SBI Foreign Education Loan for students studying in foreign institutions
Getting higher education from the prestigious institutes of foreign is a dream for many of the students of our country. The course fees in these institutions are quite high and along with the high cost of living in these countries are quite high. All of this makes it a very expensive proposition. Not all the students who get admission to these foreign institutions have the financial stability to bear the whole cost. To support these bright students of our country State Bank of India has devised an education loan scheme for these students. In this article we are going to discuss the details of SBI Foreign Education Loan Global Ed-vantage scheme and give you a complete overview.
SBI Global Ed-vantage Scheme
State Bank of India offers SBI Global Ed-vantage Scheme to the bright students of India who got admission to the foreign university or colleges. This SBI Foreign education loan is for the countries like USA, UK, Canada, Europe and many more.
Important details
This loan is offered to the Indian students who need more than ₹7.5 lakh loan for their foreign education.
Key points
1) Eligibility
- The student should be an Indian (including NRI).
- The student must have secured admission in the said institution through entrance exam/ selection process.
2) Loan amount
- The minimum loan amount in this scheme is ₹7.5 lakh and the maximum loan that can be granted under this scheme is ₹1.5 crore.
- For loans below ₹7.5 lakh students can apply for SBI Student Education Loan Scheme.
3) Repayment
- The repayment period starts from 6 months after the completion of the course .This period is called moratorium of repayment holiday period.
- The interest accrued in the moratorium period will be added to the repayment EMI.
- The loan has to be repaid within 15 years (180 EMIs) after the moratorium ends.
- Students can choose to start the repayment during the course of moratorium period.
4) Processing fee
- There is a processing fee of ₹10000 plus applicable taxes.
5) Security
- Co-obligation of parents/ guardians together with tangible collateral security of suitable value is mandatory for getting this education loan.
- The student has to produce the assignment of future income of the student for payment of installments.
- Land, building, govt. bonds, mutual funds, bank deposits in the name of the applicant or their guardian can be used as tangible securities.
6) Margin
- 10% of the course fee has to be paid by the student as margin.
- Scholarships and assistantship must be added to the margin.
7) Eligible Institutions
- The students pursuing graduate, post graduate, diploma, certificate and diploma course in school/universities of USA, UK, Canada, Australia, Singapore, Japan, Hong Kong, New Zealand and Europe [Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, United Kingdom] are eligible for this education loan.
- For the institutions of countries other than the above mentioned countries the application may be considered based on the merit on a case to case basis.
8) Coverage
- Hostel fee, examination fee, laboratory fee and library fee is also included in this scheme.
- Maximum 20% of the course fee is allotted for buying books, equipment, uniform and computer required for the course.
- Maximum 10% of the course fee is allotted for caution deposit.
- Cost of travel expense will also be covered in this loan.
9) Rate of interest
Loan Limit | Effective Rate of Interest | Type of the rate of interest |
Above ₹7.5 lakh and up to ₹1.5 Crore. | 11.15% | Floating |
NOTE: There is a concession of 0.5% in interest for girls.
10) Required Documents
There are a number of documents required to produce to bank personnel for a getting an SBI Foreign education loan.
- The pass certificate and mark sheet of 10th, 12th and the latest educational qualification acquired.
- Proof of admission (offer letter/admission letter/ID card if available)
- Schedule for the course expense.
- Details of scholarship received by the borrower.
- Self-declaration for Gap certificate (if applicable)
- 1 copy passport size photo of the student, parent, co-borrower and guarantor.
- Asset-liability statement of co-applicant/Guarantor (applicable for loans above ₹7.5 lakhs)
- Copy of latest salary slip and IT return for salaried person.
- Non-salaried persons have to submit the business address proof and latest IT return (if applicable).
- Bank account statement of the parents/guarantor for the last six months.
- Copy of the title document of the property offered as collateral.
- Aadhar card (mandatory)
- PAN (Permanent Account Number) of Student /Parent/Co-borrower/Guarantor.
- Copy of the Passport.
- Officially valid document for proof of identity and address. Any of the following documents has to be provided: Passport, Driving license, Voter card issued by ECI, job card issued by NREGA signed by an officer of the state govt. and letter issued by National Population Register containing name and address.
** State Bank of India holds the authority of changing the terms and conditions of SBI Global Ed-vantage Scheme without any prior notice.