SBI new education loan: Avail low interest rates, quick approval; check how to apply, documents required

The State Bank of India (SBI) has come up with a new education loan scheme for students that will offer low interest rates and quick approval. Called the ‘SBI Global Ed-Vantage’ loan, the scheme is exclusively for those who wish to attend foreign colleges and universities to pursue full-time courses.

In a release, the public sector lender said that with the upward trend in students preferring foreign education, the scheme will be the SBI's customised financial solution to make it a possibility.

SBI has informed that it has covered regular degree courses, post-graduate degree courses, diploma courses and also certificate/doctorate courses under this scheme. Moreover, the bank has also listed the countries to which the loan can be availed for. Students who wish to study in the US, Canada, UK, Europe, Japan, Australia, New Zealand, Singapore, and Hong Kong can apply for this loan.

Depending on the requirement, the loan amount starts from Rs 7.5 lakh and goes up to Rs 1.5 crore. For the interest rate, the bank has fixed 8.5 per cent and also offers a special concession of 0.5 per cent for female students. The repayment process can begin six months after the course completes and the repayment period can be extended to a maximum of 15 years.

The SBI education loan covers tuition fees, exam fees, other campus facilities like labs and libraries, books, equipment, instruments, uniform and travel expenses. Moreover, the loan also covers study tours, research work, etc. but the bank has maintained that it should not go beyond 20 per cent of the total tuition fees.

How to apply:

The process to apply is easy. Those interested can visit the official SBI website and submit the necessary documents there.

Documents needed:

As per the SBI website, the following documents are required to apply for the loan

- Mark sheet of 10th, 12th, Graduation (if applicable), Entrance Exam Result

- Proof of admission to course [ Offer Letter/ Admission Letter/ ID card if available]

- Schedule of expenses for course

- Copies of letter conferring scholarship, free-ship, etc.

- Gap certificate, if applicable (self-declaration from student for gap in studies)

- Passport size photographs of Student / Parent / Co-borrower / Guarantor (1copy each)

- Asset-Liability Statement of Co-applicant / Guarantor (Applicable for loans above Rs 7.50 lacs)

For Salaried Persons
(a) Latest Salary Slip
(b) Form 16 OR latest IT Return (ITR V)

For other than Salaried Person:
(a) Business address proof (if applicable)
(b) Latest IT Returns (if applicable)

- Bank Account Statement for the last six months of Parent / Guardian/ Guarantor

- Copy of Sale Deed and other documents of title to property in respect of immovable property offered as collateral security / Photocopy of Liquid Security offered as collateral

- Permanent Account Number (PAN) of Student / Parent / Co-borrower / Guarantor

- AADHAAR (mandatory, if eligible under various interest subsidy schemes of GOI)

- Passport (mandatory for Studies Abroad)

- Submission of Officially Valid Documents (OVD) like passport, Driving license, Aadhaar Number, Voter's Identity Card issued by Election Commission of India, Job card issued by NREGA duly signed by an officer of the State Government, Letter issued by the National Population Register containing details of name and address