State Bank of Patiala

Overview


"State Bank of Patiala was founded in the year 1917 by Bhupinder Singh, Maharaja of erstwhile Patiala State. The bank became a subsidiary of State Bank of India in the year 1960 and was renamed as State Bank of Patiala. Currently, the bank provides CBS in all its branches and is the first fully networked Public Service Bank in the country. State Bank of Patiala (SBP) extends financial assistance to deserving students for pursuing higher studies to shape their future and be successful in life. The bank offers multiple Education Loan schemes to suit the varied needs of every student."

Loan Interest Rates:


1. SBP Gyan Jyoti Scheme:
Max. Loan Amount Interest Rate
Up to Rs. 7.50 lakhs Base Rate + 2.75% = 12.85% (currently)
Above Rs. 7.50 lakhs Base Rate + 1.75% = 11.85% (currently)

2. SBP Education Loan Scheme for Vocational Education and Training:
"The rate of interest for loans availed under this scheme is 2.75% above the base rate. Currently, it is at 12.75% p.a."
3. SBP Scholar Loan:
Category of Institute Interest Rate
List AA Base Rate + 0.50% = 10.60% (at present)
List A Base Rate + 0.50% = 10.60% (at present)
List B Base Rate + 0.50% = 10.60% (at present)
List C Base Rate + 1.75% = 11.85% (at present)

4. SBP Coaching Fee Loan Scheme:
"The interest rate is Base Rate + 2.75% = 12.85% p.a."
Base Rates Are:

Loan Eligibility:


Courses Eligible For Loan:
1. Gyan Jyoti Scheme:
    India:
  • Undergraduate courses like Bachelor of Arts, Commerce, Science, etc.
  • Postgraduate courses - Master's degree and Ph.D
  • Courses in engineering, medical, agriculture, veterinary, law, dental, management, computers, etc.
  • Certificate courses in computers. The course needs to be conducted by a reputed institute and accredited to the Department of Electronics or institutes affiliated to a university.
  • Courses like ICWA, CA, CFA, etc.
  • Courses held in institutes like IIM, IIT, IISc, XLRI, NIFT, etc.
  • Courses offered in India by reputed foreign universities.
  • Evening courses conducted by reputed institutes.
  • Courses conducted by UGC/Govt/AICTE/AIBMS/ICMR approved institutes, bestowing the student with a diploma/degree.
  • Courses offered by reputed private institutions and any other national institutes.
  • Courses like Aeronautical, pilot training, shipping, nursing or any other discipline. These courses should be approved by the Director General of Civil Aviation/Shipping/Indian Nursing Council. It can also be approved by any other regulatory body.
  • Teacher Training course/Nursing course/B.Ed. conducted by Government (central or state) approved training institutions. Such courses should bestow the student only with a degree or diploma and not a certificate course.
  • Vocational Training and skill development study courses are not covered under this Education Loan Scheme. There is a separate scheme by SBP for such courses.
    Abroad:
  • Professional and technical undergraduate courses offered by reputed universities. These courses need to be job oriented.
  • Post-graduation degrees like MCA, MBA, MS, etc.
  • Courses conducted by CPA in United States of America and CIMA inLondon.
  • Degree/diploma courses like aeronautical, pilot training,shipping, etc. The prerequisite being that these courses are recognised bycompetent regulatory bodies in India/abroad for the purpose of employment in India/abroad.
  • Post Graduate Diploma courses (professional/technical) offered by reputed universities. These courses need to be job oriented.
2. SBP Scholar Loan:
  • Scholar Loan is offered for regular full time degree/diploma courses.
  • Admissions for the course need to be through a formal entrance test.
  • Full time executive management courses like PGPX, IIMs.
3. SBP Coaching Fee Loan Scheme:
  • This loan scheme offers financial assistance to finance the tuition fees while enrolling into institutes giving coaching for professional course entrance exams like CAT, MAT, CET, IIT, JEE, UPSC, etc.

Documents Required:
1. Gyan Jyoti Scheme:
  • Loan application form
  • Appraisal form
  • Guarantee agreement
  • Term loan agreement
  • Arrangement letter
2. SBP Scholar Loan:
  • Admission letter from the institute
  • Duly filled registration form
  • 2 passport size photographs of the student
  • Proof of identity as issued by the government
  • Proof of residence
  • Student/parent/co-borrower's bank account statement for the last 6 months
  • IT returns of last 2 years
  • Statement of expenses

Candidate Education Loan Eligibility:
  • Student/applicant should be a citizen of India.
  • The course needs to be supported or run by a ministry/government organization, an organisation supported by State Skill Mission/Corporation or National Skill Development Corporation.
  • The course should preferably bestow the student with a certificate or diploma degree.

Processing Fees:
Processing fees/charges are not collected upfront for this scheme.
    For Education Loan to students studying abroad -
  • If the loan amount availed is more than Rs. 4 lakhs, a deposit of Rs. 50,000 needs to be paid.
  • For an individual availing an education loan under this scheme, an amount of Rs. 5000 will be adjusted against the contribution of payment of margin. If margin is not payable by him, the amount can be adjusted against the interest amount payable.

Expenses Covered under Education Loan:


1. Gyan Jyoti Scheme:
  • Fees payable to the student's college/school.
  • Student's hostel fees, provided he/she opts to stay in the residential campus.
  • Fee payable for the purpose of examination, library and laboratory.
  • Purchase of books, equipment, instrument and uniform required for the course pursued.
  • Cost of laptops/computers only if essential for completion of the course (maximum 20% of the total tuition fee payable for completion of the course).
  • Any caution deposit/refundable deposit/ building fund charged by the institution (maximum 10% of the tuition fee for the entire course).
  • For students studying abroad, travel expenses and passage money.
  • Cost incurred up to Rs. 50,000 for buying a two wheeler by/for the student's use.
  • Other expenses incurred for completing the course. For instance, cost of project work, study tours, etc.
  • For students seeking admission under management quota seats (considered within the scheme), fees as approved by any Government approved regulatory or State Government for payment seats will be taken, subject to viability of repayment.
2. SBP Scholar Loan:
  • Fees payable to the student's college/school.
  • Student's hostel fees, provided he/she opts to stay in the residential campus.
  • Fees payable for the purpose of examination, library and laboratory.
  • Purchase of books, equipment, instrument and uniform required for the course pursued.
  • Cost of laptops/computers only if essential for completion of the course.
  • Any caution deposit/refundable deposit/ building fund charged by the institution. Needs to be supported by receipts. This cannot exceed 10% of tuition fee for the entire course.
  • Travel expenses and expenses incurred while on exchange programme.
  • Any other expenses related to education/course.
3. SBP Coaching Fee Loan Scheme:
  • Finances lodging/hostel/ paying guest and other forms of accommodation for the student, during the period of coaching. This is applicable only if the student is required to stay away from his residence. This amount can't exceed 75% of the loan amount sanctioned.
  • Finances deposit amount for seat allotment while attending counselling.
  • Covers the cost of books, laptops if required for preparation of the entrance exam. This amount can't exceed 25% of the tuition fee.

Loan Repayment:


1. SBP Gyan Jyoti Scheme:
Loan Amount Repayment Period
Up to Rs 7.50 lakh Within a maximum period of 10 years
Above Rs 7.50 lakh Within a period of 15 years after the repayment period begins

2. SBP Education Loan Scheme for Vocational Education and Training:
Loan Amount Repayment Period
Up to Rs. 50,000 Up to 2 years
Rs. 50,000 - Rs. 1 lakh 2 - 5 years
Above Rs. 1 lakh 3-7 years

3. SBP Scholar Loan:
  • The repayment period is flexible up to 7 years after the start of repayment.
  • Moratorium period is up to the course duration plus 6 months.

4.SBP Coaching Fee Loan Scheme
"The repayment period cannot exceed the parent's/guardian's retirement age."

Security Required:


1. Gyan Jyoti Scheme:
  • No security is required for loan amounts up to Rs. 4 lakhs.
  • Collateral security (in the form of suitable third party guarantee) is required for loan amounts above Rs. 4 lakhs and up to Rs. 7.50 lakhs.
  • For loan amounts above Rs. 7.50 lakhs, tangible collateral security (of suitable value), along with the assignment of the student's future income is required.
  • If the student is the borrower of the loan, it should be secured by parents/guardian of the former.
2. SBP Scholar Loan:
    For category 'AA' institute
  • Up to Rs. 30 lakhs with parent/guardian as co-borrower - No tangible collateral.
    For category 'A' institute
  • Up to Rs. 20 lakhs with parent/guardian as co-borrower - No tangible collateral.
  • Up to Rs. 30 lakhs with parent/guardian as co-borrower - Tangible collateral of full value.
    For category 'B' institute
  • Up to Rs. 20 lakhs with parent/guardian as co-borrower - No tangible collateral.
    For category 'C' institute
  • Up to Rs. 7.50 lakhs with parent/guardian as co-borrower - No tangible collateral.
  • Above Rs. 7.50 lakhs and up to Rs. 30 lakhs with parent/guardian as co-borrower - Tangible collateral of full value
3. SBP Coaching Fee Loan Scheme:
  • The loan applicant should be the student's parent, guardian or spouse. They should have a verifiable income and loan repayment capacity

FAQs:


1.Is there any discount / rebate on the Allahabad Bank interest rate?
Ans. Yes, girl students are entitled to a rebate of 0.50% on the chargeable interest rate. Also, interest concession of 1.00% will be awarded if borrower pays the interest amount within the study & moratorium period.

2. Will my travel expenses be covered by this loan if I am going to pursue a course abroad?
Ans. Yes, this loan does cover your travel expenses or passage money if you are going to pursue a course overseas.
	
3. Are there any additional benefits which the Allahabad Bank education loan provides?
Ans. Applicants of this loan are entitled to a free debit card along with the loan amount. They can also avail an additional loan for higher studies or to cover any cost of escalation.
			
4. What is the moratorium period allowed with this loan?
Ans. Applicants are entitled to a moratorium period which of either 1 year after the end of the course duration or 6 months after getting a job, whichever takes place earlier.

5. If I get a scholarship or assistantship, will it be included in the loan margin?
Ans. Yes, any Scholarship or Assistantship will be included in the Margin.