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Education Loan

The State Bank of Patiala through a vast network of 1236, caters the needs of millions of customer through its diversified portfolio of loans. For any and every requirement SBP ensures, the dreams and requirement of its customer should be left unaccomplished.

SBP education loans are intended to fulfill the dreams of those aspiring to take up higher studies and finance should never a obstacle in realizing those dreams.

State bank of Patiala offers education loan in 3 variants.

SBP Gyan Jyoti Education Loan

Features of this Education loan scheme are:
 

  • High loan sanction amount to cover the entire course fee. The Maximum amount for studies in india is INR 10 lacs and studies in abroad is INR 20 lacs.
  • High tenure to ensure no burden of payment just after completing the course. For Loans up to7.50 lacs the tenure is allowed to an extent of 10 years and for loans of INR 7.50 lacs and above the tenure could be up to 15 years.
  • Floating rate of interest so that the customers can reap the benefit of any change in interest rate as per market situation.
  • Zero processing charge makes the loan even more rewarding .
  • With no pre-closure charges , customer can pay off the loan at any point of time once they have the funds with them.
  • No collateral or security required for Loan upto Rs.4.00 lacs. For loans above RS 4.00 lacs and up to Rs 7.50 lacs  Suitable Third Party Guarantee is only required and For Loans above Rs 7.50 lacs Tangible Collateral  Security of Suitable Value has to be provided.
  • Annual outstanding balance statement issued at the end of every financial year.
  • For any delay in payment , Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period.

Interest Rate

  1. Loans up to Rs.7.50 Lacs : 2.75% above MCLR i.e 9.50% Base Rate (Current effective rate -12.25%)
  2. Loans above Rs.7.50 Lacs : 1.75% above MCLR i.e 9.50%( Current effective rate -11.25%)  

SBP-Loan Scheme for Vocational Education & Training

Skill based education system is one of the  greatest challenge in Indian economy today and thus it aggravates the situation of youth as well who have a prime focus on employability. With a rise in enrollment towards vocational courses and other skill based courses, State Bank of Patiala (SBP) provides a helping hand to such students who could n enroll to these course simply because of affordability.

The Feature and benefits of this education loan scheme are:
 

  • Loan available from Minimum  - Rs.20,000/- to Maximum – Rs 2,00,000/-
  • Tenure is Up to 2 Years for Loans up to Rs.50000, 2 to 5 Years for Loans between Rs.50000 to 1 Lacs and 3 to 7 Years for Loans above Rs 1 lacs :
  • Floating rate of interest so that the applicants can reap the benefit of any change in interest rate as per market situation.
  • Zero processing charge makes the loan even more rewarding.
  • With no pre-closure charges, customer can pay off the loan at any point of time once they have the funds with them.
  • No collateral or security required for Loan under this scheme
  • Annual outstanding balance statement issued at the end of every financial year.
  • For any delay in payment, Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period.

Interest Rate

2.75% above Base Rate i.e 12.75% p.a

SBP-Coaching fee Loan Scheme

Students who aspire to contend the top entrance examination in India, may that be IIT-JEE or CBSE PMT or any other competitive examination, do needs support from private coaching. There are few of the top coaching institute who prepares candidate for these examinations. SBP-Coaching fee Loan Scheme intends to provide the financial assistance to students getting enrolled in such coaching centres.

Other Features and Benefits of this loan are :
 

  • Loan available for selective coaching centres. Student May check the list online on Bank’s Website.
  • Loan available for minimum – Rs.25,000/- maximum- Rs. 2,00,000/-
  • Available for tenure of maximum Period of 2 to 3 Years.
  • Nil processing fee and prepayment charges
  • Penal interest @ 2% to be charged on default/overdue amount of the loan for the period of default
  • Annual outstanding balance statement issued at the end of every financial year.
  • In respect of bounced PDC (Post dated Cheque) obtained for repayment of the Loan, a penalty of Rs.281/- per cheque will be recovered in addition to the penal interest.
  • Floating rate of interest so that the applicants can reap the benefit of any change in interest rate as per market situation.
  • For applicants with check off facility Applicants with Check-off Facility no collateral or security required, however for applicants without Check-off Facility tangible Collateral Security of Suitable Value.

Interest Rate

Charges on floating rate of interest 2.75% above Base Rate, i.e 13.00% p.a

Important Terms and conditions for Education Loan

Interest Subsidy

Bank provides 0.5% or more concession in interest rate to girl students pursuing higher education in India and abroad. Additionally any subsidy is passed on to student as and when any directive is issued by ministry of HRD or any government scheme.

Eligibility

  • Any Indian National who has Secured admission to a higher education course in recognized institutions in India through Entrance Test/ Merit Based Selection process after completion of HSC (10 plus 2 or equivalent)
  • Any Candidates who have secured admission to foreign university/Institutions.
  • For cases, where there is no Entrance Test/ Merit based selection procedure, securing admission to a higher education course in a recognized institute may be considered

Eligible Course

Below mentioned is a comprehensive list of courses under which student may apply for education loan.

  • Graduation courses: B.A, B.Com., B.Sc., etc.
  • Post Graduation courses: Masters Degree and Ph.D.
  • Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental Management, Computer, ICWA, CA, CFA, etc.
  • Computer Certificate courses of reputed institutes accredited to Department of Electronics or Institutes affiliated to a university.
  • Courses conducted by IIM, IIT, IISc, XLRI, NIFT, etc.
  • Courses offered in India by reputed foreign universities.
  • Evening courses of approved institutes.
  • Other courses leading to Diploma/Degree etc., conducted by colleges/universities approved by UGC/Govt./AICTE/ AIBMS/ICMR, etc.
  • Regular Degree/Diploma Courses like Aeronautical, pilot training, shipping etc. approved by Director General of Civil Aviation/Shipping, if the course is pursued in India. In case the course is pursued abroad, the Institute should be recognized by the competent local aviation/shipping authority.
  • Degree/ Diploma in Nursing or any discipline approved by Indian Nursing Council or any other regulatory body as the case may be, if the course is pursued in India.
  • Teacher Training Course/Nursing Course/B.Ed., will be eligible for education loan provided the training institutions are approved either by the Central Government or by State Government and such courses should lead to Degree or Diploma Course and not to Certification Course.
  • Medical courses in countries of the erstwhile USSR, China, Nepal, and other countries not recognized by Medical Council of India will not be covered.
  • Graduation: For job oriented professional/ Technical courses offered by reputed universities.
  • Post graduation: MCA, MBA, MS, etc.
  • Courses conducted by CIMA (Chartered Institute of Management Accountants) – London, CPA (Certified Public Accountant) in USA etc.
  • In addition to these courses, job oriented professional / technical Post Graduate Diploma courses offered by reputed universities will also be covered under the scheme.
  • Degree/ Diploma Courses like Aeronautical, pilot training, shipping etc. provided these are recognized by competent regulatory bodies in India/abroad for the purpose of employment in India/abroad. 3.

Eligible Expenses

  • Fees payable to college*/school/hostel
  • Examination/Library/Laboratory fees
  • Purchase of Books/Equipment/Instruments/Uniforms,
  • Purchase of computers- essential for completion of the course (maximum 20% of the total tuition fees payable for completion of the course)
  • Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tuition fees for the entire course) • Travel Expenses/Passage money for studies abroad
  • Cost of a Two-wheeler up to Rs. 50,000/-
  • Any other expenses required to complete the course like study tours, project work etc.

Moratorium/repayment holiday

SBP Offers, Course period + 1 year, or 6 months after getting job, whichever is earlier as the moratorium period. However this is applicable on selective courses.

Co-Applicant

A co-applicant is required in education loan for full time course, wherein the parent(s)/guardian of the student borrower could be the co-applicant. In case of married person, co-obligator can be spouse or the parent(s)/parents-in-law. Parents, siblings, spouse or Family Relative could be the co -applicant. Loan eligibility is generally calculated on the basis of the co-applicant's income. In case of Part Time courses, No Co-applicant required.

Documents required for Education Loan

Below is the list of documents required while applying for education loan in State Bank of Patiala (SBP)
 

  • Completely filled Application Form with Photographs.
  • Letter of admission from the Institute Letter from the Institute stating cost break up of the program (term-wise, year-wise)
  • Mark sheets from SSC onwards till the latest examination passed
  • KYC Documents for the Applicant & Co-applicant (Residence Proof , ID Proof , Signature Verification Proof , Age proof )
  • Income Documents of the Co-applicant ( Pay Slips / ITR copy etc )
  • Declaration/Affidavit confirming that no loan has been availed from other Bank/Institution
  • In-principle sanction letter (where necessary).
  • Appraisal Form,
  • Term Loan Agreement, Guarantee Agreement, Arrangement Letter,
  • For studies abroad - In addition to the above list of documents additionally candidates have to provide Letter from the Head of Department (University) Visa approval papers Travel papers GMAT/GRE/SAT score.

Disbursement of loan

The loan is generally sanctioned at the branch nearest to the permanent residential address/place of domicile of the student/parent.

The loan is disbursed at different stages as required or per demand to the university or institution

Central Scheme for Interest Subsidy

This Scheme was launched by Ministry of HRD for providing interest subsidy on Education Loans during moratorium for technical and professional courses for studies in India under the IBA Model Education Loan Scheme for students from Economically Weaker Sections (EWS) with annual gross parental/family income up to Rs. 4.50 lacs per annum from the academic year 2009-10.