PLAN TO REPAY

Repayment

Repayment

  • In case of SBI Student loans, repayment will start after the completion of course period and moratorium period (Repayment commences one year after the course completion or 6 months after securing a job, whichever is earlier).

  • In case of SBI Scholar loans, repayment will start after the completion of course period and moratorium period (6 months after course completion).

EMI Generation

EMI Generation

  • The accrued interest during the moratorium period and course period is added to the principle and repayment is fixed in Equated Monthly Installments (EMI).

  • If full interest is serviced before the commencement of repayment; EMI is fixed based on principle amount only.

Prepayment

Prepayment

  • There are NO penalty charges for prepayment. You can prepay your education loan anytime.

Ways to Reduce Student Loan Costs

Ways to Reduce Student Loan Costs

Service full interest during the course period and moratorium period (Optional):

  • If full interest is serviced during course period and moratorium period, as and when applied in the account, 1% concession in ROI is given for the entire tenure of loan when the repayment starts.

  • Interest applied to loan account during course period and moratorium period will not be added to your EMIs. Thus, lower EMIs.

  • Interest serviced on Education Loans is eligible for deduction under Section 80(E) of Income Tax

Please contact your Loan Sanctioning Branch for further details

Timely Payment of EMIs

  • Repaying EMIs on time will help in keeping your account in good condition and will save avoidable additional interest costs

Central Scheme for Interest Subsidy on Education Loans (subject to eligibility):

This Scheme provides interest subsidy on Education Loans for students from Economically Weaker Sections (EWS) with annual gross parental/family income upto Rs. 4.50 lacs.

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Eligible students may contact the SBI Branch concerned for any further details along with Income Certificate from the Certifying authority.