Should You Opt for SBI Life RiNn Raksha Policy?

    Updated on: 02 Feb 2023

    If you plan to study abroad and are unable to arrange finances to pay for your education, the wisest thing is to take an education loan. And if you plan to take an education loan, then the smartest thing is to take loan insurance coverage. 

    What’s Insurance Coverage For An Education Loan?

    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.

    Check Your Education Loan Eligibility Apply Here

    What is SBI RiNn Raksha?

    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.

    Here’s How SBI Rinn Raksha Works

    When a student takes an SBI education loan for studies abroad along with the insurance policy, they pay a one-time premium to activate the cover. Now let’s say an unfortunate mishap occurs, and the loan applicant or co-applicant passes away. In such a grave circumstance, the insurance pays off the remaining education loan. This frees the family of the applicant or co-applicant from the financial responsibility of the loan. 

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    What are the Features of SBI Rinn Raksha?

    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. 


    SBI Rinn Raksha

    • Premium - This is the amount you have to pay to activate SBI Rinn Raksha coverage. The precise amount is based upon several factors. You can pay the premium monthly, quarterly, half-yearly, or yearly.
      There are two types of premium payment terms you can choose - Single or Level. Within Level Premium, you have two more options, either 5-year payment mode or 10 years.

      Policy Term

      Premium Payment Mode

      2 years - 30 years


      8 years - 30 years

      Premium Payment Term - 5 years

        15 years - 30 years  

        Premium Payment Term - 10 years  

      One should remember that SBI’s Global Edvantage loans have a fixed rate of interest. For all loans that have a floating rate of interest like education loans, SBI Rinn Raksha offers two more options:
      • Gold - You can choose this option if you opt for a 5-year policy term. In case of an eventuality, SBI pays “the entire outstanding amount at the time of death as per the floating rate of interest offered by you irrespective of the loan schedule given in the Certificate of Insurance” as long as the full premium is paid.
      • Platinum - You can select this option if you opt for a 5-year policy term or above it. Here SBI pays whichever is higher of the two - “either the outstanding loan as per the floating interest rate offered or the outstanding loan amount as per the interest rate fixed at the inception of the cover.”
    • Moratorium - SBI Rinn Raksha plan offers a minimum moratorium of 3 months and a maximum of 72 months.
    • Duration - The minimum term period of SBI Life Rinn Raksha policy is 2 years, and the maximum is 30 years.


    What are SBI Rinn Raksha Benefits?

    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%.

    Lastly, SBI Life Rinn Raksha policy is extremely flexible. From the cover amount to when you pay the premium to who is covered under the scheme, you can customize it to fit your pocket.

    Check Your Education Loan Eligibility Apply Here

    Can You Buy SBI Life Rinn Raksha Policy?

    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.

    Eligibility Criteria

    Age at Entry

    Minimum 16 Years

    Maximum 70 Years

      Maximum Age at Maturity  

      Premium Payment Term - 5 years  

      Premium Payment Term - 5 years  

    Why Apply for an SBI Education Loan through GyanDhan?

    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.

    With GyanDhan, the only effort you put is to visit SBI just once - for signature and verification!
    Wondering how to apply for an education loan to get all the benefits of SBI Life Rinn Raksha Policy? All it takes is a callback!

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