Pursuing higher studies overseas often involves numerous expenses. However, an Indian bank, the State Bank of India (SBI), offers tailored Educational Loans for students seeking professional studies abroad. In this guide, we will cover some of the main features and benefits of such loans and how to apply for them.
Study Abroad With An SBI Education Loan
SBI gives students two broad education loan schemes for their higher education studies:
1. SBI Global Ed-Vantage Scheme
Full-time students who have enrolled in regular programs in foreign universities are eligible for this scheme.
Key Features:
- Loan Quantity: Up to 3 crores, with top 50 lakhs collateral-free loans provided for a few top-ranking colleges.
- Courses Available: Degree program, postgraduate diploma, graduate certificate, doctoral, and master programs.
- Countries Covered: US, UK, Canada, Australia, Singapore, Japan, and European countries.
- Interest Rate: Starting rate of 10.15%, with a 0.50% discount for female students and an extra discount of 0.50% for holders of the SBI Rinn Raksha policy.
- Repayment Period: 15 years maximum, with the first installment commencing 12 months after the completion of the course.
- Processing Fee: ₹10,000 plus other taxes.
It includes your tuition fees, travel, and accommodation, along with project-related expenses or study trips.
2. SBI Student Loan Scheme
The amount of loans is lower here, and hence, the program allows students to obtain assistance for international education easily.
Key Features:
- Loan Quantity: ₹7.5 Lakhs at most.
- Security: Provision of collateral is not necessary. Only a parent or guardian has to be a co-borrower.
- Interest Rate: Starting at 11.15% with a 0.50% cut-off for female students.
- Loan Duration: 15 years at maximum with a relaxation period of 12 months upon completion of the studied course.
This scheme best suits students who wish to take shorter duration courses or less expensive ones.
Why Choose SBI for Education Loans?
- Lowest Interest Rates: SBI rates are among the lowest in the market.
- Reasonable EMIs: The terms of the loan are extended to 15 years for reasonable EMIs.
- What is Covered: All educational fees, transportation charges, accommodation, and domestic costs.
- Special Provisions for Women Borrowers: As women’s borrowing rights are due to socio-economic backwardness and reduction in disparity, certain provisions are made for them to ease the burden.
- Tax Benefits: The interest payable is exempt from tax under Sec 80E of the Income Tax Amendment Act 1961.
Applying For SBI Education Loan Step By Step:
- Eligibility Criteria: Make sure that your course and the university fall under the selected scheme.
- Gather Required Documents: Admission acceptance, fee structure, academic qualifications, KYC, and collateral documents (if required).
- Apply Electronically or at the Branch: Applications are submitted to the concerned SBI Overseas Education Loan officer on the bank’s portal or at the nearest branch.
- Loan Affirmation: SBI, after evaluation and calculating appraisal reports, affirms the loan amount.
- Disbursal of Loan: The loan amount a university receives is disbursed directly or as per the terms of the agreement.
Guidelines for Individuals Seeking a Loan
- Begin Early: Depending on the amount or type of loan, securing or bigger financial obligations require sufficient time to get processed.
- Maintain Good Academic Performance: Getting a good education assesses one’s chances of getting the loan approved.
- Know the Loan Collateral Needed: If your loan request is more substantial, you will need to place some property or fixed deposit as security.
- Take Advantage of the Offers: Look out for the incentives given to female students and students who wish to purchase SBI Rinn Raksha insurance.
Are you looking for expert guidance on your study abroad journey? Education loans to study Abroad simplify the process from loan applications to visa support. Let us help you make your dream a reality. Contact us today to get started.
FAQs
What is the interest rate for SBI education loans?
Interest rates start at 10.15% for the Global Ed-Vantage Scheme and 11.15% for the Student Loan Scheme.
Can I apply for an SBI education loan online?
Yes, SBI offers an online application process through its official portal.
Are living expenses included in the loan amount?
Yes, the loan covers living expenses, travel, and other course-related costs.
Is collateral mandatory for all SBI education loans?
No, collateral is not required for loans up to ₹7.5 lakh under the Student Loan Scheme.
How long does the loan approval process take?
It typically takes 10-15 working days, depending on document submission and verification.