SBI Education Loan 2024: How Much EMI Should be Paid for Rs.10 lakh?

Currently, both public and private banks offer education loans. What would the monthly EMI and related interest rates be if you took a Rs. 10 lakh education loan from the State Bank of India, the country’s largest bank? Let’s explore this now.

The college admission season for higher education has begun. Some students go abroad, while others enroll in colleges in different states. However, covering the increasing fees on their own is challenging for many families. In such cases, individuals can opt for education loans from banks.

Annual education inflation ranges from 10-12 percent. When disbursing an education loan, banks examine various details, including the college and course specifics, total education expenses, academic records, family income, and assets. Certain public sector banks offer education loans at low interest rates to eligible borrowers.

The State Bank of India (SBI), the country’s largest public sector bank, offers education loans at competitive interest rates. Eligible individuals can receive education loans at an interest rate starting from 8.15%. The minimum interest rate for education loans at SBI is 8.15%, while the maximum is 11.75%.

Let’s consider a scenario in which you have taken a Rs. 10 lakh education loan. If you choose a repayment period of 5 years, the EMI would be approximately Rs. 20,370, and the total interest paid over 5 years would be Rs. 2,22,330. That means the total repayment, including interest, would amount to Rs. 12,22,330.

If you opt for a repayment period of 7 years, the EMI will decrease to Rs. 15,680, and for a 10-year tenure, it will be even lower at Rs. 12,780.