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State Bank of India - Study Abroad Education Loan

The State Bank of India (SBI), established in 1806, is the oldest commercial bank in the Indian subcontinent. It is also one of the country's leading nationalized lenders for overseas education loans. An SBI Education loan is the go-to option for most overseas education aspirants as it offers various benefits.

SBI education loan for abroad without security or with security are collectively of 5 types of SBI Education Loan Schemes. Those are the SBI Scholar Loan Scheme, SBI Skill Loan Scheme, SBI Takeover of Collateralised Education Loan Scheme, SBI Student Loan Scheme and SBI Global Ed-vantage Scheme.

Among these loan options, in this article, we are going to take you through the overseas education loan services offered by SBI.

The SBI Global Ed-vantage scheme is availed by overseas education aspirants to fund their international degrees. This loan scheme is an excellent option for students as it provides a quantum of finance starting from 7.5 lakhs, up to 1.5Cr (No limit if project cost is more). Moreover, the bank provides a loan margin of 90% + 10% (with each disbursement). Thus, the SBI Global Ed-Vantage loan is recommended for abroad education.

Now, let us know about the eligibility criteria and expenses covered in the SBI education loan:

Eligibility Criteria

To get an overseas education loan from SBI, loan applicants need to meet the given eligibility criteria.

  • Must be an Indian.
  • Must have secured admission to a recognized foreign university or institution.
  • Must have collateral security to pledge.

Apart from these basic eligibilities, the loan applicant must also check the other guidelines of SBI. These include age limit, academic performance, and co-applicant requirements.

Expenses Covered

  • Tuition fees of the university/college, examination fees, library, and lab fees
  • Expenses of on-campus and off-campus accommodation including mess expenses
  • Air Ticket Fare
  • Student Health Insurance
  • Purchase of books, equipment, and uniform
  • The purchase amount of the laptop
  • Any other expenses required to complete the course like study tours and project work.

The majority of the students go for SBI education loan schemes due to the numerous benefits it offers. Let us know what those are.

Benefits of Availing of an SBI Education Loan:

  • SBI gives collateral loans starting from 7.5 lakhs up to 1.50 crores.
  • The SBI education loan interest rate for abroad has the lowest rate of interest starting at 11.15%
  • Co-applicant is eligible for tax deduction benefits under section 80E.
  • SBI gives loans to all levels of courses i.e., Bachelor’s degree, Master’s degree, UG Diploma/Certification, PG Diploma etc. Pathway, Foundation, and Integrated Courses are also accepted.
  • Rin Raksha Insurance concession of 0.50%
  • Girl students are given a 0.50% of concession on ROI.
  • Serving simple interest during the moratorium period is optional.
  • Pre-Visa disbursement of tuition fees and living expenses as required by the University / Visa authorities.
  • Bank disburses the living expenses in SBI Forex Card, for up to 6 months.
  • If ITRs are not available, students can get loans based on income certificates also.

Although the processing fee for the SBI education loan scheme depends on the pledged collateral however there are some charges that students are required to pay. Let us know about those:

What are the Charges Involved in the Whole Loan Process?

To get the education loan sanctioned, a student is required to pay certain charges for the valuation report and search report. Let us understand the complete process and the applicable charges.

  • Once the loan file is submitted to the local branch, it is then forwarded to the architect for valuation and to the lawyer for a search report. Valuation of the property costs around 2500/- whereas applicable charges for search report is 4000/-
  • After the sanctioning of the loan, a student must pay the processing fee of Rs. 11800/-
  • The mortgage process begins after getting the visa. If the loan amount sanctioned is above 5 lakhs INR, then the students must pay 0.3% for stamp duty against
  • The notice of intimation charges: The registration fee will be 0.5% of the loan amount or a maximum of 15,000 INR (irrespective of the loan amount)
  • Students are required to avail of loan insurance from the bank. The loan insurance charges are required to be bear by the parents.

Understand the Step-by-Step Process of the SBI Education Loan:

Step 1: Collect all documents as per the SBI loan checklist.

Step 2: Evaluating property documents and checking academic, and financial documents.

Step 3: Fill up the SBI loan application.

Step 4: Submission of loan file to nearest SBI branch

Step 5: SBI Branch will forward the loan file to the Zonal office/RACPC Office

Step 6: Initiate the process for the search and valuation report.

Step 7: Actual processing & sanctioning after receiving both reports.

Step 8: Receiving the loan sanction letter.

Step 9: Initiate the property mortgage process.

Step 10: Disbursement of the loan as per the VISA norms

Step 11: Laptop expenses, VISA fees, and Airfare to disburse after approval of VISA.

List of Documents Required for the SBI Education Loan Scheme:

While submission of the documents to the SBI bank for processing of the education loan, students are required to carry one set of Xerox documents along with the original academic and KYC documents.

  • Offer Letter stating tuition fees.
  • Student academic documents (10th to graduation)
  • Student employment documents if any
  • KYC documents to be submitted by applicants as well as co-applicants.
  • Electric Bill as proof of residence in the name of co-applicant
  • Student, co-applicant’s saving account bank statement – 6 months
  • Income Tax Returns for the last 2 years
  • Collateral property documents

Now, let us Understand the Types of Collaterals on which an SBI Education Loan can be Availed:

For secured education loans, two types of collateral are accepted by the SBI for overseas education loans. They are Immovable assets and Movable assets.

To pledge an immovable asset against the loan amount, it should be located within the city limit area i.e., it should be an urban property. Education loan is not availed on the collateral coming under the rural area. Here are some of the important points to know about immovable and movable assets:

Immovable Assets

  • Immovable assets include an independent house, a flat, an open plot and a shop.
  • 75% of the amount gets sanctioned against the market value of the property.
  • The value of security should be taken as per the valuation report. The collateral value is evaluated by authorized property evaluators and is generally lower than the market value but in compliance with the government rules and regulations of property evaluation.

Movable Assets

  • Movable assets include fixed deposits, LIC policy, government bonds and mutual funds.
  • Security offered for Fixed Deposit with Banks is 90% of the total amount.
  • Security offered for Government Securities for Public Sector Bonds is 25% in the bank’s favour.
  • Security offered for shares and debentures is 50% in the bank’s favour.
  • Security offered for LIC policies is 100% surrender value of the policy.

Here is a List of Documents Required to Submit for Availing Collateral Loan against the Property:

A student is required to provide one set of xerox documents to the bank. To initiate the search report, a student should carry original property documents for cross-verification. The documents should be in the name of the present property owner, and they should not be laminated.

Refer to the table below to know the list of property documents:

Residential House / Shop
Additional documents are required in case of a Flat / Shop located in an Apartment
Registered title deed (Sale deed) 
Deed of Declaration / Apartment
Previous owner’s sale deed
Allotment / Possession Letter
Agreement to sale (if any)
Occupancy certificate
Transfer deed/gift deed (if any)
Society Registration certificate
Tax receipt
NOC from society
Mutation copy (Index – II, Khata ‘A’)
Shares certificate
Sanctioned Layout Map
Power of Attorney (if applicable)
Building Permit Letter

Electricity Bill

Why Begin the SBI Education Loan Process Early?

It is always advisable to begin the loan process early on as it will increase your chances of securing a seat in the university or well in time before the visa interview.

  • Our expert loan counsellors will inform you about your loan eligibility which will help you in planning your finances accordingly.
  • The legal report and property valuation can be done beforehand increasing your chances of getting an education loan as it is valid for 3 months and 2 years respectively.
  • If any property documents are missing, our loan experts will guide you on how to avail them.
  • In case of Income Tax Return is not ready, we will guide you on how to proceed for the same as per the visa norms.

Now that you are aware of the SBI education loan schemes, choose a suitable loan option for your overseas education. Do in-depth research and look for the loan that suits your profile or else simply contact us and we will take care of everything.

How Will ELAN Loan Speed Up Your Education Loan Application?

We know that an education loan is a quite tedious and time-consuming process. Hence, we would recommend getting in touch with the loan experts.

Here is How We Will Assist You:

  • ELAN Loan has partnered with the State Bank of India that make the complete education loan process much quicker and faster.
  • The loan experts at ELAN check the documents thoroughly and see if you align with the SBI education loan for abroad eligibility. Later they will submit those to the nearest SBI branch for processing of your loan application.
  • Apart from this, our loan experts will guide you accordingly if there are any loopholes in your loan application.
  • We will continuously take follow up with a bank that helps in speeding up your loan application.

In short, we will provide end-to-end assistance for your overseas education loan. So, if you are planning to take an education loan in India for study abroad , look no further than ELAN. Contact us today to get your loan sanctioned on top priority.

FAQs

  • Which SBI loan scheme can be availed by overseas education aspirants?

    The SBI Global Ed-vantage scheme can be availed by overseas education aspirants to fund their international degrees.

  • How much is the quantum of finance for the SBI Global Ed-vantage scheme?

    Under this scheme, the quantum of finance starts from 7.5 lakhs and goes up to 1.5 Cr. However, there is no limit if the project cost is more, and adequate collateral security is pledged.

  • What kind of expenses are covered in the SBI education loan?

    All kinds of study-related expenses are covered in the SBI education loan. These include tuition fees, examination fees, library, and lab fees, accommodation, air tickets, student health insurance, and purchase of books, laptops, equipment, and uniform. Additionally, any other expenses required to complete the course like study tours and project work.

  • Are there any interest rate concessions given by SBI?

    Yes, you can get a Rin Raksha Insurance concession of 0.50% and a girl student concession of 0.50% on ROI.

  • What are the types of collateral that are accepted by the SBI for overseas education loans?

    For secured education loans, two types of collateral are accepted by the SBI for overseas education loans. They are Immovable assets and Movable assets.

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