Step-by-Step Guide to Securing a SBI Education Loan for Studying Abroad: Eligibility Criteria Revealed - YoP BUZZ NEWS

Step-by-Step Guide to Securing a SBI Education Loan for Studying Abroad: Eligibility Criteria Revealed

Before exploring the SBI education loan for studying overseas, it’s important to understand the reasons behind the increased popularity of the SBI student loans. As competition in the job market has intensified, the demand for postgraduate degrees has significantly grown. Students are increasingly seeking to enhance their education with degrees from international universities, recognizing the substantial impact this can have on their career prospects. Even courses of short duration are seen as highly valuable. Previously, securing funding for such education was daunting; however, banks have now formulated detailed plans that offer educational loans for studies abroad at competitive interest rates and manageable repayment terms. These developments have dramatically transformed the landscape of educational finance. Securing the right loan for studies overseas remains a major hurdle for many students, and the availability of SBI’s education loans for this purpose offers considerable relief.

What Is SBI Foreign Education Loan?

An SBI student loan for international study is specifically designed to assist students in covering education expenses, including tuition, books, materials, and accommodation. These loans provided by SBI for studying abroad are distinct from other types of loans primarily due to their considerably lower interest rates. Additionally, the repayment may vary while the student is enrolled in school, college, or university.

The terms and conditions of SBI’s educational loans for studying abroad may vary across different countries, with the local bank and government jointly determining these regulations within their financial systems. For those seeking an SBI educational loan for international studies, the bank offers four main types:

  1. SBI overseas education loan specifically for undergraduate students.
  2. SBI student loan intended for postgraduate studies.
  3. SBI foreign education loan accessible by parents.
  4. SBI loan aimed at supporting studies abroad and career advancement.

SBI Student Loan For Abroad

State Bank of India (SBI), a Fortune 500 firm, is a Mumbai-based statutory institution for India’s public sector banking and financial services.  Founded in 1955, SBI is the bank that Indians have had the most faith in because of its lengthy history, which spans more than 200 years. SBI is the bank that Indians have had the most faith in because of its lengthy history, which spans more than 200 years.

SBI Global ED-Vantage

The SBI education loan designated for overseas studies is specifically tailored for individuals pursuing full-time, accredited programs at foreign universities and institutions. This scheme also allows students to request a loan prior to the approval of their I-20 or visa. Each application for an SBI education loan for international studies incurs a processing charge of Rs. 10,000/-. The following are the expenses eligible for coverage under this loan:

  1. Payments made directly to the university, institution, or hostel.
  2. Fees associated with examinations, libraries, and laboratories.
  3. Expenses related to travel and transportation.
  4. Costs for stationery or computers essential for completing the course (not exceeding 20% of the total tuition fees payable upon completion of the course).
  5. Loans intended for caution deposits, building funds, or refundable deposits must be substantiated with institutional bills and receipts and should not surpass 10% of the total tuition costs.

Advantages Of SBI Education Loan For Abroad

The SBI Global ED-Vantage loan programme is only intended for students who wish to study abroad. Following are some advantages of obtaining your student loan through the SBI Global ED-Vantage loan programme:

1. Faster Process

Because this is an online application process, it becomes faster and easier for applicants. 

2. Better Interest Rate

You get attractive and better SBI loan interest with SBI, with 10.2% for male students and 9.7% for female students after insurance. These SBI interest rates will be beneficial while repaying the loan. 

3. Higher Amount of Loans

You can get an SBI education loan for studying abroad from Rs. 20 lakhs up to Rs. 1.5 crore. You will not have to worry about putting some money out of your pocket.

4. Easy Repayment

You can repay your SBI student loan for abroad via various modes of EMI payment for up to 15 years with a better SBI foreign education loan interest rate

5. Easy Approval

With an SBI student loan for abroad, you can get your loan sanctioned before i20/visa. 

Types Of Interest Subsidy Schemes On SBI Foreign Education Loan

The SBI Student Loan Scheme offers borrowers an interest subsidy of 1% on loans up to Rs. 20 lakhs for overseas education. Borrowers can also avail a 0.50% interest concession if they repay the loan amount on time. Below are some of the types of interest subsidy schemes on SBI foreign educational loans:

1. Dr Babasaheb Ambedkar Scheme Of Interest

The goal behind the SBI student loan for abroad via the program is to give deserving students from the Other Backward Classes and Economically Backward Classes interest subsidies so they can have greater possibilities to pursue higher education overseas and improve their employability.

2. Padho Pardesh Scheme Of Interest Subsidy

The scheme’s major goal and ambition is to give deserving students from economically disadvantaged groups in registered minority communities interest subsidies. The reason for subsidy through the scheme on the SBI student loan for abroad is to increase their employability and give them greater possibilities for higher study abroad. It is a great find if you are looking for financial assistance in higher studies.

SBI Student Loan For Abroad Criteria

To qualify for an SBI international study loan, various criteria must be met with diligence. The requirements range from your citizenship status to your academic achievements and your acceptance letter from universities. If you’re considering applying for an SBI student loan for studies abroad, the following eligibility details could be useful:

  1. Applicants need to be Indian nationals.
  2. You must have gained admission to institutions abroad; this includes securing places on professional or technical programs at top-tier colleges via entrance tests or selection procedures.
  3. There is no mandate for minimum marks in your most recent qualifying exam.
  4. For a scholar loan, it is essential that you have obtained this funding from some of the nation’s leading institutions.
  5. Further details on eligibility for the SBI Take-over Education Loan can be found on their website.

SBI Foreign Education Loan Rules 

SBI offers a variety of repayment options for its student loans, including a grace period that spans the duration of the course and extends six months after its completion. During this time, students have the option to defer all payments. The conditions for repayment under SBI’s education loan schemes, such as the SBI Candidates Loan Scheme and the SBI Global Advantage Scheme, only commence after this period.

Contrastingly, in many private banks and non-banking financial companies (NBFCs), students are often required to pay a part of the interest on their loans while they are still studying abroad, without the benefit of a deferral period to accumulate funds.

Furthermore, there are frequently asked questions concerning whether pre-closure fees apply to these educational loans. As an example, if a borrower secures an SBI education loan with a 15-year term for studies overseas, they may opt to settle the loan in just five years without incurring any additional fees. This benefit, where no pre-closure fees are imposed, is a significant feature of SBI’s Global Advantage Fund.

How To Apply For SBI Education Loan For Studying Abroad

There are a number of steps to take care of before applying for an SBI foreign education loan. Below are some of the most important steps to procure an SBI student loan:

1. Initially fill in the online application form for an SBI education loan.

2. Submit all your documents required for an SBI education loan for studying abroad to the nearest branch in your region.

3. The branch then gathers the reports and sends them to the processing facility.

Documents Required To Apply For SBI Education Loan 

The SBI educational loan for international studies demands thorough documentation, which must be carefully reviewed. Below is the list of necessary documents for securing an SBI educational loan for overseas studies:

  • Completed application for the SBI educational loan for international studies
  • Valid passport
  • Identification proofs such as your Driver’s License, Voter ID card, PAN card, or Passport.
  • Residence proofs, which may include your utility bill (electricity or piped gas), Aadhar card, Driver’s License, or Passport copy.
  • Two recent passport-sized photos
  • Copies of academic records, including your senior secondary certificates and degree diplomas
  • University ranking certificate
  • Results from entrance tests such as the GRE, TOEFL, GMAT, or IELTS
  • Detailed course expense breakdown
  • Gap certificate, if necessary
  • Admission proof
  • Documents from any previous loans taken in the last year.

Co-Applicant’s Documents Required for SBI Education Loan

1. Proof of residence, which includes a copy of your electricity bill, piped gas bill, aadhar card, Driving license or a copy of your passport.

2. Proof of identity, which includes your Driver’s Licence,  Voter ID card, PAN card, and Passport.

3. Two passport-size photographs

4. Latest salary slips (past three months)

5. Income Tax Returns (last 2-3 financial years)

6. Form 16 document (at least from the past two years)

7. If self-employed, then Profit and Loss statement

8. Bank account statements for the past six months

When Should You Apply For An SBI Student Loan?

It’s best to kick off the SBI student loan application process immediately after getting your college acceptance confirmation. The sooner you start, the more advantageous it is! Avoid delaying the process until all your college responses are in. Also, there’s no need to wait until you have decided which college to go to. Start the loan application right after you receive your first acceptance.

By initiating the SBI education loan process for overseas studies early, you can significantly reduce the processing time. Occasionally, you might encounter instances where additional documentation is required or some formalities are left incomplete. Starting early simplifies the process of securing your education loan.

Types Of Security For SBI Global ED-Vantage Education Loan

The State Bank of India, under their SBI Global ED-Vantage Scheme, accepts the following security against the education loan amount: 

1. Tangible collateral security

2. Collateral security offered by Third Party (other than parents) would also be considered

EMI Payment Methods For An SBI Foreign Education Loan

Under the SBI Education Loan Policy, borrowers are granted a grace period that spans the length of the course plus an additional six months. During this time, no repayments are necessary. Specifically, for the SBI Global ED-vantage Scheme, which is designed for overseas studies, repayment commences six months after course completion, and the repayment tenure can extend up to 15 years. The SBI Education Loan features a fixed interest rate, simplifying the calculation of your monthly EMI. Borrowers have the option to utilize the SBI education loan EMI calculator for clearer financial planning. Various repayment methods are available for settling your overseas education loan with SBI.

1. Standing Instruction (SI)Setting up standing instructions is an optimal repayment strategy if you have an active account with SBI. At the end of each monthly cycle, the amount for your EMI will be automatically taken from the specified SBI account.

2. Electronic Clearing Service (ECS)For those holding accounts outside of SBI and looking to have their EMIs automatically withdrawn at month’s end, opting for the ECS method will facilitate payments towards your SBI educational loan for overseas studies.

3. Post-Dated Cheques (PDCs)If you’re utilizing a non-SBI account, you can provide post-dated checks for your EMIs to your nearest SBI Loan Center. It’s imperative to replace these with a new batch of SPDCs in a timely manner. Note that Post-Dated Cheques are only viable at locations not serviced by ECS.

Since its inception in 1955, SBI has garnered trust from millions, ensuring that applying for a loan is a reliable choice. We trust this information has equipped you with everything needed concerning an SBI education loan for international study. Let no obstacles prevent you from achieving your educational aspirations. For further details on educational loans, consult our detailed guide about early loan repayment to ensure it doesn’t interrupt your overseas educational pursuits.

Frequently Asked Questions

1. What are the eligibility criteria to apply for an SBI Education Loan for studying abroad?

  • To be eligible for an SBI Education Loan for studying abroad, the applicant must be an Indian citizen, have secured admission to a professional or technical course through an entrance test or a merit selection process, and meet age requirements as specified by the bank.

2. What is the maximum loan amount that can be availed under SBI’s education loan for studying abroad?

  • The maximum loan amount offered by SBI for education abroad can go up to Rs.1.5 Crore, depending on the course and country where the student intends to study.

3. What kind of expenses are covered under the SBI education loan for studying abroad?

  • The loan covers tuition fees, examination fees, library/laboratory fees, purchase of books/equipments/instruments/uniforms, caution deposit, travel expenses, and costs of a study tour, project work, or thesis.

4. Are there any collateral requirements for SBI education loans for higher studies abroad?

  • Yes, for loan amounts above Rs. 7.5 Lakhs, SBI requires tangible collateral security along with the assignment of future income of the student for payment of installments.

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