SBI education loan for abroad studies and application form details
You have landed an offer letter from your dream university but the university fee is too high owing to our exchange rate and now, you are planning on taking a loan. Numerous factors such as the loan amount, and the things covered by it, like tuition fees, admission fees, travel, books, food and living expenses, interest rate, processing fee, margin and moratorium period need to be calculated before deciding upon the bank from which you will take the loan. There are many banks in India promising to provide good service when it comes to education loan, and the following is a comprehensive write-up about one of the top givers- State Bank of India/ SBI education loan for abroad studies and why it is a good decision to take a loan from here.
Processing fee- SBI education loan for abroad
SBI has a fixed processing fee of only INR 10,000 as compared to the higher floating fees of other private banks.
Collateral- SBI education loan for abroad
In order to procure the SBI education loan for abroad studies, you need to pledge collateral. Collateral is required to reduce the risk involved in the credit. There are 2 kinds of collateral-immovable property – a house or a flat or land and liquid security – an FD, or LIC or shares or govt. bonds. In case of immovable property, you can get a loan up to 75% of the value of the property and in the case of liquid security, you can get 100% of its value as the maximum loan amount.
Loan Amount- SBI education loan for abroad
SBI education loan for abroad studies provides a scheme known as Global Ed-vantage which provides loans from INR 20 lacs to the tune of INR 1.5 crores. Under this scheme, you get up to 90% coverage over the expenses which include tuition fee, books, admission expenses, travel, living, caution fee and other expenses the remaining 10% margin will have to be borne by you. SBI provides the lowest margin rate and is highly preferred by students all across the nation.
Interest Rate- SBI education loan for abroad
The interest rate for SBI education loan for abroad is quite low when compared to its peers. Under the Global ed-vantage scheme, it charges 9.95% interest with a concession of 0.50% for girl students. The interest rate will further reduce by about 2% when you claim the income tax benefits under section 80 (E)
Repayment period- SBI education loan for abroad
The moratorium period for your SBI education loan for abroad is your course duration plus an extra 6 months, which means you don’t have to pay an EMI or interest rate until the period gets over. SBI is the only bank that provides you with this option. In simpler terms, if the duration of your course is 2 years, then your repayment tenure starts after 2.5 years. Other banks ask your co-applicant to pay a certain amount of interest during the duration of your course. SBI clearly asks on its loan application form whether you would like to pay interest rate during the moratorium period or not. The loan can be repaid in a maximum of 15 years, which is an added advantage. Hence, it is a good choice to opt for a loan from SBI if you don’t want to get caught up in the tension of repayment in the middle of your studies!
Co-signer/Co-applicant- SBI education loan for abroad
Usually, the co-signer are your parents or your spouse or parents-in-law or guardian but SBI accepts third-party collateral, which makes it a whole lot easier for candidates to apply for education loan for abroad studies in SBI.
SBI education loan for abroad application form
We always think that the cumbersome part is to apply for the loan, especially the SBI education loan for abroad studies. Even though the application process of SBI is very simple but going to the bank and applying for a loan can be very time-consuming. The most hassle-free way to apply for overseas education is via the online SBI education loan application form.
WeMakeScholars, a BITS Pilani startup, funded and supported by Govt. of India is working with SBI as its national digital partner for overseas education loan. WeMakeScholars education loan team will assist you throughout the loan process and help you with any queries related to overseas education loan of SBI, the eligibility criteria, the documents and credentials you require to submit in order to obtain the loan.
Even though the application is made online, the documents have to be submitted to the nearest bank to begin the process. This means the entire loan process can be successfully done by sitting within the premise of your home with only 2-3 bank visits. The WeMakeScholars loan team can even discuss with the concerned branch manager and higher authorities about the quicker processing of your loan application.
In addition to this, you can track your application online using the 16-digit reference number assigned to you. You may log in to SBI website to track your application anytime, which isn’t possible when you apply offline. Also, you will be entitled to a cashback of up to INR 8K, when you apply online via WeMakeScholars.
For your better understanding, the SBI education loan for abroad studies was covered in two of the episodes in the web-series: “Loanflix- Abroad education loan simplified”. The first episode helps you understand the SBI education loan basics and the second one helps you know the process, documents required and more. The episodes can be viewed below:
What are you waiting for? Apply right away, so that you don’t have to step into pot-holes to fulfill your dream!
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.