SBI Education Loan for Abroad

State Bank of India (SBI) offers specialized education loans for students planning to study abroad. Here's a quick summary of the key features and benefits:

• Loan Amount: ₹7.5 lakh to ₹1.5 crores (collateral-free up to ₹50 lakh under Global Ed-Vantage).
• Interest Rates: Starting at 10.15% for male students and 9.65% for female students.
• Repayment Period: Up to 15 years, with a moratorium period (course duration + 6 months).
• Coverage: Tuition fees, living expenses, travel, books, and more.
• Eligibility: Indian citizens aged 18+ with confirmed admission to recognized foreign universities.
• Processing Fee: ₹10,000 + GST (non-refundable).

SBI provides two main loan options:

1. SBI Student Loan Scheme: For smaller programs, up to ₹20 lakh.
2. SBI Global Ed-Vantage Scheme: For prestigious institutions, ₹20 lakh to ₹1.5 crores.

Quick Comparison:

SBI also offers tax benefits under Section 80E and subsidies for eligible communities. This makes SBI a strong choice for financing international education. Read on for detailed eligibility, application steps, and tips to improve approval chances.

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How to Qualify and Apply

Who Can Apply

To be eligible, applicants must be Indian citizens aged 18 or older with confirmed admission to a recognized foreign university. Valid entrance exam scores, such as GRE, GMAT, TOEFL, or IELTS, are mandatory. Additionally, a parent or guardian with a steady income and a solid credit history must act as a co-applicant.

Note: Specialized programs like pilot training may need additional regulatory approvals. Pathway courses are also included in the total expense calculation.

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Application Steps

Once you confirm eligibility, follow these steps and ensure you have the necessary documents ready:

Documents Required for Applicants:

• Government-issued ID (PAN, Passport, or Driver's License)
• Academic records (mark sheets from 10th, 12th, and undergraduate studies)
• Admission letter from the university
• Statement detailing expenses
• Entrance exam score reports
• Two passport-size photographs
• Bank statements (if applicable)

Co-applicant Documentation:

• Proof of identity and address
• Income proof (last 3 months' salary slips for salaried individuals)
• Bank statements for the last 6 months
• Income Tax returns for the past 2 years
• Asset and liability statement

Collateral Requirements (if applicable):

For loans requiring collateral, acceptable options include residential property, buildings, and fixed deposits. Submit the following property documents:

• Registered sale deed
• Approved property plan
• Latest property tax receipts
• Chain of ownership documents (covering the last 30 years)
• Proof of occupancy

A property evaluation fee of approximately ₹7,500 and a non-refundable processing fee of ₹10,000 (plus GST) are applicable. Ensuring all documents are complete can speed up the loan approval process and make the most of SBI's streamlined services.

For a detailed checklist and further guidance, check out our article on Education Loan Eligibility and Application Process.

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Not with Propelld! Yes, You Don't Need a Collateral for an Education Loan with Propelld. Check Out Now!

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SBI Education Loan without Collateral for Abroad Studies- New Scheme

SBI's Foreign Education Loan Programs

SBI offers two distinct loan programs designed to meet the financial needs of students aiming to study abroad.

Standard Student Loan Details

The Standard Student Loan provides funding of up to ₹20 lakhs, with collateral-free options available for amounts up to ₹7.5 lakhs. Key features include:

• Interest rates: Ranging from 10.15% p.a. to 11.15% p.a.
• Repayment period: Up to 15 years
• Processing fees: None for loans up to ₹20 lakhs
• Collateral: Required for amounts exceeding ₹7.5 lakhs

Global Ed-Vantage Loan Details

The Global Ed-Vantage Loan is tailored for students pursuing full-time courses at foreign institutions, offering loan amounts between ₹20 lakhs and ₹3.00 crores.

This program also covers costs such as exam fees, library and lab charges, and travel expenses. A processing fee of ₹10,000 plus GST applies.

Loan Program Comparison

"SBI's Global Ed-Vantage initiative offers up to ₹50 lakh as a collateral-free loan with repayment flexibility of up to 15 years, ensuring greater accessibility for Indian students." - Saurabh Arora, Founder and CEO of University Living

During the course and moratorium period, simple interest is charged. Any interest accrued during this time is added to the principal when calculating EMIs.

These programs highlight SBI's efforts to cater to the varied financial requirements of students planning to study overseas. Up next, we'll delve into repayment options and additional benefits to round out your understanding of SBI's education loan offerings.

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Payment Terms and Benefits

Repayment Options

SBI's education loans for studying abroad offer repayment terms designed to ease the financial burden. Repayment starts 6 months after course completion, giving students time to secure employment. During this period, only simple interest is charged.

Key aspects of the repayment structure include:

• A repayment tenure of up to 15 years.
• EMIs based on the principal amount and accumulated interest.
• Interest accrued during the moratorium period is added to the principal, which increases future EMIs.

These terms are paired with additional perks provided by SBI, detailed below.

Available Subsidies

SBI provides interest subsidy schemes to assist students from specific communities pursuing international education. Here's an overview:

Tax Deductions

Borrowers can take advantage of tax deductions on interest paid for education loans under Section 80E of the Income Tax Act. Here's what you need to know:

• Deduction Period: Available for 8 years from the start of interest repayment.
• Amount Limit: No upper limit on the interest amount that can be claimed.
• Eligibility: Applicable only under the old tax regime for individual taxpayers.
• Coverage: Only applies to the interest paid, not the principal.

To make the most of these tax benefits, ensure you keep proper records of interest payments. Annual interest certificates from SBI can help simplify tax filings and ensure accurate deduction claims

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Loan Success Tips and Other Options

How to Improve Approval Chances

Want to boost your chances of getting that loan approved? Here are some practical steps to strengthen your application:

• Focus on Academics: Performing well in your studies shows lenders you're serious about completing your course.
• Organize Financial Documents: Make sure all required financial paperwork is accurate and up to date.
• Plan Ahead: Leave enough time between loan disbursement and fee deadlines to avoid last-minute stress.

Here’s a simple timeline to keep you on track:

By following these steps, you'll improve your chances with SBI or any other lender you choose.

Other Loan Providers

If SBI’s terms don’t work for you, don’t worry - there are other options worth exploring:

• Digital Lenders: Platforms like Propelld offer fast, collateral-free education loans. They focus on your future earning potential instead of just your credit history.
• Traditional Banks:
  
  1. HDFC Credila provides loans with competitive interest rates.
  2. ICICI Bank has programs tailored for international education.
• International Lenders: Prodigy Finance supports students from over 115 countries, with a repayment success rate exceeding 99%.

To cover all your bases, think about combining loans with scholarships, savings, or other financial aid. A mix of funding sources can help make your education abroad more manageable.

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Summary

SBI's Global Ed-Vantage program provides an education loan tailored for students pursuing studies abroad. With loans available up to ₹1.5 crores, the program offers competitive interest rates - 10.15% for male students and 9.65% for female students. It covers key expenses like tuition, accommodation, travel, and study materials for institutions in countries such as the USA, UK, Canada, and Australia.

Here are some of the program's highlights:

This program makes international education more achievable for students from middle-income families by offering extensive coverage and borrower-friendly terms.

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Why Propelld?

Propelld offers easy and flexible education loans with quick approval and low interest rates. It provides customised repayment options, making higher education more accessible without financial stress.

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The following are the primary benefits of Propelld.