State Bank of India (SBI) is the largest education loan lender in India. It offers education loans under 2 schemes- SBI student loan which is for loans upto 20 lacs only and SBI Global Edvantage education loan scheme which offers loan of 20 lacs INR to 1.5 cr INR. The Global Edvantage education loan scheme is specifically for overseas education and has many favourable terms for study abroad aspirants.
Eligible Courses and Countries:
Any full-time regular degree program be it undergraduate (bachelors), Postgraduate (masters) or Doctoral (PhD) degree programs is eligible under this scheme.
Preference is given to the following countries USA, UK, Canada, Australia, Europe, Singapore, Japan, Hong Kong and New Zealand, but no case is rejected due to the country of study.
You may apply for loan for the following:
Admission Fee, Tuition fee, Hostel Fee/Living Expenses, Examination/Lab/Library fee, Purchase of books, Caution Fee, Purchase of computer, Misc. expenses.
Maximum loan amount:
As mentioned above, the maximum loan amount under this scheme of SBI is 1.5 cr. The applications above this amount can be sanctioned on case-by-case basis.
Like any nationalized bank, SBI do not cover 100% of your total cost. Instead, the maximum you can avail is 90% of your total cost attendance- right from tuition fee, living expenses to even travel or laptop purchase expenses. The remaining 10% is your loan margin and has to be brought in by you on pro-rata basis. Scholarships or assistantships will reduce your loan margin.
SBI charges a non-refundable processing fee of Rs. 10,000 and it has to be paid to the branch as a demand draft along with the application form generated by WeMakeScholars.
Rate of interest:
The rate of interest under Global Edvantage scheme is 9.8% for female and 10.3% for male students after Rinn raksha insurance. In addition, only simple Interest will be charged during Course Period and Moratorium Period unlike private banks which charges compound interest.
Payments of interest rate are NOT required to be paid during course duration and moratorium period.
SBI accepts two types of securities for all its mortgage backed loans
Immovable property: House or a Flat or Land
Liquid security: Fixed deposit, LIC policy, Bonds, etc.
Third party collaterals (collaterals not belonging to family) are acceptable by SBI unlike other nationalized banks.
Repayment and Moratorium period:
The repayment holiday or moratorium period for this scheme is Course period plus 6 months. After this, the maximum repayment period allowed for Global Edvantage scheme is 15 years.
Our team shares the personalized list of documents with you as the document requirement varies with location across India.
Education loan procedure:
Kindly apply online by clicking on the link below. After receiving your enquiry, our team will get in touch with you to pre-qualify your profile. If you qualify, you will be given in-principal approval and you proceed on further steps with guidance of a support member.