Indian students consistently seek opportunities to study abroad due to the superior quality of education offered. According to the information from the Ministry of External Affairs, approximately 1.3 million Indian students are pursuing abroad studies. Students face a lot of challenges while arranging funds for their studies, right from the higher interest rates from banks to arranging collaterals. SBI education loan interest rates for abroad studies are lower compared to other financial institutions and offer flexible repayment terms. In this article let’s discuss SBI abroad education loan interest rate, eligibility, and various schemes.
SBI Education Loans for Abroad Studies
SBI offers loans for students to finance their studies abroad, SBI abroad education loan interest rate is comparatively low for a collateral-pledged loan and offers flexible terms of repayment. Here are some important schemes of SBI providing education loans for abroad students.
- SBI Global Ed - Vantage
- SBI Student Loan
- SBI Takeover of Education Loan Scheme
- SBI Skill loan scheme
- SBI Shaurya education loan scheme
SBI Education Loan Interest Rate for Abroad
SBI’s education loan interest rates for abroad studies are highly competitive in the Indian banking sector. The rates are generally based on the MCLR, and they can vary depending on various factors such as the loan amount, repayment tenure, and the applicant’s credit profile.
Below is a list of SBI education loan interest rates for various countries.
| Bank Name |
Loan Amount |
Interest Rate |
Loan Tenure |
Repayment Options |
| Secured |
Unsecured |
Secured |
Unsecured |
Secured |
Unsecured |
| ICICI Bank |
Up to ₹ 3 Crore |
Up to ₹ 1 Crore |
10.00% - 12.50% |
11.00% - 12.50% |
Up to 10 years |
Up to 10 years |
Flexible EMI, moratorium available |
| BOB Bank |
Upto 1.5Cr |
NA |
9.7% To 10.5% |
NA |
Up to 15 years |
NA |
Flexible EMI, moratorium available |
| IDFC Bank |
Upto 1.5Cr |
Upto 62 Lakhs |
9.7% - 10.20% |
11.75% and 13.25% |
Up to 15 Years |
Up to 12 Years |
Flexible EMI, moratorium available |
| AVANSE |
1 Cr |
Upto 40L |
10.5% TO 11% |
12% to 13.25% |
10 years |
12 to 15yrs |
Flexible EMI, moratorium available |
| INCRED |
NA |
Upto 50L |
NA |
11.65% to 13.5% |
12 to 15 yrs |
12 to 15 yrs |
Flexible EMI, moratorium available |
| AUXILO |
70% of valuation |
Upto 40L |
11% to 13% |
12% TO 13.25% |
12 to 15 yrs |
12 to 15 yrs |
Flexible EMI, moratorium available |
| HDFC Credila |
1 Cr |
Upto 40L |
10 to 10.5% |
12% TO 12.5% |
12 to 15yrs |
12 to 15yrs |
Flexible EMI, moratorium available |
| IDBI Bank |
Upto 1.5Cr |
NA |
9.6% To 10.6% |
NA |
Upto 15 Years |
NA |
Flexible EMI, moratorium available |
| State Bank of India (SBI) |
Upto 1.5Cr |
NA |
10.15% To 11.15% |
NA |
Upto 15 Years |
NA |
Flexible EMI, moratorium available |
Note: Loan Calculator
SBI Global Ed-Vantage Scheme
SBI Global Ed-Vantage scheme is introduced by SBI to offer secured education loans to candidates aspiring to study abroad. Students are offered loan amounts up to ₹1.5 cr for their studies abroad. However, students must submit collateral as proof. Collateral from a third party (not parents) is also accepted under this scheme. Glance through this table to get a gist of the SBI Global Ed-Vantage scheme.
| Features |
Description |
| Loan Amount |
Upto 1.5 Cr |
| Rate of Interest |
9.15% - 11.15% |
| Processing Fee |
INR 10,000/- |
| Eligible Courses |
- Regular Graduate
- Postgraduate
- Doctorate courses
|
| Eligible Expenses |
- Tuition fee
- Examination or library fee
- Travel expenses
- Purchase costs (Laptop, books)
|
| Repayment |
- Up to 15 years
- Starts 6 months after course completion
|
SBI Student Loan Scheme
The SBI Student Loan Scheme for Abroad Studies is another option for students who wish to study abroad. It is a more general scheme, applicable to a wide range of programs across various countries. SBI Student loan requires a tangible collateral security of parent or guardian for loans above 7.5 lakhs. Here are the key features
| Features |
Description |
| Loan Amount |
NA |
| Rate of Interest |
11.15% |
| Processing Fee |
INR 10,000/- for loans above 20 lakh |
| Eligible Courses |
- Students pursuing higher education in India or Abroad are eligible
|
| Eligible Expenses |
- Tuition fee
- Examination or library fee
- Travel expenses
- Purchase costs (Laptop, books)
- Tours or Project works
|
| Repayment |
- Up to 15 years
- 12 months of repayment holiday
|
Eligibility Criteria for SBI Education Loan for Abroad
Students must meet basic eligibility criteria for loan approval. Ensure you meet all requirements for loan approval.
- Nationality: The applicant must be an Indian citizen.
- Age Limit: The applicant must be between 18 and 35 years of age. However, in some cases, loans may be sanctioned for older candidates if they have an outstanding academic record.
- Admission Requirement: The student must have secured admission to a recognized university or educational institution abroad.
- Academic Qualifications: A good academic track record is essential. A minimum of 60% marks in the previous qualifying exam is typically required.
- Co-Applicant: A co-applicant, usually a parent or guardian, must be an Indian citizen and have a steady source of income to repay the loan.
How to Apply for an SBI Education Loan for Abroad
The application process for SBI education loans for abroad studies is simple, as students can apply for the SBI education loan offline and can also apply online. Follow these steps to apply for an SBI education loan.
- Visit the Bank or Apply Online: Students can either visit their nearest SBI branch or apply online via the SBI website.
- Submit the Required Documents: This includes the admission letter, mark sheets, proof of identity, passport details, and a co-applicant’s financial documents.
- Loan Processing: The bank will verify the documents and evaluate the loan application based on the student’s eligibility and the loan amount.
- Approval and Disbursal: If the application is approved, the loan will be disbursed either directly to the educational institution or to the student’s account, depending on the requirement.
Comparison of SBI Education Loan Interests With Other Banks
Study-abroad loan interest rates vary depending on banks and Students are advised to choose among the available options while applying for an education loan. Researching about the interest rates, loan tenure, holiday periods can save them a lot of money as these loans involve huge amounts of money. Here is a comparative list of SBI education loan for abroad interest rate with other banks.
| Bank Name |
Loan Amount |
Interest Rate |
Loan Tenure |
| Secured |
Unsecured |
Secured |
Unsecured |
Secured |
Unsecured |
| State Bank of India (SBI) |
Upto 1.5Cr |
NA |
10.15% To 11.15% |
NA |
Upto 15 Years |
NA |
| BOB Bank |
Upto 1.5Cr |
NA |
9.7% To 10.5% |
NA |
Up to 15 years |
NA |
| IDFC Bank |
Upto 1.5Cr |
Upto 62 Lakhs |
9.7% - 10.20% |
11.75% and 13.25% |
Up to 15 Years |
Up to 12 Years |
| AVANSE |
1 Cr |
Upto 40L |
10.5% TO 11% |
12% to 13.25% |
10 years |
12 to 15yrs |
| INCRED |
NA |
Upto 50L |
NA |
11.65% to 13.5% |
12 to 15 yrs |
12 to 15 yrs |
| AUXILO |
70% of valuation |
Upto 40L |
11% to 13% |
12% TO 13.25% |
12 to 15 yrs |
12 to 15 yrs |
| HDFC Credila |
1 Cr |
Upto 40L |
10 to 10.5% |
12% TO 12.5% |
12 to 15yrs |
12 to 15yrs |
| IDBI Bank |
Upto 1.5Cr |
NA |
9.6% To 10.6% |
NA |
Upto 15 Years |
NA |
| ICICI Bank |
Up to ₹ 3 Crore |
Up to ₹ 1 Crore |
10.00% - 12.50% |
11.00% - 12.50% |
Up to 10 years |
Up to 10 years |
Conclusion
SBI offers excellent education loan options for students aspiring to study abroad, with competitive interest rates, flexible repayment terms, and comprehensive loan coverage. The SBI Global Ed-Vantage Scheme and SBI Student Loan Scheme for Abroad Studies cater to different needs, whether it’s covering a broad range of expenses or a focused amount for tuition fees.These loans help students alleviate financial stress, allowing them to focus on their studies. However, students should also compare the loan terms, processing fees, and eligibility criteria with other banks to ensure they are making the best financial decision. With proper planning and a clear understanding of the process, students can secure the funds needed to study abroad and achieve their goals.
Frequently Asked Questions
1. What is the SBI Education Loan for Abroad Interest Rate?
SBI Education loan for abroad interest rate ranges from 9.15% to 11.15%.
2. Can I Get a 25 Lakh Education Loan for Studying Abroad Without Collateral?
Yes, banks offer education loans for abroad studies without collateral and they are called Unsecured Education Loans. However, the amount varies across banks and interest rates are higher compared to secured loans.
3. Can I Buy a Laptop with a Loan Amount?
Yes, education loans from some banks cover expenses like laptops, books, travel and tours or project works.
4. Can I Get 100% Coverage on My Education Loan Abroad?
Yes, banks often cover 100% of your expenses while studying abroad.
5. Does the SBI Education Loan for Abroad Cover my Accommodation?
Yes, the fees for accommodation provided by the school or college authorities, or for a hostel managed by the educational institution, are covered under the education loan offered by the State Bank of India.
