SBI Education Loan for Study Abroad: Ultimate Guide

SBI Education Loan – State Bank of India is one of the largest public money lending financial institutions in our country. They have over the years revolutionized the money lending system helping millions of students achieve their dream of traveling overseas for higher education. Today, Education Loan from SBI is one of the most sort after services of the State Bank of India due to its

• Faster Online Process
• Lower Interest Rates, and
• Lucrative Payback Methods 

The State Bank of India has over the years simplified the process of SBI Education Loan for students making it more affordable for all students irrespective of their background. They are only required to have good academic records and above all a passion to chase their dreams of studying abroad.

 Also Read: Steps to filling an Education Loan Form

Types of SBI Education Loan Schemes

Students looking to study abroad can avail of the recently introduced SBI Global Ed-Vantage – Overseas Education Loan which is a part of SBI Education Loans provided by the State Bank of India that provides a loan of up to Rs. 1.5 Crores or opt for the SBI Student Loan for pursuing higher education abroad. 

SBI Global Ed-Vantage

An education loan initiative introduced by the SBI Education Loan, SBI Global Ed-Vantage is exclusively provided to students opting for full-time regular courses at foreign colleges and universities. Depending upon the course and the Institute of choice, the loan amount varies from Rs. 20 Lacs up to Rs. 1.5 crore. 

Key Highlights for SBI Global Ed-Vantage Education Loan

• Online Application Process for quicker loan approval
• Availability of Higher loan amount of Rs 20 lacs to 1.5 Cr
• Low Rate of Interest for the benefit of students/ applicants
• Convenient repayment through EMI up to 15 years
• Early approval of loan sanction prior to i20/Visa
• Applicants can avail tax benefit under section 80(E) 

What are the Eligibility Guidelines for SBI Global Ed-Vantage Education Loan?

Before applying for the SBI Global Ed-Vantage Education Loan from SBI, candidates are required to check their eligibility for the same. Below mentioned is a list of norms which applicants are required to fulfill before applying for the SBI Education Loan:

• The applicant is required to be a citizen of India.
• The applicant must have attained the age of 18 else his/her parents will have to take the loan on his behalf.
• The student is required to enroll in a regular Graduate/ Post Graduate/ Doctorate Course in any discipline offered by foreign Institutes/ Universities in the USA, UK, Canada, Australia, Europe, Singapore, Japan, Hong Kong, and New Zealand.

For more on eligibility, visit Eligibility Criteria for Education Loan 

What Documents would you require for SBI Global Ed-Vantage Education Loan? 

Here is a list of documents that the student applicant/ Co-applicant is required to submit along with their duly filled-in Loan Application Form for the successful consideration of their Education Loan application from SBI:

 I) Student-applicant:

• Proof of Identity (any one): Passport/ Driver’s License/ PAN/ Voter ID card
• Proof of Address/ Residence (any one): Recent copy of Electricity Bill/Water Bill/ Telephone Bill/  Piped Gas Bill or a copy of Passport/ Driving License/ Aadhaar Card with similar address
• A valid Passport to be mandatorily submitted
• Academic Records for:
  • 10th Result
  • 12th Result

• Graduation Result- Semester-wise (if applicable)
• Entrance Exam Result through which admission has been secured (e.g. IELTS, GMAT, GRE, TOEFL, etc.)
• Offer Letter or Admit Letter from the Institution. Conditional admission letter can also be considered has to be provided as proof of admission
• Submission of Schedule of expenses / Statement of cost of study
• 2 passport-size photographs
• If any previous loan from other Lenders/ Banks, then Loan A/C statement for last 1 year 

II) Co-applicant:

• Proof of Identity (any one): Passport/ Driver’s License/ Voter ID card/ PAN
• Proof of Residence/ Address (any one): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or a copy of Passport/ Driving License/ Aadhaar Card with similar address
• Passport-size photographs
• If any previous loan from other Banks/Lenders, then Loan A/C statement and details for last 1 year 

III) Income Proof for Salaried Co-applicant/ Guarantor:

• Salary Certificate or Salary Slip of the last 3 months
• Copy of IT Returns for the last 2 financial years or Copy of Form 16 for the last 2 years, acknowledged by IT Dept.
• Bank account statement for the last 6 months (in case of Salary Account) 

IV) Income Proof for Self-employed Co-applicant/ Guarantor:

• Business address proof (If applicable)
• IT returns for last 2 years (if Income Tax payee)
• TDS Certificate (Form 16A, if applicable)
• Certificate of qualification (for Doctor/ C.A. and other professions)
• Bank account statement for the last 6 months

Note: All documents should be self-attested.

Also read:

• What Documents Are Required For an Education Loan? 
• What are the requirements to obtain an Education Loan for Studying Abroad?
• Studying Abroad attracts tax collected at source (TCS) of 0.5 and 5%

What Expenses are covered under your SBI Global Ed-Vantage Scheme?

Wondering what are the expenses covered under your sanctioned SBI Education Loan amount? Worry no further, read on to know about the expenses that would be taken care off with the loan amount.

• The tuition fee payable towards college/school/hostel facilities.
• All expenses paid towards Examination/Library/Laboratory amenities.
• Travel expenses/passage money required for studies abroad.
• The purchase of books/equipments/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. would be considered for a 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 /refundable deposit/ building fund supported by Institution bills/receipts would be considered for a loan on condition the amount does not exceed 10% of the tuition fees for the entire course.  

Loan Amount for your SBI Global Ed-Vantage Education Loan? 

Candidates can avail a minimum loan amount of Rs. 20 lacs and a maximum loan amount of Rs 1.5 Crores as Education Loan from SBI. They would also be levied a processing fee of Rs 10,000 per application. 

What Security would you require for your SBI Global Ed-Vantage Education Loan? 

The State Bank of India under their SBI Global Ed-Vantage Scheme will accept the following guarantee (security) against the loan amount:

• Tangible collateral security
• Collateral security offered by Third Party (other than parents) would also be considered

To know more about collateral, read Collateral for Education Loan 

SBI Global Ed-Vantage Education Loan Rate of Interest

The SBI Education Loan rate of interest which the student would be required to pay as per 10 June 2020

 Note:

• Reset Period: 1 year
• Concession for students availing SBI Rinn Raksha or any other existing policy assigned in favor of SBI @ 0.50%
• Further Concession for girl students @ 0.50% 

Moratorium Period

The SBI Education Loan repayment period or the moratorium period would commence 6 months after the completion of the said course. The accrued interest during the moratorium period would be added to the principal amount and repayment can be made in easy EMI options. Repayment can be spread across but not exceeding 15 years.

Learn about Education Loan for Top Countries:

SBI Student Education Loan

Students wanting to study abroad can also opt for the SBI Education Loan for pursuing higher education overseas. This Education Loan from SBI provides a loan of up to Rs 20 Lacs to Indian students who have secured admission abroad. 

Key Highlights for SBI Student Education Loan

• Online Application Process for quicker loan approval
• Availability of loan amount up to Rs 20 Lacs
• Low Rate of Interest for the benefit of borrowers
• No processing/ upfront charges would be levied
• Convenient repayment through EMI options up to 15 years + 12 months of repayment holiday 

What are the Eligibility guidelines for SBI Student Education Loan? 

Before applying for the SBI Student Education Loan, candidates are required to check their eligibility for the same. Below provided is a list of eligibility criteria, which all candidates are required to fulfill to be considered for the Education Loan from SBI:

• The applicant is required to be a citizen of India.
• The applicant must have attained the age of 18 else his/her parents will have to take the loan on his/her behalf.
• Job oriented professional/ technical Graduation Degree courses/ Post Graduation Degree and Diploma courses like MCA, MBA, MS, etc offered by reputed universities are included in the scheme.
• Courses conducted by CIMA (Chartered Institute of Management Accountants) - London, CPA (Certified Public Accountant) in the USA are also included in the SBI Education Loan scheme. 

Documents Checklist for SBI Student Education Loan 

Borrowers along with student applicants would be required to submit a list of documents along with their duly filled-in Loan Application Form to be eligible for the education loan. 

I) Student-applicant:

• Proof of Identity (any one): PAN/ Driver’s License/ Voter ID card/ Passport
• Proof of Residence/ Address (any one): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or a copy of Passport/ Driving License or Aadhaar Card with a similar address.
• A valid Passport to be mandatorily submitted in case of studying abroad
• Academic Records for:
  • 10th Result
  • 12th Result

• Graduation Result- Semester-wise (if applicable)
• Entrance Exam Result through which admission has been taken (e.g. IELTS, GMAT, GRE, TOEFL, etc.)
• Offer Letter or Admission Letter from the Institution of choice. A conditional admission letter would also be considered in case of studying abroad as proof of admission.
• A detailed statement of the cost of study or Schedule of expenses
• Passport-size photographs
• If any previous loan from other Lenders or Banks, then Loan A/C statement details for last 1 year 

II) Co-applicant:

• Proof of Identity (any one): PAN/ Passport/ Driver’s License/ Voter ID card
• Proof of Residence/ Address (any one): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or a copy of Passport/ Driving License/ Aadhaar Card
• Passport-size photographs
• If any previous loan from other Banks/Lenders, then Loan A/C statement for last 1 year 

III) Income Proof for Salaried Co-applicant/ Guarantor:

• Salary Slip or Salary Certificate of last 3 months is mandatory
• Copy of Form 16 for the last 2 years or a copy of IT Returns for the last 2 financial years which should be acknowledged by IT Dept.
• Bank account statement for the last 6 months (in case of Salary Account) 

IV) Income Proof for Self-employed Co-applicant/ Guarantor:

• Business address proof (where applicable)
• IT returns for last 2 years (in case of IT payee)
• TDS Certificate (Form 16A, if applicable)
• Certificate of qualification (in case of C.A./ Doctor and other professionals)
• Bank account statement for the last 6 months

Note: All documents are required to be self-attested. 

Expenses Covered under the SBI Student Education Loan includes 

Once the education loan has been approved, the sanctioned amount would take care of the following components:

• The fees payable to college/school/hostel
• The fee payable for Examination/Library/Laboratory facilities
• Purchase of Books/Equipment/Instruments/Uniforms, Purchase of computers- essential for completion of the course would also be included however only to a maximum of 20% of the total tuition fees payable for completion of the course
• Caution Deposit/Building Fund/Refundable Deposit would also be included with a maximum of 10% of tuition fees for the entire course
• Travel Expenses/Passage money for traveling abroad for studies
• Cost of a Two-wheeler up to Rs. 50,000/- would also be included
• Any other expenses required to complete the course like study tours, project work etc would also be taken care off

SBI Student Education Loan Amount

Candidates looking to apply for an education loan with the State Bank of India can avail a loan amount of up to Rs. 20 Lacs. The higher loan limit for studies abroad can be applied under the SBI Global Ed-Vantage Scheme. Candidates would not be charged a processing fee while applying for the SBI Education Loan. 

Security Deposit for SBI Student Education Loan 

Applicants would be required to provide security in lieu of the loan amount. And they are:

• For loan amount up to Rs. 7.5 Lacs, only parent/ guardian can act as co-borrowers. No Collateral Security or third party guarantee would be accepted.
• For loan amount above Rs. 7.5 Lacs, parent/ guardian can be co-borrowers, and tangible collateral security would also be accepted.

Note: In the case of a married person, a co-obligator can be either spouse or the parent(s)/ parents-in-law. 

The rate of Interest for SBI Student Education Loan Holders 

The rate of interest which the student would be required to pay as per 10 June 2020

Note:

• Reset Period: 1 year
• Concession for students availing SBI Rinn Raksha or any other existing policy assigned in favor of SBI @ 0.50%
• Further Concession for girl students @ 0.50% 

Repayment Period

The SBI Education Loan repayment period or moratorium period would commence one year after completion of the selected course. Candidates would be required to repay the loan amount spread across a tenure of 15 years from the commencement of the repayment date. In case a second loan has been availed for higher studies later, the applicant would be required to repay the combined loan amount in 15 years after completion of the second course. 

Related reads:

• Education Loan vs Self-Funding to Study Abroad 
• Public v/s Private Education Loan Providers