SBI Education Loan

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.

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

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. There is no specific SBI education loan college list but usually all the well-known colleges in the mentioned countries qualify.

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.

Regular Graduate/ Post Graduate/ Doctorate Courses in any discipline offered by foreign Institutes/ universities in the countries eligible for SBI education loans. SBI education loans for medical students are also at offer on the basis of collateral like the other courses.

USA, UK, Canada, Australia, Europe, Singapore, Japan, Hong Kong, New Zealand. Students applying to other countries can also be considered in some cases.

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.

You can apply online. Once you fill an online form, you need to visit the nearest SBI branch with all your documents. We, at GyanDhan, have been working in close partnership with SBI since 2016, to make your education loan application easy. With us, you follow the below steps:

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 has approved linking of all Schemes under Education Loans to External Benchmark Lending Rate (EBLR). External Benchmark based Lending Rate (EBLR) = External Benchmark Rate (EBR) + Credit Risk Premium (CRP).
  EBR (w.e.f 01-01-2021) is 9.15%; EBLR = 10.65% + CRP.

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.