Overview
Established in 1955, the State Bank of India (SBI) is India’s largest public sector bank in terms of assets, deposits, branches, customers, and employees. The bank offers education loans to eligible students who wish to pursue higher education in India or abroad.
The Global Ed-Vantage education loan from SBI
The Global Ed-Vantage education loan scheme offers secured education loans to Indian students who want to pursue higher education abroad. Under this scheme, students can borrow up to INR 1.5 Cr to fund their education abroad. To secure SBI education loan for abroad students have to pledge collateral that holds at least 90% value of the total loan amount.
For example - If a student wants to secure a loan amount of INR 50 Lakh, then his collateral value should be atleast INR 45 Lakh.
Please note, under this scheme, collateral security offered by a third party (other than parents) can also be accepted.
Overview of the Global Ed-Vantage education loan from SBI
Feature
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Detail
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Loan amount
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INR 7.5 Lakh - INR 1.5 Cr
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Rate of Interest
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10.15% - 11.15% (Floating) (0.5% concession for female applicants)
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Processing fees
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INR 10,000 + GST (Non-refundable)
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Margin Money
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INR 7.5 Lakh-INR 20 Lakh - 15% INR 20 Lakh - 10%
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Property evaluation charges
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Approximately INR 7,500 (Note - property evaluation charges are subject to change, they may vary depending on one’s location and property)
|
Moratorium period*
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Course duration + 6 months
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Repayment Tenure
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15 years
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*Moratorium period is the time duration during which you are not required to make payments toward your education loan.
*Margin money refers to the amount of money that a borrower is required to contribute towards the loan, while the remaining amount is paid by the lender.
Eligibility criteria of the Global Ed-Vantage education loan from SBI
- Age: The applicant must be an Indian citizen and at least 18 years of age or older at the time of application.
- Education qualification: The applicant should have secured admission to a recognized university or institution for a course/program that leads to the chosen degree/diploma.
- Academic performance: The applicant should have a consistently good academic record and must meet the minimum academic criteria set by the lending institution. Also, the student must fulfill any prerequisite tests such as GRE, IELTS, or TOEFL.
- Co-applicant: The applicant must have a co-applicant, who could be a parent or a legal guardian, with a regular source of income and good credit history.
- Course and country of study: Education loan from SBI is provided to regular graduate degree/post-graduate degree/diploma/certificate/doctorate courses in any discipline offered by foreign Institutes/Universities are covered. Pathway courses leading to the main course are sometimes included under the total expenses, which can be financed as a part of the total expenses. In the case of pilot training courses, the courses need to have the approval of the country-specific aviation regulatory authority.
- Country of study: Education loan from SBI offers financial assistance for 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].
- Collateral: SBI accepts the following assets as collateral:
- Residential property, buildings
- Fixed deposits
What is Rinn Raksha Insurance?
Rinn Raksha is an insurance scheme offered by the State Bank of India (SBI) for its education loan borrowers. This insurance scheme provides protection to the borrower's family in the unfortunate event of the borrower's untimely demise during the repayment tenure of the loan.
Under the 'Rinn Raksha' scheme, SBI offers two types of insurance coverage options to education loan borrowers: Group Credit Life Insurance (GCLI) and Term Life Insurance (TLI). The GCLI provides coverage against the outstanding loan amount in case of the borrower's demise, while the TLI provides coverage against the total sum assured.
Not only this, students who opt for this insurance are eligible for an additional 0.5% concession on the overall interest rate of their education loan.
SBI education loan documents required
The documents required for an SBI education loan for abroad depend on several factors, primarily your academic and professional history, your co-applicant's financial and credit profile, and the location of the property or asset, which you offer as collateral.
Applicants' documents
- Identity proof: PAN/ Passport/ Driver’s License/ Voter ID card or government-issued identification document.
- Education loan application form.
- Address proof: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill/ driving license/ Aadhaar card.
- Passport.
- Past academic record.
- 10th standard mark sheet
- 12th standard mark sheet
- Undergraduate result (semester-wise)
- Entrance exam results (e.g. GMAT, GRE, TOEFL, etc.)
- Proof of admission: admission letter (A conditional admission letter is also applicable).
- Statement of expenses.
- 2 passport-size photographs.
- Loan A/C statement of one year (if applicable).
- Bank account statement of the student (if applicable).
Co-applicant’s documents
- Identity proof: PAN/ Passport/ Driver’s license/ Voter ID card or government-issued identification document.
- Address: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill or copy of passport/ driving license/ Aadhaar card.
- 2 passport-size photographs.
- If any previous loan is from other banks/ lenders, then the loan A/C statement of 1 year.
- Legal documents of the collateral/ property documents.
- Bank account statement of the co-borrower/guarantor, for the last 6 months (in case of takeover of education loan).
Income proof for salaried co-applicant/guarantor
- Salary slips for the last 3 months
- Copy of Form 16 of the last 2 years or copy
- Bank account statement for the last 6 months (Salary account)
- Brief statement of assets & liabilities of parent/ guardian/ other co-borrower
Income proof for self-employed co-applicant/ guarantor
- Business address proof
- Last 2 years IT returns (If IT Payee)
- TDS certificate (Form 16A, if applicable)
- Certificate of qualification (for C.A./ doctor and other professionals)
- Brief statement of assets & liabilities of parent/ guardian/ other co-borrower
- Bank account statement for the last 6 months
Documents required for SBI loan against property
The list of documents required for collateral for education loans from SBI depends on several factors, primarily: property type, purchase history, and location. Broadly, the following documents are required:
Common Documents:
- Registered sale deed.
- Approved plan or map of the constructed property.
- Chain documents, evidencing the ownership history of the property for the last 30 years.
- Latest property tax receipt.
- Occupancy proof.
Additional documents if you’re applying for an education loan from SBI with a property in the following cities:
- Mumbai or Pune
- NA order
- Urban land ceiling order
- NOC from a builder or society
- Share certificate
- Letter of allotment
- Conveyance deed of society
- If CIDCO / MHADA property: NOC and transfer letter
- Hyderabad
- Urban land ceiling certificate
- NA certificate, if not included in the sale deed
- 7/12 extract, if not included in the sale deed
- Encumbrance certificate
- Bengaluru
- RTC (Record of tenancy certificate)
- Conversion order (from agriculture to residential)
- Khata certificate (A or B)
- Property tax receipt
- Encumbrance certificate
How to contact SBI for an education loan
To contact SBI for an abroad education loan, you can choose the following methods -
Email
You can get in touch with SBI over email. Send an email to SBI’s customer support team at
[email protected]. Mention relevant details about your profile, and they will provide a response tailored to your needs.
Online application form
Branch visits
For a more personal approach, you have the option to visit the nearest SBI branch in your city or locality. The State Bank of India operates a vast network of 28,802 branches across all 36 states and union territories in India.
If you prefer a more convenient approach and want to avoid the hassle of physically visiting branches and dealing with complex application forms, you can apply for an education loan through GyanDhan, an education financing platform that specializes in assisting students in securing funds for their higher education abroad. Our dedicated counselors will carefully evaluate your profile and recommend the most suitable lenders for your specific loan requirements.
How to apply for an education loan from SBI via GyanDhan
To secure an SBI education loan abroad, you can apply online at the SBI website. Once you fill out the application form online, you will have to visit the nearest SBI branch with all your documents. To avoid these complex steps, you can simply apply for your education loan via GyanDhan.
GyanDhan is an online platform that helps students in India to finance their education abroad. With us, you can get your education loan sanctioned in four simple steps:
Apply online >> Free doorstep document collection >> Processing & approval >> Loan sanction & disbursal
Benefits of getting your SBI education loan through GyanDhan
Guaranteed best loan
GyanDhan is committed to providing you with the most competitive education loan available in the market. We strive to bring you the best possible deal. If you happen to come across a better offer, we will cover the difference in interest rates for the entire duration of your education loan.
Low turnaround time
GyanDhan officials coordinate with various departments within SBI to secure a loan approval in just 15-20 days. This is why 1000s of students trust us with their loan requests every year. If a student applies directly to the bank, the usual SBI loan processing time is around 30-45 days.
Doorstep service
SBI education loan for abroad, GyanDhan provides doorstep pickup service of documents in Delhi, Mumbai, Pune, Hyderabad, Bengaluru, Chennai & Kolkata.
100% Free of cost services
GyanDhan’s services for applicants are absolutely free. We do not charge any kind of processing fees or commissions from the applicants at all.
Higher chances of approval
In case of any missing documents, property issues, or other problems, we approach SBI officials promptly to find solutions. This ensures speedy resolution and significantly increases your odds of approval. In case of any bottlenecks, GyanDhan will always be by your side!
The GyanDhan effect on SBI
Feature
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With GyanDhan
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Without GyanDhan
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Document pickup service from home
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Yes (7 RO cities)
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No
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Personalized document checklist according to profile & area
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Yes
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No
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Branch Visits
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1-2
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7-8
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Pre-visa disbursements
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Easy
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Difficult
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Bottlenecks in an SBI Education Loan
Below, we describe typical bottlenecks that you should watch out for, along with ways in which we work around such bottlenecks to fast-track your education loan application.
Branch Side
All the documents are to be submitted before the starting of the sanctioning process. Additional documents may be required. Some SBI branches may not be very education loan friendly! From our experience of processing 1000s of education loans at SBI, we help identify the most experienced and friendly branch for you. We then liaise with the branch officials to present and discuss your case on your behalf. We present a customized checklist at the start so that you have to submit documents only once.
Legal Issues With The Property
The legal papers of your property and the property itself get verified by SBI empanelled advocates. The Turnaround Time (TAT) of the bank and the advocates is high and unpredictable. Also, many a time they don’t try hard enough to look for alternative documents and approaches if they find an issue with the documents or the property. GyanDhan has helped 1000s of students through such tough situations, and we can surely help you!
Technical Issues With The Property
Civil Engineers, empanelled by the SBI, evaluate the property by first visiting it, then measuring it, checking its location and age, and evaluating its Distress Sale Price, Fair Price, and Market Price. The Turnaround Time (TAT) of the Civil Engineer can be quite high and unpredictable. Through systematic follow-up, we get this step completed within 3 working days.