Can a Child Education Plan provide tax benefits?

Yes, a Child Education Plan can offer tax benefits, allowing you to claim deductions for the premiums paid. This helps reduce your taxable income while ensuring you are financially prepared for your child's education.

When does repayment for an SBI Education Loan begin?

Repayment starts one year after completing your course or six months after securing a job, whichever is earlier.

What is the maximum repayment tenure?

You can choose a repayment tenure of up to 15 years, which helps make the EMIs more affordable.

Can I prepay my education loan?

Yes, SBI allows you to make prepayments without penalties, which can help reduce your overall interest burden.

How can I estimate tax savings on interest repayments?

You can use an income tax calculator to estimate the savings on your loan interest and plan your finances more effectively.

SBI Education Loan Repayment

As a parent, you want nothing more than to give your child the best chance at a successful future through quality education. The SBI Education Loan makes this possible by offering repayment options that ease the financial burden. With manageable terms and competitive interest rates, the loan ensures you can support your child’s dreams while keeping your finances in check. Fast access to funds means you won’t have to delay their education plans. This loan helps you invest in your child’s future with confidence and peace of mind.

Investing in your child's future:A wise decision & a loving choice

Benefits of Investing In Child Plan

Waiver of Premium Benefit

Future Premiums are paid by the insurer upon death of policyholder

Flexible Payout Options

Your premiums help your child achieve their dreams through lump sum or regular payouts

Wealth Boosters

Get rewarded with Wealth Booster and Loyalty Bonus for staying invested with us

Zero Commission

We charge no commission when you buy from us. Also buy online & get extra

Tax Benefits^

You get tax benefits under Section 80(C) and no tax on returns under Section 10 (10D)

Investment Flexibility

It offers the flexibility to invest at regular intervals or as a one-time contribution

We are rated^~

7.7 Crore

Registered Consumer

Insurance Partners

4.2 Crore

Policies Sold

Nothing Is More Important Than Securing Your Child's Future

Invest ₹10k/month your child will get ₹1 Cr^# Tax-Free* on Maturity

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We are rated^~

7.7 Crore

Registered Consumer

Insurance Partners

4.2 Crore

Policies Sold

Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

About the SBI Education Loan Repayment Scheme

The SBI Education Loan Repayment Scheme is designed to provide flexibility and support for students and their families. With a moratorium period, students can focus on securing employment and stabilising their finances before beginning the repayment process.

This grace period offers relief by removing the immediate pressure of repayments after course completion. The scheme is also compatible with family-focused financial plans, such as child education allowances, making it easier for families to manage expenses and plan for their child’s future education effectively.

Interest Rates for SBI Education Loan Repayment

The interest rates for SBI Education Loans vary based on collateral and other factors. Here’s a breakdown of the rates and special concessions:

Base Rates:
- Without Collateral (up to ₹7.50 lakh): 11.15% p.a.
- With Collateral (above ₹7.50 lakh): 10.15% p.a.
- Takeover above ₹10.00 lakh (with collateral): 10.15% p.a.
Special Concessions:
- Female Students: A 0.50% concession on the interest rate is available for female students.

Features of SBI Education Loan Repayment Scheme

The SBI Education Loan Repayment Scheme offers the following key features that make managing your loan easier:

Moratorium Period

You won’t need to begin repaying your loan immediately after finishing your course. The moratorium period for SBI Education Loans is the course duration plus one year, or six months after securing employment, whichever is earlier.
Flexible Tenures

The repayment period for SBI Education Loans is up to 15 years after the completion of the course and the moratorium period.
Tax Benefits

One of the best parts of this scheme is that the interest you pay on your loan qualifies for tax deductions under Section 80E of the Income Tax Act. This means you can save on taxes and manage your finances more efficiently.
Prepayment Options

If you have the financial ability, you can repay the loan early without facing any penalties. Prepaying your loan can reduce the overall interest burden, helping you become debt-free faster.

Invest More Get More

Invest ₹10K/Month YOU GET ₹1 Crores^* For Your Child View Plans

Invest ₹8K/Month YOU GET ₹80 Lakhs^* For Your Child View Plans

Invest ₹5K/Month YOU GET ₹50 Lakhs^* For Your Child View Plans

Standard T&C Apply *

Eligibility for SBI Education Loan Repayment

You must meet specific criteria to qualify for SBI’s Education Loan Repayment Scheme. These include:

You must have an SBI education loan that was approved for a course in India or abroad.
Repayments should begin according to the timeline agreed upon during the loan process, either after completing your course or securing employment.
You must abide by the terms outlined during the loan approval process, ensuring that your repayments remain in line with what was initially agreed upon.

Unique Triple Benefit

Future premiums paid by insurer on parent's death

Monthly income to fund child's education on parent's death

Lumpsum payout to family on parent's death

Returns

Return as of Apr 2024
12%-15%
8.2%
7.1%

Availability

Availability
Girl Child or Boy Child
Girl child only
Girl Child or Boy Child

Max Entry Age
Upto 18 years
Upto 10 years
No Age Limit

Flexibility

Invested Amount can be Withdrawn after
5 years
21 years
15 years

Conditions for Premature closure
Anytime after 5years
Extreme Compassionate Grounds
Serious Ailments or for education

Penalty on Premature Closure
No Penalty after 5 years
Returns reduced to Post Office Savings rate
1% reduction in interest rate

Max deposit amount in an year
No Limit
1.5 Lacs
1.5 Lacs

Documentation

Documentation Required for Withdrawal
Low
High
Low

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Most Important Terms and Conditions

Understanding the key terms and conditions of the SBI Education Loan is crucial for effective planning and smooth repayment. It also offers a great opportunity to integrate with a child investment plan, ensuring a secure financial future for your child’s education. Below are the most important aspects of the loan’s repayment process:

Repayment Timeline

Repayments begin one year after completing your course or six months after securing employment, whichever comes first.
Loan Tenure

The repayment period can be extended up to 15 years, offering plenty of flexibility in terms of EMI amounts.
Tax Deductions

You can claim tax relief under Section 80E of the Income Tax Act for interest paid on the loan, reducing your taxable income and offering financial relief.

FAQs

Can a Child Education Plan provide tax benefits?

Yes, a Child Education Plan can offer tax benefits, allowing you to claim deductions for the premiums paid. This helps reduce your taxable income while ensuring you are financially prepared for your child's education.
When does repayment for an SBI Education Loan begin?

Repayment starts one year after completing your course or six months after securing a job, whichever is earlier.
What is the maximum repayment tenure?

You can choose a repayment tenure of up to 15 years, which helps make the EMIs more affordable.
Can I prepay my education loan?

Yes, SBI allows you to make prepayments without penalties, which can help reduce your overall interest burden.
How can I estimate tax savings on interest repayments?

You can use an income tax calculator to estimate the savings on your loan interest and plan your finances more effectively.

†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%
+Returns Since Inception of LIC Growth Fund
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.