Repayment -Know how to Repay Education Loan Online in India | SBI - Personal Banking

Repayment Options:

• In case of Education loans for study in India, repayment will start after the completion of course period and moratorium period (Repayment commences one year after the course completion or 6 months after securing a job, whichever is earlier). In case of Education loans for study abroad, repayment will start after the completion of course period and moratorium period (Repayment commences six months after the course completion).
• The Loans are sanctioned as Term Loans and are to be repaid in EMIs over a maximum repayment term of 15 years (180 EMIs) for Student, Scholar, PM-Vidyalaxmi and Global Ed-vantage Education Loans. The repayment of EMI starts 12 months after the completion of the course or 6 months after getting the employment, whichever is earlier. In case of Global Ed-Vantage Loans & Student Loans for study abroad, repayment of EMI starts 6 months after the completion of the course.
• In case of Skill Loans repayment period is linked to loan amount and moratorium period is linked to duration of the course, which is as under:

  Repayment Period

  Loan Amount	Repayment Term (Maximum) excluding moratorium period
  Up to ₹50,000	3 years
  Above ₹50,000 up to ₹1 lakh	5 years
  Above ₹1 lakh	7 years

  Moratorium Period:

  Course Duration	Moratorium
  Up to 1 year	6 months from course completion date
  Above 1 year	12 months from course completion date

• The accrued interest during the moratorium period and course period is added to the principal and repayment is fixed in Equated Monthly Instalment (EMI). If full interest is serviced before the commencement of repayment; EMI is fixed based on principal amount only. There is NO penalty charges for prepayment. You can prepay your education loan anytime.
• Penal Charges: In the event of default in payment of any instalment or any irregularity in the loan account, penal charges at following rate will be applicable:
  • Irregularity up to 60 Days: 2.40% per annum on the irregular portion for the period of irregularity.
  • Continuous irregular for a period beyond 60 days: 5% per annum on the irregular portion for the period of irregularity.
• Default in Repayment
  • In the event of failing to repay any two or more instalment(s) at any point of time, the Bank may send written reminders or make tele call/SMS or depute an official to meet the customer personally, all the incidental charges appurtenant thereto such as postage, telephone/SMS charges, transportation charges, etc. on actual basis would be recovered from customer.
  • Bank may handover the case to Recovery/ Resolution agents empanelled by the Bank for said purpose. The details of recovery agent authorized to approach the borrower has been published on Bank website at https://sbi.bank.in/web/sbi-in-the-news/list-of-empanelled-agencies
• SMA/NPA Classification criteria:

Example: If due date of repayment of a loan account is March 31,2024, and full dues are not received before the Bank runs the day-end process for this date, the date of overdue shall be March 31,2024.

1.If it continues to remain overdue, then this account shall get tagged as SMA-1 upon running day- end process on April 30,2024 i.e., upon completion of 30 days of being continuously overdue. Accordingly, the date of SMA-1 classification for that account shall be April 30,2024.

2.Similarly, if the account continues to remain overdue, it shall get tagged as SMA-2 upon running day-end process on May 30,2024 and if continues to remain overdue further, it shall get classified as NPA upon running-end process on June 29,2024.