. Create your account
  6. Enter your details
  7. Agree with terms and conditions
  8. Click next
  9. after the account is created successfully, you will receive an email
  10. Click the link received in the email to activate your account on the vidya laxmi portal
  11. login on the vidya laxmi portal
  12. click on search and apply for the loan scheme
  13. select scheme
  14. next, click Fill the application form
  15. fill in the required details
  16. click next
  17. click ok
  18. enter student’s and parent’s information, contact details of parents, and email address residential address
  19. save and click next
  20. enter your bank IFSC code
  21. and add the applicant’s and parents’ bank account details
  22. next enter details of the course and state the name
  23. Next, select your school and enter the course duration time
  24. Next, enter details of your expenses, scholarship required loan amount and repayment
  25. Next, upload the required documents
  26. If you are sure to apply then click yes
  27. Next, enter your bank IFSC code and click Appy
  28. now you can check your loan status

IMPORTANT LINKS

VIDYA LAXMI EDUCATION LOANCLICK HERE
OUR HOME PAGECLICK HERE
PROCESS OF STUDENT LOAN

Note :

This article is only for education and information purpose. We give all information in this post is correct but if any error will there, then we will not be responsible for it. Please visit the official website and Read the terms and conditions carefully before applying for a loan.

2 thoughts on “PROCESS OF STUDENT LOAN”

Leave a Reply

Your email address will not be published. Required fields are marked *