State Bank of India Education Loan for Study Abroad

State Bank of India Education Loan is popular among students intending to Study Abroad due to favourable interest rates and Trust. Since they took a little longer to process, you can assume up to 15-20 days to complete. Their interest rates start at 10.15% for Abroad Education Loan, and you have up to 15 years after Course Completion to repay the SBI Education loan. 

SBI Education Loan Schemes

The State Bank of India is India's largest and most trusted bank. Hence, every student and their parents aim to get an Education Loan from SBI. Over time, they managed to lower the processing time and design products to cover the Study Abroad aspirants specifically. The SBI has four Education Loan products or schemes to maximize student benefit.

1. SBI Global Ed-Vantage - Abroad
2. SBI Student Loan - India & Abroad
3. SBI Shaurya Education Loan - India & Abroad
4. SBI Scholar Loan - India

However, it still needs a product for UnSecured Loan, the primary choice for most students.

SBI Global Ed-Vantage

The SBI Global Ed-Vantage scheme is designed for Indian Students planning to Study Abroad and it covers Education Loans up to ₹1.5 Cr. The student must have obtained an admission letter from an accredited foreign institution, and the course must be full-time in regular mode. The Scheme has a Faster Online Application Process, Higher Loan Amounts, Lower Interest Rates and Easier Repayment methods. To cater for the specific demands, the SBI Education Loan can be sanctioned and disbursed before obtaining an I-20 Letter or Study Visa. It covers tuition fees, living expenses, travel expenses, and other mandatory expenses required to complete the course. 

SBI Student Loan

The SBI Student Loan scheme is a general education loan product that helps students get financial assistance for studying in India or abroad. This is a term loan where Collateral is optional for Loans up to Rs 7.5 Lacs. However, a Co-Borrower would be required. Students who want to pursue higher education abroad are advised to go for the SBI Global Ed-Vantage scheme for better benefits. The student must be an Indian Citizen including NRIs or PIO/OCI holder. 

SBI Shaurya Education Loans

This SBI Shaurya, Education Loan scheme, is designed to extend financial assistance to deserving and meritorious students of Indian Coast Guard Personnel or Defense. It applies to students who want to pursue higher education in India or Abroad. This scheme is quite similar to other SBI schemes but provides more relaxation on Security, Margin, Processing Fees, and Collateral Mortgage. The Co-borrower gets 6 month grace period to create a security mortgage, so the process gets completed on time, and the co-borrower does not need to take leave. The Security or Collateral is not required for Loans up to Rs 40 Lacs.

SBI Scholar Loans

The SBI Scholar Loan scheme is curated for students who secured admission to Premier Institutions of India such as IITs, IIMs, NITs, etc. This is the best scheme among all banks because of its features and interest rate. The maximum secured and unsecured amount varies based on the Institution Category. 

Here is the list of institutional categories under the SBI Scholar Loan Scheme, maximum funding limits, and interest rates. 

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.

Eligibility criteria for State Bank of India Education Loan

Here is the basic Eligiblity Criteria for Study Abroad Education Loan by State Bank of India. 

Student

• must be an Indian Citizen
• must be a minimum of 18 years of age
• must have a good CIBIL history

University

• must be approved by the concerned regularities
• can be a Graduate/Post-Graduate/technical course
• must have a good world and national ranking
• must be SDS & PGWP approved (for Canada only)

Academics

• must have a minimum of 50% in Class 10th, Class 12th, Bachelors and Masters
• must have a sufficient language proficiency exam scores

Co-Applicant / Co-Borrower

• must be an Indian citizen
• should be a father, mother, brother, sister, grandparent or any other blood relative.
• must be a financial earner (Salaried, Self-Employed, Farmer, or Pensioner)
• must have a savings bank account in India that allows them to sign cheques
• must be the primary debtor
• must have a good CIBIL history

Collateral

• must be a fixed deposit or property such as a house, or shop
• property must be approved by the concerned authorities
• property must be located in an Urban or City area

Charges of State Bank of India Education Loan

Here is the list of basic charges involved in State Bank of India Study Abroad Education Loan

SBI Education Loan Disbursement Process

A savings bank account will be opened in the State Bank of India if not opened earlier to disburse the loan amount and make it easy to make a repayment. 

To provide maximum flexibility, the SBI has a provision to issue a Sanction Letter before obtaining an I-20 Letter or Visa, as most authorities ask for a sanction letter before issuing an I-20 Letter or Visa. If required, the remittance of Tuition Fees and living expenses can be made before obtaining a Letter of Acceptance (LOA) or relevant Visa. This benefits the students going to Study in Canada, Australia, or Germany. The SBI disburses the loan amount in stages as required directly to the university/institution or concerned receiver. This means the tuition fees will be directly transferred to the University/College and Living Expenses to a foreign bank account, GIC, Blocked Account, or Forex Card. 

SBI Education Loan Interest Rates

The SBI Education Loan Interest Rates are best if you have to Study in Premier Institutes of India. Otherwise, they are quite similar and competitive to other lenders in the market. On top of these Interest Rates, the SBI provides concessions based on Insurance Opt-in and Gender.