Abroad Education Loan Balance Transfer to SBI: Key Features, Eligibility & More

If you plan to study abroad, chances are you have already taken an education loan. But in the rush of admission deadlines and travel arrangements, you might have ended up choosing a lender with high interest rates or repayment terms that aren’t convenient for you. Don’t worry, you’re not stuck with it! You have the option to transfer your abroad education loan from one lender to another, and this process is called an abroad education loan balance transfer or takeover. 

There are different ways this can be done, like moving from a secured to another secured loan, from unsecured to secured, unsecured to unsecured, or even from a secured to an unsecured loan. The good news is that things have become much more flexible now. You can transfer an unsecured overseas education loan from a private lender to a public lender. Plus, you can start the transfer process even if your course is still ongoing or if you’re waiting for future disbursements. 

Among the many lenders available, one name stands out for its reliability and popularity: State Bank of India, one of the largest public sector banks in the country. In this article, let’s explore how an abroad education loan balance transfer to SBI works and why it could be a smart move for you.

What is an Abroad Education Loan Balance Transfer to SBI?

Now that you know you can transfer your balance overseas education loan, let us understand what it means when you choose to do it with the State Bank of India. An abroad education loan balance transfer to SBI simply means moving your existing education loan, whether it is from a private bank or another lender, to SBI for better terms and benefits. 

If you're currently paying high interest rates or dealing with rigid repayment policies, transferring your loan to SBI can offer several valuable benefits. To understand these key features in detail, let us shift our focus to the next section.

Key Features of Abroad Education Loan Balance Transfer to SBI

SBI brings with it the trust and credibility of being one of India’s best bank for education loan for abroad studies, making it a reliable choice for your balance education loan transfer. But that’s not all, here are some of the key features that you need to know about an abroad education loan balance transfer to SBI. 

Flexible Transfer Timeline

You can apply for an abroad education loan transfer to SBI at any stage during your loan term, whether it’s during the course period, moratorium period, or the repayment phase.

Loan Amount Range

You can refinance a minimum loan amount of ?10 lakhs, and the maximum amount that can be considered goes up to ?3 crores, depending on the type of loan.

Competitive Interest Rates

You can expect a competitive interest rate ranging from 9.15% to 9.65%, subject to the loan amount. 

Flexible Repayment Tenure

You can get a repayment period that can go up to 15 years, giving you enough time to manage your finances comfortably after completing your studies.

Zero Processing Fee

You don’t need to pay any processing charges or hidden costs when you opt for an education loan transfer to SBI, helping you save more.

Convenient EMI Payment Options

You can easily pay your EMIs through net banking, mobile banking, or even post-dated cheques, whichever method suits you best.

Loan Coverage

The transferred loan amount can include the outstanding balance of a fully disbursed loan, the sanctioned limit of a partially disbursed loan, any top-up loan amount, and even prepayment penalties (if applicable).

Top-Up Loan Option

If you plan to pursue higher studies after your current course, you can also apply for a top-up loan after the abroad education loan transfer. This is subject to document submission and comes with an extended repayment period for the new course.

Eligibility Criteria for Abroad Education Loan Balance Transfer to SBI

SBI has set specific eligibility criteria to ensure that the loan balance transfer is processed smoothly and aligns with their policies. Here is what you need to qualify for transferring your current loan balance to the SBI education loan for abroad studies.

• The loan transfer must be a first-time takeover, which means you haven’t transferred the loan before.

• The borrower should be a major (18 years or older) at the time of applying for the abroad education loan balance transfer.

• The existing overseas education loan should be classified as 'standard' in the books of the current bank or financial institution, indicating that all repayments are up to date.

• The entire loan amount must already be disbursed by the current lender at the time of initiating the transfer.

If you meet the eligibility criteria mentioned above, you are one step closer to transferring your education loan to SBI for your studies abroad. But the journey doesn’t end here! It is time to get your documents in order, because to successfully apply for an abroad education loan balance transfer to SBI, you’ll need to submit a specific set of documents that support your application.

Documents Required for Abroad Education Loan Balance Transfer to SBI

The State Bank of India provides a checklist of documents that need to be submitted along with a duly filled abroad education loan transfer application form. But don’t worry, you don’t need to look elsewhere. For your convenience, we’ve listed all the essential documents you’ll require right below.

For Applicant

• Duly filled Abroad Education Loan Refinance Application Form.

• Education Loan Sanction Letter from the previous bank.

• Latest Outstanding Loan Amount (Foreclosure letter from the previous bank to be submitted at the time of sanctioning the new loan).

• Educational mark sheets from SSC up to the latest qualification.

• University Offer Letter, all semester transcripts, and a copy of the Master's Degree (if applicable).

• Test score reports like GRE (if applicable).

• Names, Addresses, and Contact numbers of two friends (as references).

• Two recent passport-sized photographs of the applicant.

For Co-Applicant

• Income Tax Return (ITR) or Assessment Order for the past 2 years (applicable if the co-applicant is an income tax payee).

• A brief statement of assets and liabilities.

• Proof of income, such as recent salary slips or Form 16.

For Applicant & Co-Applicant

• PAN Card & Aadhaar Card.

• Valid photo identity proof such as a Driving License, Voter ID, Aadhaar, Passport, or any other ID accepted under KYC norms.

• Address proof like a Passport, Driving License, Electricity Bill, Gas Bill, or Telephone Bill.

• Bank statements for the last 6 months.

For Applicant Currently Working Abroad

• The latest 12 months’ bank statements of both abroad and Indian bank accounts.

• Appointment letter and last 6 months’ salary slips from the current employer abroad.

• Official email confirmation of employment (if salaried).

• Overseas credit score report / CIBIL equivalent (if available).

Your eligibility and documents are all set, but before you take the final step and apply, it’s important to go through a few key terms and conditions. These details will help you better understand the process and avoid any surprises later on. So, take a moment to read through the following points carefully.

Terms & Conditions for Abroad Education Loan Balance Transfer to SBI

Abroad education loan balance transfer to SBI comes with its own set of specific terms and conditions. So, here are some quick bullets to help you understand the basics.

• Collateral Requirement: If collateral is needed, its value must be at least equal to the total loan amount you are requesting.

• Collateral-Free Option: SBI provides non collateral education loan only if you're admitted to one of their approved premier institutions abroad.

• Repayment History: You should have already started repaying your existing loan, and all EMI payments must be made regularly and on time with your current lender.

• Credit Score: A good CIBIL score is important. Ideally, your score should be above 700 to improve your chances of approval

Now that you are all geared up, it's time for the real action: applying for an abroad education loan balance transfer to SBI. Not sure where to start? Don’t worry. To make things easier for you, we've outlined some steps that will guide you through the application process with clarity and ease.

How to Process Abroad Education Loan Balance Transfer to SBI?

Transferring your existing education loan balance to SBI is a smooth and straightforward process. Here is an easy approach you can follow to get started. 

Request Loan Foreclosure from Current Lender: Start by contacting your existing bank or financial institution to initiate the foreclosure of your current education loan. This means you will be asking them to close the loan account before the original end date.

Submit Application to SBI with all Required Documents: Once you’ve initiated foreclosure, the next step is to apply for a loan balance transfer with SBI. Collect and submit all necessary documents as per SBI’s checklist. Make sure to choose the right scheme and fill in the loan application form carefully.

Loan Sanction & Cheque Issuance by SBI: If your application meets all the criteria, SBI will approve your request and issue a cheque or a demand draft for the outstanding loan amount in favour of your previous lender.

Loan Closure & Document Release: After the payment from SBI is processed, your previous lender will close the loan account and release your original documents, such as property papers or collateral documents (if any).

On average, the entire process of transferring your abroad education loan to SBI may take around 2 to 4 weeks, starting from the time you submit your application to the final disbursement.

Now that you have a complete understanding of how the SBI education loan balance transfer works, here’s a pro tip: always compare the pre-payment charges from your existing lender and the total repayment amount under both lenders (your current one and SBI). Go ahead with the refinance only if it gives you clear financial benefits and saves you a good amount in the long run.

And remember, worrying is never the solution. If you are confused or need assistance at any step, Élan Overseas Education Loans is here to guide you through the entire process and make it completely hassle-free.

How can Élan Loans help with Abroad Education Loan Balance Transfer to SBI?

Abroad education loan balance transfer to SBI can never be a cakewalk until you reach out to Élans Loans. With over 6,25,000 students successfully assisted in pursuing higher education overseas, our experts know exactly how to simplify the process for you. All you need to do is get in touch with our loan experts, and they will take care of the rest, from documentation to coordination with banks. 

Based on your academic and financial profile, we’ll recommend the most suitable abroad education loan balance transfer option available in the market. With affordable funding solutions and end-to-end guidance throughout the process, Élan Loans ensures your SBI loan transfer is smooth and stress-free. 

So, don’t wait, connect with our experts today!