In India and abroad, students search for an education loan from the State Bank of India (SBI), India’s largest public sector bank, which has been a lifeline for the students. With all these years, SBI has sanctioned thousands of education loans to help students achieve their academic dreams. 

Today, SBI is known for its competitive interest rates, flexible repayment terms, and minimum processing fees. SBI particularly provides for simple interest during the period of moratorium, which reduces the financial burden on the students.

SBI taking a major step in lending education loans of up to ₹50 lakhs without collateral makes it stand out for its commitment to help students. This scheme offers education loans to the best institutes such as MIT, Stanford, Oxford, and ETH Zurich where students can get a world-class education without any fear of security.

Overview of SBI Education Loan Without Collateral

SBI’s collateral-free education loan is a product for students who are admitted to the top 100 prestigious universities worldwide and do not have to pledge any of their family’s assets as collateral. Students that borrow under this initiative can borrow up to ₹50 lakhs to utilize for tuition fees, living expenses, travel costs, etc.

Key features of this initiative include:

Parameter Value
Loan Limit Up to 50 lakhs (Without collateral) and up to 3 Crores (With collateral)
Rate of Interest 

Starts from 9.65% without collateral and from 9.15% with collateral (after concessions)
Processing Fee INR 10,000 + GST
Loan Margin 10% minimum (Irrespective of loan amount)
Repayment Tenure  15 Years 
  • Coverage: A wide range of courses across numerous countries and universities (Top 100).
  • No hidden charges: Simplified interest rate structure with no hidden charges.
  • Repayment: Easy repayment terms, including moratorium periods aligned with the course duration.

SBI Education Loan List of Accepted Countries Without Collateral

This scheme is highly customized and crafted for students, who have been admitted to globally renowned universities, that are known for their academic excellence, innovation, and cutting-edge research. Here is a list of countries accepted:

Country  Loan Amount For UG Course For PG Course  Collateral Needed?
USA 50 Lakhs  Yes  Yes  No
UK 50 Lakhs  Yes  Yes  No
Switzerland 50 Lakhs  Yes  Yes  No
Netherlands  50 Lakhs  Yes  Yes  No
Belgium  50 Lakhs  Yes  Yes  No
Sweden 50 Lakhs  Yes  Yes  No
Germany 50 Lakhs  Yes  Yes  No
Denmark 50 Lakhs  Yes  Yes  No
Finland  50 Lakhs  Yes  Yes  No
Norway 50 Lakhs  Yes  Yes  No
Italy  50 Lakhs  Yes  Yes  No
Singapore 50 Lakhs  Yes  Yes  No
Australia  50 Lakhs  Yes  Yes  No
Hong Kong 50 Lakhs  Yes  Yes  No
France 50 Lakhs  Yes  Yes  No
Canada 50 Lakhs  Yes  Yes  No
Japan 50 Lakhs  Yes  Yes  No

Benefits of SBI’s Collateral-Free Education Loan

The SBI collateral-free education loan is an innovative idea that can help many students get quality higher education without any collateral. Here are the key benefits:

1. No Requirement for Collateral

This loan does not require students to pledge their family assets like:

  •  Property (House, flat, or non-agricultural land)
  •  Liquid assets (Fixed deposits, Insurance policies, or Government bonds)

Therefore, it is available to students of all financial backgrounds. It relieves the stress of running the risk of personal or family-owned assets and makes students less hesitant to enroll in top-tier universities.

2. Generous Loan Amount

Under the scheme, students can borrow up to ₹50 lakhs unsecured and up to 3 crores secured for studies at recognized institutions across the globe for:

  • tuition fees
  • living expenses
  • travel expenses
  • and other incidental expenses. 

That’s particularly useful for students who are applying to prestigious universities with high tuition fees.

3. Support for Top Institutions

The loan pays for courses at the top 100 global universities across a wide range of countries and subjects. In terms of ensuring the best and the brightest students are not intimidated by attending their favorite academic institutions.

4. Competitive Interest Rates

The 10.15% per annum interest rate is slightly higher than loans with collateral but less expensive than other unsecured loans private lenders offer. During the study period, SBI gives simple interest which does not complicate and reduces the burden of payment in the future. (Education Loan Interest Rates Offered by All Banks)

5. Flexible Repayment Terms

The moratorium period is 6 months which means students have a breathing space of 6 months after the completion of the course to start with the repayment, along with a long repayment tenure of 15 years.

6. Comprehensive Coverage

The loan extends beyond tuition fees to include:

  • Living expenses
  • Travel costs
  • Books and supplies
  • Any other academic-related expense

By so doing, students can concentrate on their studies without a concern of extra costs.
Read: Expenses Covered By An Education Loan In India For Study Abroad.

Applicant and Co-applicant Eligibility Criteria for SBI Education Loan Without Collateral

While such collateral requirements have been eliminated, the same eligibility requirements for applicants and co-applicants remain. This is to make sure only deserving candidates get the scheme.

Applicant Criteria:

  • The applicant should be an Indian citizen.
  • They are required to get admission to a recognized university or institution.
  • Courses offered include undergraduate, postgraduate, and professional degrees or diplomas pursued in India and abroad.

Co-applicant Criteria:

  • A co-applicant is required and can be a parent, spouse, parents-in-law, sibling, or first cousin.
  • In case the primary co-applicant doesn't have a stable income, a financial co-applicant can be considered by SBI

Interest Rates and Repayment Options for SBI’s Collateral-Free Education Loan

Interest Rates:

SBI’s collateral-free education loan has a competitive interest rate on the loan to make higher education financing affordable. For this scheme, the rate is 9.65% per annum. The interest rate is slightly higher than the interest for loans secured by collateral (9.15% per annum), but this is due to the risk borne by the bank. But it’s still competitive among other unsecured education loan market options.

  • With Collateral: 9.15% per annum (after concessions)
  • Without Collateral: 9.65% per annum (after concessions)

Rate Benefits: Students who fall under SBI's preferential rate category, or avail of Rinn Raksha (loan protection insurance scheme), may be eligible for preferential rates. Rates may also be reduced for applicants with a strong financial co-applicant.

Worried about high interest rates on unsecured education loans? With WeMakeScholars, you can enjoy better rates of up to 2% lower than standard bank rates, thanks to our partnerships with leading banks. Our financial officers negotiate on your behalf to ensure you get the best deal possible. Request a callback today.

Repayment Options:

The repayment terms are structured to relieve the financial burden on the students and to match the repayment schedules with the students’ post-education income potential. Key features include:

  • Moratorium Period: A moratorium of the full length of the course plus + 6 months. During this period they are not obligated to pay back the principal amount.
  • Tenure: Then, borrowers can repay the loan in installments over a tenure period of 15 years, so the monthly installments are small.
  • Loan Margin Requirement: All loan amounts have a 10% margin. As an example, if the total education cost is ₹40 lakh, the student or co-applicant will have to pay ₹4 lakh upfront, and SBI will finance the remaining ₹36 lakh.
  • Flexible Repayment Plans: Depending on the student’s financial circumstances after graduation, SBI might have the flexibility to provide for the structured installment of repayment, say step up or bullet repayment.

Documents Required to Apply

This initiative has the same documentation requirements as before. Applicants must provide the following:

  • Identity Proof: Aadhaar card, PAN card, passport.
  • Address Proof: Aadhaar card or voter ID or recent utility bills.
  • Admission Proof: The university or institution offer letter.
  • Academic Records: Marksheets and certificates of previous education.
  • Income Proof (for co-applicants): Salary slips, income tax returns, or bank statements.
  • Loan Application Form: Duly filled and signed.
  • Course Fee Structure: Details of tuition and other expenses provided by the institution.

Tired of making multiple trips to the bank to submit documents? With WeMakeScholars’ digitized document portal, you can upload everything online in a single step. Our platform streamlines the application process, saving you valuable time and effort. Request a callback to know more.

How to Apply for SBI’s Education Loan Without Collateral

Applying for an SBI education loan without collateral is straightforward and can be done through the following steps:

Online Application

  1. The SBI Education Loan or the Vidya Lakshmi platform.
  2. Fill out the application form and register.
  3. You'll have to upload the required documents.

Branch Visit

  1. One must visit the nearest SBI branch with the deal documents.
  2. Talk to a loan officer to find out what the terms and conditions are.

Loan Approval

  1. The loan will be sanctioned when the application is verified.
  2. A sanction letter is given to students, which they can submit to their institution.

Disbursement

  1. The fee structure as such funds get directly transferred to the university or institution in instalments.

But this process can become very messy very easily for students as they have no experience in dealing with banks and their terms & conditions. To avoid this you can go ahead with your education loan by going through WeMakeScholars.

How to Apply for SBI’s Education Loan Without Collateral from WeMakeScholars

WeMakeScholars makes the SBI education loan application process without collateral easy. as we are partnered with them. Here’s a step-by-step guide to help you navigate the process:

Step 1: Connect with WeMakeScholars

  1. Visit the WeMakeScholars website and fill out the SBI education loan form or simply request a callback.
  2. As soon as your request is received, a dedicated financial officer will then reach out to you to get through your loan requirements and eligibility.

Step 2: Eligibility Assessment

  1. This will be analyzed by your financial officer based on admission letters, academic history, and financial background.
  2. They will point you to the best education loan options suited for your situation and assist you further.

Step 3: Upload Required Documents

  1. To upload paperwork like ID proof, admission letter, co-applicant income proof, and other required documents, use the secured WeMakeScholars document portal.
  2. It makes this digital process hassle-free and saves the hassle of going to the bank again and again.

Step 4: Loan Application Submission

  1. Your financial officer will see to it that all your documents are complete and accurate before forwarding them to SBI.
  2. Wherever possible, we will help negotiate better terms and shorter processing times.

Step 5: Loan Sanctioning

  1. Once you prove your documents, SBI will apply and send a sanction letter.
  2. You can submit the sanction letter to your university as proof of funding.

Step 6: Disbursement

  1. This amount is a sanctioned loan, paid directly from the issuing bank to the student or the university for tuition fees or living costs.

Let WeMakeScholars Simplify Your Education Loan Application. The SBI education loan application can be very overwhelming, especially for first-time applicants. Our team assesses your eligibility, connects you to the best loan products, and sanctions your loans faster. Request a callback now.

Conclusion

SBI’s education loans without collateral are a huge step in granting access to the education sector to students. SBI removes barriers to finance by simplifying the loan process thereby making it possible for talented and aspiring students to chart their academic course without hesitation.

Not only does this scheme reaffirm SBI’s commitment to empowering India’s youth and creating benchmarks in the education financing sector. This collateral-free loan will open new doors to a brighter future for students who aspire to study at premier institutions in India and abroad.

To know the detailed eligibility and to calculate EMIs visit the official SBI education loan portal or request a callback from WeMakeScholars today.

WeMakeScholars goes beyond being a service provider. We provide the services to students at 100% free of cost, as supported by the IT Ministry under the Digital India Campaign. From application to disbursement to repayment, our dedicated financial officers make sure it’s smooth and efficient. With WeMakeScholars, take the first step towards securing your future.