The SBI education loan interest rate is one of the most searched terms by students who wish to study abroad as the SBI is one of the most prominent banks functioning in India that offers education loans to students at affordable interest rates. 

This article will give you a complete account of the SBI education loan details related to the SBI education loan interest rate for the different SBI education loan schemes.

SBI education loan interest rate 2022: How is it calculated?

The SBI education loan interest rate, as well as the interest rates of most other government banks, is calculated on the basis of MCLR. The MCLR can be interpreted as the Marginal Cost of Funds-Based Lending Rate. This figure is often considered to be the benchmark on the basis of which most Indian lenders calculate their respective education loan interest rates. The MCLR is calculated by taking into account, the various factors such as the tenure premium, the marginal cost of funds, the operating cost, etc.

Another important factor that is considered while calculating the SBI education loan interest rate is the spread. In the SBI education loan interest rate, a spread is the percentage of money charged by SBI for the education loan.

Also read: How Does The SBI Student Loan Calculator Help In Planning Your Education Loan Process?

SBI education loan interest rate for different SBI education loan schemes

The SBI education loan rate of interest varies depending on the type of SBI education loan scheme chosen by the students. SBI offers education loans under different SBI education loan schemes. Each of these SBI education loan schemes is designed to cater to the financial requirements of students who wish to pursue various different streams of higher education.

The five different SBI education loan schemes are:

1. SBI Student loan scheme
2. SBI Scholar loan scheme
3. SBI Skill loan scheme
4. SBI Global Ed-Vantage scheme
5. SBI Takeover of Collateralised Education loans scheme

The SBI education loan interest rates prescribed for each of these schemes will be explained in the paragraphs further ahead.

SBI Student loan Scheme

This SBI education loan scheme has been put together for the purpose of helping students who wish to pursue their higher studies within India. The only condition to avail an education loan under this scheme is that a student’s total education loan requirement must not exceed INR 20 Lakhs. The interest rates for the SBI education loan scheme are

As per the table above, students also get to enjoy a concession of another 0.5% on the total SBI education loan interest rate if they choose to purchase the Rinn Raksha education loan insurance or any other insurance scheme of the SBI.

In order to know any further details about the SBI education loan eligibility or SBI education loan process, do get in touch with the financial officers of WeMakeScholars. You can get your education loan sanctioned within a short span of time with the help of their expertise and prompt response.

SBI Scholar Loan Scheme

This scheme is especially for meritorious Indian students who have secured a seat in Professional/Technical courses in Select Premier Institutions through the Entrance Test/Selection process.

The bank has categorized the various institutions into different categories based on their overall ranking. The SBI education loan interest rates for each of these categories are set at different values.

Basically, SBI has four lists for institutions i.e AA list, A list, B list, and C list if in any you get admitted to, you can avail up to 40 lakhs through SBI education loan without collateral security.

Education loans for part-time courses are also granted under the Scholar loan scheme to students who have been enrolled in part-time courses in certain, select institutes.

SBI Skill loan scheme

SBI grants an education loan to students who wish to pursue courses that contribute to their overall skill development. The SBI education loan interest rates for this education loan scheme are as follows.

The SBI grants no more concession to candidates who wish to borrow an education loan under this scheme.

The SBI Global Ed-Vantage Education Loan Scheme

SBI offers collateral-based education loans under this scheme to students who have been accepted into graduate as well as post-graduate streams of prestigious colleges in countries like the UK, USA, Australia, Canada, Germany, New Zealand, etc. The maximum available education loan amount is INR 1.5 Cr. The SBI education loan interest rates for abroad education loans borrowed under this loan scheme are as follows.

SBI Takeover of Collateralised Education loans scheme

When a student takes an education loan, say from any private lender and later wished to transfer it to another bank due to any reason like interest rates, repayment terms, etc. The SBI takes over such loans under this scheme. 

If you do not know how education loan transfer works, then read this article which will clear all your doubts- All you need to know about Education Loan Transfer in India.

Despite all their student-friendly policies, one of the major drawbacks of applying for an education loan through the SBI is that more often than not, a lot of bank officials are unaware of the different courses/colleges which are eligible for an SBI abroad education loan and hence, a lot of students end up missing out on the crucial phases of their abroad education process. 

One alternative to this method is to apply through WeMakeScholars, an organization that helps students with their abroad education loan process. We have even launched Loanflix, which is a most comprehensive web series on the abroad education loan on youtube. Do watch all of the Loanflix episodes in order to get a thorough knowledge about the education loan system in India.