SBI Education Loan for Abroad

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Did you know that in the fiscal year 2021-22, SBI disbursed approximately 47% of the total student loans approved by Indian public sector banks? To delve deeper into this report, click here. In this blog, we will explore the SBI education loan for studying abroad. This specialized scheme is known as the SBI Global Ed-vantage scheme. Let’s delve into its details.

Overview of SBI education loan

Established in 1955, the State Bank of India (SBI) holds the position of India’s largest public sector bank, leading in terms of assets, deposits, branches, customers, and employees. SBI extends education loans to eligible students aspiring for higher education within India or overseas. The Global Ed-Vantage education loan scheme provides secured financial support for Indian students pursuing higher education abroad. Within this program, students can secure loans of up to INR 1.5 Crore to finance their education outside India. To avail of an education loan through this initiative, students are required to offer collateral, valued at a minimum of 90% of the total loan amount.

SBI education loan for abroad features

This list outlines key information regarding SBI education loan for abroad, encompassing loan amounts, interest rates, fees, and various other loan terms.

  • Loan amount ranges from INR 7.5 Lakh to INR 1.5 Cr.
  • The interest rate is 11.15%, with a floating rate, and female applicants enjoy a 0.5% concession.
  • A non-refundable processing fee of INR 10,000 + GST is applicable.
  • Margin money varies: 15% for INR 7.5 Lakh to INR 20 Lakh, and 10% for amounts exceeding INR 20 Lakh.
  • Property evaluation charges are approximately INR 7,500, subject to change based on location and property.
  • The moratorium period is the course duration plus an additional 6 months.
  • Repayment tenure extends up to 15 years.

Eligibility criteria for SBI abroad education loan

  • Age Requirement: Applicants for SBI education loans must be Indian citizens and at least 18 years old or older during the application.
  • Education Qualification: To qualify for an SBI education loan for studying abroad, applicants must secure admission to a recognized university or institution for their chosen degree/diploma program.
  • Academic Performance: A consistently strong academic record meeting SBI’s set criteria is essential. Prerequisite tests such as GRE, IELTS, or TOEFL must be completed before applying.
  • Co-applicant: A co-applicant, who can be a parent or legal guardian, with a regular income and good credit history is required.
  • Course and Country of Study: SBI’s foreign education loan covers regular graduate/post-graduate/diploma/certificate/doctorate courses in any discipline offered by foreign institutes. Pathway courses leading to the main course may be included. Pilot training courses need approval from the country-specific aviation regulatory authority.
  • Country of Study: SBI education loans support studies in the USA, UK, Canada, Australia, Singapore, Japan, Hong Kong, New Zealand, and Europe (Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, United Kingdom).
  • Collateral Accepted: SBI accepts the following collaterals for abroad education loans: Residential property and buildings, Fixed deposits.

Rinn Raksha Insurance

Rinn Raksha, offered by the State Bank of India (SBI), is an insurance plan available for applicants under various SBI education loan schemes. This insurance aims to safeguard the borrower’s family in the unfortunate event of the borrower’s untimely demise during the loan repayment period.

Within the “Rinn Raksha” scheme, individuals proceeding with an SBI abroad education loan can choose between two insurance coverage options: Group Credit Life Insurance (GCLI) and Term Life Insurance (TLI). GCLI covers the outstanding loan amount in case of the borrower’s demise, while TLI provides coverage against the total sum assured. Additionally, students selecting this insurance option qualify for an extra 0.5% concession on the overall interest rate for their SBI education loan.

Documents required for SBI education loan for abroad

The documentation necessary for an SBI education loan for overseas studies varies based on multiple factors, including your academic and professional background, the financial and credit profile of your co-applicant, and the location of the property or asset you provide as collateral.

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.

In conclusion, the State Bank of India’s (SBI) education loan for studying abroad, specifically the Global Ed-Vantage scheme, stands as a robust financial support system for Indian students. Established in 1955, SBI, India’s largest public sector bank, provides comprehensive coverage for higher education expenses, offering loans up to INR 1.5 Crore with a 90% collateral requirement. The scheme includes beneficial features like a competitive interest rate, insurance options under Rinn Raksha, and flexible repayment terms. To access this opportunity, applicants must fulfill specific eligibility criteria and submit a range of documents. SBI’s commitment to empowering students is evident in its significant contribution to disbursed student loans among Indian public sector banks.

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