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State Bank of India - Study Abroad Education Loan Process

The State Bank of India (SBI) established in the year 1806, is the oldest commercial bank in the Indian subcontinent. It is also one of the leading nationalized lenders for overseas education loans in the country. An SBI Education loan is the go-to option for most of the overseas education aspirants as it offers various benefits. 

There are 5 types of SBI Education Loan Schemes. Those are SBI Scholar Loan Scheme, SBI Skill Loan Scheme, SBI Takeover of Collateralised Education Loan Scheme, SBI Student Loan Scheme and SBI Global Ed-vantage Scheme. 

In this article, we are going to take you through the two types of loan services offered by SBI.

To have a better understanding let’s first have a look at the cost of education for masters in UK.

  • SBI Student Loan Scheme
  • SBI Global Ed-vantage Scheme

SBI Student Loan scheme is availed by the students to study in India where as SBI Global Ed-vantage loan scheme is availed by the overseas education aspirants to fund their international degree. 

The classification of the loan service is done based on the factors like quantum of finance, margin amount, rate of interest, applicable charges, and interest. 

    SBI Student Loan Scheme
    SBI Global Ed-Vantage Loan
    Study Level & Courses

    Regular Graduate / Post-graduate / Diploma / Certificate Courses.

    Pathway courses leading to the main course 

    Regular Graduate / Post-graduate / Diploma / Certificate Courses.

    Pathway courses leading to the main course 

    Quantum of Finance

    Unsecured loan up to 7.5 lakhs

    Secured loan up to 20 lakhs 

    Above 20 lakhs and up to 1.5Cr (No limit, if project cost is more)
    85% + 15%
    90% + 10% (with each disbursement)
    No processing fee 
    Rs. 10000 + GST
    Serving simple interest is optional
    Serving simple interest is optional

    Which scheme is recommended for candidates who wish to pursue their higher education abroad?

    SBI Global Ed-Vantage loan is the recommended for abroad education. However, if the project cost of the student is less than 20 lakhs, he/she can opt for SBI Student Loan Scheme. 

    Now, let us know about the expenses covered in SBI education loan:

    • Tuition fees of the university / college, examination fees, library, and lab fees
    • Expenses of on-campus and off-campus accommodation including mess expenses
    • Air Ticket Fare
    • Student Health Insurance 
    • Purchase of books, equipments, uniform
    • Purchase amount of laptop
    • Any other expenses required to complete the course like study tours and project work

    Majority of the students go for SBI education loan schemes due to the numerous benefits it offers. Let us know what those are.   

    Benefits of availing SBI education loan:

    • SBI gives collateral loan up to 1.50 crores 
    • Lowest rate of interest starting 8.3% 
    • Co-applicant is eligible for tax deduction benefits under section 80E 
    • SBI gives loan to all level of courses i.e UG and PG level courses 
    • Rin Raksha Insurance concession of 0.50% 
    • Girl students are given 0.50% of concession on ROI 
    • Serving simple interest during moratorium period is optional 
    • Pre-Visa disbursement of tuition fees and living expenses as required by the University / Visa authorities 
    • Bank disburses the living expenses in SBI Forex Card, up to 6 months 
    • If ITRs are not available, student can get loans on the basis of income certificate also 

    Although the processing fee for SBI education loan scheme depends on the pledged collateral however there are some charges that students are required to pay. Let us know about those:

    What are the charges involved in whole loan process? 

    To get the education loan sanctioned, a student is required to pay certain charges for valuation report and search report. Let us understand the complete process and the applicable charges. 

    • Once the loan file is submitted in the local branch, it is then forwarded to the architect for valuation and to the lawyer for search report. Valuation of the property costs around 1800/- whereas applicable charges for search report is 4000/-   
    • After the sanctioning of the loan, a student must pay the processing fee of Rs. 11800/-  
    • Mortgage process begins after getting the visa. Student must pay 0.20% for stamp duty against the loan amount sanctioned. 
    • Students are required to avail loan insurance from the bank. The loan insurance charges are required to be bear by the parents.  

    Understand the step-by-step process of SBI Education Loan: 

    Step 1: Collecting all documents as per SBI loan checklist 

    Step 2: Evaluating property documents and checking academic, financial documents 

    Step 3:  Filling up the SBI loan application 

    Step 4: Submission of loan file to nearest SBI branch 

    Step 5: SBI Branch will forward loan file to zonal office/RACPC Office 

    Step 6: Initiate process for search and valuation report  

    Step 7: Actual processing & sanctioning after receiving both the reports 

    Step 8: Receiving the loan sanction letter 

    Step 9: Initiate property mortgage process

    Step 10: Disbursement of the loan as per the VISA norms

    Step 11: Laptop expenses, VISA fees, Air fare to disburse after approval of VISA 

    List of documents required for SBI education loan scheme:

    While submission of the documents in the SBI bank for processing of the education loan, students are required to carry one set of xerox documents along with the original academic and KYC documents. 

    • Offer Letter stating tuition fees
    • Student academic documents (10th to graduation) 
    • Student employment documents if any
    • KYC documents to be submitted by applicants as well as co-applicants
    • Electric Bill as proof of residence in the name of co-applicant 
    • Student, co-applicant’s saving account bank statement – 6 months 
    • Income Tax Returns of last 2 years 
    • Collateral property documents 

    Now, let us understand the types of collaterals on which a SBI education loan can be availed: 

    For secured education loan, there are two types of collateral that are accepted by the SBI for overseas education loan. They are Immovable assets and Movable assets. 

    To pledge an immovable asset against the loan amount, it should be located within the city limit area i.e., it should be an urban property. Education loan is not availed on the collateral coming under the rural area. Here are some of the important points to know about immovable and movable assets: 

    Immovable Assets 

    • Immovable assets include an independent house, a flat, an open plot and a shop.
    • 75% of the amount gets sanctioned against the market value of the property. 
    • The value of security should be taken as per valuation report. The collateral value is evaluated by authorized property evaluators and is generally lower than the market value but in compliance with the government rules and regulations of property evaluation. 

    Movable Assets

    • Movable assets include fixed deposits, LIC policy, government bonds and mutual funds.
    • Security offered for Fixed Deposit with Banks is 90% of total amount.
    • Security offered for Government Securities for Public Sector Bonds is 25% in bank’s favour.
    • Security offered for shares and debentures is 50% in bank’s favour.
    • Security offered for LIC policies is 100% surrender value of the policy.

    Here is a list of documents required to submit for availing collateral loan against the property: 

    A student is required to provide one set of xerox documents to the bank. To initiate with the search report, a student should carry original property documents for cross verification. The documents should be in the name of the present property owner and they should not be laminated. 

    Refer to the table below to know the list of property documents: 

    Residential House / Shop
    Additional documents required in case of Flat / Shop located in Apartment
    Registered title deed (Sale deed)
    Deed of Declaration / Apartment
    Previous owner sale deed
    Allotment / Possession Letter
    Agreement to sale (if any)
    Occupancy certificate
    Transfer deed / gift deed (if any)
    Society Registration certificate
    Tax receipt
    NOC from society
    Mutation copy (Index – II, Khata ‘A’)
    Shares certificate
    Sanctioned Layout Map
    Power of Attorney (if applicable)
    Building Permit Letter

    Electricity Bill

    Why to begin SBI education loan process early?

    It is always advisable to begin the loan process early on as it will increase your chances of securing the seat in the university or well in time before the visa interview. 

    • Our expert loan counsellors will inform you about your loan eligibility that will help you in planning your finances accordingly. 
    • The legal report and property valuation can be done beforehand increasing your chances of getting an education loan as it is valid for 3 months and 2 years respectively. 
    • If any property documents are missing, our loan experts will guide you on how to avail them. 
    • In case of Income Tax Return is not ready, we will guide you on how to proceed for the same as per the visa norms. 

    Now that you are aware about the SBI education loan schemes, choose a suitable loan option for your overseas education. Do an in-dept research and look for the loan that suits your profile or else simply contact us and we will take care of everything. 

    How ELAN Loan will speed-up your education loan application?

    We know that, an education loan is a quite tedious and time-consuming process. Hence, we would recommend getting in touch with the loan experts.

    Here is how we will assist you: 

    • ELAN Loan has partnered with State Bank of India that make the complete education loan process much quicker and faster. 
    • The loan experts at ELAN check the documents thoroughly and submit those to the nearest SBI branch for processing of your loan application. 
    • Apart from this, our loan experts will guide you accordingly if there are any loopholes in your loan application. 

    • We will continuously take the follow-up with bank that helps in speeding up of your loan application.  
    In short, we will provide end to end assistance for your overseas education loan. Contact us today to get your loan sanctioned on the top priority. 

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