SBI is the top public sector bank that offers education loans to students under various schemes. These loans offer significant financial assistance to students who could not afford it otherwise. However, many students miss opportunities due to some misconceptions about SBI education loans.
In this blog, we will debunk all the myths about SBI education loans, which help students clear the air and get the required financial assistance to achieve their academic goals.
Let’s now understand and break all the myths in detail
SBI Education Loans
SBI offers education loans to students under different schemes, thus helping students achieve their academic goals. The top SBI education loans are
- SBI student Loan scheme
- SBI scholars loans
- SBI study abroad
- SBI skill loan
- Take over of Education loans
- Dr.Ambedkar Interest subsidy scheme for overseas studies
- Padho pardesh interest subsidy scheme for overseas studies
- Shaurya Education Loan
Myth 1: You always need Collateral to get an SBI Education Loan
Often, students think that they always have to pledge collateral to get an SBI education loan, which is a myth.
Reality: Under certain SBI Education loan schemes, students are not required to pledge any collateral to get an education loan from the SBI. Schemes such as the SBI Global-Edvantage Scheme offer an unsecured education loan of up to 50 lakhs for students.
SBI assesses the eligibility based on the university the student is going to, the course the student chooses, and the student’s profile.
Myth 2: SBI Education Loans are only for Abroad Studies
Many students believe that SBI only offers education loans for studying abroad, which makes them hesitant to apply for such loans.
Reality: SBI education loans are not just meant for students who want to pursue their studies abroad. SBI education loans are also for students who are pursuing their education in India.
Schemes such as SBI Scholar Loans, Skill Loans, and SBI Student Education loans offer education loans for students in India.
Myth 3: The SBI Education Loan Process is Slow
It is a myth that the SBI Education Loan process is slow. If this myth is stopping you from applying for SBI Education loans, then you are mistaken. Let us check the reality.
Reality: Generally, the processing time for an Education loan often depends on various factors such as the type of education loan, student profile, etc. Collateral loans involve a lot of paperwork than non-collateral loans.
Thus, collateral loans processing time is slightly higher than that of non-collateral loans. This is to check the eligibility and the originality of the property documents. However, if all the required documents are organised by following a checklist provided by the SBI, approval time may take faster than expected.
An education loan sanction is crucial for funding the education of many students. However, students often struggle to get their loans sanctioned without the right guidance. WeMakeScholars can help you in such situations. Our team is dedicated to assisting students in receiving education loan approvals on time. We provide complete education loan assistance to students applying through us.
Myth 4: The Interest Rates are too High
Many parents, as well as students, have this misconception that the Interest rates for SBI education loans are too high.
Reality: Generally, the SBI, being the top public sector bank, offers education loans at competitive interest rates. These interest rates are comparatively lower than those of private lenders and NBFCs. There is a special concession for female students as well. Therefore, the interest rate is one of the factors that students can compare and make an informed decision about the education loans.
Myth 5: Repayment Starts Immediately After Loan Disbursement
This is the biggest myth why students step back from taking education loans, and sometimes even drop out of their higher education plans.
Reality: Generally, education loans would have a moratorium period of the course duration, plus up to one year. The interest charged during this period may vary from lender to lender. SBI education loans also have a moratorium period of 1 year, plus the course duration. During this period, simple interest is charged, which students can pay after the moratorium period. The EMI begins after the moratorium period.
Myth 6: Only Parents can be the Co-applicants
It is not true that only parents can be the co-applicants for the SBI education loans.
Reality: Usually, parents are the co-applicants for many education loans. However, SBI allows close relatives and guardians to be the co-applicants, subject to various other factors such as Income, credit history, etc.
Applying for Education loans through WeMakeScholars can ensure fast loan approvals. We have a team of dedicated financial officers who lend support throughout the loan process. Our financial officers will provide end-to-end support and make your education loan process stress-free.
Eligibility Criteria to Secure an SBI Education Loan
SBI offers various Education loans to students under different schemes. The eligibility requirements may vary slightly by scheme; however, the general eligibility requirements may include:
- Nationality: The applicant and co-applicant are required to be Indian citizens.
- Admission Status: The student must secure admission from a recognised university or college.
- Co-applicant: Most of the education loans require a co-applicant. A strong co-applicant can enhance education loan approval chances.
- Age limit: Generally, students aged between 18 to 35 are eligible to apply for the SBI education loans
- Collateral: SBI offers both secure and unsecured education loans. For secured loans, the student is required to pledge collateral to secure the loan amount. This reduces the risk to the lender, and these loans are available at slightly lower interest rates than unsecured education loans.
- Academic History: To get SBI education loans, a student is required to score a minimum average of 50% in all previous academics. Better academics can enhance loan approval chances.
- Country and University: Some Countries and Universities are loan-favored for various reasons. Students choosing to study in the top countries and the listed Universities can enhance their loan approval chances.
This often depends on the employment opportunities the country and the university have, which influences the loan repayment potential.
Conclusion
Do not let any myths stop you from exploring the SBI education loans. With the right guidance and information, you can secure the funding required for your higher education either in India or abroad.
In this blog, we have debunked all the myths related to the SBI Education Loan, which indeed helps students to make informed decisions about their academics. In addition, we have also discussed the eligibility criteria required to get SBI education loans.
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