Get instant loan offer suitable to your profile !
On this Page:
Learn how to repay SBI education loan with ease. Know ways to repay your SBI education loan and the benefits of prepayment.
The journey towards higher education marks a crucial phase that demands substantial financial planning and investment. Acknowledging the crucial impact of education in nurturing personal growth and progress, the State Bank of India (SBI) offers extensive education loan services to prospective students. An SBI Education Loan offers a gateway to higher education, but it's the repayment phase that often poses challenges for many. Understanding how to repay SBI education loan effectively is crucial for financial planning and maintaining a good credit score.
Feature | Description |
---|---|
Loan amount |
INR 7.5 Lakh - INR 1.5 Cr |
Men: 10.65 - 11.15 |
|
Processing fees |
INR 10,000 + GST (Non-refundable) |
INR 7.5 Lakh-INR 20 Lakh - 15% INR 20 Lakh - 10% |
|
Property evaluation charges |
Approximately INR 7,500 |
Course duration + 6 months |
|
Repayment tenure |
15 years |
Check Your Education Loan Eligibility
Paying back your education loan SBI is designed to be flexible and manageable. Understanding your repayment options is key to a stress-free process. Here's a straightforward guide on how to tackle your SBI education loan repayment, ensuring you're well-informed and prepared.
After completing your studies, you'll start repaying your loan through monthly payments known as EMIs. SBI allows you to repay your loan over a period of up to 15 years for various education loan schemes. Your EMI will include both the principal amount and the interest, making it a simple way to gradually pay off your loan.
SBI offers a moratorium period for its education loans. This is a grace period during which you don’t have to pay EMIs. It lasts for the duration of your course plus an additional 6 to 12 months, giving you time to find employment.
Paying Interest During the Moratorium: Although not mandatory, you have the option to pay the interest that accrues during your study period and moratorium. Paying off this interest early can reduce your EMI amount since, after the moratorium, your EMIs will be calculated only on the principal amount.
SBI recognizes the diverse needs and financial scenarios of its borrowers, offering a spectrum of repayment modes designed for maximum convenience and efficiency. Whether you lean towards modern digital solutions or prefer the reliability of traditional methods, SBI ensures your loan repayment journey is smooth and tailored to your lifestyle.
SBI provides an online portal for loan repayments. You can use SBI’s net banking facility to transfer the EMI amount directly from your savings or current account to your loan account.
These automated methods ensure timely payments without the need to remember due dates, offering a worry-free repayment experience.
Check Your Education Loan Eligibility
You can also make payments manually each month through cheque or cash deposit at any SBI branch. Make sure to mention your loan account number correctly while making the payment.
SBI YONO App: If you are an SBI customer, you can use the YONO app to pay your education loan. The app provides a user-friendly interface for managing and making payments towards your loan.
Paying off your loan or starting your EMIs during the moratorium period can significantly reduce the total interest accrued, offering substantial savings. Additionally, under Section 80E of the Income Tax Act, you can avail tax benefits for the interest paid on your education loan, further reducing your financial burden. Let us understand some additional benefits of repaying your education loan early at SBI.
Benefit | Description |
---|---|
Interest Reduction |
Reduces overall interest, leading to significant savings. |
Loan Tenure Reduction |
Shortens loan tenure, freeing borrowers from debt sooner and enhancing financial flexibility. |
Financial Discipline |
Builds financial responsibility, aiding in future budgeting and financial management. |
Decreasing Repayment Pressure |
Eases financial transition post-graduation by reducing debt burden early. |
Improved Credit Score |
Timely repayments boost credit score, improving eligibility for future loans. |
Tax Benefits |
Offers tax deductions on interest paid, providing financial relief during early career stages. |
Calculate your Education Loan EMI
Also Know: Disbursement process of SBI education loan
The repayment of an SBI Education Loan is a journey that demands strategic planning, disciplined execution, and an informed understanding of the available options. By adhering to the guidelines outlined in this comprehensive guide, borrowers can navigate their path to financial liberation, ensuring the fulfilment of their educational aspirations without compromising their financial well-being.
While the SBI provides a robust foundation for financing your higher education through its comprehensive loan services, navigating the myriad details of loan repayment can still be a complex endeavour. This is where GyanDhan steps in, serving as an invaluable partner in making smart choices about your education loan. We stand as a beacon of support, guiding students through the financial complexities of pursuing higher education, and ensuring that their journey is both successful and financially sustainable.
Read Also
Yes, SBI allows borrowers to change their repayment option, subject to certain terms and conditions.
Yes, under Section 80E of the Income Tax Act, you can claim a deduction for the interest paid on your education loan.
The best repayment method is by making EMI payment that will be automatically debited from the SBI account, you designate at the end of the monthly cycle.
The repayment period at SBI starts after one year after the course ends or six months post-employment, depending on whatever happens first. You are required to make monthly payments equal to the EMI amount. Nonetheless, you have the option to pay an amount greater than the EMI without incurring any prepayment fees.
Yes, SBI allows borrowers to prepay their education loan without incurring any prepayment penalties. This can be a strategic move to save on interest costs over the loan tenure.
Missing an EMI payment can affect your credit score negatively. However, SBI may offer a grace period or restructuring options depending on your circumstances. It’s best to contact the bank proactively if you foresee difficulties in making payments.
Borrowers can track their loan repayment schedule through SBI’s net banking portal or the YONO app. Additionally, periodic statements are provided by the bank, detailing the repayment status and remaining balance.
Check Your Education Loan Eligibility
Ask from a community of 10K+ peers, alumni and experts
Trending Blogs
Network with a community of curious students, just like you
Join our community to make connections, find answers and future roommates.. Join our CommunityCountry-Wise Loans
Best Lenders for Education Loan
ICICI Bank
Axis Bank
Union Bank
Prodigy
Auxilo
HDFC Credila
IDFC
InCred
MPower
Avanse
SBI
BOB