SBI Bank Education Loan For Abroad Studies

Since its inception in 1955, the State Bank of India (SBI) has stood as India’s largest public sector bank in terms of assets, deposits, branches, and customers. Considering the demand, the bank has evolved its lending services over the years and launched special education loan products to fund abroad study aspirants.

The SBI bank has merged with the State Bank of Travancore, Bhartiya Mahila Bank, State Bank of Hyderabad, State Bank of Mysore, and State Bank of Patiala.

An SBI education loan for abroad studies is offered through several schemes to enable students to access higher education in foreign countries. The SBI abroad education loan interest rate is low to make abroad education affordable to students.

What Numbers Say about the SBI Education Loan

• Rs 15,247 crores disbursed for international education
• 52,000 + students funded annually for abroad studies
• Present in 22 + countries for education financing
• Lowest default rate among PSU banks (2.1%)
• 22,405 branches across India for easy accessibility

Why 47% of students choose SBI for Abroad Education

• Government backing ensures credibility and zero risk
• Lowest interest rates in Public Sector banks 
• Highest loan amounts up to 3 CR
• Flexible repayment options with a long moratorium
• Pan-India presence with quality service

Students planning for overseas education should check out the various SBI study abroad loan schemes:

• SBI Student Loan
• SBI Global Ed-Vantage Scheme
• SBI Skill Education Loan
• SBI Scholar Scheme
• Shaurya Education Loan Scheme
• The takeover of the Education Loan Scheme

An Overview of the Complete SBI Education Loan Schemes

It is one of the major State Bank of India's abroad education loan schemes. This scheme is designed to offer education loans to students planning to pursue their education at foreign universities. The bank provides both secured education loans and unsecured education loans through this scheme. Depending on the course, the collateral availability, and the preferred university, students can get an education loan for abroad studies in SBI of up to ₹3 crores through the SBI student loan for abroad studies scheme.

Unique Features:

• Loan Amount Flexibility: From 7.5 lakhs to 3CR.
• Third Party Collateral Accepted: Even relatives can pledge collateral.
• SBI Considers 90% value of Collateral: More flexible than private banks.
• Covers entire education costs: Beyond just tuition fees.

Collateral Valuation Formula

For immovable property:

Assuming a student needs a loan of 60 lakhs, the value of the collateral should be more than 60 lakhs, and the bank considers 90% of the collateral. This is more flexible compared to private banks, which require 125% of the collateral. 

Example calculations:

• Loan required: Rs 60 lakhs
• Minimum property value: More than 60 lakhs
• Benefit: Lower property value compared to competitors

Third Party Collateral Accepted:

• Unlike other lenders, SBI accepts collateral security from
• Parents or legal guardians
• Spouse or siblings
• Close relatives( if the relationships can be proved)

An SBI education loan for abroad studies is offered through several schemes to enable students to access higher education in foreign countries. The SBI abroad education loan interest rate is low to make abroad education affordable to students.

The most popular SBI education Loans are given below in detail:

Also Read: SBI Education Loan Without Collateral: Get Up to 50 Lakhs

SBI Student Loan Scheme

Shaurya Education Loan

This education loan scheme is forwarded to DSP/ ICGSP officers in all ranks for studies abroad.

Takeover of Education Loan

State Bank of India offers an education loan transfer facility to students. Students can shift their currently running education loan from their present lender to the State Bank of India as per the following conditions:

Expenses Covered under an SBI Education Loan for Abroad Studies

Students can use an education loan for abroad studies in SBI to cover various expenses associated with their education, such as:

• Course fees or tuition fees
• Cautionary deposit
• Insurance Premium
• Examination fees
• Travel Expenses
• Purchase of course-related books
• Purchase of a laptop or computer

Courses Covered under an SBI Education Loan for Abroad Studies

• Graduation: Professional or technical courses being run by prestigious institutions for job purposes
• Post-graduation: Job-oriented professional/ technical courses such as MCA, MS, MBA, etc.
• Certificate or diploma from postgraduate courses offered by prestigious institutions.
• Doctorate programs (Ph.D.)
• Courses conducted by a CPA (Certified Public Accountant) in the USA, CIMA (Chartered Institute of Management Accountants) - London, etc.
• Diploma or degree courses offered in pilot training, aeronautical engineering, shipping, etc., run by competent authorities in India and abroad, for employment in India or abroad.

Key Features of an SBI Student Loan for Abroad Studies

• Students can easily apply for an education loan for abroad studies in SBI through their online application process.
• The SBI study abroad loans offer higher loan amounts of up to ₹3 crores.
• Students can get an SBI student loan for abroad studies of up to ₹50 lakhs without any collateral through these loans.
• The SBI education loan interest rate for abroad studies is available at low rates to benefit students.
• The SBI study abroad loans offer a flexible repayment tenure of up to 15 years.
• Under Section 80E of the Income Tax Act, applicants can avail of tax benefits on the SBI bank education loan for abroad studies.
• Students can take a top-up on their current education loan for further studies, without worrying about the cost of education.
• Students can use any of the payment options from Mobile Banking/ Cheques/ Net Banking to repay their EMIs of their education loan for abroad studies in SBI.

The SBI education loan interest rate for abroad studies is quite low compared to student loans from other banks. The SBI abroad education loan interest rate ranges from 8.65%, depending on the scheme and other factors such as the loan amount, collateral availability, the student profile, and the repayment tenure.

How to Secure the Lowest Interest Rates:

Gender Based Discount:

• Female students: 0.5% discount 
• Male students: Standard rates apply
• Annual savings for women: Rs 25,000 to 30,000 discount on a 50 lakh loan.

Merit-based discounts:

• Academic excellence(90% + marks): Case by Case negotiation
• Entrance Exam Scores:  High GMAT, GRE scores enhance negotiation chances
• University Ranking: Top 100 universities get better interest rates.

An Overview of the discounts with an example: 

• 50 Lakh Loan example:

Key Insights:

• Female students save Rs 16,35,660 over 15 years by choosing SBI over private lenders.

Understanding SBI’s Mandatory Insurance 

SBI Loan Insurance or Rinn Raksha represents SBI's commitment to protecting both borrowers and their families through comprehensive insurance coverage. This mandatory scheme ensures that education loan obligations don’t become a burden to families during unfortunate circumstances.

Key Factors:

• Loan obligations are covered in case of the borrower’s demise
• Students can focus without any financial worry
• Cost-effective protection for substantial loan amounts

Two Insurance options detailed analysis

Group Credit Life Insurance(CGLI)

• Coverage amount: Outstanding loan balance only
• Premium Structure: 0.45%-0.55% of loan amount annually
• Benefit Payment: The Loan gets fully settled
• Family benefits: Loan closure, no cash to family

Term Life Insurance(TLI)

• Coverage amount: Full sum assured amount
• Premium Structure: 0.75%- 0.85% of the sum assured annually
• Benefit Payment: Cash payment to nominees
• Family benefits: Loan settled + cash to family

What to choose

Choose GCLI if:

• Your goal is only loan protection
• You have other LICs
• Loan amount is below Rs 30 lakhs

Choose TLI if:

• This is your primary Life Insurance
• Loan amount is more than 30 lakhs
• You want cash benefits for your family

Meeting the eligibility criteria is the basic requirement to avail any loan. The basic eligibility requirement is given below in detail.

Age Requirements: 

• Primary applicant: Minimum 18 years at the time of application
• Co-applicant: Not beyond 65 years

Citizenship:

• Student: Must be Indian citizens with valid documents
• Co-applicant: Must be Indian(can consider special cases based on certain conditions mentioned by the bank)

Academic Eligibility Requirement:

• The Basic Requirement: Must have secured admission from a recognised university
• Academic performance:  Consistent good records with an average of 60%
• Entrance Exams: Must provide test scores of GRE, GMAT, etc. If required.

Standardized Test Score Requirement

Co-applicant Requirement:

• Stable income source: Salary, business income, pension, etc
• Credit History: CIBIL Score Minimum 700
• Income Range: Varies from case to case, but a minimum of ₹ 4 lakhs in income is required.

Acceptable co-applicants:

• Parents 
• Spouse
• Siblings
• Parents-in-law

A proper documentation to prove all these relationships.

Course and University acceptance:

• Undergraduate
• Postgraduate - Masters in all disciplines
• Professional courses - MBA, MBBS, MS, medical, etc.
• Doctoral programs
• Certified programs
• Pilot Training

Geographical Coverage

SBI provides education loans to study in countries

• North America: Canada, USA
• Europe: UK, Germany, France, Netherlands, Switzerland, Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, Greece, Ireland, Italy, Norway, Poland, Portugal, Russia, Spain, Sweden.
• Asia-Pacific: Australia, New Zealand, Singapore, Japan, Hong Kong.
• Pathway Courses: Leading to the main courses included in financing..

The State Bank of India has a long list of documents required to process its SBI study abroad loans.

Applicant and Co-applicant Documents

• Address Proof of applicant – Passport of applicant/ Voter ID Card/ Ration card/ Electricity Bill/ Telephone Bill/ Bank account statement/ Aadhar card. (If permanent and present addresses are the same, then 2 different address proofs will be required.) 
• Identity Proof – PAN Card, Passport (student, if going abroad)
• Proof of personal asset and liabilities statement approved by the bank’s branch personnel
• Bank account statement for the last 6 months (Personal/ Salary). For co-applicants, it should show the salary credits if salaried or 1-year business transactions if self-employed.

All the papers should be self-attested.

Students Academic Documents

• School, class 10th, 12th and graduation mark sheets
• The fee structure as given by the college or university
• Admission proof of the student in the course, showing the duration of the course
• Scorecard of qualifying entrance exams like IELTS,  GRE, GMAT, etc

Co-applicant Income Documents

• If Salaried
  • ITR of the last 2 years
  • Form 16 details of the last 2 years
  • Salary slip for the last 3 months
  • Employer's ID card
• If Self-employed
  • Proof of Business address
  • Income Tax Return for the last 3 years
  • Profit & Loss account statements in the balance sheet for the last 3 years

Other Documents

• Joint affidavit with the student and co-applicant in the standard format of the bank, which will be given to you by your assigned WeMakeScholars financial officer
• Co-applicant declaration stating that all other leftover expenses will be taken care of by the co-applicant only

Additional Documents (if applicable)

• All loan account statements (1 year), if any pending loans.
• Payment receipt is made in the past 6 months.
• A letter explaining the gap if the students had a failure/break in studies on Rs. 100 stamp paper. (Format to be provided by WeMakeScholars Financial Officer).

Collateral Documents (if taking a collateralized loan)

State-specific property documentation

Mumbai/Pune Locations

• Registered sale deed with stamp duty payment
• Society shares certificate and allotment letter
• No objection certificate(NOC) from society
• conveyance deed of the society
• approved building plan from the municipal authority

Special Mumbai Requirement

• CIDCo properties: NOC and transfer letter mandatory
• MHADA properties: Specific transfer permission required
• Urban Land ceiling: Compliance certificate essential
• NA order: Non-agriculture land conversion proof

Hyderabad Properties:

Mandatory documents

• Revenue records
• Urban land ceiling certificate
• 7/12 extract
• Encumbrance certificate(30 year chain)
• Village-level revenue documentation

Telangana region

• Registration Department: Sub registrar endorsements
• Revenue Department: village revenue officer certificates
• Municipal records: Property tax compliance certificate

Only collateral loans are covered by it, and each state has a distinct set of papers. Don't forget to get the list of state-specific collateral papers from your WeMakeScholars financial officer.

After reviewing your loan profile, your financial officer will give you a specific paperwork checklist when you complete your college loan with WeMakeScholars. Get your documentation checklist by applying for a student loan with WeMakeScholars.

WeMakeScholars Documentation Advantage

Pre-verification service:

• Legal Team Review: All documents are checked before submission, which helps students fill the gap and submit missing documents.
• Error prevention: 95% of common mistakes are avoided
• Expert guidance: Personalised checklist based on your profile
• Easy accessibility: Upload documents from anywhere and anytime.

The processing time for SBI abroad education loans for studying abroad typically ranges from 15 to 20 days after all necessary documents have been successfully submitted. This duration can vary based on factors such as the applicant's location and the availability of required documentation. The above-mentioned processing time is for students applying for an education loan through WeMakeScholars.

State Bank of India does not charge any processing fees for taking an education loan of an amount up to Rs 20 lakhs, but if the loan amount is greater than Rs 20 lakhs, a processing fee of Rs 10,000 + taxes is charged from the students, irrespective of the fact that the education loan is to study in India or abroad.

Moreover, if students apply to take an SBI student loan for abroad studies with collateral, then they will have to pay an amount of Rs 7,500 - Rs 10,000 for legal and valuation reports.

But, WeMakeScholars, being a government-funded initiative, offers its student-friendly premium education loan sanctioning services free of cost. To start your education loan process at the State Bank of India with WeMakeScholars, request a callback or fill out the common application form.

State Bank of India charges an education loan margin of generally 15% for any loan amount greater than Rs 4 lakhs; however, the loan margin percentage also depends on the type of collateral that a student pledges when taking an education loan with collateral.

However, sometimes students find their loan margin amount to be a lot higher than their bearing capacity. But when you process your education loan with WeMakeScholars, you don’t have to worry about that. To know the loan margin for your loan profile, also, tips to reduce your loan margin, ask your financial officer by requesting a callback or fill out the common application form.

State Bank of India provides an education loan EMI calculator on its website to assist students in the calculation of their EMI, towards their education loan repayment. But, we suggest you use the WeMakeScholars education loan EMI calculator, as it is specially designed and offers the following advantages to students:

• Detailed Analysis - Repayment process analysis is also given to you, through which you can plan your repayment schedule accordingly
• 100 % Accurate Results - The EMI calculation results obtained from the calculator are accurate, as it considers all the parameters that alter the EMI amount while calculating. 
• Strategic Benefit - Students can vary the repayment parameters to decide their repayment strategy and take loans accordingly.
• Free of Cost - Like all other services of WeMakeScholars, the education loan EMI calculator is also free of cost.

Offline Application Process

• Visit your nearest State Bank of India Branch and enquire about the abroad education loan products
• Fill out the application form and ask for the documents required to start the SBI education loan for abroad studies application process
• Visit the bank again to submit the documents to finally start your SBI student loan for abroad studies process.
• Take follow-ups from the banks till your loan is sanctioned.

Challenges via direct application

• Extended timeline: 30-45 days, average processing
• Multiple visits to the bank: 7-8 bank visits are required, typically
• Limited Guidance: No optimised personalisation
• Higher interest rates: Standard interest rates, no negotiation advantage

Online Application Process via WeMakeScholars

Step 1: Speak to your financial officer at WeMakeScholars by requesting a callback or filling up the application form.

Step 2: Give your loan details over the call so that your financial officer can analyze your loan profile.

After analyzing the loan profile, your financial officer will connect you with the lender that is offering you the best education loan deal.

Step 3: Submit your documents on the WeMakeScholars documents portal as per the documents checklist provided to you by your financial officer.

Step 4: Your financial officer will carry forward the process from here and will keep updating you about it.

Step 5: Collect your education loan sanction letter from your lender within 15-20 days after you have submitted your documents. 

Why applying through WeMakeScholars is better than a direct application

Let us compare in detail

While processing your education loan with WeMakeScholars, you get the following benefits:

Negotiation Support - Your financial officer will negotiate with your lender and try to negotiate for you, to get you the education loan at a cheaper rate of interest, if possible.

Better Interest Rates - When students process their abroad through WeMakeScholars are 0.5% to 2% lower than what banks usually offer.

Free-of-cost Services - All our prime education loan sanctioning services are free of cost for students, as we are funded and supported by the IT Ministry under the Digital India Campaign.

Digitised Application Process - Students apply online for education loans by filling out the application form. Moreover, the WeMakeScholars documents portal makes it hassle-free for students to start their loan process.

End-to-end Support - Your financial officer will continue to render their free services even after your loan is sanctioned, till you repay the last EMI of your loan.

Expert Guidance - Your financial officer will set you up with the best lenders, as per your eligibility, after analyzing your loan profile and guiding you at every step of the process.

Tax Benefits - We will assist in saving maximum tax by taking advantage of tax exemptions under Section 80E, 80C, etc of the Income Tax Department, along with the tax collected at source (TCS).

Minimal Processing Time - The process of sanctioning an education loan through WeMakeScholars is completed within 6-7 days if it is through a private bank or NBFC, and it takes us around 15-20 days to get your education loan sanctioned from a public bank. Both timelines are 50% less than what they usually take.

Cashback Offer - You stand a chance to get a cashback of up to Rs 3,000 from us at the time of your loan disbursement.

Detailed Timeline Comparison

Here are the students who made their dream come true via WeMakeScholars

Success Story 1: Property Documentation Issue Resolved

Student Profile:

Name: Arjun
Course: MS Computer Science, University of Texas at Dallas
Loan Amount: RS 40.56 Lakhs

The Challenge:

Arjun had secured admission to a prestigious US university, but faced a critical issue- his family's property sale deed had legal complications. When he approached SBI directly, the application was immediately rejected due to unclear property ownership documentation.

WeMakeScholars Solution:

• The legal analysis and solution identification process started
• Correction deed preparation and execution with local authorities
• Documentation registration with the sub-registrar's office
• Fresh application preparation and submission to SBI

The Outcome:

• Rs 40.56 Lakh loan approved in just 3 days, corrected documentation submission
• The complete problem was completely resolved in 10 days
• Arjun was able to make it to his dream university on time
• Legal issues permanently resolved for future reference

Arjun's Testimonial:

" I thought my dreams were over when SBI rejected my application. WeMakeScholars not only found a solution I never knew existed but executed it perfectly. Their team's expertise saved my admission and my future. All thanks to the weMakeScholars team and their support."