Student loan (also known as Education loans) for MBA

Student loan (also known as Education loans) is one of the popular methods of backing higher education in India with increasing price of educational degrees. Presence of many self-financing institutions ( which has less to no financial support from the government) for advanced learning in fields of engineering, medical and management which has higher fees than their government aided counterparts have encouraged the trend in India. Most large public sector and private sector banks offer educational loans.

But when it comes to interest, the countries largest private bank 'state bank of india(SBI)' is the best  player. If you are selected for any of the top Select 114 Premier Institutions in India, then SBI SCHOLAR LOAN SCHEME  is the best loan since it gives a very low interest rate. IPMX course offered by IIML is also part of this 114 premier institurions.

But the biggest challenge faced in getting this loan approved, is that employee of  SBI are not aware of this loan.  When you go to the bank to enquire about the loan, they will always tell you about the EDUCATION LOANS(SBI STUDENT LOAN SCHEME), which is costlier compared to scholar loan. Only  branches which process, loans for 114 premier institutions are aware of this scheme. Hence it is advisable to either contact any of this branch or take a prinout of material given on the SBI website to explain you local branch about this  scheme.


Most students can get their loan processed from the admitted colleges SBI city branch , but the application form will always come back to the base branch(which is the permanent resident of candidate)

What i will be avoiding by choosing the SBI Scholar loan scheme

• No Security, only Parent/ Guardian as co-borrower upto 20 lacs
• As of today, the effective rate of interest after all 3 concessions presently comes to 10.5 % p.a.
• IT exemption under Section 80(E) in respect of interest paid in all Education Loans once i get a good job post my degree
• Repayment - Course Period duration plus six months moratorium
• Repayment period upto 12 years.
• Processing Fee -  Nil and Margin  - Nil

What i hated while choosing the SBI Scholar loan scheme

• Tedious paper processing of the bank with less or no online support. But you can visit https://www.sbi.co.in/user.htm to get more details about the bank and its loan schemes.
• Missing knowledge of the scheme and time it took to convince my local branch that such a scheme exisits

I am still yet to get my loan processed and  hoping the ride is smooth. But the local branch loan officer has been very kind and supportive till now in giving information, though it needed her to go and get this info from her peers at different branches.

There are other institutes such as HDFC - CREDILA , Vijaya bank education loan and BOI education loan. and many national/local banks in India that provide loan. Most of my batch-mates are processing their loan from SBI with some exception who are funding on their own.

If you have any questions, feel free to leave a comment. I will be happy to  help.