Education Loan

SBI Education Loan Without Collateral for Abroad Studies

SBI Education Loan Without Collateral for Abroad Studies

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Read GyanDhan’s guide on SBI education loans for abroad without collateral. Also, get a free document checklist.

GyanDhan
Ananya Ghai
Updated on:  26 Apr 2024  | Reviewed By: 
Aman 
| 221 | 6  min read

State Bank of India (SBI), one of the leading banks in India, offers an array of education loans tailored to ease this burden. A particularly intriguing option is the education loan without collateral SBI. An education loan without collateral, also known as an unsecured education loan, does not require the borrower to pledge any assets against the loan amount. SBI provides this unsecured education loan option, facilitating students' aspirations to study abroad or in India without the pressure of securing assets.

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What are the Eligible Courses for Education Loan Without Collateral SBI?

SBI education loan for abroad without collateral caters to a broad spectrum of courses, ensuring that students from various academic fields can avail of this opportunity. The loan covers:

  • list items Undergraduate courses like B.A., B.Com., and B.Sc.
  • list items Postgraduate courses including Masters and Ph.D.
  • list items Professional courses in Engineering, Medical, Agriculture, Law, and more.
  • list items Certificate and diploma courses from reputed institutions.
  • list items Courses conducted by premier institutes like IIM, IIT, and IISc.
  • list items Whether it's a regular degree in Aeronautical Engineering or a diploma in Shipping, if the course is recognized by authorities like UGC, AICTE, or the Director General of Civil Aviation, students can apply for the loan.

 

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What is the Eligibility Criteria for SBI Abroad Education Loan Without Collateral?

To be eligible for the loan, students need to fulfill the following eligibility criteria:

  • list items Excellent academic records.
  • list items Minimal gaps in education.
  • list items Relevant work experience, if applicable.
  • list items Enrollment in a degree or diploma program.
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SBI Education Loan for Abroad Without Collateral

A collateral-free loan means that the borrower is not required to pledge any assets (like property or investments) as security for the loan amount. This is particularly advantageous for students who may not have significant assets to their name or those who do not wish to put their family's assets at risk. SBI education loan for abroad without collateral offers loans up to INR 7.5 lakhs.

This threshold is set to cover a wide range of educational expenses for most undergraduate and many postgraduate courses in India, making higher education accessible to a broader demographic. While the collateral-free loan is available up to INR 7.5 lakhs, students requiring more substantial financial support can still apply for higher amounts. However, for loans above this threshold, collateral will be necessary. 

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Documents required for SBI Education Loan Without Collateral for Abroad

The documentation process for SBI's education loan is meticulous, ensuring that the bank has a complete understanding of the applicant's and co-applicant's financial and academic backgrounds.

  1. list items Proof of identity: A PAN card is mandatory for both the student and the co-applicant. If the student has a passport, that too should be presented. These documents serve to verify the identity of the individuals involved.
  1. list items Proof of residence: A range of documents can be used to establish residence, including Voter ID, Passport, utility bills, Ration card, Bank statements, or Aadhar card. Two different proofs are required if the current and permanent residences differ, ensuring a thorough verification process.
  1. list items Bank account statement: The last six months' bank statements are scrutinized to assess the financial behavior and stability of the applicant and the co-applicant. For the co-applicant, these statements should reflect salary credits if they are employed or business transactions if they are self-employed.
  1. list items Personal asset & liability Statement: This statement provides a snapshot of the financial health of the applicant and co-applicant, detailing their assets and liabilities to evaluate their capacity to support the education loan.

Academic Documents of the Applicant

  1. list items Educational marksheets and certificates: Documents from 10th grade onwards, including 12th and degree certificates, are required to verify the student's academic journey and achievements.
  1. list items Proof of admission: This document should clearly indicate the student's acceptance into the course, specifying the total duration, which is crucial for determining the loan term.
  1. list items Fee structure: A detailed breakdown of the course fees aids in understanding the financial requirements of the student's education. For students heading to the US, the I-20 form is crucial as it outlines the cost and confirms enrollment.
  1. list items Standardized test scores: Scorecards from exams like IELTS, GMAT, or GRE may be required, particularly for students pursuing education abroad, showcasing their readiness and eligibility for the course.

Income Documents for Co-applicant

If salaried

  • list items Salary slips: The most recent three months' salary slips reflect the co-applicant's current financial status.
  • list items Form 16: This document from the past two years provides a summary of the co-applicant's tax paid to the government, indicating their annual income.
  • list items Employer's ID card: A verification tool to confirm the co-applicant's employment.
  • list items Income Tax Returns (ITR): The last two years ITRs offer a comprehensive look at the co-applicant's financial history and tax compliance.

If self-employed

  • list items ITR: The past three years' income tax returns give insight into the financial stability and earnings of the co-applicant.
  • list items Financial statements: Balance sheets and profit & loss accounts from the last three years demonstrate the business's financial health and performance.
  • list items Proof of business address: Establishes the legitimacy and operational base of the business.

SBI simplifies the process of obtaining education loans, making it more accessible and less burdensome for students and their families. By offering loans up to INR 7.5 lakh without the need for collateral or a co-signer, SBI directly addresses significant financial hurdles that students might face. This approach allows students to pursue their education without the added stress of securing assets or finding a guarantor. It empowers them to focus solely on their academic and professional aspirations, fostering a sense of confidence and independence.

Moreover, if you're considering an education loan of up to INR 7.5 lakh, GyanDhan is an excellent resource to explore. We are partnered with various financial institutions, including banks like SBI, to simplify the loan application process for students. They provide personalized assistance, helping students understand their loan options, eligibility, and the application process. Our services are designed to guide students in making informed decisions about financing their education, ensuring they find the best loan to match their needs without any hassle. Check your loan eligibility today to start your education loan journey.

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Frequently Asked Questions

What is the maximum amount I can borrow without providing collateral for an SBI education loan?

You can borrow up to INR 7.5 lakh without needing to provide any collateral for an SBI education loan. For amounts exceeding this threshold, collateral will be required.

What types of courses are eligible for the SBI education loan without collateral?

Eligible courses include undergraduate courses like B.A., B.Com., B.Sc., postgraduate courses including Masters and Ph.D., professional courses in various fields, diploma and degree courses from recognized institutions, and courses offered by premier institutes like IIM, IIT, and IISc.

What expenses are covered under the SBI education loan without collateral?

The loan covers various expenses such as tuition fees, living expenses, travel costs, examination fees, library fees, expenses for books, equipment, and other necessary educational materials.

What are the eligibility criteria for obtaining an SBI education loan without collateral?

Eligibility criteria include a strong academic record, minimal gaps in education, relevant work experience (if applicable), and enrollment in a recognized degree or diploma program.

What documents are required to apply for an SBI education loan without collateral?

Required documents include proof of identity and residence, academic records, proof of admission, fee structure, bank account statements, and income documents for the co-applicant, among others.

Are there any loan margin requirements for the SBI education loan without collateral?

For loans up to INR 4 lakh, there is no loan margin. For loans above INR 4 lakhs for studies in India, a 5% margin applies, and for studies abroad, the margin is 15%.

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