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Sbi Education loan, indian bank

Sonali221

Hero Member
Mar 21, 2018
467
29
Th
That's precisely the problem. Even SBI will happily give you a loan against security. If you are going for a loan without security then they will poke and prod what studies you are doing , what is your past studies marks etc.

Since you do not have a security your loan they will scrutinize your application more. Education loan has a very high default rate, therefore a loan without security will be risky. It's not a bank manager being "crooked" or other such language.

I personally am in the process with SBI for a education loan, however my amount is 20 lakh and so I have property as a security/collateral. I have not been asked any questions, although I have just got the legal opinion and valuation done and have just applied for the loan today. I might have also lucked out with the bank manager being a really good person overall, and he's very proactive in running the branch.

If you have a 7.5 lakh loan, I can suggest that you either Increase the loan amount so that you have to pledge a security, if you have a property. You will see that most banks will no longer ask any questions.

Also you can go for a loan against FD. You will have to start paying interest immideatly but it will be very low as they will deduct the interest of your FD against your loan. It comes to 1-2%, this was suggested to us by ICICI, but our amounts was too big so we didn't go for it.

Alternatively you can go for HDFC Credilla. They will ask less questions but you will have to pay interest immideatly. However if your parent or you are paying income tax, you can claim the interest paid on your loan against your tax liability. This is a good option if you or your parents have a taxable income or you are able to pay the interest.
thanks alot for information
I just have a fd of 3 lakhs
Can i get loan against it.
Like 7.5 without security and remaining 2.5 with security
 

selvakk

Champion Member
Nov 28, 2018
2,414
528
Th

thanks alot for information
I just have a fd of 3 lakhs
Can i get loan against it.
Like 7.5 without security and remaining 2.5 with security
Unfortunately no, loan against FD is against the amount in the FD only. Depending on the bank they will only give a certain percentage of the FD.

You can however combine multiple FD's and take a loan against them. Loan against FD and education loan are two different types of loans , you cannot combine them.
 

Sonali221

Hero Member
Mar 21, 2018
467
29
Okk
Unfortunately no, loan against FD is against the amount in the FD only. Depending on the bank they will only give a certain percentage of the FD.

You can however combine multiple FD's and take a loan against them. Loan against FD and education loan are two different types of loans , you cannot combine them.
i will try
Hope i will firstly convince them to grant me loan on graduate certificate.

U get on graduate certificate or some other course?
 

selvakk

Champion Member
Nov 28, 2018
2,414
528
Okk

i will try
Hope i will firstly convince them to grant me loan on graduate certificate.

U get on graduate certificate or some other course?
I am applying on graduate certificate; they didn't ask which course I am applying for. I have also included a page from the Humber viewbook which gives the definition of a graduate certificate as a course after bachelors, which is the same as PG diploma. Not all bank managers are convinced that a PG certificate is the same as PG diploma.

I went to 3 banks in my area:-

1) SBI: Didn't ask any questions and had the lowest interest rates. Do note that I told them the course, loan amount and the security as well as the location of it.
2) ICICI: Kept pushing for a loan against FD and never got back regarding education loan.
3) Canara Bank: Manager wanted details about the program and college before she would consider the loan process. The interest rate was very high, so we didn't send the details about the program

Do keep in mind that not all bank managers are knowledgeable about program structures outside India, in that case they will go by their guide book. SBI in particular is very restrictive in their regular education loan, however for their Global ed-vantage loan which starts with a minimum of 20 lakhs they include certificate courses, it's possible that's why I'm not facing the same issues, I'm not sure.
 

Sonali221

Hero Member
Mar 21, 2018
467
29
I am applying on graduate certificate; they didn't ask which course I am applying for. I have also included a page from the Humber viewbook which gives the definition of a graduate certificate as a course after bachelors, which is the same as PG diploma. Not all bank managers are convinced that a PG certificate is the same as PG diploma.

I went to 3 banks in my area:-

1) SBI: Didn't ask any questions and had the lowest interest rates. Do note that I told them the course, loan amount and the security as well as the location of it.
2) ICICI: Kept pushing for a loan against FD and never got back regarding education loan.
3) Canara Bank: Manager wanted details about the program and college before she would consider the loan process. The interest rate was very high, so we didn't send the details about the program

Do keep in mind that not all bank managers are knowledgeable about program structures outside India, in that case they will go by their guide book. SBI in particular is very restrictive in their regular education loan, however for their Global ed-vantage loan which starts with a minimum of 20 lakhs they include certificate courses, it's possible that's why I'm not facing the same issues, I'm not sure.
Thanks for the support

But the main thing is that i dun have any acc in sbi and also my loan amount is very short.

Secondly can you please send me a screenshot of humber college where it is written that pg certificate is as similar as pg diploma.

I also got offer letter from humber and the manager denies it because of word certificate on LOA.
 

selvakk

Champion Member
Nov 28, 2018
2,414
528
Thanks for the support

But the main thing is that i dun have any acc in sbi and also my loan amount is very short.

Secondly can you please send me a screenshot of humber college where it is written that pg certificate is as similar as pg diploma.

I also got offer letter from humber and the manager denies it because of word certificate on LOA.
1) go to a bank where you have an account, and preferably a relationship with the branch manager if possible. They will be more willing to listen to you if you have an account. You will need to open one anyway if you get the loan.

2) Use this link for the Humber viewbook. https://humber.ca/about-humber/corporate-info/publications/files/humber-viewbook-18-19.pdf . It is Page no 27 in the view book and 29 in the PDF under the header ACADEMIC SCHOOLS AND CREDENTIALS.

Without prying too much, what course are you doing that your loan amount is so short ?
 

Sonali221

Hero Member
Mar 21, 2018
467
29
1) go to a bank where you have an account, and preferably a relationship with the branch manager if possible. They will be more willing to listen to you if you have an account. You will need to open one anyway if you get the loan.

2) Use this link for the Humber viewbook. https://humber.ca/about-humber/corporate-info/publications/files/humber-viewbook-18-19.pdf . It is Page no 27 in the view book and 29 in the PDF under the header ACADEMIC SCHOOLS AND CREDENTIALS.

Without prying too much, what course are you doing that your loan amount is so short ?
ITs a one year course insurance management
 

Sonali221

Hero Member
Mar 21, 2018
467
29
But right now the tuition alone is 8.25 lakhs, if you add in laptop, travel, GIC etc your loan amount should be higher or do you have another source of funds for that.
ACtuaaly the thing is I dont have something for pledging and moreover I have some other funds too
 

selvakk

Champion Member
Nov 28, 2018
2,414
528
ACtuaaly the thing is I dont have something for pledging and moreover I have some other funds too
Hmm. then you have limited options. For smaller amounts it is very difficult to get education loan. Well, I would still suggest speaking to a bank branch where you have an existing account. They maybe able to suggest what they can do.

Another option is this government site called Vidhyalakshmi, you can apply to multiple banks online with a single form. https://www.vidyalakshmi.co.in/Students/ Perhaps you will be able to find a bank that will finance your loan.
 
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