Were you aware that during the fiscal year 2021-22, the State Bank of India (SBI) facilitated the disbursement of approximately 47% of the total student loans approved by public sector banks in India? For a more in-depth examination of this report, you can find additional information by clicking here. Within the context of this blog, our focus will be on unraveling the intricacies of the SBI education loan designed for overseas studies, a program recognized as the SBI Global Ed-vantage scheme. Join us as we delve into the specifics and details of this specialized financial offering.

What is SBI education loan?

Established in 1955, the State Bank of India (SBI) stands as India’s largest public sector bank, holding a leading position in terms of assets, deposits, branches, customers, and employees. SBI offers education loans to eligible students aspiring for higher education, whether within India or abroad. The Global Ed-Vantage education loan scheme serves as a secure financial aid option for Indian students pursuing advanced education overseas. Under this program, students have the opportunity to obtain loans of up to INR 1.5 Crore to fund their education outside India. To benefit from an education loan through this initiative, students are required to provide collateral valued at a minimum of 90% of the total loan amount.

What is the eligibility for SBI education loan?

For those aspiring to secure an SBI education loan for international studies, certain eligibility criteria must be met. First and foremost, applicants need to be Indian citizens and a minimum of 18 years old when submitting their loan application.

Moving on to academic qualifications, individuals interested in the SBI education loan for studying abroad must secure admission to a recognized foreign university or institution for their chosen degree or diploma program. Alongside this, maintaining a consistently strong academic record meeting the criteria set by SBI is a key factor. Prerequisite tests such as GRE, IELTS, or TOEFL must also be completed before initiating the loan application process.

A co-applicant is a crucial component of the application process and can be a parent or legal guardian with a stable income and a positive credit history. SBI’s education loan for international studies encompasses a diverse range of courses, including regular graduate, post-graduate, diploma, certificate, and doctorate programs in any discipline offered by foreign institutes. This also extends to pathway courses leading to the main program. It’s important to note that for specific courses like pilot training, approval from the country-specific aviation regulatory authority is necessary.

The eligible countries for study include the USA, UK, Canada, Australia, Singapore, Japan, Hong Kong, New Zealand, and various European nations. Accepted collaterals for SBI abroad education loans include residential properties, buildings, and fixed deposits.

What does the SBI education loan look like?

This overview provides essential details about the SBI education loan for studying abroad, covering loan amounts, interest rates, fees, and various terms associated with the loan.

The loan amount varies, ranging from INR 7.5 Lakh to INR 1.5 Cr. The interest rate stands at 11.15%, featuring a floating rate structure, and female applicants receive a 0.5% concession. An applicable non-refundable processing fee of INR 10,000 + GST is required. Margin money requirements differ, with 15% for loans between INR 7.5 Lakh to INR 20 Lakh, and 10% for amounts exceeding INR 20 Lakh.

Property evaluation charges are approximately INR 7,500, with potential changes based on location and property specifics. The moratorium period spans the course duration plus an additional 6 months, providing financial flexibility. The repayment tenure allows borrowers up to 15 years to comfortably manage and repay their education loans.

For specific details on the SBI education loan interest rate for abroad, these factors contribute to a comprehensive understanding of the terms and conditions associated with pursuing education loans from SBI for international studies.

Education loan insurance by SBI

Insurance Plan: Rinn Raksha

• Offered by State Bank of India (SBI)
• Available for applicants under various SBI education loan schemes
• Aims to safeguard the borrower’s family in the event of the borrower’s untimely demise during the loan repayment period

Coverage Options within “Rinn Raksha” Scheme for SBI Abroad Education Loans

• Group Credit Life Insurance (GCLI): Covers the outstanding loan amount in case of the borrower’s demise
• Term Life Insurance (TLI): Provides coverage against the total sum assured

Benefits for Students Opting for Rinn Raksha Insurance

• Qualify for an extra 0.5% concession on the overall interest rate for their SBI education loan
• Offers financial protection and peace of mind to the borrower’s family in unforeseen circumstances

Required Documents

Applicant documents:

1. Identity proof: PAN/ Passport/ Driver’s License/ Voter ID card or government-issued identification document.
2. Education loan application form.
3. Address proof: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill/ Driving License/ Aadhaar card.
4. Passport
5. Past academic record.
   1. 10th standard mark sheet
   2. 12th standard mark sheet
   3. Under graduate result (semester-wise)
6. Entrance exam results (e.g. GMAT, GRE, TOEFL, etc.)
7. Proof of admission: admission letter (A conditional admission letter is also applicable).
8. Statement of expenses.
9. 2 passport-size photographs.
10. Loan A/C statement of one year (if applicable)
11. Bank account statement of the student (if applicable)

Co-applicant documents:

1. Identity proof: PAN/ Passport/ Driver’s license/ Voter ID card or government-issued identification document.
2. Address: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill or copy of Driving license/ Aadhaar card.
3. 2 passport-size photographs.
4. Bank account statement of the co-borrower/guarantor, for the last 6 months (in case of takeover of education loan).
5. If any previous loan is from other banks/ lenders, then the loan A/C statement of 1 year.
6. Legal documents of the collateral/ property documents.
7. Income proof for salaried co-applicant/guarantor
   1. Salary slips for the last 3 months.
   2. Copy of Form 16 of the last 2 years or copy.
   3. Bank account statement for the last 6 months (Salary account).
   4. Brief statement of assets & liabilities of parent/ guardian/ other co-borrower.
8. Income proof for self-employed co-applicant/guarantor
   1. Business address proof.
   2. Last 2 years IT returns ( If IT Payee).
   3. TDS certificate (Form 16A, if applicable).
   4. Certificate of qualification (for C.A./ doctor and other professionals).
   5. Brief statement of assets & liabilities of parent/ guardian/ other co-borrower
   6. Bank account statement for the last 6 months.

To conclude, it can be said that an SBI abroad education loan can be a good choice when you are looking for an abroad education loan. This becomes a great choice especially when you are considering a secured education loan.