SBI Increases Collateral-Free Education Loan Limit for Overseas Study
The State Bank of India (SBI) has introduced an enhanced financial aid program for students aspiring to study abroad. Under its SBI Global Ed-Vantage Scheme, students can now avail loans of up to ₹50 lakh without collateral, easing the financial burden of pursuing higher education in foreign institutions.
Key Features of the SBI Global Ed-Vantage Scheme
- Collateral-Free Loans:
Students can secure loans up to ₹50 lakh without the need for collateral. This benefit is applicable to students enrolling in select prestigious institutions. - Flexible Repayment Period:
The scheme offers a repayment tenure of up to 15 years, allowing students ample time to repay through convenient EMIs. - Pre-Approval Before Visa:
Loans can be sanctioned even before students obtain their Form I-20 or visa, ensuring financial security during the admission process. - Tax Benefits:
Students are eligible for tax deductions under Section 80(E) of the Income Tax Act on the interest paid on the loan. - Coverage of Multiple Course Types:
Loans are available for a wide range of courses, including:- Undergraduate and postgraduate degrees
- Diploma and certificate programs
- Doctorate programs in any discipline
- Comprehensive Expense Coverage:
The loan covers:- Tuition and hostel fees
- Examination, library, and laboratory charges
- Travel expenses
- Cost of books, uniforms, and other required materials
- Study tours, projects, and thesis expenses (up to 20% of tuition fees)
- Caution deposits and refundable fees (up to 10% of tuition fees)
- Processing Fee and Interest Rate:
- Processing Fee: ₹10,000 per application
- Interest Rate: 10.15% for loans between ₹7.5 lakh and ₹50 lakh
Expert Insights on SBI’s Initiative
Ankit Mehra (CEO, GyanDhan):
“This progressive step aligns with the shift toward unsecured loans in the study-abroad sector, enabling more meritorious students to access education financing.”
Saurabh Arora (Founder, University Living):
“The extended repayment terms and tax benefits make it easier for Indian students to achieve their global education goals.”
Rahul Subramaniam (Co-Founder, Athena Education):
“With no collateral requirements, the program caters especially to students targeting top-tier universities globally.”
Piyush Kumar (Regional Director, IDP):
“This scheme is particularly impactful for students from Tier 2 and Tier 3 cities, removing significant financial hurdles to international education.”
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How to Apply
Interested students can visit SBI’s official website or contact their nearest SBI branch for application details and further assistance.
SBI’s collateral-free education loan initiative is a game-changer, providing Indian students with the financial means to pursue higher education abroad with greater ease and accessibility.
