SBI Education Loan


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SBI Education Loan

Interest Rate

  • 9.4% For Women | 9.9% For Men

Processing Fees

  • ₹ 10,000 + GST

Loan Margin

  • 10%

The State Bank of India is the country’s leading nationalized lender. It offers 5 different types of education loans: Scholar Loan, Global Ed-vantage Education Loan, Student Loan, Skill Loan, and Take-over of an education loan. While Scholar Loan and Skill Loan are for students who want to pursue their higher education in either a premier institute or a vocational college in India, Global Ed-vantage and Student Loan are for students who want to study abroad. For overseas education, SBI primarily offers education loan with collateral.Unsecured loans, i.e. loans without collateral are available only for the best of the best colleges, and that too up to ₹ 7.5 lakhs only.

SBI offers subsidies on interest rates for girl students as well as the holders of the RiNn Raksha credit life insurance policy. Besides this, as a scheduled commercial bank, SBI also provides government schemes such as Dr. Ambedkar Interest Subsidy Scheme for Overseas Studies for OBCs (non-creamy layer) and EBCs, CSIS and Padho Pardesh Interest Subsidy Scheme with most SBI education loan offerings.

Since GyanDhan focuses on overseas education only, we will dive into only 2 schemes for education loan in detail: Global Ed-vantage and Student Loan. We will also briefly discuss the Education Loan Take-over scheme, which allows graduates to refinance their existing education loan at a lower rate.

What are the Key Features of SBI Global Ed-vantage and SBI Student Loan Schemes?

Global Ed-vantage -Loan Amount: 20 lakh to ₹1.5 crore | Interest Rate: For 9.9% (Men) / 9.4% (Women) | Margin: 10% | Moratorium: Course + 6 months

Student Loan - Loan up to 7.5 Lakh without collateral & Up to 20 lakhs with collateral for India or abroad.| Interest rate 10.15% for loan amount up to 7.5 Lakhs, rest 10.40%

Finance For
Global Ed-vantage
Student Loan
Finance for Overseas education only India or abroad, after admission
Loan Amount Range ₹ 20 lakh to ₹1.5 crore Up to ₹ 7.5 lakh without collateral
Up to ₹ 20 lakh with collateral
Interest Rate 10.40%, with additional 0.50% concession for girl students, and
additional 0.50% for Rinn Raksha credit life insurance or similar policyholders.
Interest rates are linked to MCLR. For current rate, check here
Up to ₹ 7.5 lakh: 10.15%
Above ₹ 7.5 lakh: Same as Global Ed-vantage
0.50% concession for girls is available
Processing Fees ₹ 10,000 + GST, non-refundable NIL
Property valuation charges
Are additional and vary as per the location
Repayment Period
Maximum 15 years
Repayment Holiday / Moratorium period Course period + 6 months 12 months after course completion
Eligible Degrees Regular Graduate/ Post Graduate/ Doctorate Courses in any discipline offered by foreign Institutes/ Universities in: USA, UK, Canada, Australia, Europe, Singapore , Japan, Hong Kong, New Zealand Job oriented professional/ technical Graduation Degree courses/ Post Graduation Degree and Diploma courses offered by reputed universities; Courses conducted by CIMA, CPA
Margin 10% Up to ₹ 4 lakh: NIL Above ₹ 4 lakh: 15%
Expenses covered It covers tuition fees, examination/ library/ lab Fees, living expenses, round-trip travel, study material or anything related to studies, and premium of ‘RiNn Raksha’ insurance coverage
Disbursal norms Tuition is disbursed directly to the college. Living expenses can either be loaded onto a prepaid card or transferred to your foreign bank account. Pre-visa disbursal is allowed, wherever mandated.

Which SBI Education Loan Scheme Is Right For You?

Assuming you’re targeting overseas education, if you need ₹ 20 lakhs or more, Global Ed-vantage is the right scheme for you, otherwise, Student Loan is the scheme for you. This is because ₹ 20 lakhs is the minimum amount you can apply for under the Global Ed-vantage scheme.

How Much Can You Borrow From SBI to Study Abroad?

SBI will approve the minimum of the following 3 values as your loan amount:

  1. 90% of the total cost of attendance. As mentioned above, this includes tuition fees, living expenses, and several other study-related expenses.
  2. 70% of your real estate property’s value. This % can range between 65% - 73%, depending on the duration of your course. The longer the duration, the lower the %. For other types of collateral, viz. FD and a few other liquid assets, this % is 90%.
  3. ₹ 1.5 crores

Who is Eligible To Apply For an SBI Education Loan to Study Abroad?

Any student with an admit offer to a graduate or higher degree/diploma course offered by any licensed institution in the following countries: USA, UK, Canada, Australia, Singapore, Japan, Hong Kong, New Zealand or any European country.

It is important to know that there are 2-3 individuals in an education loan application:

  1. The student will be the applicant or borrower.
  2. Also, it is mandatory to have a co-applicant or a co-borrower. Only your parents, legal guardian or spouse can be a co-applicant. Note that SBI does not have any income-related criteria for the co-applicant. They may be salaried, self-employed or retired.
  3. The property or asset that you provide as collateral may be owned by your co-applicant. If this is the case, your loan application will have 2 individuals only. Otherwise, note that SBI allows for any 3rd party owned collateral, i.e. the owner of the property can be a distant relative or even a friend. This property/asset owner will be the guarantor. In case the property/asset has multiple owners, all owners will need to be guarantors.
Apply for SBI Education Loan to Study Abroad

 

The documents required depend on several factors, primarily: your academic and professional history, your co-applicant’s financial and credit profile, and the nature and location of the property or asset, which you offer as collateral.

When you apply to SBI with GyanDhan, we provide a customized documents list – so that you can submit all your documents at one go. In general, the following documents are needed. Note that self-attested copies of all the below documents need to be submitted.

Student or the Applicant
  1. Identity Proof: PAN/ Passport/ Driver’s License/ Voter ID card.
  2. Completely filled-in Loan Application Form (in Takeover of Education loan case)
  3. Address: Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhaar Card.
  4. Passport Mandatory (in case of study abroad).
  5. Past Academic Record.
    • 10th Result
    • 12th Result
    • Under Graduate Result Semester Wise (If required)
    • Entrance Exam Result - Abroad institutes (e.g GMAT, GRE, TOEFL, etc.)
    • Entrance Exam Result- Domestic institutes (e.g. CAT, CMAT, JEE, NEET, CET, GMAT, GRE, etc.)
  6. Proof of Admission: Admission Letter (Conditional admission letter is also applicable).
  7. Statement of cost/expenses.
  8. 2 passport-size photographs.
  9. Loan A/C statement of one year, if there is any previous loan from other Banks/ Lenders.
  10. Bank account statement of the Student (in Takeover of Education loan case)
Co-Applicant’s Documents
  1. Identity Proof: PAN/ Passport/ Driver’s License/ Voter ID card.
  2. Address: Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhaar Card.
  3. 2 passport-size photographs.
  4. If any previous loan from other Banks/ Lenders, then Loan A/C statement of 1 year.
  5. Legal documents of the collateral/ Property documents.
  6. Bank account statement of the Co-borrower/Guarantor, for the last 6 months (in Takeover of Education loan case)
Income Proof for Salaried Co-Applicant/Guarantor
  1. Salary slips of last 3 months.
  2. Copy of Form 16 for last 2 years or copy of IT Returns for last 2 financial years, acknowledged by IT Dept.
  3. Bank account statement for the last 6 months (Salary Account).
  4. Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
Income Proof for Self-employed Co-Applicant/ Guarantor
  1. Business address proof (If applicable).
  2. Last 2 years IT returns ( If IT Payee).
  3. TDS Certificate (Form 16A, if applicable).
  4. Certificate of qualification (for C.A./ Doctor and other professionals).
  5. Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
  6. Bank Account statement for the last 6 months.
Collateral Documents

We will focus on Real Estate collateral only. The list of documents required depends on several factors, primarily: property type, purchase history, and location. As mentioned above, when you apply through GyanDhan, we will provide a document checklist which is customized as per your specific situation. Broadly, the following documents are required:

Common Documents
  1. Registered sale deed
  2. If the property is a built one, then approved plan / map
  3. Link or chain documents, evidencing the ownership history of the property for the last 30 years
  4. Latest property tax receipt
  5. Occupancy proof

Additional documents if you’re applying for an SBI education loan with a property in the following cities:

  1. Delhi: None
  2. Mumbai or Pune
    • NA order
    • Urban land ceiling order
    • NOC from builder or society
    • Share certificate
    • Letter of allotment
    • Conveyance deed of society
    • If CIDCO / MHADA property: NOC and transfer letter
  3. Hyderabad:
    • Urban Land ceiling certificate
    • NA certificate, if not included in Sale Deed
    • 7/12 Extract, if not included in Sale Deed
    • Encumbrance certificate
  4. Bengaluru:
    • RTC (Record of tenancy certificate)
    • Conversion Order (from Agriculture to Residential)
    • Khata certificate ( A or B )
    • Property tax receipt
    • Encumbrance certificate

Low Turnaround Time

We coordinate with various departments within SBI to secure a loan approval in just 12 days. This is why 1000s of students trust us with their loan requests every year.

Doorstep Service

For SBI Education Loans, we provide doorstep pickup of documents in Delhi, Mumbai, Pune, Hyderabad, Bengaluru, and Chennai. No need to visit the branch! SBI has exclusively partnered with us for the doorstep document pickup facility.

No Cost to You

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.

  1. Apply Online:
    • You start with a pre-assessment, fill in your details here
    • Our education loan counselor interacts with you to understand your financing need in detail
    • You fill a detailed SBI loan application form
    • We transfer your details to SBI, and you receive an email from SBI acknowledging your application
     
  2. Free Doorstep Document Collection:
    • Using our document checklist generator, you create a customized list of documents for your application.
    • If you or your parents reside in Delhi, Mumbai, Pune, Hyderabad, Bangalore or Chennai, our representative will visit your home or office to inspect and collect all the required documents. We then submit these documents to a specialized SBI branch.
    • If you are in any other city, we contact a specialized SBI branch near your home over the phone and discuss your loan application with them. We, then, fix an appointment for you to visit the branch with all your documents.
     
  3. Processing and Approval:
  4. Once documents are submitted, we follow up with SBI officials to ensure timely progress of your loan application. Our team tracks the application at every stage to enable its smooth passage. Key stages that your application goes through are:

    • Document verification [Time taken: 1 day]
    • Property’s legal and technical assessment. This is done by SBI’s empaneled lawyers and valuators. [time taken: 8 days]
    • Final decision: Approving authority examines all documents, along with the property assessment, to make a final decision on your education loan application [time taken: 3 days]
     
  5. Agreement and Disbursal:
  6. Once your loan is approved, the immediate next step is to sign the loan agreement and get the required disbursal. Key steps:

    • First, a lien will be created, in favour of SBI, on the property / asset that you offered as collateral.
    • Then, you, your co-applicant and any guarantor(s) will sign a detailed loan agreement. Here, physical signatures are usually required.
    • You will request the tuition fee to be transferred to the university/ college. For this a demand letter / fee estimate is required. If you applied for living expenses, estimated expenses for the next quarter will be loaded to a prepaid forex card and given to you.

When Should You Apply?

You should apply as soon as you receive your admit offer. I-20 or similar other documents are not required to apply. Even a simple email admit offer is enough to start.
If you have not received your admit offer yet, we can still get an informal assessment started for you. This will reduce the approval time once the admit offer comes in.

Are There Any Hidden Processing Fees Or Terms In SBI’s Overseas Education Loan Scheme?

  • Processing Fees: There is nothing hidden whatsoever. You pay:
    1. ₹ 10,000 + GST as non-refundable processing fees
    2. Property valuation and legal assessment charges vary by the value of the property. Typically, they range between ₹ 5,000 - ₹ 8,000.
    3. Equitable Mortgage creating charge (paid to the government) = 0.2% of the loan amount.
  • Interest Rate: SBI education loan’s interest rate is not fixed but floating. In fact, no education loan provider in India offers a fixed rate of interest. We explain this in more detail in this article. SBI’s interest rate is MCLR (variable) + constant premium. SBI changes MCLR (or Marginal Cost of Lending Rate) periodically. MCLR’s formula is defined by the RBI, which ensures that MCLR changes reflect the macro movements in the economy. Note that MCLR doesn’t change by much. In fact, over the last 3 years, the MCLR has fallen by about 0.50%.

What is RiNn Raksha Insurance?

SBI RiNn Raksha Insurance is a credit life insurance policy. It is a life insurance that repays your loan. Here’s how it works: to activate the policy, you pay a one-time premium, which is around 1% of the loan amount (actual amount depends on several factors). In the case of the unfortunate event of you passing away, the insurance repays the loan, thus freeing up your co-applicant of the burden and restoring all the rights on the property/asset to the guarantor.


Another Loan Scheme: SBI Takeover of Education Loans

With this, SBI allows a student to transfer his existing high-interest rate education loan to SBI and hence, reduce his EMI amount. For a student to be eligible for this education loan in SBI, he must be a major, the loan has to be a first-time takeover, and repayment should have begun with official records of regular payments.

Features
S.No. Features Details
1. Loan Amount Minimum ₹ 10 lakhs & Maximum ₹ 1.5 Crore
2. SBI Education Loan Interest Rate 10.05% with 0.50% concession to female students. Interest rates are linked to MCLR. For current rate, check here
3. Processing Fee NIL
4. Security 100% of the amount of the proposed loan amount
5. Repayment Period Maximum 15 years
6. Top up loan facility Available

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.

Check SBI Education Loan Eligibility

When the property's sale deed of the student was not in order

A student with an admit offer from The University of Sydney required a with-collateral education loan of Rs. 40 lakhs. Initially, the student approached the State Bank of India directly but got a negative response from the Branch as his property’s sale deed was not in order. He then applied with us. At GyanDhan, we pre-screen education loan applications to identify key issues and find out the best possible solution available. Post an in-depth discussion with our legal consultant, we found a solution: a correction/conveyance deed. GyanDhan’s on-ground team got that deed executed and also got it registered with the sub- Registrar – that too in only 5 days, with minimal effort from the student. Post this, we formally applied with SBI and got approval for Rs. 40.56 lakhs in only 3 days.

 

When ownership of the property was not transferred to the legal heir

In another case, another applicant got an admit from San Diego State University and was looking for a with-collateral education loan of Rs. 20 lakhs. The issue with this case was that the property (Collateral) was in the name of the applicant’s father who had passed away recently and was not transferred to the applicant’s mother. Also, the student had a deadline for submitting finacial documents. The student’s case was rejected on the property ownership grounds. He then contacted GyanDhan after he came across a blog published by us on education loans while he was looking for solutions online. After pre-screening the case thoroughly, our representatives approached the Local Head Office of the bank to speak with the Assistant General Manager and helped in getting the ownership of the property transferred. Our team assisted the student throughout the process, helped the student’s family with the hassle of bureaucracy, got the property transferred, and got the loan sanctioned on time that too meeting the deadline.


 

When the student was in the 2nd year of the program

In this case, the student was already in her 2nd year of bachelor program at the University of Queensland. Her parents’ savings were utilized to fund her 1st year of the program. The student wanted to apply for loan to finance her remaining course. The student and her parents both were residing in Australia. She applied for around Rs. 50L loan with collateral. The property was in Kerala, India. But the loan application was rejected on the ground that property owners were residing in Australia. After the initial rejection, she approached GyanDhan for solutions. She came to know about GyanDhan through her friend in India who attended a seminar conducted by GyanDhan in Chennai. Our representatives approached the concerned authorities of SBI. We took out the rule book and provided the solution. The parents were called. They flew over to India. We helped them in completing the sanction process and disbursement as well on the same day in SBI. The bank approved a loan of Rs. 50L with Rs. 11L amount disbursed on the same day to the applicant.


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