For decades, the SBI's name has been associated with reliable banking and so the SBI student loan schemes are considered to be the best by students, and rightfully so. SBI, after all, was the first to introduce an education loan scheme in 1995, and since then they have come a long way.

Now, education loan lenders like SBI provides every possible support to students by providing education loans to students in need and education loan EMI calculator to help them budget their finances. 

If you are looking to borrow an education loan for abroad studies but are not sure about its particulars, then the SBI student loan calculator is the right tool for you to get started on your education loan journey. 

The SBI Student Loan Calculator

You should know that a student loan calculator by SBI is different from Education loan EMI calculators.

Student loan calculator by SBI helps you determine your total expenses required for education abroad while the EMI calculator helps you calculate the equated monthly installments(EMI) accrued on your education loans during the repayment period. 

We've covered the EMI calculator functionality and its uses in one of our previous articles which you can read here- Education Loan EMI Calculator (A Comparison)

So, when you open the SBI student loan calculator, you'll see a few parameters which you will have to fill in order to get accurate results. 

• Duration of course (in Year)

Here you need to fill in the total number of years of the course opted by you. Higher education courses can vary between 1 yr to 4 years, depending on the degree of certification provided. 

The total duration of the course plays an important role in determining the total tuition fees required. Since tuition fees take up the major chunk of an education loan, it is important to take this point into account.

Plus, when taking an education loan from SBI, the duration of your course affects the collateral value considered by the bank. 

Also read: How are collateral valued for education loans? 

• Annual Tuition Fees
  

The annual tuition fees refer to the amount of tuition charged by the university per year. This amount may range from INR 10 Lakhs to INR 1Cr, depending on the nature of the course and the ranking of the university into which you have been accepted.

• Annual Hostel Fees, Annual Other Fees & Miscellaneous Expenses

In terms of SBI student loans, hostel fees are considered part of the ‘Living expenses’. Living expenses refer to a series of expenses related to costs such as accommodation, caution money deposit, hostel fees, etc. It can also include expenses related to

1. 1. Food
   2. Travel
   3. Library Fees
   4. Books
   5. A laptop
   6. Any other membership/ maintenance fees related to the course in question.

The SBI student loan calculator takes these expenses into account so that it can produce a near estimated amount of education loan that you might need to support your higher education abroad.

• Gift Aid, Scholarships & Grants

You may enter any of the scholarships or grants that you may have received from any foundation in this field. It is important to include these parameters while calculating the final education loan amount. If you have won scholarships or received a grant to support your higher education, this can be counted as part of the margin money of your SBI student loan. In this way, you can reduce the overall margin money that you may have to contribute towards the total expenses.

• Your Financial Contributions

This field in the SBI student loan calculator takes into account the Margin money. Margin money refers to a students' contribution towards the total expenditure of their higher studies course. 

The SBI student loan schemes offer a maximum of 90% coverage of higher education costs. Students are expected to contribute the remaining 10% or more of the final expenses. This 10% is referred to as the margin money or loan margin in education loans. 

This field in the SBI student loan calculator provides three different options to students:

• • Students savings
  • Parents and relatives
  • Others and relatives

You may choose any of these options to determine your source of monetary contribution towards your total expenses.

After filling up all the details in the above-mentioned parameters, you will be presented with the results below where you can check your total annual cost to attend (total expenses) and total amount to finance (required loan amount).

The SBI Student loan calculator is probably one of the only tools developed by a bank that could help you plan your abroad education loan process more systematically. Students who chart out their abroad education loan process have a good chance of undergoing it without a lot of hassles. Your planning, combined with the expertise of the financial team of WeMakeScholars can make your education loan borrowing experience a fulfilling one. So, apply for your education loan through us.