In an exciting development for Indian students who aim to study abroad, the State Bank of India (SBI) has enhanced the limit for its collateral-free education loans under the Global Ed-Vantage scheme. The aim of this scheme is to remove all those financial hindrances so that students are able to focus solely on achieving their dreams. Let’s get into the core details of this offering and what it does for students.
What Is SBI Global Ed-Vantage?
SBI Global Ed-Vantage is a scheme on education loans to those students looking to pursue a full-time course from foreign universities. The availability of loans worth up to ₹50 lakh collateral-free has further facilitated the funding for middle-income families in an attempt to decrease reliance on private lenders for high-interest loans.
Key Highlights of SBI Collateral-Free Education Loan
1. No Collateral Needed
Students can even borrow up to ₹50 lakhs without providing security or collateral by the lender on selected institutions spread across the world.
2. Flexible Repayment Terms
Flexibility in loan repayment up to 15 years reduces financial strain through manageable equated monthly installments.
3. Early Disbursement
There is even prior sanction of loans even before Form I-20 or visa securing by the students, which thus ensures timely raising of funds.
4. Tax Benefits
Students can claim tax deductions on loan interest under Section 80(E) of the Income Tax Act, further reducing the financial burden.
5. Comprehensive Expense Coverage
The loan covers a wide range of costs, including:
- Tuition and hostel fees
- Travel expenses
- Books, equipment, and uniforms
- Study tours, projects, and thesis costs
- Refundable deposits and caution fees
Interest Rates and Fees
SBI charges a competitive interest rate of 10.15% for loans in the ₹7.5 lakh to ₹50 lakh bracket. A one-time processing fee of ₹10,000 applies per application. The moratorium period applies during the course and repayment holiday, with only simple interest charged.
Why Is This a Big Deal for Students?
This initiative has been welcomed as a progressive step by education financing experts to make international education more accessible.
GyanDhan’s CEO, Ankit Mehra, said the relaxed requirements would allow students previously ineligible to qualify for loans. University Living’s CEO, Saurabh Arora, pointed out comprehensive coverage and repayment flexibility as significant advantages for more than 1.3 million Indian students studying abroad.
The program also caters to the increasing trend of students seeking global education. It is a lifeline for families targeting top universities like Harvard, Oxford, MIT, and Stanford, which require a lot of financial investment.
SBI vs. Private Lenders
Unlike private lenders that charge very high interest rates for unsecured loans, the Global Ed-Vantage from SBI is more affordable and trusted with a public-sector bank. This program is especially attractive to middle-income families.
The education loan provided by SBI is absolutely collateral-free, filling the gap between aspiration and affordability. It helps cover major expenses like tuition, accommodation, and travel, thus making the financial journey simpler for students. Its long repayment period ensures that students are able to focus on their studies without worrying about financial burdens.
Application Procedure for Collateral-Free Education Loans for Indian Students
Students can apply online or visit their nearest branch to apply for an SBI’s Global Ed-Vantage loan. Make sure to check your eligibility criteria and prepare your admission proof, fee structure, and personal identification before applying.
SBI offers a collateral-free education loan called Global Ed-Vantage to transform the dreams of students who want to pursue education abroad. Designed with easy repayment options, full expense coverage, and tax benefits, the scheme lifts financial barriers allowing a student to focus wholly on academic and professional objectives.
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