Loan insurance helps you to keep your family away from financial stress in case of any unfortunate event like death. To help you cover the same, SBI introduced its loan insurance scheme, which is the SBI Life Rinn Raksha Insurance Policy. You can buy this policy for your education loan insurance. It has a very meaningful self-explanatory slogan i.e. “Your Family Inherits Happiness. Not Your Liabilities”. SBI Rinn Raksha is a group of non-linked, insurance products available for different types of loans including education loans.
Let’s understand all the features, advantages and other factors of SBI Rinn Raksha for Education Loan.
| Particulars | Details |
| Minimum Age at Entry | 16 years |
| Maturity Age | NA |
| Term | 2 years |
| Premium Amount | 0.5-1.5% of the Total Loan Amount |
| Sum Assured | INR 10,000 (Minimum) No Maximum Limit |
Table of contents
Features of SBI Rinn Raksha Education Loan Insurance
SBI Rinn Raksha by SBI Life is one of the popular loan insurance plans. With this policy, your family will be free from bearing the loan repayment liabilities. The outstanding at the time of death along with the applicable interest will be paid by SBI Life.
- SBI Rinn Raksha is a comprehensive Group Credit Life Plan that covers education loans and properly assists the loan repayment.
- The policy offers insurance coverage for the lives of up to two co-applicants apart from the primary applicant
- You will get enough flexibility to choose loan cover terms as per your requirements.
- You will get a choice of cover term, premium paying term and frequency
- The policy offers the plan benefit for the death cover which would be the outstanding loan balance at the time of death as per the sum assured schedule in the certificate of insurance.
Your family shall not suffer financial stress during any unfortunate situation. Check this blog on How Education Loan Insurance eases Financial Stress for Students and Parents
Who is Eligible for SBI RiNn Raksha?
Students who have taken an SBI education loan to study abroad can purchase an SBI RiNn Raksha Insurance policy. This helps you get education loans at better interest rates and adds security for your family. However, the applicant’s minimum age must be 16 years and the maximum age should be 70 years.
| Age Limit | Premium Maturity Term |
| Minimum 16 years | Premium payment term – 5 years |
| Maximum 70 years | Premium payment term – 5 years |
Advantages of SBI Rinn Raksha Education Loan Insurance
SBI Life is one of the leading insurance companies in India. It has a strong track record for fast claim processing of insurance amounts. SBI Rinn Raksha offers you a lot of benefits that will help you keep your family away from any financial crunch. Check all the major benefits of SBI Life Rinn Raksha policy for education loans.
- The bank will be getting the insurance amount for the loan and in this way, your family will not be sacrificing the collateral which you pledged at the time of taking the loan.
- The insurer will pay your outstanding loan amount as per the sum assured schedule automatically soon after passing the claim.
- The policy is easily available at any branch of the State Bank of India and you can avail it at the time of taking the loan.
- The policy is flexible as it provides additional coverage for two co-applicants in addition to the primary applicant ensuring complete safety for your family.
- You can choose the plan between the single or level premium for 5 or 10 years as per your requirements.
- SBI Life provides you with the option of paying the premium on a monthly, quarterly, half-yearly or yearly basis per your financial capabilities.
- Applicants who avail of SBI Life RiNn Raksha for education loans are eligible for tax benefits on the premium paid under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
Secured Loans are easy to obtain with better rate of interest rates. Check this blog on All About Secured Loans
How to Purchase SBI Rinn Raksha for Education Loan Insurance
Getting the SBI Rinn Raksha policy for education loan insurance is very easy. You can simply tell the bank at the time of taking the loan that you want to get your loan insured. The bank will provide all the details of the insurance policy and you can choose the plan as per your requirements. For education loans with a floating rate of interest, there are two types of plans available. Check the details below.
SBI Rinn Raksha Gold Plan
If you want to avail a 5-year policy term you should take the SBI Rinn Raksha Gold plan. If claimed, the company will pay the entire outstanding amount at the time of death as per the stated rate of interest. The outstanding amount payable in the event of death will be calculated based on the floating rate of interest offered by the bank/lender.
SBI Rinn Raksha Platinum Plan
The SBI Rinn Raksha Platinum Plan will be best suited for you if you choose a policy term of 5 years or above. In this plan, if the claim is made then the outstanding amount will be calculated based on the floating interest rate offered by the lending institution, subject to a minimum of the outstanding loan amount as per rate of interest rate fixed at the time of inception of cover.
Note: SBI RiNn Raksha insurance policy comes with a suicide clause which states that if the policyholder, sane or insane, commits suicide within the first year of the policy then the insurance amount will not be paid. The bank will return the premium paid.
FAQs
There is no maximum limit on the sum assured under the SBI Rinn Raksha Policy.
The bank will offer you the policy at the time of taking the loan. Also, you can visit the nearest branch of SBI to purchase an insurance policy.
You can pay SBI Rinn Raksha premium for your education loan online through net banking and other available modes of payment.
To purchase SBI RiNn Raksha for education loans, you can simply tell the bank (during the application process) that you want to get your education loan insured. The bank will provide all the details of the insurance policy and you can choose the plan as per your requirements.
Yes, applicants who avail of SBI Life RiNn Raksha for education loans are eligible for tax benefits on the premium paid under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
This was all about SBI Rinn Raksha Insurance for Education Loan. Always check the terms and conditions and all the inclusions and exclusions before purchasing the insurance policy.
To know more about education loan insurance, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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