SBI Educational Loan

SBI Educational Loan

This is a loan scheme scheduled to provide financial aids to students that have obtained admission into recognized tertiary institutions. This covers all sorts of fees, especially tuition fees, and cost of books.

SBI Education Loan Eligibility:

The student has to be an Indian National.

The applicant has to be on:

  • Graduation course,
  • Post-graduation program or
  • Professional course.

Or any other government recognized course.

Calculation of SBI Education loan eligibility:

  • Loan for studies in India – 5%
  • Loan for studies abroad – 15%

SBI Education loan Down Payment & Fess:

There are no charges for the loan by SBI, nor payments made upfront. Although for students studying abroad are required to make a Rs. 5000 deposit.

Tenure Years:

The loan repayment commences from a year after the student completes his course, or six months after he must have secured a job.

Interest Rate Bank-wise:

  • For loans up to Rs.4 lacs, interest is at 11.25 % per annum.
  • For loans ranging from Rs. 4 lacs, to Rs.7.50 lacs, the interest rate is at 12.75 %.
  • For loans above Rs.7.50 lacs, the interest rate is at 11.75% per annum.

Top five banks that provide home loans in India

  • SBI Bank.
  • HDFC Bank.
  • LIC Housing Finance.
  • Axis Bank.
  • ICICI Bank.

Open-Ended & Closed-Ended Loans

In open-ended loans, you will be able to take loans many times. You may pay the loan amount and take the loan again. You also have the credit limit for such loans. It means you can’t take any loan against amount fixed by the lender. You will have to pay some interest on such loans if you exceed your credit limit or pay after your date of maturity. The credit limit will be increased by the lender in case you have a good record and don’t default in the payments. The lines of credit and credit cards are also a good example of such type of loans.

In India, there is a wide range of loans you can take. But, many people despite having the different type of assets to go for the personal loan even though they have many other choices where they may mortgage their current asset and take the loan at lower rate of interest. It happens because most of us do not know about various loan options that are available. The loan is an amount of money that borrower takes from a lender with an assurance promise of returning the money back within the fixed time frame. The rate of interest will be fixed by banks for various loans like applied by a borrower. Then borrower pays back their interest and money in the installments as per the agreement between both of them. In India, banks offer many different kinds of loans for help.

The process to apply for the loan:

Taking loan isn’t very complicated as many people think. An only thing that must be paid close attention is that real documents must be submitted to bank on time. In India different types of loans need different documents. Some steps that are involved when applying for the loan includes:

Loan Application Form: The loan application form is given by banks that must be filled rightly and type of loan that you want must get mentioned very clearly.

CIBIL Check: The CIBIL Check will be to count credit cards scores. The CIBIL collects as well as maintains all records about loans that you need to pay besides loan that you’re applying for. Suppose your credit card score is much higher, then the loan will be sanctioned very easily to you.

Submission of the Necessary Documents: Customers have to produce their ID and other important certificates to the bank so they may trust you for offering the loan. Thus, submission of important documents is one mandatory procedure that is involved in sanction of the loan.

Loan Approval: Now, it is banks’ job of going through all documents and details correctly and then will sanction you the right loan. When your documents get approved by banks they will approve you for the loan.

Home loan: Every person dreams to have to have their own property. But buying a home needs plenty of money and isn’t possible for the people of the lower strata to gather that much amount of money at once. Now, banks are also offering home loans that are helpful to you to buy your home.

Categories: loans