State Bank of India (SBI) offers the facility of education loan for vocational studies under which resident Indians can avail a term loan for pursuing skill development courses in India.
New Delhi: State Bank of India (SBI) offers the facility of education loan for vocational studies under which resident Indians can avail a term loan for pursuing skill development courses in India. SBI educational loan for vocational training and studies covers expenses including tuition/course fee, examination/library/laboratory fee, purchase of books, equipment and instrument and security deposit if any. According to SBI, the bank may consider additional reasonable expenses such as localised boarding and other charges which are found necessary for the completion of the course on merits.
Under the State Bank of India education loan for vocational studies, the bank provides funds for Industrial Training Institutes (ITIs) courses, Polytechnics, National Skill Development Corporation (NSDC) affiliated training partners, and other training organisations associated with Sector Skill Councils, State Skill Mission, State Skill Corporation. The courses or training should translate into a certificate, diploma or degree from an organisation falling under National Skill Qualification Framework (NSQF).
Additionally, schools recognized by central or state education boards or colleges affiliated to recognized university leading to a certificate, diploma, degree issued by such organization as per NSQF are eligible for an SBI skilling loan.
Loan amount and Interest rate
State Bank of India grants a minimum loan amount of Rs 5,000 and a maximum loan of Rs 1.5 lakh under the education loan for vocational studies. An effective rate of 10 per cent is levied by State Bank of India on educational loan for vocational studies.
Loan disbursal and repayment tenure
The loan is disbursed in a maximum of 6 days after the receipt of the duly completed application with all supporting documents as prescribed by the bank. SBI has repayment tenure of up to 3 years, 5 years and 7 years for loan amount up to Rs 50,000, between ‘Rs 50,000 and Rs 1 lakh’ and for loans above Rs 1 lakh, respectively.
Interestingly, there is no requirement of collateral or third party guarantee for availing an education loan for vocational training from SBI. The parent/guardian will execute loan documents along with the student, as joint borrower and spouse will be included as co-applicant wherever applicable, in addition to parent/natural guardian, SBI said.