Your home country is an important part of your life and an excellent place to continue your studies and pursue higher education. However, if you want to broaden your horizons and gain global exposure, you should consider studying in the United Kingdom. The UK is an amazing place to study because of its excellent educational infrastructure, top-notch distinguished teaching methodology, quality research, rich heritage, and diverse culture. State Bank of India is one of the most reliable and trusted banks in India. The bank provides various financial services to its customers, including education loans like the SBI education loan for the UK.
They have revolutionised the money lending system over the years, enabling millions of students to pursue their dream of studying abroad by introducing the SBI Global Ed-Vantage scheme. The SBI Global Ed-Vantage Scheme helps students to fund their education and pursue higher studies in any field of their choice and in any country, including the UK.
Key Features Of The SBI Student Loan UK
An SBI education loan for the UK, which is the Global-Ed Vantage scheme, is a popular choice among students looking to pursue their higher education in the UK. The SBI student loan for the UK can be availed by individuals who are currently studying in the UK and have completed their graduation in India or abroad. It can also be available to those who are planning to study in the UK within two years of completion of their studies at an Indian university. Individuals who have studied abroad for at least one year and want to pursue higher studies can apply for an SBI education loan for the UK as well. Given below is a table which highlights the key features of the State Bank of India UK education financing:
| SBI Education Loan For UK Overview | |
| Key Parameters | Features |
| Maximum Loan Amount | Up to Rs. 1.5 Crores |
| SBI Abroad Education Loan Interest Rate | 11.15% |
| Processing Fee | Rs. 10,000 per application |
| Moratorium Period | Course period+12 months |
| Tax Benefit | Section 80E |
| Expenses covered | Examination, library, laboratory fee, travel expenses, passage money, etc. |
| Collateral Accepted | Tangible collateral security |
| Co-applicant | Parents, guardians |
Eligibility And Interest Rates
To be eligible for the SBI education loan for the UK, you must:
- Be studying in the UK.
- Be 18 years old or older.
- Have a good credit history prior to applying for this loan.
Extra Charges Applicable On The SBI Education Loan For Study Abroad
The cost of the loan is the principal amount plus interest. The total cost of the SBI education loan for the UK will depend on the interest rate and the term of your loan. The principal amount is the amount you borrow, while interest is what you pay for using someone else’s money. The rates vary depending on several factors, including:
- Credit score
- Income level
- Loan purpose (i.e., school vs personal)
SBI Loan Application Process For Studying In The UK
The loan application process is a simple three-step process that you can complete online. For an SBI education loan for the UK, you will be required to provide the following information:
- Step 1: Visit the official SBI website
- Step 2: Explore the “Global Ed-vantage Scheme” details and download the application form.
- Step 3: Familiarise yourself with the required documents and loan terms & conditions.
- Step 4: There are two ways to apply for the Global Ed-Vantage Scheme:
- Online: Visit the Vidyalakshmi portal register and submit the application online.
- Offline: Visit your nearest SBI branch with all the required documents. The branch representative will assist you with the application process.
- Step 5: SBI will verify your documents and assess your loan eligibility.
- Step 6: You may be called for an interview or requested to submit additional documents if needed.
Documents Required For SBI Loan Application
Submitting the mandatory documents for the SBI education loan for studying abroad is necessary. Collecting these documents might take some time, and hence we suggest that you should start your loan application in advance so that you understand the complete list of paperwork, get some time to collect them and also provide a few additional documents asked by the SBI bank. The table below highlights a list of documents you must have at the start of your loan application:
| Mandatory Documents | Description |
| Completed SBI Global Ed-vantage loan application form | Form to be filled out with personal and loan-related information. |
| Passport (student and co-applicant/guarantor) | Identification document showing personal details and nationality. |
| PAN card (student and co-applicant/guarantor) | Permanent Account Number card for taxation purposes. |
| Aadhaar card (if eligible for interest subsidy schemes) | Unique identification document issued by the Government of India. |
| Proof of admission (offer letter/ID card) | Document confirming acceptance into an educational institution. |
| Schedule of expenses for the course | Breakdown of anticipated costs related to the educational program. |
| Mark sheets of 10th, 12th, and graduation (if applicable) | Academic records demonstrating educational achievements. |
| Passport-size photographs of student, parent/guardian, co-borrower, and guarantor | Photographs for identification purposes. |
| Bank account statements (past 6 months) of student, parent/guardian, and guarantor | Records of financial transactions for the preceding six months. |
| Asset-liability statement of co-applicant/guarantor (loans above Rs. 7.5 lacs) | Statement detailing financial assets and liabilities. |
| Latest salary slip (for salaried co-applicant/guarantor) | Document showing income details for employed individuals. |
| Latest IT returns (for non-salaried co-applicant/guarantor) | Income tax return documents for self-employed individuals. |
Refundable Security Deposit For The SBI Abroad Education Loan
The security deposit amount that you need to pay at the start of each year is 2% of the total cost of study (minimum £1,000). This means that if your tuition fees are £9,000 per annum, then your loan will be subject to a minimum security deposit of £180 for each year of study. You can use this money towards any university or college course costs such as tuition fees, accommodation and living costs. You can apply for up to 10 years at once if it takes longer than this time period for you to complete all levels within one course.
Repayment Options For SBI Education Loans In The UK
SBI offers flexible education loan repayment options for its education loans, including for those studying in the UK:
- Repayment Holiday: You are entitled to a moratorium period after completing your course. This means you don’t have to start repaying the loan immediately. The standard moratorium period is:
- 12 months after course completion.
- 6 months after securing a job, whichever is earlier.
- Maximum Repayment Period: You can choose to repay the loan over a maximum period of 15 years (180 EMIs) after the moratorium period ends.
- Equated Monthly Installments (EMIs): The loan amount, including accrued interest during the course period and moratorium, is calculated into fixed monthly payments (EMIs).
Additional Points:
- You are not obligated to wait for the entire period of moratorium in education loans to start repaying your loan. You can start making partial payments during your studies or during the moratorium period to reduce the overall interest burden.
- SBI offers interest subsidy schemes for students belonging to certain categories. These schemes can further reduce your interest rate and make the loan more affordable.
Conclusion
An SBI Education Loan for the UK is an easy and flexible loan that can be applied for students who wish to study in the UK. The eligibility criteria are very simple, so if you are planning to pursue a degree course at the university level, then this is one of the best options for you. The interest rates for this loan have been kept at 8% p.a., which means that you will be able to pay off your debt easily once your course gets over or you start working after graduation.
FAQs
Q1. Can I apply for education loan in UK from India?
Yes, you can apply for the education loan in UK from India. Applicant must be an Indian resident aged 18-35 with confirmed UK institution admission. A co-applicant (parent/spouse) is required.
Q2. Who is eligible for an SBI education loan?
Indian nationals with confirmed admission to recognised colleges/institutions, both in India and abroad, for various courses are eligible to apply.
Q3. Can I get a 20 lakhs education loan without collateral from SBI?
For loans up to 7.5 Lakhs, a co-borrower (Parents or guardian) is required, but no collateral or third-party guarantee is needed. For loans above 7.5 Lakhs, collateral is necessary, and a co-borrower (Parents or guardian) is still required.
Q4. Can I get an education loan from SBI to study abroad?
The Global Ed-Vantage education loan scheme enables Indian students to secure loans up to INR 1.5 Cr for pursuing higher education overseas. The scheme caters to the financial needs of students aspiring to study abroad.
Q5. What is the difference between SBI student loan and scholar loan?
SBI offers two types of student loans: one for studies in India and abroad, with amounts up to 10 lakhs and 20 lakhs respectively. The SBI Scholar Loan caters to elite institutions like IIT, IIM, NIT, providing more favourable interest rates and repayment terms.
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