SBI Rinn Raksha: Why Do You Need Loan Insurance?

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sbi rinn rakshaBorrowing any type of loan involves taking over a huge financial responsibility. This is especially true in case of an abroad education loan scheme. When students apply for an education loan to fund their studies abroad, the financial liability of repaying it automatically falls on their co applicant/co borrower, until and unless the student does not gain financial independence. In the wake of an event such as the loan applicant’s death, the responsibility of repaying the entire education loan has to be carried out by their co borrowers. This is where a loan insurance scheme like the SBI Rinn Raksha comes into the picture.

What is SBI Rinn Raksha?

The SBI Global Ed-Vantage is one of the most sought after education loan schemes by students who wish to fund their higher education abroad with the help of one. However, not a lot of them are aware of the SBI Rinn Raksha loan insurance scheme and most of them find it difficult to understand the importance of purchasing an education loan insurance. As explained above, one of the major benefits of the SBI Rinn Raksha education loan insurance scheme is the fact that in the wake of an unfortunate incident, such as the loan applicant’s death or a medical emergency while their course is still underway, the SBI Rinn Raksha loan insurance guarantees to repay the remaining education loan. This way, the burden of the education loan repayment does not fall on the student’s family members.

Salient Features of the SBI Rinn Raksha Loan Insurance Scheme

The SBI Rinn Raksha scheme is not only limited to education loan schemes offered by SBI. It is also applicable to other loans such as home loans and personal loans. The SBI Life Rinn Raksha scheme provides the assurance of an uninterrupted education loan repayment. It also provides coverage to not one, but upto two co borrowers of the education loan.

Applicants have the flexibility to choose the cover amount, the loan cover term and the frequency of premium payments according to their convenience under the SBI Rinn Raksha scheme. Some of the other salient features include:

  1. Life insurance coverage
  2. Assistance to repay a variety of loans.
  3. Coverage for co borrowers/co applicants
  4. Choice of cover term, premium paying term and the frequency of payment.

Now, a lot of students who have directly approached their nearest branches for an SBI education loan have often made claims that the bank has made it compulsory to purchase the SBI Rinn Raksha loan insurance while applying for their education loan.

Although it benefits you in a lot of ways,  If you plan on borrowing an SBI education loan for abroad studies and are asked to purchase the SBI Rinn Raksha loan insurance by your lending branch, please keep in mind that this formality is not compulsory. It is solely the student’s choice to opt for it. Do get in touch with the WeMakeScholars team if any bank official instructs you to do otherwise.

Read about Types of collateral for SBI education loan

Benefits of Purchasing the SBI Life Rinn Raksha Insurance

One of the biggest concerns voiced by most students who apply for the SBI Global Ed-Vantage loan scheme, which involves the pledging of collateral, is the safety of their assets. In the wake of an unfortunate event such as death or an accident which could render the students or their co borrowers unable to repay the education loan amount, the SBI Rinn Raksha loan insurance ensures that these assets are not affected in any way by helping such families pay off the remaining balance of the education loan.

The SBI Rinn Raksha education loan insurance scheme is reliable in a lot of ways. It repays the outstanding loan amount as per the sum assured schedule. This means that the education loan insurance scheme ensures the timely repayment of the pending education loan amount within the stipulated time allocated to students. 

abroad education loan

SBI Rinn Raksha Loan Insurance & Education Loans

Apart from the fact that the SBI Life Rinn Raksha loan insurance scheme helps applicants with their education loan repayment, there is another hidden benefit. Students who purchase the loan insurance scheme at the time of applying for their education loans, get to avail an additional 0.5% waiver on their education loan interest rate. The current SBI education loan interest rates applicable to the various schemes are as follows:

SBI Global Ed-Vantage Education Loan Scheme: 9.7% (without any interest rate waiver)

SBI Student Loan Scheme: 9.7%  (without any interest rate waiver)

Candidates who purchase the SBI Life Rinn Raksha education loan insurance are eligible for a 0.5% waiver in their education loan interest rates. Female candidates are at advantage here as they are eligible for an additional reduction of 0.5% in their education loan interest rates. So, If you plan on funding your higher education with the help of an SBI education loan, and choose to purchase this loan insurance, the revised education loan interest rates for both the schemes mentioned above come to

  1. 8.7% for female candidates (post the 0.5% default waiver + SBI Rinn Raksha waiver)
  2. 9.2% for male candidates (post 0.5% SBI Rinn Raksha waiver)

Given the cost of any education loan process in the present circumstances, a waiver in the interest rate comes as relief for many candidates. Not only does the SBI Rinn Raksha loan insurance scheme reduce the stress of your education loan repayment, but also contributes in reducing the overall interest rate. In order to know further about this benefit, do get in touch with the WeMakeScholars financial team.

Also read about SBI abroad education loan- An introduction


Who is Eligible To Buy The SBI Rinn Raksha Loan Insurance Scheme?

The minimum age of the buyer of this education loan insurance scheme should not be less than 16 years of age. The maximum age limit to purchase the SBI Rinn Raksha loan insurance scheme is 70 years.

Candidates who are borrowing home loans, personal loans and education loans are covered under the SBI Life Rinn Raksha loan insurance scheme.  

SBI Rinn Raksha Education Loan Insurance Scheme: Premium Payment & Other Terms

SBI offers a flexible payment schedule to all candidates when it comes to the premium payment schedule of the SBI education loan insurance scheme. The following table contains details regarding the premium payment schedule options for the SBI education loan insurance scheme.

Candidates are required to make a one-time payment at the time of applying for their abroad education loan scheme. The payment details are as depicted in the table below.

SBI Rinn Raksha Premium Paying Term & Corresponding Policy Term Premium Paying Term Policy Term
Single Premium 2 years to 30 years
5 Years 8 years to 30 years
10 Years 15 years to 30 years
Premium Frequency Single, Half-yearly, quarterly, monthly
Sum Assured Minimum INR 10,000/member Maximum: no limit
Moratorium period Minimum 3 months Maximum: 72 months

abroad education loan

Why Approach WeMakeScholars For Your Abroad Education Loan Process?

When students directly approach banks for enquiries regarding abroad education loan process, most of them are given only partial information regarding the same. The financial team of WeMakeScholars has sufficient knowledge about the abroad education loan process due to their experience of tackling even the most complicated cases. As a result, close to 3000+ students have benefitted from their services. In the abroad education loan process, most students who have planned their higher studies in countries like Germany and Canada are mostly concerned about their pre-visa disbursements from government banks as many of these banks are often not aware of the education loan provisions for these countries and as a result, delay the pre-visa disbursement. When you apply through WeMakeScholars, our financial officers ensure that this does not happen and often try their level best to get such loans sanctioned well in time. So, if you are confused on how to go about the abroad education loan process, do get in touch with our team now.

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’s at 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


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