SBI offers a special education loan scheme called the ‘SBI Shaurya Education Loan’, designed specifically for the children of defence and Indian Coast Guard personnel. This loan provides financial assistance for pursuing higher education in India and abroad. The maximum loan offered is up to INR for overseas students at interest rates of 11.15% p.a onwards. To know more about features, benefits, eligible courses, and other details, continue reading this blog.
Table of contents
- What is the SBI Shaurya Education Loan?
- Benefits of SBI Shaurya Education Loan
- Expenses Covered Under SBI Shaurya Education Loan
- Interest Rate SBI Shaurya Education Loan
- Eligibility Criteria of SBI Shaurya Education Loan
- Documents Required to Get SBI Shaurya Education Loan
- How to Apply for SBI Shaurya Loan?
- Margin Money of Shaurya Education Loan
- FAQs on Shaurya Education Loan
What is the SBI Shaurya Education Loan?
The SBI Shaurya education loan is a scheme that aims to provide financial assistance to deserving wards of DSP/ICGSP Officers (Defense & Indian Coast Guard Personnel) to study in India and abroad. The bank covers tuition fees, accommodation fees, examination fees, travel expenses, the cost of two-wheelers up to 50,000, the premium of the SBI RiNn Raksha for education loan insurance and other related expenses.
Under the RBI guidelines for education loans, the student is required to pledge a collateral/security deposit for education loans above INR 7.5 lakhs. Loans above 7.5 lakhs are only provided when the applicant pledges a security/ collateral with the bank. There are no processing charges for education loans up to INR 20 lakhs, however, INR 10,000 plus GST is charged for Sharuya education loans above INR 20 lakhs.
The facility of a top-up education loan for specialised programs is also provided within the overall limit to pursue a professional course in India or abroad. It is provided on a condition such that further studies are commenced during the moratorium period of the first loan and subject to the second loan being allowed with the security requirements as applicable to the aggregate loan limit.
Overview of SBI Shaurya Education Loan
The table below provides a clear picture of the loan terms under the SBI Shaurya education loan scheme-
| Basis | Details |
| Quantum of Finance | For studies in India- up to INR 40 lakhs For studies abroad- up to INR 1.5 crores |
| Interest Rates | 11.15% to 11.75% |
| Loan Tenure | Up to 15 years |
| Moratorium Period/ Holiday Period | Course period + 1 year 6 months after getting the job(whichever is earlier) |
| Processing Charges | Up to INR 20 lakhs- NIL Above INR 20 lakhs- 10,000 plus GST |
Benefits of SBI Shaurya Education Loan
Some benefits of the SBI Shaurya loan are-
- Quick and hassle-free processing of education loans.
- Faster loan sanction and disbursement.
- Income Tax Rebate on education loans under Section 80E of the Income Tax Act.
- 6 month grace period is provided to create a mortgage of property offered as collateral with the bank.
- Existing education loan transfer to the SBI Bank from other financial institutions is permitted.
- Easy repayment of education loans for up to 15 years with flexible repayment options.
Please Note: Students other than the wards of DSP/ICGSP Officers can apply for SBI education loans under the SBI Student Loan Scheme and SBI Global Ed-vantage Scheme.
Also Read: Learn about Kotak Mahindra Bank Forex Cards for international students to ease the fund management process.
Expenses Covered Under SBI Shaurya Education Loan
The SBI Shaurya Education Loan covers a wide range of expenses to support students in their academic pursuits. This lets students focus on their higher studies without worrying about these expenses.
- Tuition fees
- Hostel or accommodation fees to support living expenses during the course.
- Examination and library fees
- Expenses related to books, equipment, and uniforms and funds for the purchase of necessary study materials
- Computer expenses
- Covers costs for project work, thesis, and study tours.
- Reimburses refundable deposits required by the institution.
- Supports travel costs for studies abroad.
- Covers up to Rs. 50,000 for purchasing a two-wheeler (with additional terms and conditions).
- Covers the loan in case of unforeseen circumstances.
Interest Rate SBI Shaurya Education Loan
The Shaurya Education loan is provided at floating interest rates from 11.15% to 11.75%. Girl students are provided with a concession of 0.50%. Also, students who avail of SBI Rinn Raksha for education loan insurance or any other existing life insurance policy assigned in favour of SBI Bank are eligible for a 0.50% concession.
The interest rate calculation by the SBI Bank for the Shaurya education loan is the sum of EBR and CRP (External Benchmark Rate and Credit Risk Premium). The SBI EBR is set at 9.15% and CRP at 2.00%. The table below shows detailed interest rates of SBI Shaurya loan-
| Loan Limit | EBR | CPR | Effective Interest Rate |
| Up to INR 7.5 lakhs | 9.15% | 2.00% | 11.15% |
| Above 7.5 lakhs to 1.5 crores (Secured Education Loan) | 9.15% | 2.00% | 11.15% |
| Above 7.5 lakhs to 1.5 crores (Unsecured Education Loan) | 9.15% | 2.60% | 11.75% |
- EBR= Repo Rate + Spread
- Repo Rate= 6.50%; Spread = 2.65%, Hence- 9.15%
Please note that these interest rates are subject to change in future based on new trends and revisions by the bank.
Eligibility Criteria of SBI Shaurya Education Loan
The following is the detailed eligibility of applicants to be granted financial assistance under the Shaurya education loans scheme of SBI.
- Wards of DSP/ ICGSP Officers in all Ranks for studies in India and Abroad.
- Co-borrower must be a Diamond/Platinum category DSP/ICGSP account holder in the SBI Bank.
- The Salary/Pension account of the co-applicant should be with SBI throughout the loan tenure
Besides student eligibility, Shaurya education loans are provided only for certain kinds of courses to aspiring students. Here’s the list of eligible courses-
For India
- Graduate/Post-Graduate Degree courses
- Post-graduate Diploma conducted by colleges/universities recognized by UGC/Govt./AICTE/ AIBMS/ ICMR, etc.
- Courses like ICWA, CA, CFA, etc.
- Courses conducted by IIM, IIT, IISc, XLRI, NIFT, NID, ISB, etc.
- Courses offered in India by approved reputed foreign universities.
- Regular Degree/ Diploma Courses like Aeronautical, Commercial Pilot Training, shipping etc.
- Degree/Diploma in Nursing or any discipline approved by the Director General of Civil Aviation/Shipping/ respectively or any other regulatory Body.
For Abroad Studies
- Job-oriented Professional/ Technical courses offered by reputed Institutions (including Foundation/Pathway/Integrated Courses) for Graduation
- MCA, MBA, MS, etc. Job-oriented professional/ technical Post Graduate Diploma/ Certificate courses offered by reputed Institutions for post-graduation
- Doctorate programme (PhD) courses
- Courses conducted by CIMA (Chartered Institute of Management Accountants) – London, CPA (Certified Public Accountant) in the USA etc.
- Degree/diploma courses like aeronautical, pilot training, shipping etc. that are recognized by regulatory bodies in India /abroad.
Also Read: Planning to study in USA? Check here for some of the best Government Education Loans to Study in USA
Documents Required to Get SBI Shaurya Education Loan
The applicants are required to submit a list of documents to the bank. Based on the authenticity and validity of these documents, the bank sanctions the Shaurya education loan. It is advisable to keep these documents handy to ensure a smoother and hassle-free SBI education loan disbursement process. Let’s have a look at the required list.
- Duly filled-out education loan application form
- Academic Documents (Mark sheet of 10th, 12th, Graduation (if applicable), Entrance Exam Result)
- Identity Proof Documents- PAN of student /Parent /Co-borrower /Guarantor, Adhaar, Passport/ Voter ID
- Offer Letter/ Admission Letter from the University
- List of expenses (tuition fee structure/ accommodation expenses/ travel expenses/ insurance cover etc.)
- Copies of scholarship (if applicable)
- Passport-size photographs of Student / Parent / Co-borrower / Guarantor
Income Proof certificates (Latest Salary Slip/ Form 16 OR latest IT Return (ITR V)/ Business address proof/ Latest IT Returns)
How to Apply for SBI Shaurya Loan?
To apply for SBI Shaurya Loan, the applicant needs to visit the nearest bank branch and fill out the education loan application form. Keep the document checklist ready with you and carry it along. Submit the completed application form and the required documents to the bank.
Also Read: If you are planning to avail an education loan from PNB Bank, check out our blog to understand the PNB Bank Education Loan Disbursement Process.
Margin Money of Shaurya Education Loan
Margin money in education loans refers to the amount/ percentage of money that the borrower is required to contribute towards the education loan.
To avail Shaurya education loan, the borrower is not required to contribute any amount up loan of INR 4 lakhs. However, if the limit of the education loan is above INR 4 lakhs, the applicant is required to contribute 5% of the limit.
| Loan limit | Margin Money |
| Upto INR 4 lakhs | NIL |
| Above INR 4 lakhs | 5% |
Please note the following points-
- The scholarship/ assistantship is to be included in the Margin.
- Margin may be brought in as and when disbursements are made, on a pro-rata basis.
This was about the SBI Shaurya education loan. Understanding the eligibility criteria and carrying the required documents helps in the easy application process for an SBI study loan.
To know more about education loans, 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.
FAQs on Shaurya Education Loan
The Shaurya Education loan scheme by SBI is a financial assistance provided to the meritorious wards of Defense & Indian Coast Guard Personnel to pursue higher education in India and abroad.
Under the Shaurya education loan scheme, the bank provides funds of up to INR 40 lakhs to study in India and up to INR 1.5 crores to study abroad at competitive interest rates.
The Shaurya Education loan is provided at floating interest rates from 11.15% to 11.75%. Girl students and those who avail of SBI RiNn Raksha for education loan insurance are provided with a concession of 0.50%.
The borrower is not required to contribute any amount up loan of INR 4 lakhs as margin of the Shaurya education loan. However, if the limit of the education loan is above INR 4 lakhs, they must contribute 5% of the limit.
Meritorious and deserving wards of Defense & Indian Coast Guard Personnel Officers are eligible to apply for a Shaurya education loan.
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