How does the Income Tax Calculator help with SBI Scholar Loans?

The Income Tax Calculator helps borrowers estimate tax savings on the interest paid for SBI Scholar Loans. Under Section 80E of the Income Tax Act, the interest on education loans qualifies for a tax deduction, reducing the overall tax liability. This tool simplifies financial planning by showing potential benefits during the loan repayment period.

Are there tax benefits on the interest paid?

Yes, the interest paid is eligible for tax deductions under Section 80E of the Income Tax Act.

Can I use the loan for non-tuition expenses?

Yes, the loan covers expenses like travel, books, equipment, and living expenses.

How does this loan compare to a child education allowance?

While a child education allowance is limited to fixed reimbursements, SBI Scholar Loans offer comprehensive coverage for all education-related expenses.

What is the repayment tenure for the SBI Scholar Loan Scheme?

The repayment tenure can extend up to 15 years, providing flexibility and ease of repayment.

SBI Scholar Loans for IITs, IIMs, NITs, and More

Education is the cornerstone of a bright future, and securing admission to prestigious institutions like IITs, IIMs, and NITs marks the beginning of an extraordinary academic journey. SBI Scholar Loans are designed to support students in fulfilling their dreams by providing financial assistance for higher education. With competitive interest rates, flexible repayment options, and exclusive benefits, this loan is ideal for ambitious students.

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

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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

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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 SBI Scholar Loan Scheme

The SBI Scholar Loan Scheme is a specialised education loan program tailored for students admitted to prestigious institutions like IITs, IIMs, NITs, and other renowned universities, both in India and abroad. This scheme provides attractive interest rates and a streamlined loan processing experience, offering students the financial support they need without stress. Students and parents looking for assistance with managing educational expenses might also be interested in exploring options like the SBI education loan.

SBI Scholar Loan Rate of Interest

The interest rates under the SBI Scholar Loan Scheme are structured based on the institution's category, ensuring affordable financing for deserving students.

Prime Institutions (IITs, IIMs, AIIMS, etc.): Rates start as low as 8.15% to 8.90 per annum.
Other Recognised Institutions: Rates vary slightly but remain competitive.
Interest Concession: A special 0.5% concession is available for female students.

Features of SBI Scholar Loan Scheme

High Loan Amount: Up to INR 40 lakhs for studies in India and higher limits for studying abroad.
No Collateral for Select Institutions(List C): Loans up to INR 7.5 lakhs are collateral-free.
Flexible Repayment: Repayment period of up to 15 years.
Tax Benefits: Avail deductions under Section 80E of the Income Tax Act.
Moratorium Period: Course duration plus 12 months of grace period before repayment begins.

Planning for your child's future involves more than just choosing the right schools or extracurricular activities. Long-term financial security is just as important. Investing in a child investment plan ensures that their educational journey is supported without financial stress, paving the way for their success.

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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 Scholar Loan Scheme

To qualify for the SBI Scholar Loan Scheme, the following criteria must be met:

Nationality: The applicant must be an Indian citizen to be eligible.
Admission: Admission must be secured in premier institutions like IITs, IIMs, NITs, or internationally renowned universities.
Co-Borrower: A parent, guardian, or spouse with a stable income must co-sign the loan application.

Documents Required for SBI Scholar Loan

Applicants need to submit the following documents:

Personal Documents: ID proof, address proof, passport-size photographs.
Academic Documents: Admission letter, mark sheets, and certificates.
Financial Documents: Income proof of co-borrower, Form 16, and bank statements.
Loan-Specific Documents: Duly filled application form, proof of course expenses.

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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Important Terms and Conditions

Understanding the essential terms and conditions ensures clarity and smooth processing of your application.

Loan Margin: 5% for Indian institutions and 15% for studying abroad.
Security: Loans above INR 7.5 lakhs require collateral security.
Insurance: Optional life insurance covers the student borrower.
Penalty: Late payment penalties as applicable.

Learn more about education loans.

FAQs

How does the Income Tax Calculator help with SBI Scholar Loans?

The Income Tax Calculator helps borrowers estimate tax savings on the interest paid for SBI Scholar Loans. Under Section 80E of the Income Tax Act, the interest on education loans qualifies for a tax deduction, reducing the overall tax liability. This tool simplifies financial planning by showing potential benefits during the loan repayment period.
Are there tax benefits on the interest paid?

Yes, the interest paid is eligible for tax deductions under Section 80E of the Income Tax Act.
Can I use the loan for non-tuition expenses?

Yes, the loan covers expenses like travel, books, equipment, and living expenses.
How does this loan compare to a child education allowance?

While a child education allowance is limited to fixed reimbursements, SBI Scholar Loans offer comprehensive coverage for all education-related expenses.
What is the repayment tenure for the SBI Scholar Loan Scheme?

The repayment tenure can extend up to 15 years, providing flexibility and ease of repayment.

†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.