FAQ
1- How much loan does SBI sanctions?
SBI can max sanction up to 90% of the total loan amount which includes
- Tuition fees
- Living expenses
- Accommodation
- Food
- Travel
- Phone and Internet
- Laptop
- Travel
Example – Travel is just one-sided from Bangalore to destination 10% of the total cost of course should be from the customers end (T&C apply)
2- Who can avail SBI Education Loan?
Anybody who has A khata property or E khata property with form 9 and 11A and Anybody who is having a fixed deposit with SBI can avail SBI Education loan (T&C apply)
3- Which courses are covered under SBI Education loan?
Regular Graduate Degree/Post-Graduate Degree/Diploma/Certificate/Doctorate Courses in any discipline offered by foreign Institutes/Universities.
4- Which countries are eligible for an SBI Education Loan?
USA, UK, Canada, Australia, Singapore, Japan, Hong Kong, New Zealand and Europe [Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, United Kingdom] will be covered under the scheme.
Note: In respect of any courses in the countries other than the countries mentioned above, we need to take approval from the appropriate upper management, who is vested with powers to take decision basing on the merits on a case-to-case basis based on the student’s academic record, employability etc.
5-Will SBI fund for Pilot training?
In case of Pilot Training courses, the courses need to have approval of the Country specific Aviation Regulatory Authority. Additionally, the course may have sponsorship/Employment guarantee of any Domestic Airlines.
6- What is Margin Money?
The formula for calculation of Margin Money is very simple Which is total cost of course minus (-) Sanction amount
For example:
If the total cost project is = 50,00,000 (100%)
Sanction amount = 40,00,000 (80%) Margin of SBI
In this case the Margin money is = 10,00,000 (20%) Margin of Customer
7- How and Where is Margin Money applied?
As per the previous example,
Margin money of customer is 10,00,000 which is 20% of the total cost and Margin money of SBI is 40,00,000 which is 80% of total cost of course, when any disbursement is requested to SBI, SBI follows the same 80-20 ratio for all the disbursements no matter what is the amount
Example 1:
Tuition fees of 25,00,000 is asked by the customer to SBI then customer has to bring in his 20% to his SBI savings account first which is 5,00,000, then SBI puts in their 80% which is 20,00,000 and total of 100% which is 25,00,000 and is transferred to the University towards their tuition fees.
Example 2:
Living expense of 25,00,000 is asked by the customer to SBI then customer has to bring in their 20% to his SBI savings account first which is 5,00,000, then SBI puts in their 80% which is 20,00,000 and total of 100% which is 25,00,000 and is transferred to the student’s foreign account.
This way Margin money is calculated and funds are transferred
8-How many years does SBI give to repay the loan
SBI gives 15 years to repay the loan including moratorium period
9-What is moratorium period
Moratorium period is course duration plus another 6 months to search the job.
Example:
If the course is 2 years, then additional 6months to search the job To in total, it is 2and half years is the moratorium period.
10-What is Rin Raksha?
Rin Raksha is an insurance given in the name of student, to cover the loan amount.
11- What is the benefit of taking Rin Raksha insurance?
- If anything happens to the customer the whole loan is paid off
- you get 0.5% concession on the rate of interest. With which you save a lot of money
12- How long will it take to loan to be sanctioned?
Directly with SBI it will take months to get the loan sanctioned and have that disbursed but when you go with BBEC (BUILDING BRAINS EDUCATIONAL CONSALTANTS) we will get the loan sanctioned in just 10 business days from the date we collect all the documents from you as per our check lis