Should You Opt for SBI Life RiNn Raksha Policy?

The insurance cover safeguards your family from the burden of paying off the student loan in case a fatal eventuality occurs. Instead of your co-applicant repaying the loan, the insurer gives the entire outstanding amount. In short, an insurance policy creates a win-win situation for you and the lender because it reduces the risk to both.
One such student loan insurance policy is SBI Rinn Raksha, an optional loan insurance policy when you take SBI’s education loan for studying abroad. And that’s what we talk about here. What is SBI Life - Rinn Raksha policy, what are its features, and the many benefits you get with it.

State Bank of India, the biggest nationalized lender in the country, has 5 types of study loans. Of these, two cater for studies abroad. They are Global Ed-vantage Education Loan and Student Loan. Both of them come with one important feature - SBI Life RiNn Raksha policy.
It is a credit life insurance policy that pays off a loan in the event of death. The insurance scheme can be taken for an education loan.

SBI RiNn Rakha plan not only covers the life of the loan applicant, i.e., the student, but also up to two co-borrowers. You can insure the co-borrowers either for the entire loan amount or just for their share of it. 

• Sum Assured - It is the amount that a family receives from an insurance policy. This amount is decided when the policy starts. The minimum sum assured is INR 10,000, and there is no limit to the maximum amount.
  In the case of an education loan, the sum that SBI Rinn Raksha insures is the outstanding loan amount. 

What is SBI Life Rinn Raksha’s primary benefit? 

Financial Security

It relieves your family of the responsibility of repaying the loan, which can, at times, prove to be crushing. More than that, it restores all rights of the property or asset offered as collateral to the guarantor. 

Some Additional Advantages Of Opting For SBI Life Rinn Raksha Policy Are - 

• You don’t have to pay the premium out of your pocket. The education loan pays for it. Typically, the premium is 1% of the loan amount, although you can use the SBI Life Rinn Raksha Policy Premium Calculator to get a clearer picture.
• You get an additional 0.50% discount on your education loan rate of interest. 
• The loan from SBI comes within Section 80C of the Income Tax Act, 1961. Therefore, you get tax benefits. 
• You can also increase the insurance coverage by up to 120%.

Yes, you can if you are 16 or above. The coverage scheme is especially recommended if you are taking an SBI education loan for studies abroad because you get a better interest rate and security for your family.

There is no doubt that the SBI Life - RiNn Raksha Policy brings with it a number of indispensable advantages when you are taking an education loan. So, if you’ve made the right decision to apply for an SBI loan, here’s how GyanDhan helps you:

• We simplify the entire process by making most of it online. You apply for the loan through our site. Then we send you the list of documents required specifically for your profile.
• We make sure that you don’t have to run from pillar to post to submit and verify the required documents. After you have gathered them, our representative picks them up from your doorstep and submits them on your behalf to the SBI branch.
• We even take care of any bottlenecks that happen during loan processing and approval. For example, we expedite the process of submitting any additional documents that the bank may require. Through systematic follow-up, we also reduce the turnaround time for evaluating the property.