SBI Bank Education Loan for Abroad Studies 2024 – Interest Rate & Eligibility

SBI Bank Education Loan for Abroad Studies: Pursuing higher education abroad is a dream for many, but the financial burden can often be a roadblock. The State Bank of India (SBI) offers specialized education loans to help students achieve their international academic goals. This guide provides a detailed look at SBI’s education loan for abroad studies, covering eligibility, documentation, loan amount, interest rates, and more.

What is SBI Bank Education Loan for Studying Abroad?

SBI stands out as one of India’s most trusted public sector banks, offering comprehensive financial solutions, especially in the realm of educational loans. Here’s why SBI’s Global Ed-Vantage Scheme is highly sought after:

1. Competitive Interest Rates: With one of the lowest interest rates in the market, SBI makes higher education abroad more accessible.
2. High Loan Limits: SBI provides loans up to ₹1.5 crores, sufficient for covering education expenses even in top universities.
3. Flexible Repayment Options: SBI’s extended repayment period up to 15 years reduces the financial burden on students post-graduation.
4. Simplified Processing: SBI offers transparent terms and an easy application process, ensuring students and their families understand every step.

SBI education loan schemes with details on interest rates, processing fees, benefits, loan limits, eligibility, and eligible courses.

SBI Bank Education Loan Interest Rate

The interest rates of the SBI bank student loan/ education loan is as follows:

Loan Amount	Interest Rate
Up to 7.5 Lakhs	9.95%
Above 7.5 Lakhs	10.70%

SBI Education Loan Scheme

The following are the SBI Bank Education Loan schemes. Students can choose best scheme with low interest rate.

1. SBI Student Loan Scheme

Interest Rate	11.15% p.a. Girl Student Concession: 0.5% Insurance Concession: 0.5%
Processing Fee	Up to Rs. 7.5 lakh: Nil Above Rs. 20 lakh: Rs. 10,000 + taxes
Benefits	Concessions for girls and Rinn Raksha policy holders
Loan Limit	Up to Rs. 10 lakh (India); Rs. 7.5 lakh (abroad)
Eligibility	Indian nationals with admission in recognized institutions
Eligible Courses	Undergraduate, postgraduate, diplomas, professional courses, and study abroad programs

Loan Amount & Interest Rate: Loans based on institution categorization with competitive interest rates; girl students receive 0.5% interest concession.
Eligible Courses: Higher education in premier institutions like IITs, IIMs, NITs, AIIMS.
Security & Repayment: Loans up to Rs. 40 lakh may require minimal or no collateral based on the institution category. Repayment period up to 15 years post moratorium.

2. SBI Scholar Loan Scheme

Interest Rate	Variable rates based on institution category; 0.5% concession for girls
Processing Fee	Varies based on loan amount
Benefits	Preferential terms for students in premier institutions
Loan Limit	Up to Rs. 40 lakh for top institutions
Eligibility	Admission to approved premier institutions
Eligible Courses	Courses in IITs, IIMs, NITs, AIIMS, and similar top institutions

3. SBI Skill Loan Scheme

Interest Rate	Nominal, competitive rates
Processing Fee	Nil
Benefits	Concession on skill development loans
Loan Limit	Up to Rs. 1.5 lakh
Eligibility	Students in NSDC-affiliated skill development programs
Eligible Courses	Certification courses approved by the National Skill Development Corp.

Loan Amount & Interest Rate: Up to Rs. 1.5 lakh; nominal interest rate.
Eligible Courses: NSDC-affiliated skill development programs and recognized certification courses.
Security & Repayment: No collateral. Repayment begins six months after course completion, with terms of up to 7 years.

4. SBI Global Ed-Vantage Scheme

Interest Rate	Competitive international rates with 0.5% concession for girls
Processing Fee	Rs. 10,000 + taxes
Benefits	Special scheme for international studies
Loan Limit	Rs. 20 lakh to Rs. 1.5 crore
Eligibility	Indian nationals with confirmed admission to foreign institutions
Eligible Courses	Graduate and post-graduate programs abroad (technical, management)

Loan Amount & Interest Rate: Rs. 20 lakh to Rs. 1.5 crore; attractive interest rates with a 0.5% concession for girl students.
Eligible Courses: Graduate/post-graduate studies in international institutions.
Security & Repayment: Requires tangible collateral. Repayment begins six months post-course completion with a 15-year tenure.

5. SBI Takeover Education Loan Scheme

Interest Rate	Based on remaining tenure and rates of the loan from the previous bank
Processing Fee	Varies based on loan amount
Benefits	Competitive rates for transferring loans
Loan Limit	Based on the outstanding balance
Eligibility	Holders of education loans in other banks
Eligible Courses	Courses eligible under the SBI Student Loan Scheme

Purpose: Allows the transfer of education loans from other banks to SBI at competitive rates.
Loan Amount: Customizable depending on remaining loan balance and added expenses.
Security & Repayment: Based on loan amount and existing collateral; repayment terms can extend as per SBI norms.

6. Shaurya Education Loan Scheme

Interest Rate	Concessional rates for families of defense personnel
Processing Fee	Based on loan amount
Benefits	Flexible repayment options for defense families
Loan Limit	Based on specific course and collateral requirements
Eligibility	Families of defense, Indian Coast Guard, and CAPF personnel
Eligible Courses	Graduate, post-graduate, and technical courses in India and abroad

Loan Amount & Interest Rate: Special rate concessions for wards/spouses of defense, Indian Coast Guard, and central armed police personnel.
Eligible Courses: Similar to other SBI education schemes for higher studies in India or abroad.
Security & Repayment: Flexible requirements based on the loan amount; repayment up to 15 years.

SBI Bank Education Loan for Abroad Studies

1. Loan Amount and Coverage

• Maximum Loan Amount: Up to ₹1.5 crores, which includes tuition fees, travel expenses, books, and other study-related costs.
• Minimum Loan Amount: While there is no fixed minimum, SBI’s overseas education loan scheme typically starts at ₹7.5 lakhs.
• Expense Coverage: The loan covers tuition, accommodation, exam fees, travel, and other academic-related costs like laptops and project work.

2. Interest Rates

SBI’s education loan for abroad studies offers competitive interest rates, usually within the range of 10.50% to 12.50%. Here’s a breakdown:

• Standard Rate: The rate may vary depending on the amount and repayment tenure.
• Interest Concession for Women Applicants: SBI offers a 0.5% concession on the interest rate for female applicants.

3. Repayment Tenure and Moratorium Period

• Repayment Period: Up to 15 years, allowing for manageable monthly installments post-graduation.
• Moratorium Period: Students are not required to start repaying until six months after completing their course, ensuring financial stability before repayments start.

4. Collateral Requirements

• Collateral Requirement: Loans above ₹7.5 lakhs usually require collateral. Acceptable forms include property deeds, FD certificates, or government bonds.
• Margin Requirements: SBI mandates a margin (student’s contribution) of around 10-15% for loans exceeding ₹4 lakhs, though the exact margin may vary.

Eligibility Criteria for SBI Education Loan for Abroad Studies

• Academic Eligibility
  • Accepted Courses: Graduate, postgraduate, and doctoral programs are eligible. SBI’s education loan is also available for diploma courses if recognized by credible universities or institutions abroad.
  • Eligible Institutions: Loans are sanctioned only for reputed foreign universities and colleges. Admission to top-ranked institutions can also increase chances of approval.
• Age Criteria
  • Minimum Age: 18 years, although guardians can apply on behalf of minors.
  • Maximum Age: Typically up to 35 years.

• Creditworthiness and Co-applicant Requirement
  • Co-applicant Requirement: A co-applicant, usually a parent or guardian, is mandatory. This provides financial backing and security for the bank.
  • Creditworthiness: Both the student and co-applicant’s financial backgrounds are considered.

SBI Education Loan Documents Required

The documentation process is straightforward and includes the following:

1. Identity and Address Proof: Aadhar, Passport, or Driving License.
2. Academic Documents: Marksheets, admission letters, and fee structure from the foreign university.
3. Financial Documents: Income proof of co-applicant, bank statements, and any existing loan details.
4. Collateral Documents: Property papers or any other acceptable collateral.

Properly organized documentation significantly speeds up the approval process.

Application Process for SBI Education Loan for Abroad Studies

The loan application process with SBI is a mix of online and offline steps. Here’s a quick guide:

1. Online Application: Visit the SBI education loan portal to submit the online application.
2. Document Submission: Post online application, submit all required documents at the nearest SBI branch.
3. Loan Sanction: After document verification and collateral assessment, the loan is sanctioned.
4. Disbursement: Funds are disbursed directly to the educational institution.

A strong co-applicant profile and a reputable foreign university can speed up the approval process.

SBI Student Loan Scheme

Details for each SBI education loan scheme, including interest rates, processing fees, benefits, loan limits, eligibility, and eligible courses:

Scheme	Interest Rate	Processing Fee	Benefits	Loan Limit	Eligibility	Eligible Courses
SBI Student Loan Scheme	11.15% p.a. 0.5% concession for girls and SBI Rinn Raksha holders	Up to Rs. 7.5 lakh: Nil Above Rs. 20 lakh: Rs. 10,000	Concession for girls and insurance holders	Up to Rs. 10 lakh (India), Rs. 7.5 lakh (abroad)	Indian nationals with admission to recognized institutions	Graduate, post-graduate, diplomas, professional courses (India & abroad)
SBI Scholar Loan Scheme	Varies by institution, with 0.5% concession for girls	Varies based on loan amount	Preferential terms for premier institutions	Up to Rs. 40 lakh for top-tier institutions	Students admitted to approved premier institutions	IIT, IIM, AIIMS, NIT, and other top Indian institutions
SBI Skill Loan Scheme	Competitive, nominal rates	Nil	Concession on rates for skill development	Up to Rs. 1.5 lakh	All students pursuing NSDC-affiliated programs	NSDC-approved skill certification courses
SBI Global Ed-Vantage Scheme	Starting at competitive international rates with 0.5% for girls	Rs. 10,000	Special scheme for international studies	Rs. 20 lakh to Rs. 1.5 crore	Indian nationals with confirmed admission abroad	Graduate, post-graduate (technical, management, etc.)
SBI Takeover Education Loan	Based on remaining loan rate and tenure from previous bank	Varies based on loan amount	Competitive rates for transferred loans	Based on outstanding balance	Existing education loan holders in other banks	Courses similar to those under the Student Loan Scheme
Shaurya Education Loan	Special rate concessions for defense families	Based on loan amount	Flexible repayment for defense personnel families	Based on course and collateral terms	Families of defense, Indian Coast Guard, and CAPF personnel	Graduate, post-graduate, and technical courses in India and abroad

Benefits of SBI Bank Education Loan for International Studies

1. Competitive Interest Rates: One of the lowest among public banks, with concessions for female students.
2. No Prepayment Charges: Students can prepay the loan without any extra fees, encouraging early debt clearance.
3. Extended Moratorium Period: Students have up to six months post-course completion before repayment begins, allowing ample time to secure a job.
4. Top-Up Loans: SBI allows additional loans for living expenses or additional semesters if the course duration extends.

SBI Education Loan EMI Calculator

With SBI’s Education Loan EMI Calculator, you can effectively plan and budget for your education loan repayment. By inputting your loan amount, interest rate, loan tenure, and any prepayments, the calculator provides an immediate breakdown of your monthly EMI (Equated Monthly Instalment). Using sliders for the loan amount and tenure and entering the interest rate and processing fees, you can quickly see your total repayment schedule. Just hit ‘Calculate,’ and the calculator generates a detailed EMI schedule, helping you manage your finances with ease.

Important Tips to Increase Approval Chances

1. Strong Academic Profile: A good academic track record and admission to a reputed institution improve loan approval chances.
2. Clear Financial History: Ensure the co-applicant has a stable income and a good credit history.
3. Accurate Documentation: Complete and organized documents can fast-track the process.
4. Consult Third-Party Experts: Third party provide additional support and advice, easing the application process with detailed guidance.

Conclusion

An SBI education loan for abroad studies is a well-rounded option for students aiming to study internationally. With competitive interest rates, flexible repayment options, and a streamlined application process, SBI offers a practical solution for funding higher education abroad. By understanding eligibility, documentation, and approval requirements, students can confidently apply and focus on achieving their educational goals.

FAQs on SBI Education Loan for Abroad Studies