SBI abroad education loan schemes- Interest rates @8.99%*
Most students who aspire to pursue higher education abroad are familiar with SBI. The SBI abroad education loan schemes are some of the most versatile schemes available to those looking for a full loan program. At WeMakeScholars, we strive to make the application procedure for SBI abroad education loan a hassle-free experience for our applicants. This article aims to clear a lot of doubts surrounding two specific SBI abroad education loan schemes. The fifth episode of Loanflix gives a better understanding of the same. To hear it straight from our experts at WeMakeScholars, click on the video below.
Apart from listing the various SBI abroad education loan schemes, the main aim of this write-up is to focus on the following aspects:
- The abroad education loan schemes offered by SBI.
- A clear understanding of the terms and conditions of two loan schemes that are key pillars of the SBI abroad education loan program.
SBI abroad education loan schemes
There are many loan schemes offered by SBI. Below are the four schemes which are meant for different categories of applicants.
- SBI Student Loan: This is the primary loan scheme designed for students who want to pursue their higher education in general. It is irrespective of which country they wish to pursue it from. However, it’s primarily for study in India.
- SBI Global Ed-Vantage: This loan scheme is exclusively for those who wish to continue their higher studies abroad. It is crucial to the SBI abroad education loan program.
- SBI Scholar loan: This scheme is aimed at students who want to pursue their higher education at some of India’s premier educational institutions like IITs and NITs.
- SBI Skill loan: This scheme is for those who need help to enhance their skills using a smaller skill development course.
In this article, we discuss the two loan schemes that are specifically meant for students aspiring to study abroad.
SBI Global Ed-Vantage scheme
This loan program is exclusively meant for students aiming to pursue their education dreams abroad. It offers candidates loan amounts up to 1.5 Cr Indian Rupees.
How to apply: To get additional support and assistance, it is better to apply online than going to the bank directly.
Rate of Interest (RoI): Research for any education loan is incomplete without browsing for the Rate of Interest. Indian banks follow something called MCLR (Marginal Cost of funds-based Lending Rate) as a basis to fix interest rates for the different loan schemes offered by them. For the Global Ed-Vantage loan scheme, the Rate of Interest is calculated as MCLR + 2.2%. The Current MCLR of 8.5% + 2.2% amounts to a total of 10.7%. Now, there are certain special circumstances under which candidates may avail for a waiver in the RoI. If candidates have opted for SBI’s Rinn Raksha loan scheme, they get an additional 0.5% off. Female applicants are given a waiver of 0.5%. So, briefly put, as on today, the final RoI for male applicants, is 10.3%, and for female applicants, it is 9.9%. You will be eligible for Income tax benefits under section 80(E), which effectively reduces your rate of interest to at least 8.99%. Know more about Income tax benefits of an education loan.
Moratorium Period: As discussed in one of our previous articles, the moratorium period refers to the time taken to repay the loan amount by the candidates. For this particular SBI abroad education loan scheme, applicants may start paying the amount back in 6 months or they may take a year, after the completion of the course. The maximum time allotted to repay the loan is 15 years after the course is over.
Acceptable Co-applicants: If one goes through the previous articles published here, one can get an idea that Co-applicants are extremely important to an abroad education loan application. This scheme accepts parents, siblings, spouse, and parents-in-law as co-applicants. Just in case if none of the mentioned people has a fixed source of income, one can name an acquaintance or a relative as a co-applicant.
Collaterals accepted: Like in every education loan, there are two kinds of collateral accepted by the SBI- immovable property or liquid security. Refer to the article on collateral to know more.
Processing Fee: The processing fee charged by SBI is Rs. 10,000. An additional fee of Rs. 7000-7500 will be charged for legal (by the lawyer) and valuation (by the appraiser) if the pledged collateral is immovable property. This additional process and charges are not applicable for those who have pledged liquid securities as collateral.
Coverage of expenses: The SBI Global Ed-Vantage scheme covers about 90% of an applicant’s total expenses. The total expenses can include tuition fees, living expenses, health insurance, travel, educational aids like books, laptops and other miscellaneous items.
Another notable SBI abroad education loan scheme is the SBI student loan scheme.
SBI Student loan scheme
The SBI student loan scheme is another option. This scheme is primarily meant for students planning to pursue higher education in India. This loan scheme is generally not recommended for overseas aspirants. The processing time is longer because of the huge volumes of domestic applications. However, if you go for the same, below are the details of this loan scheme.
How to apply: For additional support and assistance, it is better to apply online than directly approaching the bank.
Maximum loan amount: The maximum amount that can be approved for this scheme is Rs. 20 lakh.
RoI: The Rate of Interest for this scheme is the same as the SBI Global Ed-Vantage loan scheme.
Maximum expenses covered: This scheme covers only 85% of one’s expenses. Thus, the loan margin is high as compared to the Global Ed-Vantage loan scheme.
This article discusses the SBI loan schemes elaborately. However, despite of all that is mentioned here, there is always a hack that comes in handy to unlock the best out of any loan scheme. To make your life easier, our team at WeMakeScholars mentions a hack in every video. Click here to know about it from our mastermind, Damini.
Amongst the two SBI abroad education loan schemes discussed in this article, the Global Ed-Vantage scheme emerges to be the clear winner. One may apply for the same here. The application procedure for education loans may seem overwhelming and scary. But our team at WeMakeScholars ensures that our applicants avail maximum benefits from any abroad education loan scheme.
If you have any other questions regarding abroad education loan or any other related topic, feel free to request a callback from WeMakeScholars support team for clarifications. We are very active online and would love to answer your comments. So, feel free to leave your comment at the end of this article or on our YouTube page.
Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 10+ public/Pvt banks/ NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it is free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, China, France among others.