SBI Education Loan for Study Abroad: Complete Guide

State Bank of India (SBI) offers an education loan, SBI Global Ed-vantage Scheme to Indian students looking to study overseas for higher education. The loan can be particularly helpful for students or families that already hold accounts at the bank, but SBI loans require 100% collateral. Learn more about SBI’s education loan to see if it is a good fit for you.¹

Eligible Courses and Loan Amount

SBI Global Ed-vantage Scheme is specifically for post-secondary education outside of India. It can be used for:

• Graduate degrees.
• Postgraduate degrees.
• Diploma.
• Certificate courses.

The loan is not limited to any specific subject area. However, this scheme is only available for programs in specific qualifying countries.¹

Loan amount

The loan amount range starts at INR 7.50 lakhs and goes up to INR 1.50 crores.

SBI Global Ed-vantage Scheme covers the following expenses related to higher education abroad:

• Tuition fees.
• Housing or accommodation fees.
• Examination, library, or laboratory fees.
• One-way air ticket to the university.
• Purchase of books, equipment, instruments, uniform, and other required expenses for the course, with a cap of 20% of the total tuition fees.
• Any required refundable deposits, with a maximum of 10% of the tuition fees.
• Insurance premium for the RiNn Rakhsha loan insurance.²

Requirements for SBI Global Ed-vantage Scheme

In addition to the eligible course requirements, applicants must meet the student eligibility criteria and provide collateral and upfront payments as needed. Here is a quick breakdown of these additional requirements.¹

Student Eligibility

• The student must be an Indian passport holder.
• The student must have been accepted into a qualifying program. In specific cases, SBI can provide a loan sanction letter before receiving admission to help students secure a visa to study abroad.
• For a graduate degree or diploma course, the student must have completed Standard XII (10 plus 2)
• The minimum qualification required for postgraduate degrees is a graduate degree (10 plus 2 plus 3 or 10 plus 2 plus 4, depending on the course).
• The student must have a co-applicant on the application. The co-applicant can be a parent, spouse, parent-in-law, or sibling over 18.

Collateral Security

The SBI Global Ed-vantage Scheme requires collateral with a value equal to 100% of the loan amount. Relatives, as well as non-relatives, can provide the collateral.

Insurance of the student borrower is offered at SBI under the RiNn Rakhsha Scheme.² The insurance premium is included in the loan amount.

Upfront Payment

Here are the upfront payments for the SBI Global Ed-vantage Scheme.

• Processing fee: INR 10,000 plus GST per student loan above INR 20 lakhs. Loans up to INR 20 lakhs have no processing fees.
• Collateral assessment fee: Mortgage charges apply if a mortgage is offered as collateral. Legal and valuation charges for the property are also payable by the borrower.
• Margin: Loans for more than INR 7.50 lakhs have a margin of 15%. SBI Global Ed-vantage Scheme allows the adjustment of any scholarship or assistantship towards the margin.

Interest Rates for SBI Global Ed-vantage Scheme

The SBI Global Ed-vantage Loan interest rate is based on the external benchmark lending rate, and the bank adds its own premium on top.

Currently, SBI offers an effective interest rate 11.15% for the Global Ed-vantage Scheme.³
(Rate retrieved on 2 June 2023. Please verify the latest interest rates from the SBI website.)

The interest rates for the SBI Global Ed-vantage Scheme are floating for the entire loan period, which means they can fluctuate based on the external benchmark rate.

• A discount of 0.50% on the interest rate is available for students who take out the SBI RiNn Rakhsha loan insurance policy or any other existing life insurance policy assigned in the bank’s favor.
• Female students get an additional discount of 0.50% on the interest rates.

Repayment Schedule for SBI Education Loan

SBI offers a moratorium, or a grace period during which no repayments need to be made, of 1 year after the course is complete or six months after getting a job – whichever is earlier.

After the moratorium, the borrower is expected to start making the monthly repayments of principal and interest against the loan. SBI allows borrowers to pay more than the equated monthly installment (EMI) with no prepayment penalty.⁴

SBI offers a maximum loan repayment term of 15 years (180 months) from the start of the first monthly payment. This is after the moratorium period.

How to Apply for SBI Global Ed-Vantage Loan

Students can apply for the loan online on the SBI Education Loan portal or offline at the SBI branches and RACPC (Regional Asset Credit Processing Centres) throughout India. Both methods do require working directly with a bank official.

Online Application

Here is how to apply for a loan online with SBI:

1. Access the SBI Global Ed-vantage Scheme portal.
2. Confirm whether you have an existing relationship with SBI and provide your account details. Otherwise, enter your phone number for verification.
3. Click on the box authorizing the bank to contact the student borrower to complete the requirements.
4. Choose the relevant product and complete the loan application process.
5. SBI officials will call you and assist with the application and loan creation process.

Make sure you have your documents ready to send digitally for online applications.⁵

Offline Application - In person

Head to the nearest SBI branch⁶ and meet with the branch representatives to help complete the loan application and provide your documents in person.

Documents Required

Here are the documents required for applying for the SBI Global Ed-Vantage Loan.

• KYC documents, including ID proof and proof of residence, of the student and the co-applicants.
• Proof of admission to the course abroad.
• Schedule of expenses required for the course.
• Copies of letters evidencing scholarships, grants, etc.
• Copies of foreign exchange permits, if applicable.
• Two passport-size photographs of all applicants.
• Statement of bank account for the past six months.
• Income tax assessment orders for the last two years.
• Statement of Assets and Liabilities for co-applicant or provider of collateral.

Having an existing savings account at SBI simplifies the education loan application process.

Loan Disbursal Process for SBI Global Ed-Vantage Loan

SBI disburses the tuition and other fees directly to the university. To request reimbursement of any costs if you have already from your own funds, you will need to provide original receipts and any other proof of payment.

You can request the living expenses to be credited to your savings account in India by submitting a declaration that the funds will be used for the student's living expenses for study abroad. Alternatively, you can request SBI to credit living expenses directly to your overseas account.

Save with international remittance when you choose Wise

Studying overseas comes with a lot of expenses. Make international remittances easier with Wise, which uses smart tech to make money transfers from India safe, secure - and cheap.

Wise can help you save⁹ when sending money to bank accounts abroad. You can save money on international transfers with Wise's low transfer fee and the mid-market exchange rate, which is the same as the one you see on Google. So make university payments or living expenses a breeze when you use Wise to send money abroad from India.

And once you arrive abroad for your studies, check out the Wise multi-currency account available for residents living in supported countries. Enjoy an account as worldly as you are and spend just like a local when you travel abroad with a linked debit card, while also paying less in fees.

Please see the Terms and Conditions for your region and visit our pricing page for the most up-to-date pricing and fee information on Wise products.