SBI Education Loan: All You Need To Know

Education Loan

Career opportunities multiply when studying internationally is considered as an option. It takes learning and exposure to the next level. One and all give it a thought and nowadays consider loan as means to combat this expensive affair.

SBI educational loans have made it possible for aspirants from all walks of life to avail of customer-centered and budget-friendly loans to achieve their goals. This post covers each and every detail associated with education be it the process to apply for a loan, eligibility, or interest rates.

What is an SBI education loan?

SBI education loan structure is a term loan proposed to Indian students, looking to pursue higher education in India or in a foreign country. The student should secure admission prior to the loan application is the first and foremost requirement.

SBI under the Global Ed-vantage and Student Loan criteria offers loans to fulfill overseas educational programs. The remarkable feature is that SBI mainly offers loans with collateral. SBI caters to students of all caliber to chase their dreams of studying abroad by providing them with financial assistance.

What are the types of SBI educational loans?

There are 5 types of loans that SBI suggests aspiring applicants namely Scholar Loan, Global Ed- vantage loan, Student Loan, Skill Loan, and Take-over of an education loan. Out of these, there are 2 options available for those seeking education overseas.

Global Ed-vantage and Student Loan are the types that SBI offers and for girls and holders of the RinN Raksha policy the rates are further subsidized. SBI extends a warm hand for government policies which include the Dr. Ambedkar Subsidy Scheme for Overseas Education to name but a few.

Salient features of SBI education loans:

SBI strikingly surpasses the others in the industry as the features of its education loans are simply commendable. The loan rates are lower as compared to the others.

Under the Global Ed-vantage policy, INR 20 lakhs to 1.5 crores can be availed at an interest rate of 8.80% for Men and 8.30% for Women beneath the bracket of the RinN Raksha scheme. The maximum to which the loan can extend is 15 years which is certainly promising for those looking at career options internationally.

This gives young applicants enough time on hand to put side by side their job and finances. The Student loan category however offers loans up to 7.5 lakhs excluding collateral and this can extend to 20 lakhs with collateral at the interest rate of 9.55%.

SBI – Ed loan the best option:

SBI welcomes and tries to suit the budget and pocket of each and every candidate applying for an educational loan overseas. SBI Education Loan Interest Rate is inexpensive for education in India’s finest institutes and for pursuing academics abroad.

SBI education loan takes care of the training, examination, reference library fee, caution deposit, and equipment cost, travel expenses, etc. SBI has no upfront charges levied on education loans.

Although the procedures vary for diverse banks while applying for an education loan, there are a set of rules that are identical across the board, such as papers that you would require to attach along with your loan application form. SBI education loan simplifies this by making the majority of the application process digital.

Eligibility to apply for an educational loan:

It is vital for pupils to know the eligibility rules and successfully qualify for the same, to be able to apply to their preferred bank for their education Loan.

Students taking up courses in regular graduate, postgraduate, doctorate programs in any regard and solicited by international universities including countries like USA, UK, Canada, Australia, Europe, Singapore, Japan, Hongkong, and New Zealand. Moreover, it mandates that you should be an Indian citizen and have a sound academic background.

Preference is given to job-oriented programs and you must have secured admission to a known institution. From determining the eligibility to getting documentation in place, the procedure is laborious and time-consuming. Therefore, the loan must be planned well in advance.

What are the margin money and moratorium period?

SBI education loan gives a maximum amount of INR 30 lakhs for studying abroad with a loan margin of 15%. The Interest rate levied on the credit amount is up to 2% on the existing base rate of SBI. Further, the margin in both the loan schemes namely the Global Ed-vantage and Student Loan is 10% with a moratorium of course + 6 months check here.

The best part is – if there’s any scholarship/assistantship, it is included in the margin. Moreover, accumulated interest during the moratorium to be added to the principal and repayment in EMI fixed. Reminding you, that repayment begins 6 months after the completion of the course.

SBI education loan: Interest rates

The interest rates are 9.55% with a 0.50% concession to female candidates. Interest rates are also determined by MCLR (Marginal Cost of Funds Based Lending Rate) While granting loans to eligible candidates SBI will check 3 main categories which include 90% of your total attendance cost.

The next is 70% of your property’s value and this can range between 65% – 73%. Lastly, SBI will consider FD’S and other liquid assets between 80% – 90%. Along with all this, the applicant’s paperwork should be perfect. The loan repayment tenure can vary between 1-15 years. Simple Interest charges are levied during the Course Period + Moratorium Period. Please remember that students who have applied for an educational loan from a nationalized bank such as SBI are required to start the repayment process after the completion of the moratorium period.

Everything comes with a price but, when it comes to SBI, it’s a reliable name and most cost-effective. One can capitalize on their talent without having to bother about repaying a ransom as EMI.

In spite of inflation, the number of aspiring students seeking education and career opportunities overseas seems to go in the northward direction. All one needs to do is be focussed, dedicated and optimistic!