With the rising cost of education all over the world, the demand for education loans has significantly increased. These loans make higher education affordable for many students. Considering the demand, the State Bank of India, one of India’s leading public banks, has launched special education loan products to fund abroad study aspirants. The SBI student loan for abroad studies helps students cover their educational expenses abroad, such as tuition fees, living expenses, purchase of study materials, and other miscellaneous expenses.
In this article, we will learn about the SBI student loans for abroad education, along with their eligibility criteria, education loan interest rates, collateral requirements, and documents required for education loans from SBI.
Applying for an SBI student loan abroad involves several stages that can take months to be processed. However, when students apply for an SBI abroad education loan through WeMakeScholars, the process can be done much faster within 3 weeks. WeMakeScholars is an organization funded and supported by the Ministry of IT, Government of India, that is dedicated to supporting students in their education loan process.
SBI Student Loan for Abroad Education
The State Bank of India’s student loan for abroad education is a loan offered to help students fund their education at a recognized university abroad. These loans are offered to students planning to pursue their education at foreign universities. The SBI study abroad loans are designed to make overseas education more accessible to students.
SBI provides both secured and unsecured study abroad loans to students. Students can get an SBI education loan of up to ₹3 crores for abroad studies, depending on the course, the collateral availability, and the university. The education loan interest rates in SBI are low to make abroad education affordable to students.
SBI Abroad Education Loan Interest Rates
The SBI education loan interest rate for abroad studies is relatively low compared to other banks. The SBI abroad education loan interest rate depends on various factors such as the collateral availability, the loan amount, the student profile, the co-applicant profile, and the repayment tenure.
The interest rate for a secured study abroad loan in SBI starts from 9.15%, while the unsecured education loan interest rate ranges from 9.65%. Involving collateral in the loan reduces the risk of the lender. Thus, offering the loan at a lower interest rate than unsecured loans.
Collateral Requirements of SBI Student Loan for Abroad Studies
SBI offers both collateral and non-collateral education loans to students for abroad education. However, the loan terms, such as the loan amounts and interest rates, differ based on the collateral requirement of the loan. The table below explains the collateral requirement of a study abroad loan from SBI:
| Loan Parameter | Secured Education Loan from SBI | Unsecured Education Loan from SBI |
| Maximum Loan Amount | Up to ₹3 crores | Up to ₹50 lakhs |
| Interest Rate | Starts from 9.15% | Starts from 9.65% |
| Moratorium Period | Course duration plus 6 to 12 months | Course duration plus 6 to 12 months |
| Repayment Tenure | Up to 15 years | Up to 15 years |
| Processing Fee | ₹10,000 plus GST | ₹10,000 plus GST |
Eligibility Criteria for an SBI Student Loan for Abroad
To get an SBI education loan for abroad studies, you need to meet certain eligibility criteria laid down by the bank. The various requirements to get a student loan for abroad education from SBI include:
- Citizenship: Both the applicant and the co-applicants should be Indian citizens.
- Admission Status: Students should secure admission to a foreign university to get an education loan abroad from SBI.
- The University: To get an unsecured SBI student loan for abroad studies, the university that you’re going to should be recognized and come under the designated list of universities of the bank.
- Course Eligibility: Both graduate and post-graduate programs abroad are eligible for an abroad education loan from SBI.
- Academic History: Students are expected to have a strong academic history with a minimum of 50% of marks in their previous academic records.
- Collateral Requirements: When getting a secured education loan from SBI, you would need to pledge collateral that is accepted by the bank.
- The co-applicant’s profile: The Co-applicant’s financial status, like their Income and CIBIL score, has to meet the requirements of the bank when you are planning to get a non-collateral education loan from SBI to pursue higher studies abroad.
- Age: Students typically aged between 18 to 35 can get an education loan from SBI.
Documents Required For an SBI Abroad Education Loan
The following are the documents required for an education loan for abroad studies from SBI:
- The Completed Application Form provided by the bank.
- Confirmation of Admission: An admission letter or proof of admission from the university that the student is planning to attend.
- KYC Documents: Copies of documents proving the identification and address of the student and their co-applicant, along with a copy of the student’s Passport. These documents can include an Aadhaar card, PAN Card, Voter ID, or Driving Licence.
- Passport Photos: Two recent passport-size photographs of the applicant, co-applicant, and guarantor.
- Academic Records: Previous academic records, such as 10th, 12th, and UG marksheets. Additionally, any test score and the result of the entrance exam through which admission is being taken (e.g., CAT, GRE, GMAT, TOEFL, IELTS, etc.)
- Collateral documents: The collateral document that banks require when you are taking a secured education loan from SBI includes:
- Property documents,
- FD documents, or
- Any other documents specified by the bank.
- Financial Documents: Documents proving the income of the financial co-applicant should be provided. These documents can vary depending on whether the co-applicant is salaried or self-employed.
- For Salaried Co-applicants:
- Last 2-3 years of ITR or Form 16,
- Recent payslips, and
- Bank statements
- For Self-employed Co-applicants:
- Last 2-3 years of ITR,
- Business proof,
- Bank statement, and
- Profit & Loss statement.
How to apply for an SBI Abroad Education Loan
The following is the process of applying for an abroad student loan from SBI:
- Visit your nearest State Bank of India branch and ask about the education loan schemes from the branch.
- Check your loan eligibility and fill out the application form
- Ask for the document checklist
- Visit the bank again to submit the documents to get your education loan process started
Conclusion
Education loans have become the primary source of funds to pursue higher education for many students. These loans help students cover various expenses associated with pursuing education in India as well as abroad. The State Bank of India is one of the prominent public banks that offers abroad education loans to students. The bank offers both collateral and non-collateral student loans to cater to the diverse needs and requirements of students.
This article covers the key insights of SBI student loans for abroad education, including the loan amounts, the interest rate, eligibility criteria, documents required, and the collateral requirements.
