The State Bank of India (SBI), the largest bank in the country, has launched an exciting initiative to help students achieve their dreams of studying abroad. Through the Global Ed Vantage scheme, SBI is providing a guaranteed education loan of up to Rs 50 lakh. This loan is available to students planning to enroll in full-time courses at specific foreign institutions listed by SBI. Additionally, under the Ed Vantage scheme, students can apply for loans of up to Rs 3 crore.
What is SBI Global Ed-Vantage?
SBI Global Ed-Vantage is an education loan tailored for students aspiring to pursue full-time studies at international colleges and universities. This scheme allows students to secure a loan of up to Rs 50 lakh without needing any collateral, aiming to ease the financial strain on those looking to study abroad.
1. Loan without collateral or guarantee
Students can access a loan of up to Rs 50 lakh without the need to provide any collateral. This offer is limited to certain approved institutions, which are listed by SBI.
What does a collateral-free loan mean?
A collateral-free loan means that borrowers do not have to offer any property as security. The loan is provisionally approved based on the applicant’s financial situation to assess eligibility. This type of loan is particularly advantageous for individuals who lack the necessary assets to secure a loan.
2. Loan repayment duration
The repayment period for the loan extends up to 15 years, allowing students ample time to pay back the amount through manageable monthly installments (EMIs).
3. Early loan repayment
Students can even have their loan approved before they receive their Form I-20 or visa.
4. Tax advantages
Students can benefit from income tax exemptions under Section 80(E) of the Income Tax Act, which allows for deductions on the interest paid on education loans.
5. Loan availability for various courses
The loan is applicable for a range of programs, including undergraduate and postgraduate degrees, as well as diploma courses.
6. Covered Expenses
The SBI Education Loan includes coverage for the following key expenses:
– Tuition and accommodation fees
– Fees for examinations, libraries, and laboratories
– Travel costs for studying abroad
– Expenses for books, equipment, uniforms, and computers necessary for the course
– Costs related to study tours, project work, and thesis (up to 20% of total tuition fees)
– Caution deposits, building fund deposits, or refundable deposits (up to 10% of tuition fees)
7. Processing Fee and Interest Rate
A processing fee of Rs 10,000 is applicable for each application. Simple interest will be charged during the course duration and the repayment holiday (moratorium) period.
– For loans ranging from Rs 7.5 lakh to Rs 50 lakh, the interest rate is set at 10.15 percent.
8. Eligible Countries for Student Loans
The bank offers loans to students enrolled in esteemed universities or institutions in the USA, UK, Canada, Australia, Singapore, Japan, Hong Kong, New Zealand, and various European countries, including Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, and the United Kingdom.
9. Required Documents for Submission
You will need to provide the following essential documents to the bank:
– Resume/CV
– Identity Certificate
– Proof of Address
– Academic Records
– Income Certificate
– Bank Details
– Photograph
– PAN Card
– Visa Documentation
– Standard Test Scores
– English Proficiency Test Score
– Statement of Purpose (SOP)
10. Margin Amount
The scholarship will be factored into the margin, which represents the portion of the total loan that the student is required to repay using their own funds.
