SBI Bank Abroad Education Loan

✓ Education Loan for Abroad Studies

✓ At Starting interest rate of 9% P.A.

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Table of content

  1. State Bank of India education loan scheme for study abroad
  2. What is the education loan processing fees of State Bank of India bank?
  3. Documents required to get Abroad education loan from State Bank of India bank
  4. State Bank of India education loan margin calculation
  5. State Bank of India education loan EMI Calculation as per interest rate
  6. How to apply for an abroad education loan from State Bank of India?
  7. Why choose WeMakeScholars?
  8. FAQ's
  9. Need Help? Ask Here!

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- Instant Education Loan-pre approval with the lowest interest rate in India


State Bank of India is India’s largest public sector bank, having its origin since before the independence of India. Considering the demand, the bank has evolved its lending services over the years and launched special education loan products to fund abroad study aspirants.

The SBI bank has merged with the State Bank of Travancore, Bhartiya Mahila Bank, State Bank of Hyderabad, State Bank of Mysore, and State Bank of Patiala.

State Bank of India education loan scheme for study abroad

  • SBI Student Loan Scheme
  • SBI Global Ed-Vantage Scheme
  • Shaurya Education Loan Scheme
  • The takeover of the Education Loan Scheme

SBI Student Loan Scheme

Loan Parameter 

Details

Loan Limit

Non-collateralized loan up to Rs. 7.5 lacs

Collateralized loan up to - 100% of collateral value

Applicants can also get a higher loan amount, depending on their loan profile and eligibility

Covered Expenses 

    • Tuition or course fees
    • Caution money
    • Travel Expenses
    • Insurance Premium
    • Examination fees
    • Books and stationeries charges
    • Laptop or computer purchasing cost

Acceptable co-applicants

Parents, Parents in law, Siblings, Spouse

State Bank of India Education loan interest rate/rate of interest

For education loans with collateral 9-11%

Girl students and students taking loans with insurance are entitled to interest-rate discounts

Loan Margin

Up to Rs. 4 lacs - 0%

Above Rs 4 lacs - Depends on the type of collateral

Moratorium Period

Course duration plus 12 months

Repayment Duration

Up to 15 years after the moratorium period

Repayment Policy

Students are charged simple interest during the moratorium period, which they may or may not pay then, but definitely later.

Eligibility Criteria

Admission of students must be confirmed in a foreign university

Acceptable collaterals

    • Immovable property - Non-agricultural land, building, flat
    • Liquid security - Govt. bonds, LIC policies, Fixed deposits

  Value of Collateral 

    • The value of immovable collateral should be 1.25 times the asked loan amount
    • If liquid security is to be pledged as collateral, then its value should be equal to the asked loan amount

  Processing fees

Up to Rs 20 lacs                      NIL                          Above Rs 20 lacs                     Rs 10,000 + TAX 

Courses covered under SBI Student Loan Scheme

  • Graduation: Job-oriented technical/ professional courses offered by prestigious  Institutions (including Foundation/Pathway/Integrated Courses)
  • Post Graduate Diploma/ Certificate courses offered by reputed Institutions
  • Post-graduation: MS, MCA, Job oriented professional/ technical courses, MBA, etc. 
  • Ph.D. programs
  • Courses conducted by Certified Public Accountants in the USA and Chartered Institute of Management Accountants in London, etc.
  • Diploma/ degree courses like shipping, aeronautical engineering, pilot training, etc. provided these are recognized by competent regulatory bodies in India/abroad for the purpose of employment in India/abroad

SBI GLOBAL ED-VANTAGE SCHEME

Loan Parameter

Values

Loan Limit

Non-collateralized loan up to Rs. 7.5 lacs

Collateralized loan up to - 100% of collateral value

A higher amount can also be offered, depending on the student’s profile

Covered charges and expenses

    • Course fees or tuition fees
    • Cautionary deposit
    • Insurance Premium
    • Examination fees
    • Travel Expenses
    • Purchase course of books
    • Purchase of a laptop or computer

Accepted co-applicant

Parents, Parents in law, Siblings, Spouse

State Bank of India Education loan interest rate/ rate of interest

For collateralized education loans 9-11%

Interest rate discounts are available for girl children & meritorious students

Loan Margin

Up to Rs. 4 lacs - 0%

Above Rs 4 lacs - Depends on the type of collateral

Moratorium Period

Course duration + 12 months or 6 months after getting a job

Repayment Duration

Up to 15 years after the moratorium period

Repayment Policy

Simple interest is charged during the course duration and moratorium period, however, it is optional to pay.

Eligibility Criteria

    • The applicant should be an Indian citizen
    • Students must have qualified for the entrance exam

 Acceptable collaterals

Immovable property - Non-agricultural land, building, flat
Liquid security - Govt. bonds, LIC policies, Fixed deposits

Value of Collateral (only if it is a collateralized education loan)

    • If immovable collateral security, then the value of it should be 1.25 times the amount
    • The minimum value in the case of liquid securities should be at least equal to the asked loan amount

Processing fees

Up to Rs 20 lacs                      NIL              

Above Rs 20 lacs                    Rs 10,000 + TAX 

 

Shaurya Education Loan

This education loan scheme is forwarded to DSP/ ICGSP officers in all ranks for studies abroad.

Loan Parameter

Values

  Loan Limit

Non-collateralized loan up to Rs. 7.5 lacs

Collateralized loan up to - 1.5 Cr

Students can also get a higher amount if they have a strong profile

Expenses covered

    • Course fees
    • Caution deposit
    • Examination fees
    • Travel expenses
    • Insurance Premium
    • Purchase of a Laptop or computer
    • Purchase of Books and stationeries

Accepted co-applicant

Parents, Parents in law, Siblings, Spouse

State Bank of India Education loan interest rate/ rate of interest

For collateralized education loans 9-11%

Girl students and students with education loan insurance, under the SBI Rinn Raksha scheme, get interest rate discount

Loan Margin

Up to Rs. 4 lacs - 0%

Above Rs 4 lacs - Depends on the type of collateral

Moratorium Period

Course duration + 12 months or 6 months after getting a job

Repayment Duration

Up to 15 years after the moratorium period

Repayment Policy

Students are charged simple interest during the moratorium period, but it depends on students if they want to pay then or not. Students can opt to add that interest amount to the loan amount and repay it later, with EMIs

Eligibility Criteria

    • DSP/ ICGSP officer’s children are considered eligible to apply for abroad education loans under this scheme
    • The co-applicant (DSP/ICGSP officer) must be a Diamond/ Platinum account holder in SBI

  Acceptable collaterals

    • Immovable property - Building, Non-agricultural land, flat
    • Liquid security - Fixed deposits, Govt. bonds, LIC policies 

Value of Collateral for collateralized education loan

    • The minimum value of the immovable property should be 1.25 times the required loan amount
    • For liquid security - The value of collateral should be equal to the required loan amount

Processing fees

Up to Rs 20 lacs                     NIL 

Above Rs 20 lacs                    Rs 10,000 + tax

Eligible courses under Shaurya Education Loan

  • Graduation: Professional or technical courses being run by prestigious institutions for job purposes
  • Post-graduation: Job-oriented professional/ technical courses such as MCA, MS, MBA, etc.
  • Certificate or diploma of postgraduate courses offered by prestigious institutions.
  • Doctorate programs (Ph.D.)
  • Courses conducted by  CPA (Certified Public Accountant) in the USA, CIMA (Chartered Institute of Management Accountants) - London, etc.
  • Diploma or degree courses offered in pilot training, aeronautical engineering, shipping, etc. run by competent authorities in India and abroad for the purpose of employment in India or abroad

Takeover of Education Loan

State Bank of India offers an education loan transfer facility to students. Students can shift their currently running education loan from their present lender to the state bank of India as per the following conditions:

Loan Parameter

Values

Loan amount

A Minimum amount of Rs 10 lacs

A Maximum amount of Rs 1.5 Cr

Expenses covered

    • Outstanding loan amount
    • Any advance payment penalty
    • Top-up loan sanction limit

New repayment duration

Up to 15 years

Processing fees

NIL

Rate of interest on the takeover of education loan in SBI

Starts from 10.55%

Girl students will get interest rate concessions

Collateral security

Asked loan amount cannot be more than 100% of the value of the collateral

 

Features and Facility under Takeover of Education Loan

  • Students can take a top-up on their current education loan for further studies, without worrying about the cost of education.
  • Students can use any of the payment options from Mobile Banking/ Cheques/ Net Banking to repay their education loan EMIs

What is the education loan processing fees of State Bank of India bank?

State Bank of India does not charge any processing fees for taking an education loan of amount up to Rs 20 lacs, but if the loan amount is greater than Rs 20 lacs a processing fees of Rs 10,000 + taxes is charged from the students, irrespective of the fact that the education loan is to study in India or abroad.

Moreover, if students apply to take an education loan with collateral, then they will have to pay an amount of Rs 7,500 - Rs 10,000 additionally for legal and valuation reports.

But, WeMakeScholars being a government-funded initiative, offers its student-friendly premium education loan sanctioning services free of cost. To start your education loan process at State Bank of India with WeMakeScholars, request a callback or fill the common application form.

Documents required to get Abroad education loan from State Bank of India bank

State Bank of India has a long list of documents required to process the education loan, check out the mandatory documents list here:

Application form   

- SBI education loan application form filled through WeMakeScholars website  along with applicant’s 2 passport-size photographs

Applicant and co-applicant documents

- Address Proof of applicant – Passport of applicant/ Voter ID Card/ Ration card/ Electricity Bill/ Telephone Bill/ Bank account statement/ Aadhar card. (If permanent and present address are same then 2 different address proofs will be required) 
- Identity Proof – PAN Card, Passport (student, if going abroad)
- Proof of personal asset and liabilities statement approved by the bank’s branch personnel
- Bank account statement for the last 6 months (Personal/ Salary). For co-applicant, it should show the salary credits if salaried or 1 yr business transactions if self-employed.

All the papers should be self-attested.

Students academic documents

- School, class 10th, 12th and graduation mark sheets
- Fee structure as given by the college or university
- Admission proof of the student in the course, showing the duration of the course
- Scorecard of qualifying entrance exam like, IELTS,  GRE, GMAT etc

Co-applicant Income documents

If Salaried

- ITR of last 2 years
- Form 16 details of the last 2 years
- Salary slip of last 3 months
- Employers ID card

If Self-employed

- Proof of Business address
- Income Tax Return of last 3 years
- Profit & Loss account statements in balance sheet for the last 3 years

Other Documents

- Joint affidavit with the student and co-applicant in the standard format of the bank, that will be given to you by your assigned WeMakeScholars financial officer
- Co-applicant declaration stating that all other leftover expenses will be taken care of by the co-applicant only

Additional docs (if applicable)

- All loan account statements (1 year) if any pending loans.
- Payment receipt if made any in past 6 months
- Letter explaining the gap if the students had a failure/break in studies on Rs. 100 stamp paper. (Format to be provided by WeMakeScholars Financial officer)

Collateral documents (if taking collateralized loan)

Only collateral loans are covered by it, and each state has a distinct set of papers. Don't forget to get the list of state-specific collateral papers from your WeMakeScholars financial officer.

After reviewing your loan profile, your financial officer will give you a specific paperwork checklist when you complete your college loan with WeMakeScholars. Get your documentation checklist by applying for a student loan with WeMakeScholars.

State Bank of India education loan margin calculation

State Bank of India charges an education loan margin of generally 15% for any loan amount greater than Rs 4 lacs, however, the loan margin percentage also depends on the type of collateral which a student pledges when taking an education loan with collateral.

However, sometimes students find their loan margin amount to be a lot higher than their bearing capacity. But when you process your education loan with WeMakeScholars, you don’t have to worry about that. To know the loan margin for your loan profile also, tips to reduce your loan margin, ask your financial officer by requesting a call back or fill the common application form.

State Bank of India education loan EMI Calculation as per interest rate

State bank of India provides an education loan EMI calculator on its website, to assist students regarding calculation of their EMI, towards their education loan repayment. But, we suggest you to use the WeMakeScholars education loan EMI calculator, as it is specially designed and offers the following advantages to students:

Detailed analysis - Repayment process analysis is also given to you, through which you can plan your repayment schedule accordingly 

100 % accurate results - The EMI calculation results obtained from the calculator are accurate, as it considers all the parameters that alter the EMI amount, while calculating. 

Strategic benefit - Students can vary the repayment parameters to decide their repayment strategy, and take loans accordingly.

Free of cost - Like all other services of WeMakeScholars, the education loan EMI calculator is also free of cost.

How to apply for an abroad education loan from State Bank of India?

Offline application process

- Visit your nearest State Bank of India Branch and enquire about the abroad education loan products
- Fill the application form and ask for the documents required to start the education loan application process
- Visit the bank again to submit the documents to finally start your loan process.
- Take follow-ups from the banks till your loan is sanctioned.

Online application process via WeMakeScholars

Step 1 Speak to your financial officer at WeMakeScholars, by requesting a callback or filling up the application form.

Step 2 Give your loan details over the call, so that your financial officer can analyze your loan profile.

After analyzing the loan profile, your financial officer will connect you with the lender that is offering you the best education loan deal.

Step 3 Submit your documents on WeMakeScholars documents portal as per the documents checklist provided to you by your financial officer.

Step 4 Your financial officer will carry forward the process from here and will keep updating you about it.

Step 5 Collect your education loan sanction letter from your lender within 15-20 days, after you have submitted your documents. 

Why choose WeMakeScholars?

While, processing your education loan with WeMakeScholars, you get the following benefits:

Negotiation support - Your financial officer wil, negotiate with your lender and try to negotiate for you, to get you the education loan at a cheaper rate of interest, if possible.

Better Interest rates - When students process their abroad through WeMakeScholars are 0.5% to 2% lower than what banks usually offer.

Free-of-cost services - All our prime education loan sanctioning services are free of cost for students as we are funded and supported by the IT Ministry under the Digital India Campaign.

Digitized application process - Students apply online for education loans by filling the application form. Moreover, the WeMakeScholars documents portal makes it hassle-free for students to start their loan process.

End-to-end support - Your financial officer will continue to render their free services even after your loan is sanctioned, till you repay the last EMI of your loan.

Expert guidance - Your financial officer will set you up with the best lenders, as per your eligibility after analyzing your loan profile and guide you at every step of the process.

Tax benefits - We will provide assistance to save maximum tax by taking advantage of tax exemption under Section 80E, 80C, etc of the Income tax department, along with the tax collected at source (TCS).

Minimal Processing time - The process of sanctioning an education loan through WeMakeScholars is completed within 6-7 days if it is through a private bank of NBFC and it takes us around 15-20 days to get your education loan sanctioned from a public bank. Both timelines are 50% less than what it usually takes.

Cashback offer - You stand a chance to get a cashback of up to Rs 3,000 from us, at the time of your loan disbursement

Education Loan FAQs

  • How to apply for SBI education loan for abroad?

    To apply for abroad education loan in SBI, get in touch with your financial officer at WeMakeScholars, or fill the common application form that will directly connect you to the lenders team of State Bank of India

  • Can a student get SBI education loan without collateral?

    Yes, a student can get an amount upto Rs 7.5 lacs as SBI education loan without collateral, as per the Vidya Loan scheme. We have a separate team to handle loans under Vidya Loan scheme, request a callback to process your education loan with WeMakeScholars

Our Education Loan team will help you with any questions

2 Comments

  1. Khuba Tharim Sayyed

    does sbi also supports my flight tickets and visa and also hostela and mess charges under sbi global ad-vendeta im planing to study mbbs in tashkent medical academy
    06 Feb, 2024 at 01:27 AM REPLY
    1. Sneha Krishna

      Hi Khuba,

      Yes, it covers all the above charges except for the VISA charges. I see that you are planning to study MBBS. It is recommended to apply for an education loan as it is important to have a proper funding option to support your education further. 

      May I know if you have initiated your loan process?

      06 Feb, 2024 at 03:27 PM REPLY
Naresh Kumar
WeMakeScholars- supported by IT Ministry, Govt. of India.
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