Were you aware that during the fiscal year 2021-22, State Bank of India (SBI) played a pivotal role by disbursing nearly 47% of the total student loans approved by Indian public sector banks? For a more in-depth analysis of this insightful report, you can access further details by clicking here. Within the context of this blog, our focus will be on unraveling the nuances of the SBI education loan designed specifically for those aspiring to study abroad – a scheme aptly named the SBI Global Ed-vantage. Join us as we navigate through the intricacies of this specialized program.
About SBI education loan
Established back in 1955, the State Bank of India (SBI) stands as the largest public sector bank in India, boasting supremacy in assets, deposits, branches, customer base, and workforce. One of its notable offerings is the provision of education loans catering to eligible students with aspirations for higher education, be it within the borders of India or on a global scale. Under the Global Ed-Vantage education loan scheme, SBI offers secured financial assistance to Indian students embarking on higher education endeavors abroad. Through this initiative, students can secure loans of up to INR 1.5 Crore to fund their educational pursuits beyond India. The key requirement for availing of this educational support is the provision of collateral, valued at a minimum of 90% of the total loan amount.
Rinn Raksha Insurance
Rinn Raksha, a feature presented by the State Bank of India (SBI), is an insurance plan accessible for applicants availing various SBI education loan schemes. The primary purpose of this insurance is to protect the borrower’s family in the unfortunate event of the borrower’s premature demise during the loan repayment period.
Under the “Rinn Raksha” initiative, individuals opting for an SBI education loan for studies abroad have the flexibility to choose from two distinct insurance coverage options: Group Credit Life Insurance (GCLI) and Term Life Insurance (TLI). GCLI specifically covers the outstanding loan amount in the event of the borrower’s demise, whereas TLI offers coverage against the total sum assured. An additional benefit is extended to students who opt for this insurance, as they qualify for an extra 0.5% concession on the overall interest rate for their SBI education loan.
Eligibility for SBI Global Ed-vantage
Minimum Age Requirement: Applicants seeking SBI education loans must be at least 18 years old or older at the time of application and must be Indian citizens.
- Educational Qualification Criteria: To be eligible for an SBI education loan for overseas studies, candidates must secure admission to a recognized university or institution for the intended degree or diploma program.
- Academic Excellence: A prerequisite for SBI education loans is a consistently strong academic record that meets the bank’s specified criteria. Applicants must also complete required tests such as GRE, IELTS, or TOEFL before applying.
- Co-applicant Requirement: A co-applicant with a regular income and a favorable credit history, who can be either a parent or legal guardian, is mandatory for the loan application.
- Study Program and Country Consideration: SBI’s foreign education loan covers a range of courses, including regular graduate/post-graduate/diploma/certificate/doctorate programs in any discipline offered by foreign institutes. Pathway courses leading to the main program may also be included. Approval from country-specific aviation regulatory authorities is necessary for pilot training courses.
- Supported Countries: SBI education loans facilitate studies in various countries, including the USA, UK, Canada, Australia, Singapore, Japan, Hong Kong, New Zealand, and Europe (Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, United Kingdom).
- Accepted Collateral: For abroad education loans, SBI considers residential property and buildings, along with fixed deposits, as acceptable collateral.
SBI Global Ed-vantage loan features
The SBI education loan for studying abroad encompasses a loan amount ranging from INR 7.5 Lakh to INR 1.5 Cr. The interest rate, set at 11.15% with a floating rate, includes a 0.5% concession for female applicants. A non-refundable processing fee of INR 10,000 + GST is applicable. The margin money requirement varies, with 15% for loan amounts between INR 7.5 Lakh to INR 20 Lakh and 10% for amounts exceeding INR 20 Lakh. Property evaluation charges, approximately INR 7,500, are subject to change based on location and property. The moratorium period spans the course duration plus an additional 6 months, and the repayment tenure extends up to 15 years.
Read More: https://www.gyandhan.com/sbi-education-loan
In summary, the education loan for overseas studies, particularly the Global Ed-Vantage scheme, offered by the State Bank of India (SBI), serves as a robust financial support mechanism for Indian students. With its inception dating back to 1955, SBI, the largest public sector bank in India, extends extensive coverage for higher education expenditures, providing loans of up to INR 1.5 Crore with a 90% collateral requirement. Noteworthy features include a competitive interest rate, insurance options through Rinn Raksha, and flexible repayment terms. To avail of this opportunity, applicants need to meet specific eligibility criteria and submit a designated set of documents. SBI’s commitment to empowering students is evident in its significant contribution to the disbursement of student loans among Indian public sector banks.
