Were you aware that in the financial year 2021-22, State Bank of India (SBI) distributed about 47% of the overall student loans sanctioned by public sector banks in India? For a more in-depth look at this report, you can click here. This blog will specifically investigate the SBI education loan tailored for overseas studies, recognized as the SBI Global Ed-vantage scheme. Now, let’s delve into the particulars of this specialized scheme.
SBI Bank at a Glance
Established in 1955, the State Bank of India (SBI) holds the distinction of being India’s largest public sector bank, leading in terms of assets, deposits, branches, customers, and workforce. SBI actively facilitates education loans for eligible students aspiring for higher education, whether within India or abroad. Among its offerings is the Global Ed-Vantage education loan scheme, providing secured financial assistance to Indian students pursuing higher education overseas. Through this initiative, students can secure loans of up to INR 1.5 Crore to finance their education outside India. To qualify for an education loan under this program, students need to furnish collateral valued at a minimum of 90% of the total loan amount.
Education Loan by SBI Bank
Here is the information about the SBI abroad education loan:
The SBI education loan for studying abroad offers a flexible range of loan amounts, spanning from INR 7.5 Lakh to INR 1.5 Crore. This adaptability ensures that students can secure financial support tailored to their specific educational needs.
The interest rate for the loan is set at 11.15%, featuring a floating rate structure. Notably, female applicants benefit from a 0.5% concession on the interest rate, providing a favorable and inclusive financing option.
To initiate the loan application, a non-refundable processing fee of INR 10,000 + GST is applicable. This fee covers the administrative aspects of processing the loan and ensuring a smooth application procedure.
Margin money requirements vary based on the loan amount. For loans ranging from INR 7.5 Lakh to INR 20 Lakh, a margin of 15% is required, while for amounts exceeding INR 20 Lakh, the margin decreases to 10%. This provides borrowers with options that suit their financial capabilities.
Additionally, property evaluation charges, approximately INR 7,500, are applicable. However, it’s essential to note that these charges may be subject to change based on location and property specifics.
The moratorium period, a distinctive feature of the SBI education loan, covers the course duration plus an additional 6 months. This period offers borrowers financial flexibility, allowing them to focus on their studies before commencing loan repayments.
The repayment tenure for the SBI education loan extends up to 15 years, providing a generous timeframe for borrowers to effectively manage and repay their education loans, easing the financial commitment associated with pursuing education abroad.
Eligibility for SBI Bank Education Loan
Eligibility for SBI education loans entails being an Indian citizen aged 18 or older during the application process. Prospective borrowers must secure admission to a recognized foreign university or institution for their chosen degree or diploma program. Academic excellence meeting SBI’s established criteria is a prerequisite, including completion of required tests like GRE, IELTS, or TOEFL before applying. Additionally, a co-applicant, preferably a parent or legal guardian, possessing a stable income and positive credit history, is mandatory. SBI’s foreign education loan encompasses various courses in disciplines offered by foreign institutes, including pathway courses leading to the main program. Approval from country-specific aviation regulatory authorities is required for pilot training courses. The supported countries for study include the USA, UK, Canada, Australia, Singapore, Japan, Hong Kong, New Zealand, and several European nations. SBI accepts residential properties, buildings, and fixed deposits as collaterals for abroad education loans.
In conclusion, the State Bank of India’s (SBI) Global Ed-vantage scheme stands as a pivotal support system for Indian students aspiring to pursue higher education abroad. As India’s largest public sector bank, SBI takes pride in its role in facilitating education loans, with the Global Ed-Vantage program offering substantial financial assistance of up to INR 1.5 Crore. The loan’s adaptability, competitive interest rates, and inclusive features, such as a concession for female applicants, make it a compelling choice. With a moratorium period, extended repayment tenure, and eligibility criteria accommodating diverse academic pursuits, SBI plays a crucial role in enabling students to realize their international educational aspirations.