State Bank of India or SBI is offering an interest rate of 8.5 per cent on education loans for studying in select business schools. As part of SBI's 'Scholar Loan' scheme, select leading institutions where Indian students can get the concessional rate of interest include Indian Institute of Management (IIM)-Ahmedabad, IIM-Calcutta and Indian School of Business-Hyderabad or ISB-Hyderabad. This was said in a tweet by India's largest bank SBI which recently unveiled a new brand identity after merging its operations with six other banks.
SBI currently offers 100 per cent financing on education loans up to Rs. 30 lakh with a repayment period of up to 15 years. Scholar loans offer an interest rate between 8.5 per cent and 10.6 per cent and cover higher education courses in select 120 premier Indian institutions, as per SBI's website.
Education loan at rate of interest of 8.5%
SBI's scholar loans cover a multitude of courses from institutions under four categories: 'AA', 'A', 'B' and 'C'. An effective rate of interest of 8.5 per cent is offered on institutes listed by SBI under the AA category.
Institutes
SBI has listed seven 'AA' institutions - for which Indian students can apply for up to Rs. 30 lakh of loans - including four IIMs.
These Indian institutions are:
Indian Institute of Management (IIM), Ahmedabad IIM-Calcutta IIM-Bangalore IIM-Kozhikode Indian School of Business, Hyderabad Indian School of Business, Mohali Campus Xavier Labour Relations Institute, Jamshedpur
The loans disbursed under SBI's Scholar Loan scheme covers college fees (including examination, hostel, library and laboratory fees), purchase of books, equipment and instrument as well as travel expenses and expenses on exchange programme.
SBI offers quick sanctioning of scholar loans at designated campus branches or more than 5,000 select branches, as per its website.