The State Bank of India (SBI) is one of the most popular and major institutes for loan applications. They grant loans to students so as to enable them to further their education; nevertheless, the procedures on how to apply for student loan from SBI must be followed before you can qualify.
This facility has brought about more interest in education from students who don’t have anyone to sponsor them. With this, students can pursue their dreams and funding their education has become easy.
In this article, we will get to understand what SBI means, types, benefits, challenges faced when applying for a loan, and how to apply for a student loan from SBI.
How To Apply For A Student Loan From SBI: Meaning
Before we navigate the topic of how to apply for a loan from SBI, we need to know the meaning of some key words in order to understand them intensively.
SBI means the State Bank of India. It is a multinational public-sector banking and financial institution. While the word loan means a sum of money that one borrowed from the bank, which is expected to be paid back based on the agreement,.
How To Apply For a Student Loan From SBI
A student who desires to apply for a loan from the State Bank of India needs to understand the procedures or steps expected to be followed in the process of acquiring a loan for the continuous furthering of your education. Applying for a student loan can be done offline or online, depending on which is more comfortable for you.
The following are steps on how to apply for a student loan from SBI:
Offline
1. Locate The Nearest SBI Branch
This is the first step on how to apply for a student loan from SBI. Visit the nearest SBI branch close to you. We have about 14 SBI branches you can locate in India so as to apply for a student loan.
2. Fill Out The Application Form
After locating the place you are expected to request for the application form, carefully fill in all expected requirements. Ensure you give details to all questions and avoid making errors so that your request will not be rejected.
Online
1. Visit The Website
This is the first step when registering online for your student loan. You are to go on with the registration by visiting the website; this will take you to where you are expected to create your ID and password.
2. Select The Site On Education Loan
After creating your ID and password, it will take you to the home page, where you can select the site on education loans. This section entails all loans eligible for students who are interested in applying for education loans.
3. Choose Your Preferred Loan Option
After selecting the section on education loans, it will list the available loans for students, and then you can keep strolling down until you get to your preferred loan option.
4. Click On Apply Now
Once you are able to identify your preferred option, you will see a blinking button with the write-up APPLY NOW. Click on it to be redirected to the next page.
5. You will be redirected To
After clicking on the button APPLY NOW, you will be taken to the Vidya Lakshmi website, where you are required to fill in your information.
6. Register By Filling Out All Your Details
You can now register by filling out all your details without omitting any valuable information. This is the reason you should know how to apply for a student loan from SBI.
7. Apply For The Loans
Finally, apply for the loans. The application for the loan requires providing all the credentials required for the loan. The priority you give to all requirements during registration will determine if you are eligible for such a loan.
8. A Bank Representative Will Get In Touch With You
For further inquiry, you will receive a call from the bank, who will confirm all your information submitted online by you.
Documents Needed To Apply For SBI
The following is a list of documents needed to apply for SBI:
1. Admission Letter
Your admission letter is one of the documents you need to submit as proof of the course you are offered admission to.
2. Course Expense Details
The expenses required to run such a course must be listed out so as to determine the amount of loan you will be considering.
3. Document Confirming Scholarship
The document that entails information on the scholarship you were offered must be submitted for review.
4. Passport
Your passport is one of the documents required to apply for a loan from SBI. You should have at least two passports.
5. Statement Of Guarantor
Your guarantor statement must be included in your signed document.
6. Latest Salary Slip
Per adventure you are presented working; you are expected to summit a slip that entails your last salary. This will determine the amount you can offer for a student loan.
7. Bank Account Statement
To apply for a student loan from SBI, you are expected to submit a slip containing your bank account statement. To get a bank statement, you are expected to go to your bank to request it.
Types Of Educational Loans
The following are mainly six different types of educational loans:
- SBI Student Loan Scheme: This is a loan scheme offered to students in India or abroad. That is, the eligible candidate to offer this course must come from India or abroad.
- SBI Global Advantage: This can be offered only abroad
- SBI Scholar Loan: This is offered at top institutes in India.
- SBI Skill Development Loan: This can be offered for small skill development or a vacation.
- SBI Per-Time Educational Courses: This type of education loan is offered at about 15 institutes in India. This is a part-time course that any qualified Indian student can apply for.
- SBI Takeover Educational Loan: This type of educational loan is for students who wish to transfer their education loan to SBI.
Benefits Of Applying For A Loan From SBI
There are several benefits of applying for a loan from SBI they include:
1. Faster Process
This is one of the benefits of applying for a loan from SBI. Due to the fact that it is mostly an online application, it has been made easy and fast.
2. Easy Payment Procedure
There is a better and preferable interest rate in such a way that it will be easy to repay a loan.
3. Higher Amount Of Loan
You have the privilege of getting a higher loan amount that can cover all your educational expenses
4. Easy Payment
This is another benefit of Applying for a loan from SBI. The method or procedure of payment is very easy and comfortable to pay back.
5. Easily Approved
Most times to be approved for the loan, you apply to SBI. It is very easy and fast to get a response of approval.
6. Low Interest Rate
The interest rate on each loan is very low so as to make it easy to pay back.
7. All Costs Are Visible
The whole cost of doing the registration is very visible and clear, meaning there are no hidden costs or charges on any amount of loan you apply for.
8. Less Paper
For the fact that almost all processes can be achieved online. Therefore, there is less use of paper materials for application. This method has also reduced expenses for the organization (SBI) offering loans.
9. No Fee In The Course Of Processing
Registration does not require extra charges in the process of filling out all necessary details or information.
Challenges Faced When Applying For A Student Loan
There are various challenges you can face when applying for a student loan, they include:
1. Loan Application Status Pending
This is another major challenge faced by students who apply for loans from SBI. This is a result of the large number of students requesting loans. The application keeps pending until the bank is ready to attend to your request.
2. No Bank Response
This is another challenge faced when applying for a student loan. Sometimes no responses were received from the bank on the application loan. As a result of this, some students become devastated, especially when there are no other means of getting funds for their education.
3. Rejected Application
The issue of rejected applications has become a major challenge when applying for student loans. Applications are usually rejected due to the numerous numbers of loan applicants. Few applicants are offered loans based on the requirements listed for student loans issued by the Bank of India.
Eligibility For A Student Loan
1. The Applicant Needs To Be A Citizen Of India
To be considered for a student loan from SBI, you have to be a citizen of India. That is, only Indian citizens are eligible for the loan.
2. The Applicant Should Have Secured Admission.
The applicant must have been offered admission to any of the institutions in India before he or she can be considered for a student loan
3. Meet The Required Mark Percentage
To be considered for the student loan, you need to have met the required score. This is because other people apply for the loan, and only the eligible person will be considered.
Final Word
Be updated on all information regarding student loans offered by SBI. The more you are updated, the more you understand how to apply for loans from SBI. For this to be achieved, there is a need to critically read all over again in order to understand how to apply for a student loan from SBI.
