No-Collateral Education Loan by SBI for up to Rs 50 Lacs

State Bank of India has launched Unsecured Education Loans for Premier Universities abroad. Check out the Eligibility Criteria, Interest Rates and List of Required Documents. There are 96 Top Ranking Universities worldwide in the approved list. 

To beat the Study Abroad Education Loan segment competition, the State Bank of India introduced a welcoming change in the SBI Global Ed-Vantage Scheme. Before this, only Union Bank had a scheme for unsecured loans of higher amounts in the PSU category. It made Unsecured Loans more accessible to potential students. Students enrolled in premier universities are now eligible for a Non-Collateral Education Loan of up to Rs 50 Lacs compared to the earlier limit of Rs 7.5 Lac. So, students can avail themselves of a higher amount without showing any property or fixed deposit. 

Their interest rate starts at 9.65% for Unsecured Loan and 10.15% for Secured Loan, specifically for Premier Universities in the List. 

The SBI charges ₹10,000 + GST, equal to ₹11,800, as processing for a Study Abroad Education Loan. This fee is non-refundable regardless of your disbursement status and will be collected upfront before the sanction letter is released. The interest rate paid by a Student or Co-Applicant on an Education Loan to a Bank can be used for Tax Savings and is deductible under Section 80E. 

Check out more details about an Unsecured Education Loan by SBI for Study Abroad. 

Key Considering Factors

Before considering SBI as your education loan provider, you should review its key factors. 

Eligibility Criteria for SBI Education Loan

SBI Global Ed-Vantage is an overseas education loan exclusively for those who wish to pursue regular full-time courses at foreign colleges/universities. To be eligible for an Unsecured Abroad Education Loan by the State Bank of India (SBI)

1. Student must have an admission letter from one of the Premier Listed Universities (List given below).
2. Student must be a minimum of 18 years of age.
3. Student must have minimum 50% in Class 10th, Class 12th and Bachelors (if applicable)
4. Student and parents must have good CIBIL Score

Expenses Covered by SBI Education Loan

The SBI Education Loan covers most expenses a student can expect. Here is the list of such costs. 

• Tuition Fee payable to University/College/Institution
• Living Expenses or Hostel Fees
• Blocked Accounts for Germany and GIC account for Canada
• Examination/Library/Laboratory fee
• Travel expenses or Flight Ticket for Studies Abroad
• Purchase of books/equipment/instruments/uniforms/ computer at a reasonable cost, if required for course completion, and any other expense required to complete the course– like study tours, project work, thesis, etc. can be considered for loan subject to the condition that these should be capped at 20% of the total tuition fees payable for completion of the course.
• Caution deposit/building fund / refundable deposit supported by Institution bills/receipts: The amount considered for a loan should not exceed 10% of the tuition fees for the entire course.

SBI Education Loan Interest Rates

The SBI Interest Rates are pretty competitive compared to other Banks in the market. Their interest rate starts at 9.65% for Non-Collateral Education Loans for Premier Loan and 10.15% for Collateral Loans for both Premier and Non-Premier universities. 

Documents required for State Bank of India Education Loan

Most banks and NBFCs, including SBI, have similar document checklists for education loans. Here is the snapshot of the Document Checklist of the SBI Education Loan. 

Student

• Passport, Aadhar and PAN Card
• Passport-size photograph
• Mark sheet of 10th, 12th, Graduation (if applicable), Entrance Exam Result
• Proof of admission to course (Offer Letter)
• Copies of letter conferring scholarship, free-ship, etc.
• Gap certificate, if applicable (self-declaration from student for gap in studies)

Parents or Guardian

• Aadhar and PAN Card
• Passport-size photograph
• Bank Statement (Last 6 months)
• ITR and Business Proof if Self-Employed
• Salary Slips and Form 16 if Salaried

List of Eligible Universities for Non-Collateral Loans by SBI

The SBI has shortlisted about 96 Universities in countries such as the USA, UK, Australia, Belgium, France, Germany, Denmark, Netherlands, Finland, Japan etc, based on the World Ranking and possible after-study opportunities. 

Soon, Abroad Cube (McCarthy AI Private Limited) will be the empanelled Education Loan Counsellor (ELC) of the State Bank of India for higher value Education Loans. We are committed to making the process of getting education loans seamless for study abroad aspirants from all sources, be it government banks, private banks, or NBFCs. 

Source: State Bank of India