EDUCATION LOANS(SBI STUDENT LOAN SCHEME)

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A term loan granted to Indian Nationals for pursuing higher education in India or abroad where
admission has been secured.
Eligible Courses
a. Studies in India:

Graduation, Post-graduation including regular technical and professional Degree/Diploma

courses conducted by colleges/universities approved by UGC/ AICTE/IMC/Govt. etc

Regular Degree/ Diploma Courses conducted by autonomous institutions like IIT, IIM etc

Teacher training/ Nursing courses approved by Central government or the State Government

Regular Degree/Diploma Courses like Aeronautical, pilot training, shipping etc. approved by
Director General of Civil Aviation/Shipping

Vocational Training and Skill Development Study Courses will not be covered under the
regular Education Loan Schemes. A separate scheme for Loans for Vocational Education and
Training has been launched which covers financing for such Vocational courses

b. Studies abroad:

Job oriented professional/ technical Graduation Degree courses/ Post Graduation Degree and
Diploma courses like MCA, MBA, MS, etc offered by reputed universities

Expenses considered for loan

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 upto Rs. 50,000/-

Any other expenses required to complete the course like study tours, project work etc.
Amount of Loan

For studies in India, maximum Rs. 10 lacs

Studies abroad, maximum Rs. 30 lacs

Interest Rates

Click Here For Interest Rates

Processing Fees

No processing fee/ upfront charges

Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in the
margin money

Repayment Tenure
Repayment will commence one year after completion of course or 6 months after securing a job,
whichever is earlier.

Maximum Loan Limit

Repayment Period

Upto Rs. 4 Lacs

Upto 10 years

Above Rs. 4 Lacs and

upto Rs. 7.5 Lacs
Above Rs. 7.5 Lacs

Upto 10 years
Upto 12 years

Security

Particular
Upto Rs. 4 lacs loan
amount

Security
Only Parent/ Guardian as coborrower
Parent/
Guardian
as
coborrower
and
Collateral
security in the form of suitable
third party guarantee*.

Above Rs. 4 lacs to

Rs. 7.50 lacs loan
amount

*Third Party Guarantee can be

replaced with Parent/Guardian
as co-borrower provided the
Gross
Annual
Income
of
Parent/Guardian (co-borrower)
as given in latest Income Tax
Return is 3 times of the loan
amount.

Above Rs. 7.50 lacs

loan amount

Parent/
Guardian
as
coborrower and tangible collateral
security

In case of married person, co-obligator can be either spouse or the parent(s)/ parents-inlaw

Margin

For loans up to Rs.4.0 lacs : No Margin

For loans above Rs.4.0 lacs:

Studies in India: 5%

Studies Abroad: 15%

Documentation Required

Completed Education Loan Application Form.

Mark sheets of last qualifying examination

Proof of admission scholarship, studentship etc

Schedule of expenses for the specified course

2 passport size photographs

PAN Card of the student and the Parent/ Guardian

Borrower's Bank account statement for the last six months

Income tax Returns/ IT assessment order, of last 2 yrs (If IT Payee)

Brief statement of assets and liabilities, of the Co-borrower

Proof of Income (i.e. Salary slips/ Form 16 etc. if applicable)

Student loan
A student loan is designed to help students pay for university tuition, books, and living expenses. It
may differ from other types of loans in that the interest rate may be substantially lower and the
repayment schedule may be deferred while the student is still in school. It also differs in many
countries in the strict laws regulating renegotiating and bankruptcy.

Australia[edit]
Tertiary student places in Australia are usually funded through the HECS-HELP scheme. This
funding is in the form of loans that are not normal debts. They are repaid over time via a
supplementary tax, using a sliding scale based on taxable income. As a consequence, loan
repayments are only made when the former student has income to support the repayments. The

debt does not attract normal interest, but grows with CPI inflation. Discounts are available for early
repayment. The scheme is available to citizens and permanent humanitarian visa holders. Meanstested scholarships for living expenses are also available. Special assistance is available
to indigenous students.[1]
There has been criticism that the HECS-HELP scheme creates an incentive for people to leave the
country after graduation, because those who do not file an Australian tax return do not make any
repayments.[2]

Korea[edit]
This section may require cleanup to meet Wikipedia's quality standards. The
specific problem is: WP:OR, need reliable third party sources. Please
help improve this section if you can. (April 2014)

Korea's Student Loan[edit]

Korea's student loans are managed by the Korea Student Aid Foundation](KOSAF) which was
established in May 2009. According to the governmental philosophy that Korea's future depends on
talent development and no student should quit studying due to financial reasons, they help students
grow into talents that serve the nation and society as members of Korea.[1] Through the
management of Korea's national scholarship programs, student loan programs, and talent
development programs, KOSAF offers customized student aid services and student loan program is
one of the their major tasks.[3]

Main Loan Programs[edit]

Deun Deun(ICL)[edit]
For undergraduate students of all grades from low-income households in the 1st through 7th income
bracket levels; also, for students (irrespective of income level) from households with three or more
childrenbeginning with the third child. Strong academic performance is part of the eligibility criteria.
Loans are not subject to credit approval. Loan applicants must be enrolled for undergraduate study
in a postsecondary institution in Korea. Students do not qualify for this loan program if they are in a
graduate school, a continuing education program through an academic credit bank system, or a
school outside of Korea. Loan must be used for tuition, qualifying school fees, and other specific
education-related costs, including living expenses during study. Loan payments may not exceed the
students financial need; there is no other upper limit on the amount borrowed (loan program permits
full coverage of tuition and expenses). In the case of applying loan towards both tuition/school fees
and in-study living expenses, the lower limit is KRW 600,000 (at least KRW 100,000 for
tuition/school fees plus at least KRW 500,000 for living expenses). Under the income contingent
repayment system, a borrower does not have to pay the loan principal amount or interest until he or
she has income above a certain minimum threshold level for repayment. Once the borrowers annual
income is greater than the repayment minimum threshold level, the borrower is under obligation to
begin repayment.
Standard Student Loan[edit]
Reduced-interest loans that come from and are guaranteed by the government. Qualifying
borrowers, on certain conditions, may be eligible for interest relief offered by the government. For
undergraduate and graduate students of any grade level*, from households of any income level.
Loan applicants must be enrolled for undergraduate study in a postsecondary institution in Korea.
Students do not qualify for this loan program if they are in a continuing education program through
an academic credit bank system or a school outside of Korea. Satisfactory academic performance is
part of the eligibility criteria. Loans are subject to credit approval. Loan must be used for tuition,
qualifying school fees, and other specific education-related costs, including living expenses during

study. Loan payments may not exceed the students financial need. Depending on the type of school
(i.e. undergraduate, graduate), the upper limit on the amount borrowed ranges from KRW 40 million
to KRW 90 million. If applying loan towards both tuition/school fees and in-study living expenses, the
lower limit is KRW 600,000 (at least KRW 100,000 for tuition/school fees plus at least KRW 500,000
for living expenses). The repayment system offers a borrower grace period of 10 years or less during
which payments only need to be made towards the interest on the loan. This maximum period of
time is determined by the borrowers year in school and the remaining number of years within the
standard period of the borrowers program. After the grace period, the borrower is given up to 10
years in which to repay the loan principal amount and interest. The repayment period is dependent
upon the borrower.

For undergraduate students in the 1st semester of the 1st year who apply for this loan, only
credit is considered when making approvals for loans.

Rural Resident Student Loan[edit]

No-interest loans that come from and are guaranteed by the government. Highlights the customized
aspect of the student loans provided through KOSAF. For undergraduate students of all grades and
any income level whose parents and guardians have lived at a permanent address in an agriculture
and fisheries community area for more than 6 months (180 days) and/or students who have been
making a living in the agriculture and fisheries industry for more than 6 months. Students from
households with more than three children may be given priority. Loan applicants must be enrolled for
undergraduate study in a postsecondary institution in Korea. Students do not qualify for this loan
program if they are in a graduate school, a remote (off-campus)/distance learning program, a
continuing education program through an academic credit bank system, or a school utside of Korea.
Satisfactory academic performance is part of the eligibility criteria. Loan must be used for tuition and
qualifying school fees (not including living expenses). Offers full coverage of tuition and qualifying
school fees. Loan payments may not exceed the students financial need.

Variations[2][edit]
Living Expenses Loan[edit]
For undergraduate students whose income level qualifies them for the Income Contingent (DeunDeun) Student Loan (ICL) and/or the Standard Student Loan (SL) and for graduate students
(through the SL). For 1st- or 2nd-year undergraduates, the same academic and income level
qualifications for the ICL apply; for 3rd- or 4th-year undergraduates, the academic and income level
qualifications for the ICL and the SL apply. Loan must be used for necessary non-tuition, living
expenses during the academic year that may include room and board, books and supplies, and
transportation costs. The student may determine the amount to borrow in increments of KRW
100,000from KRW 500,000 to KRW 1 million per semester (or up to KRW 2 million per school
year). May receive loan on its own or in combination with a student loan (for school tuition and fees).
Transition Loan[edit]
For undergraduate and graduate students whose academic and income levels qualify them for the
Income Contingent (Deun-Deun) Student Loan (ICL). Students receiving the Standard Student Loan
(SL) who qualify for the ICL may be eligible to transition from the SL to the ICL. The transition only
applies from the school semester during which the loan approval is made. For all previous
semesters during which the borrower received the SL, the terms and conditions of the SL fully apply
(e.g. the interest accrued on the loan principal each month while the borrower was receiving the SL
loan must be repaid).

Current situation[edit]

About 700,000 students borrowed about 2.7 trillion KRW in 2011.[3] KOSAF seeks lower interest
rates by issuing direct loans.[4] Since KOSAF issue government-guaranteed bonds, students can
borrow directly from the foundation, which reduces their burden on tuition payment [5]

United Kingdom[edit]
Main article: Student loans in the United Kingdom
Student loans in the United Kingdom are primarily provided by the state-owned Student Loans
Company. Interest begins to accumulate on each loan payment as soon as the student receives it,
but repayment is not required until the start of the next tax year after the student completes (or
abandons) their education.
Since 1998, repayments have been collected by HMRC via the tax system, and are calculated
based on the borrower's current level of income. If the borrower's income is below a certain
threshold (15,000 per tax year for 2011/2012, 21,000 per tax year for 2012/2013), no repayments
are required, though interest continues to accumulate.
Loans are cancelled if the borrower dies or becomes permanently unable to work. Depending on
when the loan was taken out and which part of the UK the borrower is from, they may also be
cancelled after a certain period of time usually after 30 years, or when the borrower reaches a
certain age.
Student loans taken out between 1990 and 1998, in the introductory phase of the UK government's
phasing in of student loans, were not subsequently collected through the tax system in following
years. The onus was (and still is) on the loan holder to prove their income falls below an annually
calculated threshold set by the government if they wish to defer payment of their loan. A portfolio of
early student loans from the 1990s was sold, by The Department for Business, Innovation and Skills
in 2013. Erudio, a company financially backed by CarVal and Arrow Global was established to
process applications for deferment and to manage accounts, following its successful purchasing bid
of the loan portfolio in 2013.