If you are a defence or Indian Coast Guard personnel and dream of getting your child a higher education in India or abroad but are not financially capable of getting your child a higher education, Don’t worry! The State Bank of India (SBI) makes it possible. 

SBI introduced the Shaurya education loan, specifically for the children of defence and Indian Coast Guard personnel. This loan is designed to make it easier for them to afford higher education, reducing the financial stress on their families and ensuring access to quality education for our defence forces' children. 

In this article, we will discuss the features, interest rates, student eligibility criteria, eligible courses, and documents required to avail of the SBI Shaurya Education Loan.

What is the SBI Shaurya Education Loan? 

The SBI Shaurya Education loan is a scheme designed to support the higher education of eligible children of Defense & Indian Coast Guard Personnel, both in India and overseas. 

This loan covers various expenses such as tuition fees, accommodation fees, examination fees, travel expenses, the cost of two-wheelers up to 50,000, SBI RiNn Raksha premium for education loan insurance, and other related costs.

Features of Shaurya Education Loan 

Here are some notable features of the Shaurya Education Loan.

• Hassle-Free loan processing
• Quick loan sanctions
• 6-month grace period to create a mortgage of property offered as security with the Bank.
• Over 15 years of easy repayment through EMI.
• Income Tax Rebate on education loans under section 80(E) of the Income Tax Act.
• Transfer of existing education loans to SBI from other financial institutions is permitted.
• Loans can be obtained at your permanent residence, place of posting, or where the property offered as security is located.

For more quick details about the SBI Shaurya Education Loan, see the table below.

SBI Shaurya Education Loan Interest rates

The Shaurya Education loan offers floating interest rates ranging from 11.15% to 11.75%. Female students receive a 0.50% concession, and those opting for SBI Rinn Raksha for education loan insurance or assigning any existing life insurance policy to SBI Bank receive a 0.50% concession.

Also read SBI Shaurya Credit Card : Key benefits and features

The interest rate calculation is based on the sum of the External Benchmark Rate (EBR) and Credit Risk Premium (CRP). SBI's EBR is 9.15%, and CRP is 2.00%. EBR = Repo Rate + Spread, Repo Rate=  6.50%; Spread = 2.65%, Hence EBR is 9.15%.

Below is a detailed table of interest rates for the SBI Shaurya loan:

Note: Interest rates are subject to change in the future based on bank revisions and market trends.

Eligibility Criteria 

Here are the detailed eligibility criteria for the students, parents and courses under the SBI Shaurya education loan.

For Students: 

• Only the children of Defense & Indian Coast Guard Personnel are eligible.

For Parents:

• The parent (co-borrower) must hold a Defense Salary Package (DSP) Account  in SBI Bank. 
• The co-borrower salary/pension account must remain with SBI throughout the loan period.

Course Eligibility

For studies in India 

• Graduation, Post-graduation, technical, and professional courses from UGC/AICTE/IMC/Government approved colleges/universities. 
• Teacher training and nursing courses approved by the Central or State Government. 
• Regular Degree/Diploma Courses like Aeronautical, pilot training, shipping etc. approved by respective regulatory authorities.

For Abroad studies 

• Job-oriented professional/technical courses like MCA, MBA, MS, etc. from reputed universities.
• Courses from international institutions like CIMA (Chartered Institute of Management Accountants) - London, CPA (Certified Public Accountant) in the USA, etc.

Documents required to avail Shaurya Education Loan

Here is the list of documents that are to be submitted along with the duly filled Loan Application Form:

• Mark sheets of 10th, 12th, Graduation (if applicable), and Entrance Exam Result
• Course admission proof (Offer Letter/Admission Letter/ID card if available)
• Schedule of the course expenses (college/school/hostel fees/Examination/Library/Laboratory fees/ accommodation expenses/ travel expenses/ insurance cover etc.)
• Copies of letters conferring scholarships, free-ships, etc.
• Gap certificate, if applicable (self-declaration for study gaps)
• Passport-size photographs of Student/Parent/Co-borrower/Guarantor (1 copy each)
• Asset-Liability Statement of Co-applicant/Guarantor (for loans above Rs 7.50 lakhs)
• Bank Account Statement for the last six months of Parent/Guardian/Guarantor
• Copy of Sale Deed and other title documents for immovable property offered as collateral/Photocopy of Liquid Security
• Permanent Account Number (PAN) of Student/Parent/Co-borrower/Guarantor
• Aadhar Card (mandatory if eligible under various interest subsidy schemes of the Government Of India)
• Passport (mandatory for Studies Abroad)
• Submission of OVD (Officially Verify documents) 

Submit at least one self-attested copy of the Officially Valid Documents (OVD) for proof of identity and address.

• Passport
• Driving license,
• Aadhaar Number,
• Voter's Identity Card
• Job card issued by NREGA
• A letter containing details such as name and address issued by the National Population Register.

If the provided OVD lacks an updated address, the following documents will serve as OVDs for proof of address:

• Recent utility bills not more than 2 months old (electricity, telephone, post-paid mobile phone, piped gas, water bill, etc.)
• Property or municipal tax receipts
• Pension or family pension payment orders (PPOs) with addresses issued to retired employees by the government or PSUs.
• Letter of accommodation allotment from various authorities including government departments, public sector undertakings, banks, financial institutions, listed companies, and lease agreements for official accommodation.

How to apply for a Shaurya SBI Education Loan?

To apply for an SBI Shaurya Education follow these simple steps:

• Visit your nearby SBI bank branch.
• Fill out the education loan application form.
• Keep the document mentioned above ready and carry it along as per your requirements.
• Submit the completed application form and required documents to the bank.

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