Dreaming of a world-class education but struggling with a high-interest study loan? You’re not alone. Many students look for ways to ease their financial burden by transferring their education loan to a lender offering better terms. The Abroad Education Loan Balance Transfer to SBI is a popular choice, providing the reliability of a trusted public sector bank and more manageable interest rates. SBI’s dedicated Takeover of Education Loans scheme makes the process straightforward, helping students refinance their loans efficiently and focus on what truly matters, their studies and future goals.
Benefits of Transferring Study Loan to SBI
Switching your existing high-cost loan to the State Bank of India (SBI) can unlock several key financial advantages:
1. Significantly Lower Interest Rates:
SBI, being a public sector bank, typically offers lower interest rates compared to private banks and NBFCs, especially for secured loans. This is the primary driver for an Abroad Education Loan Balance Transfer to SBI.
2. Concession for Women Students:
SBI offers an additional interest rate concession (usually 0.50%) for female students, which further reduces the overall loan cost.
3. Longer Repayment Tenure:
The SBI Takeover scheme generally offers a maximum repayment tenure of up to 15 years, giving you more time to comfortably manage your Equated Monthly Instalments (EMIs).
4. Trusted and Transparent Process:
As India's largest public sector bank, SBI is known for a robust and transparent process with minimal hidden charges.
Explore different Types of Education loans with Eligibility, Interest Rates, & Benefits to understand which option best suits your needs and repayment capacity.
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Eligibility Criteria for Loan Balance Transfer to SBI
To successfully initiate the process of education loan balance transfer to SBI, both the applicant and the existing loan must meet specific conditions under the SBI Takeover scheme:
Documentation for Education Loan Balance Transfer
A successful transfer hinges on having all necessary documentation in place. Documents are generally required for the student, the co-applicant, and the collateral being pledged.
Core Documents from Current Lender
1. Original Loan Sanction Letter from the current bank.
2. Loan Account Statement showing the complete repayment history (last 1 year).
3. Foreclosure/Outstanding Balance Letter clearly stating the exact amount due for takeover.
4. Original documents of the pledged collateral (to be released to SBI).
Student and Co-Applicant Documents
1. KYC Documents (PAN Card, Passport, Aadhaar Card).
2. Academic documents (Mark sheets from Class 10th to the final degree).
3. Income Proof of Co-applicant (Salary slips for the last 3-6 months, Form 16, and IT Returns for the last 2 years).
4. Bank account statements (last 6 months) for all operating accounts of the student and co-applicant.
Collateral Documents (If Applicable)
1. Title Deed/Sale Deed of the property.
2. Latest Property Tax paid receipt.
3. Approved building plan/Sanctioned Map.
4. Encumbrance Certificate.
5. Chain of past deeds for at least 30 years (as required by the bank's lawyer).
Process of Education Loan Balance Transfer to SBI
The process to transfer your existing high-interest education loan to SBI is structured and involves five main steps:
Step 1: Financial Assessment and Application:
First, calculate your potential savings by comparing your current rate with SBI's offer. Then, formally apply for the 'Takeover of Education Loans' scheme at an SBI branch or through their online portal.
Step 2: Document Submission and Scrutiny:
Submit all required documentation, including KYC, academic transcripts, the current loan's sanction letter and repayment history, and the original collateral property papers.
Step 3: Verification and Sanctioning:
SBI's legal and technical teams will conduct thorough checks on the collateral property (valuation and legal opinion). Upon successful verification, SBI issues an official sanction letter detailing the new loan terms.
Step 4: Foreclosure Request:
You must then inform your original lender about the sanctioned takeover and request a foreclosure statement, a letter detailing the exact outstanding amount required to close the loan.
Step 5: Final Disbursement and Closure:
SBI directly disburses the outstanding amount to your original lender. Once the cheque/transfer is cleared, the original lender forecloses the loan and releases the original collateral documents to SBI, finalising the transfer.
If you’re looking for education loan options that don’t require collateral, do check out our detailed guide on Banks That Give Education Loans without Collateral for Abroad.
Minimal Docs, Maximum Approval - Apply Now.
In sum, the decision to pursue an Abroad Education Loan Balance Transfer to SBI is a shrewd financial move, allowing you to convert a high-cost debt into a more manageable, long-term liability. By effectively meeting the eligibility criteria and preparing your documentation, you can leverage SBI’s highly competitive interest rates and concessions, making your repayment journey significantly lighter.
Don't let high interest rates erode your savings and add stress to your international career. Take action today, visit your nearest SBI branch to explore the takeover scheme and secure your financial peace of mind!
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