Exclusive loan scheme for study abroad
Approval in 14 working days
9.8% Female, 10.3% Male
(after RinnRaksha insurance)
Fixed fee of Rs. 10,000 paid directly at SBI branch
Very few bank visits required, rest online
Pre-approval letter before your i20
The Global Ed-vantage scheme is a special scheme for abroad education loan launched by the State Bank of India (SBI). This scheme offers study abroad education loan upto Rs. 1.5 Cr. This study abroad education loan is designed for students who are willing to pursue a regular and full-time course at any recognised and reputed foreign university or college. Not all the SBI branches are eligible for the Global EdVantage scheme. Only the scale 2 and scale 3 SBI branches are allowed to sanction under the SBI Global EdVantage education loan scheme.
Undergraduate (bachelors), Postgraduate (masters) and Doctoral (PhD) degree programs are eligible degree programs for this SBI education loan scheme. The eligible countries under this SBI education loan scheme include USA, UK, Canada, Australia, New Zealand, Europe, Hong Kong, Japan and Singapore. Even students applying to other countries can be considered.
Discuss about eligibility and scheme details with the education loan team
This SBI education loan for abroad studies scheme covers the following expenses including Admission Fee, Tuition fee, Hostel Fee/Living Expenses, Examination/Lab/Library fee, Purchase of books, Caution Fee, Purchase of computer, Misc. expenses.
The amount that can be sanctioned under this overseas SBI education loan is upto Rs. 1.5 Cr.
Under this Global EdVantage education loan scheme, SBI can sanction and fund upto 90% of the eligible expenses. The remaining 10% is the margin amount, which is the portion of the total amount that the student has to bring in from his side. It has to be produced from time to time by the student, on pro-rata basis. Please note that assistantships or scholarships can be included in the margin.
Detailed example for margin amount: If the studenti is planning to take a ₹ 1 Cr education loan, according to the margin concept, ₹ 90 lakhs will be offered by the bank and the rest ₹ 10 lakhs has to be arranged by the student. But here is the myth. The ₹ 10 lakhs need not be produced in a single go as the student also won’t be requiring the ₹ 1 Cr on the same day, in one shot. For ex. student may need ₹ 6 lakhs initially to be paid to the university as the tuition fee. In this case, bank offers ₹ 5.4 lakhs to the student and he has to add ₹ 60,000 from his side. This is how it works. Therefore, the entire margin amount need not be arranged by the student at once. Whenever he takes the amount from bank, he needs to add the 10% and bank adds the rest 90%, making it easier for students.
Discuss the margin concept with the education loan team
This SBI Global Ed-vantage scheme has a fixed processing fee of only ₹ 10,000 as compared to the higher floating fees of other private banks. An additional fee of ₹ 7,000 will be charged by the lawyers and valuators for the legal opinion and property valuation respectively
Collateral has to be pledged in order to secure the SBI education loan for abroad studies. To reduce the risk involved in the credit, a collateral is required. The collateral for this SBI education loan can be either immovable property including a house or a flat or land. Or it can be a liquid security like fixed deposit (FD) or LIC policies or government bonds. Please note that agricultural lands are not accepted as the collateral. The open plots with boundaries are accepted as collateral. Having a full/ semi construction in such open plots is NOT required.
SBI gives upto 75% and 80% of the value of the property for a 2 year and 1 year course respectively. In the case of liquid security, you can get 100% of the collateral value as the max loan amount. SBI even allows you to give third party collateral like which belongs to your uncle/aunt/any relative or even friend. If you are looking for an education loan without collateral, you can apply directly to WeMakeScholars as they can help you with non-collateral education loan options matching your profile.
Discuss the collateral details with the education loan team
The interest rate for SBI education loan for abroad studies is quite low when compared to its peers. It charges 10.3% for male and 9.8% for female students. As you see, female students are offered 0.5% extra discount.
Moratorium period is the period during which the student need not pay any interest or EMI. The moratorium period for SBI education loan is course duration plus 6 months and only simple interest is calculated. During the moratorium period, you can start paying the interest if you want to, but the bank does not require you to do so. In simpler terms, if the duration of your course is 2 years, then your repayment tenure starts after 2.5 years. Other banks mostly ask the co-applicant to pay a certain amount of interest during the duration of your course. Hence, it is a good choice to opt for a loan from SBI if you don’t want to get caught up in the tension of repayment in the middle of your studies!
The Global EdVantage education loan can be repaid in a maximum of 15 years, which is an added advantage.
You are going for a 2 year program and got a loan of Rs. 20 lakhs sanctioned from SBI. In the year 1, you take ₹ 10 lakhs from the bank. In the year 2, you didn’t take any amount from the bank. Which means, during your course of ₹ 2 years, you have totally taken ₹ 10 lakhs from the bank. So, as SBI calculates simple interest, the amount you are supposed to repay after ₹ 2.5 years is ₹ 12.5 lakhs.
Breakdown = ₹ 10 lakhs the amount + ₹ 99,500 interest of year 1+ Rs. 99,500 interest of year 2+ ₹ 49,750 interest of 0.5 years. (calculated with rate of interest as 10%)
If it was calculated on compound interest, then amount for year 1 comes to ₹ 10 lakhs + ₹ 99,500 interest making it ₹ 10.99 lakhs. Then the second year interest will be calculated on the ₹ 10.99 lakhs. Which means the amount sums up calculating the interest on interest, therefore called compounded. If it is compounded monthly, then it will go way up again. Private Banks and NBFCs wither follow compounded annually or monthly so you end up paying higher with them when compared to SBI.
Discuss the repayment and simple interest calculation with the education loan team
The co-applicant/ co-signer can be your father or mother or spouse or parents-in-law. In cases where no one is available, SBI also allows guardian as the co-applicant. SBI also accepts
Farming lands or lands with agricultural status in the local registration/gram panchayat/municipality office are called agricultural lands. Unfortunately, these agricultural lands are not accepted as collateral for the SBI education loan for abroad studies.
You can apply online using the SBI online application form
We always think that the cumbersome part is to apply for the loan, especially the SBI education loan for abroad studies. Even though the application process of SBI is very simple but going to the bank and applying for a loan can be very time-consuming. The most hassle-free way to apply for an overseas education is via the SBI education loan apply online.
The exact list of documents for applying to this SBI abroad education loan will be shared with the applicant after thvia email after the online team speaks to you over a call. After which the documents should be submitted at your nearest SBI branch which will be suggested by the online team. Please apply online to start the education loan procedure.
No. All the loans under the Global EdVantage scheme need collateral. SBi only offers upto ₹ 7.5 lakhs under the non collateral segment. If you are looking for an education loan without collateral, please request a call back directly from the WeMakeScholars team. It is important to note that, the agricultural lands are not accepted under the collateral.
WeMakeScholars, a BITS Pilani startup, funded and supported by Govt. of India is working with SBI as its national digital partner for overseas education loan. WeMakeScholars education loan team will assist you throughout the loan process and help you with any queries related to overseas education loan of SBI, the eligibility criteria, the documents and credentials you require to submit in order to obtain the loan.
Even though the application is made online, the documents have to be submitted to the nearest bank to begin the process. This means the entire loan process can be successfully done by sitting within the premise of your home with only 2-3 bank visits. The entire process can be done in 14-16 working days. The WeMakeScholars loan team can even discuss with the concerned branch manager and higher authorities about the quicker processing of your loan application.
Discuss your profile with the education loan team
*The online team in the above question represents the WeMakeScholars team