SBI Education Loan Without Collateral in India - Apply online with VidyaLoans

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Students nowadays are able to pursue their dream as funding their education has become easier than ever. Students willing to study in India can finance their education with collateral and without collateral as well. This article will cover all the important details required to take an SBI education loan without collateral below 7.5 lakhs and how to apply on the Vidyalakshmi portal for non collateral education loan SBI. 

SBI Bank Education Loan: An Overview 

The State Bank of India is one of the country’s leading nationalized lenders. SBI generally offers upto 7.5 lakhs for SBI education loan without collateral. SBI also grants subsidies on interest rates for female candidates as well as a 0.5% discount on Rinn Raksha Credit Life Insurance policyholders. It offers 6 different types of education loans namely:

  1. SBI Student loan Scheme- applicable for study in India as well as abroad
  2. SBI Global Edvantage Scheme- applicable only for abroad studies
  3. SBI Scholar Loan-applicable for study in top institutes of India like IITs, NITs, IIMs, BITS etc. 
  4. SBI Skill Development Loan- applicable for smaller skill development or vocational courses in India
  5. SBI Part-time education courses- applicable for Part-time education courses in top 15 institutes in India
  6. SBI Takeover of education loan- Students who are willing to transfer their education loan to SBI bank 

SBI non collateral education loan

Non-collateral education loan is defined as a loan which is given to the candidates without any tangible security. SBI Bank approve the loan of the candidates on intangible parameters like future earning potential, co-applicants income profile, etc.

SBI Education loan without collateral 

1. Eligible courses-Studies in India

  • Under Graduation courses like B.A., B.Com., B.Sc., etc.
  • Post graduation courses like Masters and Ph.D.  
  • Professional courses like Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Management, Computer, etc.  
  • Computer Certificate courses of reputed institutes accredited to Department of Electronics or Institutes affiliated to a university  Courses like ICWA, CA, CFA, etc.  
  • Courses conducted by IIM, IIT, IISc, XLRI, NEFT, etc.  
  • Other courses leading to diploma, degree, etc. conducted by colleges, universities approved by UGC/Government/AICTE/AIBMS/ICMR etc.  
  • Courses offered by National Institutes and other reputed private institutions.  
  • Regular Degree/Diploma courses like Aeronautical, Shipping, Pilot training, etc., approved by Director General of Civil Aviation/Shipping.
    Under Graduation courses like B.A., B.Com., B.Sc., etc.

2. Student Loan Eligibility

  • Prolific Academic Records
  • Avoid backlogs in academic records
  • Gap years/ Gap in your course duration
  • Work experience if any
  • Degree level

3. Eligible expenses

Students are eligible to take an education loan for all the below mentioned expenses 

  • Tuition fees
  • Living expenses
  • Food expenses
  • Travel expenses
  • Examination fee/Laboratory fee/Library fee
  • Expenses for books, uniform, laptop, and other equipment  

4. Documents required

   4.1 Basic documents for Applicant (student) and co-applicant and/or Guarantor 

  1.  Proof of identity –PAN Card (and Passport of the student)
  2. Proof of Residence – Voter ID Card/ Passport/ Electricity Bill/ Telephone Bill/ Ration card/ Bank account statement/ Aadhar. (2 different proofs if current and permanent residence is different) 
  3. Bank account statement for the last 6 months (Personal/ Salary). For co-applicant, it should show the salary credits if salaried or 1 yr business transactions if self-employed. 4. Personal Asset & Liability Statement

   4.2 Applicant academic documents

  1.  Education marksheets and certificates- 10th, 12th, Degree 
  2. Proof of admission for the course (should be evidencing total duration of the course)
  3. Fee structure (i-20 for US if available) 
  4. IELTS/GMAT/GRE Scorecard. 
  5. University Ranking print-out

    4.3 Co-applicant Income documents

       4.3(a) If Salaried 

  1. Latest Salary slips (for last 3 months) 
  2. Form 16 of last 2 yrs. 
  3. Employers ID card 
  4. ITR of last 2 yrs

       4.3(b) If Self-employed 

  1. ITR of last 3 yrs 
  2. Last 3 yrs Balance sheet and Profit & Loss account (only if self-employed)
  3. Proof of Business address 

5. Collateral or security

Upto 7.5 Lakhs, Parents or Guardian is required as a co-borrower but no collateral security or third party guarantee is required.
For loans above 7.5 lakhs, collateral is necessary and Parents or Guardian is required as a co-borrower.

6. Loan margin

Upto Rs 4 Lakhs - No loan margin

Above 4 lakhs -5% for studies in India, 15% for studies in Abroad

7. Rate of interest

Interest rates

For Male

For Females

Loans above 4 Lakhs



Loans between 4 Lakhs to 7.5 Lakhs



Loans above 7.5 lakhs



Note: 0.50% concession is given in interest rate for female candidates and also students can avail of 0.50% concession by utilizing SBI Rinn Raksha Scheme.

8. Repayment Period

The tenure of an Education loan in SBI consists of the duration of the study, grace period after the study, and the repayment period.

How to apply for an SBI education loan without collateral on the Vidyalakshmi portal?

To apply for an SBI education loan without collateral on Vidyalakshmi Portal, students need to follow the following steps: 

  1. To apply for an education loan, create a login ID and password on the Vidyalakshmi Portal. 
  2. Check your registered email ID and click on the verification link. Do not forget to register as the link is only valid for 24 hours. 
  3. Once all your details are verified, you will be redirected to the portal. 
  4. Enter the required credentials to log in to your Vidyalakshmi student account. 
  5. You can search for multiple options available according to your needs, eligibility, and convenience. 
  6. Fill up the common application form (CELAF) on the portal with all the required details. This form is supported by Indian Bank Association (IBA) and is accepted by all banks. 
  7. Once the common application form is filled by the candidate, he/she can track their application status through the portal. 

It is advised to fill the details carefully on the Vidyalakshmi portal as once the form is submitted, it becomes uneditable. The student will not be able to make any further changes in the application form. Therefore, if you are worried that you may end up making the same mistake, connect with our team at VidyaLoans as they will help you fill in all the required details on Vidyalakshmi Portal and also will assist you through the entire loan process. 

Problems faced by students on Vidyalakshmi Portal

1. Loan Application Status Pending

Some lenders might take longer to process your loan application as there are numerous documents that need to be verified by the banks from their end due to which students witness their status as pending on the Vidyalakshmi portal.

But students applying through VidyaLoans do not face such issues as our team personally pushes your loan application to the bank for faster loan processing.

2. No response from the bank

There are countless education loan applications on the Vidyalakshmi portal due to which students may sometimes face this issue as banks do not respond on time or update their application status.

3. Loan application getting rejected

This is one of the major problems faced by students. Banks generally do not state any specific reason for rejecting your loan application, hence, we suggest you to connect with our team at Vidyaloans as they keep a close check on your application status and will update you on a timely basis. 

To tackle these above mentioned issues, it is best to apply through VidyaLoans as we bridge the gap between the student and the bank. Our processing officers will keep a close check on your loan application status. Vidyaloans will come to your rescue if you are facing any trouble with your education loan process. Connect with our team to know all the available services and experience a hassle-free experience with Vidyaloans. 

About the organization: VidyaLoans is an organization which helps Indian students in India to secure a non-collateral loan from Government banks up to 7.5 Lakhs. We have a dedicated team of professionals who assist students with queries and guide them throughout the loan process. Our Team at Vidyaloans is committed to sanction the best loan option suiting the applicant's profile and needs, in a stipulated time frame.