How Much Education Loan Can I Get From Sbi?
This education loan scheme provides financial assistance to students planning to complete their studies at any top global institution. The loan amount sanctioned by SBI starts from Rs.20 lakhs to up to Rs.1.5 crores, with a margin ranging from 20% to up to 80%.
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How much education loan can I get?
Basic Criteria for Educational Loan One of the most vital questions that you may wonder about is the amount of the educational loan. In general, you can get up to 4 lakhs of educational loan for higher studies without any collateral. Under education loan scheme, you can get a maximum of 15 lakhs for studies in India and more 25 lakhs for abroad studies.
- When you take education loan up to 4 lakhs, only the student and the parent have to sign the document and no collateral are necessary.
- However, if your loan amount is between 4 lakhs and 7.5 lakhs, you will have to provide third party guarantee to the bank.
- If the loan is above 7.5 lakhs, you will have to furnish the bank with collateral documents.
These are documents of any securities like NSC which the bank can sell to recover the amount if you fail to pay. How to apply for an educational loan for higher studies? In order to apply for an educational loan, you will have to prepare a number of documents beforehand.
The process goes as follows: Once you have determined to study at an institution and completed the process of admission, then you will have to concentrate on taking out an educational loan. Here are the documents which you should keep ready: You will have to provide a proof of admission to the selected recognized institution.
Proof of your consistently high academic performance along with the last mark sheet will need to be produced. The cut-off marks generally differ from general students to reserved students. You need to produce a schedule of fees. Depending on the amount that you are applying for, you will need to produce income statement, statement of assets and liabilities etc.
- If you are going to study abroad, you need to produce your passport with a valid visa also.
- Your education loan will cover a number of things in addition to your tuition fees.
- These include hostel fees, exam fees, library fees, purchasing books, travel and other expenses for educational projects.
- After all the documents have been submitted and verified, you will have to appear for an interview.
It is best to know as much as possible about the course and the institutions that you have chosen. It takes around 15 days for an educational loan to be sanctioned. Once it has been sanctioned, you will get a promissory note which you will have to sign.
In most cases, banks pay the institution directly and or to you. You should check the repayment clause. In most cases, repayment starts six months after the end of the course or as soon as you get a job – whichever comes earlier. Interest rates on educational loans depend on a number of factors. In general, they vary between 10% and 15% rates of interest.
SBI Student Loan | SBI Education Loan full details 2021 | State Bank of India Education Loan |
You can claim tax deduction on the interest of the education loan. However, no deduction can be claimed on the principal. : Basic Criteria for Educational Loan
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Is it good to take education loan from SBI?
What is the SBI Education Loan Interest Rate? –
| Interest Rate with Rinn Raksha Insurance | Interest Rate without Rinn Raksha Insurance | |
| Female Students | 9.7% | 10.2% |
| Male Students | 10.2% | 10.7% |
On paper, the SBI Education Loan Interest Rate is 10.7% for male students and 10.2% for female students. However, 99% of the students opt for SBI’s Rinn Raksha Insurance because of which they are eligible for an automatic reduction of 0.5% in their interest rate.
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Does bank give full education loan?
Leading Indian banks offer education loans to help students achieve their academic objectives. A school loan with a payback duration of up to 20 years starts at 7.00% per year in interest. Both in-country and out-of-country higher education can benefit from education loans.
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Do education loans get rejected?
Education loan rejection due to Poor CIBIL Score: – To those who have applied for any kind of loan previously, CIBIL score may not be an alien subject. The Credit Bureau of India Ltd, or as it famously called CIBIL is the major governing body that examines every loan applicant’s credit score.
- This is done so in order to determine an applicant’s worthiness to receive any particular loan.
- When it comes to education loans, most lenders have very strict policies regarding the CIBIL scores of both, education loan applicants, as well as their co-applicants.
- A CIBIL score lower than 600 is one of the reasons behind an education loan rejection in a majority of the cases.
In order to know whether you qualify for an abroad education loan with your current CIBIL score, get in touch with the financial team of WeMakeScholars at the earliest. Let us move on to understand the next factor which invites an education loan rejection.
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Can we take 2 educational loans?
Can I get a second Education loan? – The answer is YES, you can get a second education loan provided you meet the requirements for the second education loan. You can opt to take this loan either from the same bank you had taken the loan from for your graduation or from a different lender.
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Which bank easily gives loan?
HDFC, ICICI, Bajaj Finserv, Tata Capital, and Kotak Mahindra are some of the banks that offer best personal loans in India.
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Can I get 100% student loan?
Education loan: How to get education loan without any collateral Getty Images The bank may ask you to deposit margin money and seek third-party guarantee in some cases. To get a from a, you generally have to pledge such as house property, fixed deposits, shares, bond, etc., to take the loan. This is done so that in case you default on the loan, lenders can recover it by selling the pledged security.
The security pledged against a loan is termed as collateral. However, you can get an without pledging any security. The Credit Guarantee Fund for Education Loans (CGFEL) provides a guarantee for education loan dispersed by banks under the Model Education Loan Scheme of Indian Banks’ Association (IBA).
Under this scheme, you can get a collateral-free loan amount for up to Rs 7.5 lakh without providing any third-party guarantee. There is no margin requirement if you apply for a loan within this limit through a scheduled commercial under the CGFSEL scheme.
It means that the bank can finance up to 100 percent of the loan, if the loan is up to the limit of Rs 7.5 lakh. Under the CGFEL scheme you can get a loan up to Rs 10 lakh for study in India and up to Rs 20 lakh for studying abroad. But, if you take a loan of more than Rs 7.5 lakh, the bank may ask for collateral for the loan amount.
The bank may also ask you to deposit margin money and seek third-party guarantee. Gaurav Aggarwal, Director & Head of Secured Loans, Paisabazaar.com said that normally lenders require third-party guarantee or tangible collateral as security, depending on the loan amount.
He said, “You do not have to provide collateral and present a third-party guarantee for a loan up to Rs 7.5 lakh under the CGFSEL scheme.” Do all banks provide collateral-free education loan benefit? IBA has formulated the ‘Model Education Loan Scheme’ to financially support meritorious students for pursuing higher education in India and abroad.
The guidelines issued by IBA for the CGFSEL educational loan scheme is generally followed by banks. However, the banks may vary in providing loans under the scheme as per their own internal rules. Aggarwal said that some banks do provide collateral-free loan option to students looking to pursue higher education from premier institutes.
However, it’s the bank’s sole discretion to waive off third-party guarantee or tangible collateral security requirement. He further explains, for instance, for loan up to Rs 4 lakh, lenders only require parents/guardians as joint borrower(s). But, lenders can ask for suitable third-party guarantee for loan amount in the range of Rs 4 lakh to Rs 7.5 lakh, besides having parents/guardian as a joint borrower.
However, “You will be required to provide tangible collateral security if the loan amount is more than Rs 7.5 lakh, along with the assignment of future income of the student for payment of instalments,” he added Can you get a collateral-free loan above Rs 7.5 lakh? However, if your education loan requirement is more than Rs 7.5 lakh or even more than Rs 10 lakh, you can reach out to other lenders to get a collateral-free loan.
Adhil Shetty, CEO, BankBazaar.com said, “Non-banking financial companies (NBFCs) and private lenders can provide you collateral-free loans for a higher amount, but these collateral-free loans are sanctioned at a slightly higher as compared to education loan taken with collateral.” Process to apply for an education loan Before applying for a collateral-free education loan, you must know that the student is the main borrower of the education loan and parent, spouse or sibling can be the co-applicant., Banks generally ask for co-applicant details when you apply for a collateral free loan.
Not only this, banks also ask for the income documents such as salary slips or income-tax returns (ITR) of the co-applicant before sanctioning the education loan. As per the Reserve Bank of India (RBI) guidelines, there are no restrictions on the upper age limit, but some banks may have it as per their own internal rules and regulations.
To apply for the loan, you should be an Indian citizen, having secured an admission into a college/university recognised by a competent authority (NAAC/NBA accredited Institutions/programmes or Institutions of National Importance or Central Funded Technical Institutions (CFTIs)) in India or abroad. The lender will ask for the admission letter of the college/university with the fee structure of the course for which you have applied for the education loan.
Apart from this, lenders may also require documents such as Class X, XII and graduation (if applicable) mark sheets. When your loan application is accepted by the lender, then the lender disburses the amount directly to the college as per the given fees structure.
All students taking education loan under the CGFSEL educational loan scheme also get one-year moratorium for repayment after completion of studies. Basically, lenders can give a relaxation of about one-year time to start re-paying the loan after you complete your education.
Shetty said that the tax deduction benefit under Section 80E of Income Tax Act for interest paid on education loans is available only when you have taken the loan from a financial institution operating under the Banking Regulation Act, 1949 or an eligible trust/institution as per the prescribed rule. “So, when applying for a collateral-free loan of more than Rs 7.5 lakh from non-qualified institutions, you may miss out on the tax deduction benefit under Section 80E of the Income Tax Act,” he said.
Generally, repayment period of education loan is 15 years. However, you should try to repay the loan amount at the earliest as tax-saving deduction benefit is available for up to 8 years only.
( Originally published on Sep 18, 2019 ) (Your on estate planning, inheritance, will and more.) Download to get Daily Market Updates & Live Business News. : Education loan: How to get education loan without any collateral
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Can I get 100 percent education loan?
Pay for a variety of costs – 3 / 5 
– In some special cases, a 100 percent financing facility is also available. – Financing covers the expenses of essential study material like travel and laptop. – Easy repayment options are provided by banks to make the loan flexible. – After the completion of the course, the repayment time is 12 years.
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Can I get 40 lakhs education loan from SBI?
The loan amount sanctioned by SBI starts from Rs.20 lakhs to up to Rs.1.5 crores, with a margin ranging from 20% to up to 80%. The interest rate offered on this education loan is 1.70% over the base rate of SBI, which totals to 11% per annum.
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What is the maximum amount of student loan interest?
Income Limits for Eligibility – The student loan interest deduction is reduced or eliminated for higher-income taxpayers. For the 2022 tax year, the amount of your student loan interest deduction is gradually reduced or phased out if your modified adjusted gross income (MAGI) is between $70,000 and $85,000 for single taxpayers.
It’s between $145,000 and $175,000 in 2022 for those who file married and jointly. You can’t claim the deduction if your MAGI is above the maximum amount. For 2023, the phase out for single taxpayers begins at $75,000 and ends at $90,000. If you are married and filing jointly, the phase out for the 2023 tax year begins at $155,000 and end at $185,000.
You can’t claim the deduction if your MAGI is above the maximum amount. Income limits for student loan interest deductions are adjusted annually for inflation.
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