SBI Global Ed-Vantage Scheme on Education Loan [Expert Advice]

SBI education loan for studying abroad is well-known for offering low education loan interest rates. SBI recently launched the latest education loan programme called the SBI Global Ed-Vantage scheme. Individuals who want to pursue education abroad will be able to apply for loans through SBI under this scheme. The SBI Ed-vantage education loan scheme will cover courses in science, technology, education, mathematics, management, and medicine from institutions in the United States of America, the United Kingdom, Australia, Canada, Europe, Japan, Singapore, and Hong Kong. This blog aims to give a detailed overview of the global ed-vantage education loan scheme. 

SBI Global Ed-Vantage Overview
Loan Amount	Up to Rs. 1.5 Crores
Interest Rates	10.75% p.a. (simple interest)
Processing Fees	Rs. 11,800 + Valuation Charges
Application Process	1) Submit application at SBI branch 2) Pay fees 3) Property valuation 4) Loan appraisal 5) Sanction 6) Mortgage property 7) Disbursal
Documents Required	1) ID/Address Proof 2) Academic records 3) Admission Letter 4) Income Documents 5) Collateral Documents
Repayment Tenure	Up to 15 years post course completion
Eligible Courses	Graduation, Masters, PhD programs abroad
Collateral	100% of loan amount

SBI Global Ed-Vantage Features in 2024

The SBI Global Ed-vantage scheme will provide loans ranging from Rs.20 lakh to Rs.1.5 crore to cover up to 80% of the cost of the course. Female students will receive a 0.5% discount under the new scheme. Students who participate in this scheme will have 6 months after finishing their course to begin repaying their loan. The following are the various features of the SBI Global Ed-Vantage scheme:

Feature	Details
Loan Amount	Rs. 20 lakhs to Rs. 1.5 crores
SBI Global Ed-Vantage Interest Rate	SBI Global Ed-Vantage Scheme interest rate is 10.75% per annum (simple interest during course/moratorium)
Discounts	0.5% for SBI Life Insurance, 0.5% for female applicants
Eligible Courses	Graduate, post-graduate, doctorate courses overseas
Eligible Expenses	Tuition fees, exam fees, travel, books, instruments, uniforms, computer, other academic expenses
Collateral	Fully collateralised by security deposit equal to loan amount
Repayment	Up to 15 years after course/moratorium period
Processing Fee	Rs. 11,800 + property valuation charges

Margin money in education loan of Global Ed-Vantage SBI will finance up to 80% of the course expenses with a margin contribution of 20% to be brought in by the student. Any scholarships received will be adjusted towards meeting this 20% margin amount.

Eligibility Criteria For SBI Global Ed-Vantage scheme on Education Loan

Eligible Courses Under The SBI Ed-Vantage education loan and eligibility criteria for students need to be reviewed before applying for SBI Global Ed-Vantage scheme. Go through the criteria below: 

Eligible Courses For Global Ed-Vantage Scheme

Regular Graduate/ Post Graduate/ Doctorate Courses in any discipline are offered by foreign Institutes/ Universities in the United States, the United Kingdom, Canada, Australia, Europe, Singapore, Japan, Hong Kong, and New Zealand.

Eligible Expenses Under The Ed-Vantage Scheme

• Fee payable to the college/school/hostel.
• Examination/Library/Laboratory fee.
• Travel expenses/passage money for studies abroad.
• Purchase of books/equipment/instruments/uniforms/computer at a reasonable cost, if required for course completion, and any other expense required to complete the course- like study tours, project work, thesis, etc. can be considered for a loan subject to the condition that these be capped at 20% of the total tuition fees payable for course completion.

Caution deposit/building fund/refundable deposit backed up by institutional bills/receipts.  The loan amount should not exceed 10% of the total tuition fees for the course.

‘Rinn Rakhsha’ Premium: Finance for ‘Rinn Rakhsha’ will improve loan insurance coverage.

Global Ed-Vantage Application Process

The bank will subsequently evaluate this application through a technical viability assessment, credit appraisal, and personal interview. Provided the applicant meets all criteria set by SBI, the loan will be sanctioned in a swift manner. Given below is the application process: 

• Submit the completed global Ed-Vantage application form along with the required documents at your nearest SBI branch.
• Pay the non-refundable processing fee of Rs. 11,800 + applicable property valuation charges.
• Property to be mortgaged will be valued to ensure it covers the loan amount.
• Your CIBIL score will be checked to assess creditworthiness.
• Your application will go through technical viability assessment, credit appraisal and personal discussion.
• The SBI branch will sanction the loan amount if you meet all eligibility criteria.
• Finally, submit the mortgaged property documents and sign the loan agreement to avail disbursal.
• 0.2% of loan amount to be paid as Equitable Mortgage Creation Charge at disbursal.

Document Required For SBI Global Ed-Vantage Scheme 

The documents required for the SBI Global Ed-Vantage loan scheme may vary depending on the applicant’s background and the collateral asset offered. However, there is a standard set of documents that are typically needed in most cases:

Document Type	Applicant	Co-Applicant
Identity proof	Required	Required
Address proof	Required	Required
Passport	Mandatory	Not required
Past academic records	Required	Not required
Test scores (GRE/GMAT etc.)	Required if taken	Not required
Admission letter	Required	Not required
Statement of costs/expenses	Required	Not required
Photographs	2 passport-size	2 passport-size
Previous loan statement	Last 1 year (if any)	Last 1 year (if any)
Collateral documents	Not required	Required

Global Ed-Vantage Scheme Disbursement Process & Timeline

• The State Bank of India aims to process completed SBI Global Ed-Vantage loan applications within 15 working days from the date of receipt of all required documents. 

• This timeline commences only after submission of the full set of supporting documents mandated by SBI policies. 

• Any delays in provision of requisite information or papers by the applicant will necessitate a corresponding extension of the processing timeline. 
• Additional time of a minimum 15 working days will be needed in cases where external verification with governmental bodies and agencies becomes essential across multiple locations. 

• Barring unforeseen and extenuating circumstances beyond the reasonable control of SBI, the bank will make every effort to sanction and disburse the education loan within the prescribed processing period. 

• However, meeting stipulated timelines in all cases also depends on applicant’s timely responses and submission of documents sought by the bank during underwriting procedures.

SBI Global Ed-Vantage Educational Loan Security 

The SBI Global Ed-Vantage loan requires joint obligation from parents or guardians in addition to tangible collateral security of adequate value. The future income of the student is also assigned for repayment of installments. The acceptable collateral security includes – 

• Land, building, government securities, bonds issued by PSUs, UTI/NSC/KVP units, LIC policy, gold valuation, shares, debentures, fixed deposits in name of student/parent/guardian/third party or any other liquid assets deemed suitable by SBI. Collateral can also be provided by a third party other than the parents.

• The co-applicant should normally be a parent or guardian of the student borrower. For married persons, the co-applicant can alternatively be the spouse or parents/in-laws.

• I have summarised the key points about collateral security and co-applicants while paraphrasing the content to avoid plagiarism. Please review and advise if any changes or additions are required. 

Global Ed-Vantage Loan Repayment Terms

The repayment of education loan under SBI Global Ed-Vantage is up to 15 years, post completion of course and moratorium period.

In case the student is unable to finish their academic program within the standard course duration, an extension of a maximum of 2 years can be permitted for completion of pending semesters/assignments.

If interest is not served by the student during the period of study and subsequent moratorium period of education loan, the accrued interest amount gets capitalised and added to the loan principal. The combined principal is then repaid in Equated Monthly Installments (EMIs) over the tenure opted by the applicant.

What is SBI Student Plus Ed-Vantage card? 

The State Bank of India offers the SBI Student Plus Advantage Card, which is a special credit card for education loan borrowers. This card has no annual or joining fees. Some major benefits offered by the SBI Student Plus Advantage Card are:

• Award of reward points – Cardholders earn 1 reward point for every Rs.100 spent on the card. These points can be redeemed for shopping, fuel etc.
• Fuel surcharge waiver – 2.5% surcharge levied by fuel stations is waived on fuel transactions done on this card.
• Annual fee waiver – The annual fees are waived if annual spends on the card exceeds a specified limit. This spend-based waiver makes the card economical for students.
• In summary, the SBI Student Plus Card enables education loan borrowers to avail additional financial flexibility and rewards during their student life, while building a credit history. The zero-fee structure and usage benefits make it a value-for-money option.

Studying abroad is without a doubt one of the most effective ways to advance your career. With an increase in the number of students applying for overseas studies, as well as an increase in inflation, overseas education has become an exorbitant affair, almost impossible for those without a strong financial foundation. The State Bank of India is arguably the most popular and preferred nationalised bank, offering overseas education loans to Indian students.

FAQs

Q1. What is the maximum loan amount available through the SBI study abroad loan?

Ans: Students can obtain a student loan ranging from INR 20 Lakh to INR 1.5 Crores through the SBI Global Ed-Vantage scheme.

Q2. What is the maximum loan tenure for SBI Global Ed-Vantage study loans?

Ans: Study loans under the SBI Global Ed-Vantage scheme have a maximum loan tenure of 15 years.

Q3. What degrees are eligible for the SBI Global Ed-Vantage scheme?

Ans: Regular graduate/post-graduate/doctorate courses in any discipline offered by foreign institutes/universities in countries such as the United States, United Kingdom, Canada, Australia, Europe, Singapore, Japan, Hong Kong, and New Zealand are eligible degrees under the scheme.

Q4. What is the margin of money in the SBI Global Ed-Vantage study loan scheme?

Ans: There is a 10% margin money in the SBI Ed-Vantage study loan scheme.

Q5. What is the repayment tenure for SBI global Ed Vantage scheme?

The repayment tenure offered under the SBI Global Ed-Vantage scheme is up to 15 years post completion of the academic course and moratorium period.

Q6. What is RiNn Rakhsha?

RiNn Raksha is an insurance scheme by SBI Life that provides coverage against education loan liability. Education loan borrowers who take RiNn Raksha policy get a 0.5% discount on interest rates charged by SBI under its education loan schemes.