Repaying an SBI education loan requires careful planning to ensure a hassle-free process. Understanding the SBI education loan repayment plan, including the moratorium period, EMI options, and repayment tenure, is essential for effective loan management. The SBI offers flexible repayment options, allowing borrowers to start repaying after completing their course.
SBI education loan repayment strategies like making interest payments during the moratorium period and setting up auto-debit for EMIs can help reduce the financial burden. In this guide, we will explore the SBI education loan repayment plan, key terms and conditions, repayment strategies, and tips to manage your loan efficiently.
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What is SBI Education Loan Repayment Plan?
SBI education loan repayment plan begins after completing the course and the moratorium period. This means that the repayment starts one year after course completion or six months after securing a job, whichever is earlier.
| SBI Education Loan Repayment Plan | |
| Repayment Tenure | 15 years, or 180 EMIs |
| Moratorium Period | Course Duration + 12 months or 6 months after securing a job, whichever is earlier |
| Prepayment Penalty | NIL |
Major Factors of SBI Education Loan Repayment Plan
The SBI Education Loan Repayment rules allows borrowers to repay their loans through Equated Monthly Installments (EMIs) over a maximum tenure of 15 years (180 EMIs).
When Does SBI Education Loan Repayment Begin?
- For SBI Student Loan and SBI Scholar loan, repayment starts 12 months after course completion or 6 months after securing employment.
- For the SBI Global Ed-vantage education loan, repayment begins 6 months after course completion.
How Interest Affects SBI Education Loan Repayment
- If you don’t pay interest during the moratorium period, it gets added to the principal, leading to higher EMIs.
- If you pay the full interest before repayment starts, your EMI is calculated only on the principal, reducing your overall loan burden.
Also Read: Check out the major SBI education loan schemes to study abroad and in India. Learn about their features and eligibility criteria.
How to Repay SBI Education Loan?
State Bank of India (SBI) offers a flexible SBI Education Loan Repayment rule, allowing students to repay their loans conveniently. With multiple repayment options, including online banking, the SBI YONO app, and automated payment modes like ECS and e-NACH, managing loan payments has never been easier. Here are the steps to follow-
Online Repayment of SBI Education Loan
SBI provides hassle-free online repayment options to ensure a smooth SBI Education Loan Repayment plan. Follow these steps to make payments through SBI Internet Banking:
- Log in to your SBI internet banking account.
- Navigate to the ‘Transfers’ section.
- Select your education loan account.
- Enter the EMI amount.
- Choose the payment method and confirm your transaction.
Repayment Via SBI YONO App
The SBI YONO app simplifies the SBI education loan repayment plan by allowing quick and secure payments.
- Download the SBI YONO app and log in.
- Go to the ‘Loans’ section.
- Complete the payment process as guided in the app.
Modes of Repaying SBI Education Loan
The SBI Education Loan Repayment Plan offers multiple repayment methods to suit different financial preferences. These include paying manually via cheques and post-dated cheques or setting up automatic payments via ECS and NACH modes. Let’s find out the possible modes of repayment that let you make timely payments towards your SBI Education Loan-
| Modes of Repayment | Details |
| Electronic Clearance Service (ECS) | EMIs are automatically debited from your bank account, ensuring timely payments without manual intervention. |
| e-NACH (Electronic National Automated Clearance House) | EMIs of higher amounts can be easily paid towards education loans by setting auto-debit features. |
| Post-Dated Cheques (PDS) | You can provide checks dated for future months, which is suitable for those who prefer traditional payment methods. |
| Demand Draft | If electronic payments are not feasible, you can issue a demand draft in favour of the lending bank. |
Why Choose SBI Education Loan Repayment Plan?
- Flexible repayment options via online banking and mobile app.
- Auto-debit facilities for hassle-free EMI payments.
- Multiple modes of repayment for added convenience.
- Secure and reliable transactions backed by SBI’s trusted banking network.
Also Read: Want lower interest rates on existing education loans? Explore key highlights of SBI takeover of education loans and how to apply for them.
Ways to Reduce SBI Education Loan Repayment Costs
Managing your SBI Education Loan Repayment Plan efficiently can help you minimize financial stress and reduce overall repayment costs. By adopting smart repayment strategies, you can lower your interest burden and make repayment more manageable. Here are some effective ways to reduce your SBI education loan repayment costs:
1. Pay Interest During the Moratorium Period
One of the best ways to ease your SBI Education Loan Repayment Plan is to start paying interest during the moratorium or holiday period. This reduces the overall loan burden and makes you eligible for a 1% interest concession, further lowering your repayment costs.
2. Avail Tax Benefits Under Section 80E
Education loans qualify for tax deductions under Section 80E of the Income Tax Act. By obtaining an SBI interest certificate, you can claim deductions on the interest paid, significantly reducing the cost of your SBI education loan repayment plan.
3. Leverage Government Interest Subsidy Schemes
If you belong to the Economically Weaker Section (EWS), you may qualify for the Central Scheme for Interest Subsidy (CSIS). This scheme helps reduce your interest burden during the repayment period, making your SBI education loan repayment more affordable.
4. Make Prepayments to Lower Interest Costs
SBI offers education loans with no prepayment charges, and you can make prepayments without penalties after six months of loan disbursal. This strategy helps reduce the principal amount and lowers overall interest costs, making loan repayment easier.
This was all about the SBI education loan repayment plan. Make sure to choose the convenient method to repay your loan and make timely payments by maintaining an adequate balance in your account and setting auto-debits. Follow the tips given to reduce your repayment costs and pay off your SBI education loan effectively.
To know about education loans, the best bank accounts for students, and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
FAQs SBI Education Loan Repayment Plan
The SBI Education Loan Repayment Plan begins 12 months after course completion or 6 months after securing a job, whichever is earlier. For SBI Global Ed-vantage loans, repayment starts 6 months after course completion.
You can repay your SBI education loan through various methods. These include online banking, via the SBI YONO app, or by visiting an SBI branch to make payments.
The SBI Education Loan Repayment Plan offers a maximum repayment tenure of 15 years (180 EMIs), ensuring flexibility in managing loan payments. EMIs starts one year after course completion or six months after securing a job, whichever occurs first.
Yes, you can close your education loan early with SBI without any penalties. This also lets you save on interest costs and reduce the overall repayment burden.
There are no prepayment charges for SBI education loans, enabling borrowers to repay their loans early without incurring additional fees.
Repayment starts after the moratorium period, which includes the course duration plus a grace period of 6-12 months, with EMIs calculated based on the principal and accrued interest.
If interest is unpaid during the moratorium period, it gets added to the principal amount, increasing EMIs under the SBI Education Loan Repayment rule.
To make online payments under the SBI education loan repayment plan, log in to SBI Internet Banking, go to ‘Transfers,’ select the loan account, enter the EMI amount, and confirm the payment.
Yes, the SBI Education Loan Repayment Plan supports auto-debit through ECS and e-NACH, ensuring hassle-free EMI payments.
The SBI YONO app makes the SBI education loan repayment plan easier by allowing quick, secure, and direct loan repayments from your mobile device.
