With over 24000 branches across India, The State Bank of India (SBI) is one of India's most prominent and trusted public banks. It was SBI that first introduced an education loan scheme in 1995, kicking off the culture of education loans in India.

The SBI has 5 different education loan schemes as per students' requirements: SBI Scholar loan is a 100% non-collateral education loan for students who have been accepted into prestigious institutes in India, SBI student loan is for study in India cases for loan amount up to 20 lakhs (collateral education loan), SBI global Ed-Vantage is exclusively for abroad education.

And in this article, we'll cover SBI global Ed-Vantage scheme in detail because for abroad studies, you'll get a loan from SBI under this scheme.

The same is also covered in our fifth episode of the LoanFlix series which is embedded below-

What is SBI Global Ed-vantage Loan Schemes?

SBI global Ed-Vantage scheme is a collateral education loan scheme meaning you are required to pledge collateral securities to get an education loan. The overview of the SBI global Ed-Vantage scheme is given below-

Parameters

Provision

Loan amount

Above INR 7.5 lakhs -up to INR 1.5 Crore

Interest Rate

8.65% (effective ROI as of 09-03-2022)

0.5% concession granted to female candidates

0.5% concession granted to students availing of RiNn Raksha Loan Insurance Scheme

Loan Margin

Minimum 10%. Margin to be brought in on a year-on-year basis

Total Expenses covered by the education loan

Tuition Fees, Living expenses, Study aid expenses, travel expenses, library fees, etc.

Moratorium period

Average moratorium period comprises of the course duration + 6 months (can be extended to a year)

Total Loan Tenure

Up to 15 years

Processing Fees

Rs. 10,000 + Legal & Valuation Fees

How much can you borrow under SBI Global Ed-vantage Scheme?

Under the SBI Global Ed-vantage scheme, you can get up to 1.5 crores depending on the value of the pledged collateral and your total loan requirement.

Bear in mind, under this scheme, SBI keeps a minimum of 10% loan margin money meaning it covers only 90% of one’s expenses.

Read more- How are collateral valued for an education loan?

What are the interest rates in SBI for abroad studies?

If you are a female student you can get an abroad education loan from SBI with interest rates as low as 7.65%.

How? So, the effective interest rate is 8.65% for the male candidates and 8.16% for the female candidates (0.50% concession granted to female candidates)

If you avail of the RiNn Raksha Loan Insurance Scheme, you get an additional 0.50% concession on the interest rates making the effective rate of interest for the male and female candidates is 8.15% and 7.65% respectively.

Note: SBI has shifted from MCLR to EBLR which means you'll get a floating rate of interest in SBI as well.

What is the RiNn Raksha Loan Insurance scheme?

SBI RiNn Raksha Insurance is a group credit life insurance plan offered by SBI Life Insurance Company Limited. This plan can be opted for by students who borrow education loans to protect their co-applicant from repayment liability.

For eg- In the unfortunate event of a student's death, the insurance repays the loan, relieving the co-applicant of the burden of paying back the loan to the bank and returning the guarantor's ownership of the pledged property/asset.

What is the eligibility to apply for SBI abroad education loan?

There are a few basic guidelines that students are required to meet in order to be eligible for an SBI abroad education loan.

If you search for the eligibility criteria from the official site, you’ll find these plainly stated terms. And in the majority of the cases, the branch officials do not take up the burden of properly explaining to you the eligibility criteria.

We've covered the eligibility criteria required by the major public banks including SBI in this article in great detail- Applicants Eligibility Criteria for Education Loan.

Which courses and countries are eligible for an SBI education loan?

When it comes to the courses and countries that SBI accepts for education loans, SBI funds for practically all of them. Medical and Ph.D. courses, which are not funded by commercial lenders, can be funded by an SBI education loan as long as you have collateral to pledge.

What are the documents required by SBI for education loans?

The documentation phase is the most important in an education loan process since any delay in submitting or failing to arrange any particular document might result in your loan application being rejected.

You would need to arrange the required documents of not just your and your co-applicant but also of the collateral that you are pledging. You do not have to submit the original documents but a photocopy of the original documents at the time of applying for an education loan.

We've written our previous article on this same topic which is education loan documents required by Government banks. You can read this article to learn more.

What is the processing fee in SBI for education loans?

The processing fee charged by SBI is Rs. 10,000. plus 1,800 GST. An additional fee of Rs. 7000-8000 will be charged for legal (by the lawyer) and valuation (by the appraiser) if the pledged collateral is immovable property.

This additional process and charges are not applicable for those who have pledged liquid securities as collateral.

How to apply for an SBI abroad education loan?

Since the outbreak of the pandemic, as everything goes digital, students can now apply for education loans online which are safe, quick, and less time-consuming.

The application procedure for education loans may seem very overwhelming and scary, this is why when you apply via WeMakeScholars, the financial officer assigned to you does all the talking and coordination with lenders (banks and Pvt lenders) on your behalf and makes your education loan process a cakewalk for you.

If you have any other questions regarding an abroad education loan or any other related topic, feel free to request a callback from the WeMakeScholars support team for clarifications. We are very active online and would love to answer your comments. So, feel free to leave your comment at the end of this article or on our YouTube channel.