Aiming at education overseas is the vision of most students. This article intends to cover all that budding students need to know about an education loan policy, its types, and how to calculate the exact amount. SBI, being a renowned nationalized bank is the leading pioneer when it comes to education loans for studies abroad. Let us learn what all SBI education loan for study abroad has to offer.
Types of SBI education loan
SBI has the maximum footfall of students who intend to procure an education loan for funding their higher studies. Under the bracket of education loans, it has 5 student-friendly schemes to offer of which 2 focus on education overseas. Global Ed-vantage and Student Loan are two policies that SBI mainly offers educational loans with collateral. Unsecured loans and that too with the top-rated institutions come with a cap of 7.5 lakhs only.
Cost of SBI education loan
SBI education loan covers almost all the expenses of education abroad but, the applicant needs to duly inform them about the same. The Global Ed-vantage scheme, INR 20 lakhs to 1.5 crores can be obtained at an interest rate of 8.80% for Men and 8.30% for Women which comes under the frame of the RinN Raksha policy. The maximum to which the loan can range is 15 years which is reassuring for those looking at long-term career options internationally. The student loan typically offers loans up to 7.5 lakhs without collateral and this can stretch to 20 lakhs with collateral at the interest rate of 9.55%.
Costs covered under SBI education loan
It is time to heave a sigh of relief for aspiring students to want to opt for an SBI education loan. A loan taken from SBI intends to take care of everything from travel to tuition fees, from living expenditure to examination expense. The cost of a stationery and laptop is also covered. The best part is that the repayment of the loan begins 6 months after the completion of the course and this period can stretch up to a year under certain conditions.
Transparency in the SBI education loan process
The loan process at SBI is not only fairly priced but also the lowest when equated to the rest in the industry. From bold to fine print there are no hidden charges or terms that are kept a secret from you while applying for an education loan for study abroad. The paperwork is vigilantly scrutinized, details of your full-time course are ascertained and that’s it! SBI is ready to provide acceptable collateral security and your sanction letter is almost through.
What are the benefits of SBI education loans?
The key benefits include that SBI education loans come under section 80E of the Income Tax. Besides, the SBI education loan which is procured for graduation comes with a top-up facility to enable pupils to further pursue their post-graduation. If the interest is punctually paid an additional 1% concession for the full tenure of the loan and there are no processing charges too.
Information that you need to provide
Maintaining a good rapport with the bank officials and being open about any doubts is the ruling factor when applying for an educational loan. For the majority of students, it’s the first time so they forget or are shy about speaking up. It is highly recommended that financial assistance is taken before the application of a loan in order to make the entire process smooth and hassle-free.
Who is a co-borrower?
A co-borrower is the present guardian or parent of the applicant. In case the applicant is married then the spouse becomes the co-borrower/obligator. The universal rule across banks is that co-borrowers have a minimum salary of at least INR 30,000 on a monthly basis. Chances are highly bleak of getting a loan without a co-borrower since the co-borrower acts as a joint applicant in the process of an education loan for study abroad.
Common misconceptions:
There is a very common misunderstanding that an education loan does not cover all the costs which are likely to be sustained by pupils during their course of study out of the country. This, however, is not true. Any education loan, be it secured education loans from government banks or unsecured education loans from private banks and NBFCs, cater for all expenditures which are central to higher education and its smooth functioning.
Does SBI education loan cover health insurance?
After the world has faced a pandemic situation, almost all educational institutes demand that pupils purchase health insurance. So, while applying for an SBI education loan the applicant must mention the same.
On approaching SBI for an education loan, a clear list of expenses and a detailed explanation is given resulting in an increasing number of happy student customers.
