SBI Education Loan without Collateral to Study Abroad

Studying abroad is a life-changing opportunity, but the high costs can be a major hurdle. To ease this burden, the SBI education loan without collateral to study abroad provides financial support without requiring students to pledge assets. With flexible repayment options and competitive interest rates, SBI makes global education more accessible.

This loan covers tuition fees, living expenses, and travel costs for students without collateral, ensuring a smooth academic journey. The SBI education loan without collateral to study abroad helps ambitious students focus on their dreams without financial worries. Let’s explore its key features, eligibility, and benefits!

SBI Education Loan for Abroad Studies without Collateral

The SBI education loan without collateral to study abroad is a great option for students who need financial assistance but cannot pledge assets. Under this scheme, students can avail up to INR 7.5 lakh without providing any collateral, with only a parent or guardian acting as a co-borrower. For higher loan amounts, the SBI Global Ed-Vantage education loan scheme applies, requiring collateral security.

One of the biggest advantages of this loan is the flexible repayment structure. Students get a moratorium period (course duration + 12 months), during which no EMI payments are required.

The repayment period extends up to 15 years, making it manageable. SBI also offers EMI benefits—if students pay the interest during the moratorium, their EMIs are lower. With zero processing charges on loans up to INR 20 lakh, this loan makes studying abroad financially feasible for many aspirants.

Loan Details at a Glance

Feature	Details
Maximum Loan Amount	Up to INR 7.50 lakh (For higher amounts, Global Ed-Vantage Scheme applies, up to INR 3 crore)
Repayment Period	Up to 15 years (after course completion + 12-month repayment holiday)
Processing Charges	NIL for loans up to INR 20 lakh; INR 10,000 + taxes for loans above INR 20 lakh
Security Requirement	Up to INR 7.5 lakh: Parent/guardian as co-borrower, no collateral or third-party guarantee required
Margin Money	Up to INR 4 lakh: NIL; Above INR 4 lakh: 15% for studying abroad
Repayment Start	12 months after course completion
Loan Repayment Duration	15 years after repayment begins
Second Loan for Higher Studies	Combined loan repayment in 15 years after completion of the second course
EMI Calculation	Interest accrued during the moratorium is added to the principal; EMI is then calculated accordingly. If full interest is paid during the moratorium, EMI is based on the principal amount only.

Also Read: Maximum Education Loan Available for Study Abroad

SBI Education Loan without Collateral Interest Rates

The SBI education loan without collateral to study abroad comes with competitive interest rates, ensuring that students can finance their education affordably. The interest rate is determined using the External Benchmark Rate (EBR), which is linked to the Repo Rate + Spread.

Current Interest Rate Structure

Loan Type	Interest Rate Calculation	Current Rate (as of latest update)
Without Collateral (Up to INR 7.5 lakh)	EBR (Repo Rate + Spread)	10.15% p.a
With Collateral (Above INR 7.5 lakh – INR 3 crore)	Fixed Rate	9.65% p.a

How do Interest Rates Affect Repayment?

For students availing of an SBI education loan without collateral to study abroad, the interest is accrued during the moratorium period (course duration + 12 months). This interest is then added to the principal amount before EMI calculations. However, if the borrower chooses to pay the interest during the moratorium period, the EMI will be lower, as it will be calculated on the principal amount only.

SBI’s EBR-linked interest rate ensures transparency and periodic adjustments based on the repo rate changes. This means that if the repo rate fluctuates, the loan interest rate may also vary accordingly. The collateral-free loan option is ideal for students who need financial assistance without pledging assets, offering them a structured repayment plan with a 15-year tenure.

Eligible Countries

The central government of India provides loans to approved universities of selected foreign countries. Adhering to the norms of the government, an SBI abroad education loan without collateral is available for students who have opted to:

• Study in USA
• Study in the UK
• Study in China
• Study in Taiwan
• Study in Italy
• Study in Spain
• Study in Japan
• Study in New Zealand
• Study in Australia
• Study in Canada

Also Read: List of Top International Student Loans

Eligible Courses

When applying for an SBI Education Loan to study abroad, the bank generally offers financial assistance for a wide range of professional, technical, and specialized degree programs. These programs must be from recognized and reputed universities or institutions.

Here’s an overview of eligible courses that qualify for an SBI Education Loan for studying abroad:

1. Undergraduate and Postgraduate Degree Courses:

• Technical Courses: Engineering, Computer Science, Architecture, and other STEM (Science, Technology, Engineering, and Mathematics) degrees.
• Management Courses: Master of Business Administration (MBA), Post Graduate Diploma in Management (PGDM), etc.
• Medical and Health Sciences: Programs like MBBS, Dentistry, Nursing, Public Health, etc., especially in countries like the USA, the UK, or Australia.
• Law: Law degrees (LLB, LLM), especially from top universities.
• Social Sciences, Humanities, and Arts: Depending on the university’s ranking and relevance of the course.
• Master’s in Science (MS): Particularly for courses in fields like data science, AI, biotechnology, etc.

2. Professional and Technical Certification Programs:

• CIMA (Chartered Institute of Management Accountants): Pursuing CIMA qualifications, which are globally recognized in management accounting.
• CPA (Certified Public Accountant): This professional certification from the USA is eligible for SBI loans if pursued from a recognized institution.
• Chartered Financial Analyst (CFA): Global financial certification programs such as CFA, which are well-respected in the finance and investment sectors.
• Other Global Certifications: Depending on the institution, certifications in fields like IT, data science, and project management may also be eligible.

3. Specialized and Non-Degree Programs:

• Diplomas and Post-Graduate Diplomas in technical or professional fields such as software engineering, project management, data analytics, etc.
• Research Programs and Ph.D.: If pursuing doctoral research in fields like science, technology, or management, loans can be availed for these as well.

4. Short-Term Certificate or Diploma Courses:

• Other Recognized Courses: Short courses (generally for 6 months or longer) from reputed international institutions may also qualify for an education loan. It’s important to check if the course is affiliated with recognized global organizations or universities.

Expenses Covered Under SBI Education Loan without Collateral

SBI Education Loan without collateral is designed to help students finance their education abroad, covering various academic and living expenses. The loan is aimed at providing comprehensive support, ensuring that students can focus on their studies without worrying about financial burdens. Below are the expenses typically covered under such loans:

1. Fees Payable to College/School/Hostel– Covers the tuition fees, hostel accommodation fees, and any other mandatory fees charged by the institution.

2. Examination/Library/Laboratory Fees– Includes costs for exams, library access, and laboratory usage.

3. Purchase of Books/Equipment/Instruments/Uniforms– Covers the cost of essential books, academic equipment, instruments, and uniforms required for the course. (Maximum 20% of total tuition fees.)

4. Purchase of Computers– Financing the purchase of a computer or laptop essential for the completion of the course (up to 20% of tuition fees).

5. Caution Deposit/Building Fund/Refundable Deposit– Covers refundable deposits like caution fees and building funds (maximum 10% of total tuition fees).

6. Travel Expenses/Passage Money for Studies Abroad– Includes airfare and other travel-related expenses for students going abroad for their studies.

7. Cost of a Two-Wheeler– Covers the cost of a two-wheeler (up to INR 50,000) for students requiring personal transport for commuting.

8. Other Course-Related Expenses– Includes additional costs such as study tours, project work, or any other expenses essential to complete the course.

Eligibility Criteria for SBI Education Loan Without Collateral

The State Bank of India (SBI) offers education loans without collateral to support students in pursuing higher education, both in India and abroad. To qualify for this loan, applicants must meet certain criteria. Here’s a breakdown of the key eligibility requirements:

1. Nationality: The applicant must be an Indian citizen.
2. Academic Standing: A good academic record is necessary. The bank evaluates the applicant’s previous academic performance, the course of study, and their admission status to determine eligibility.
3. Admission: Applicants must have secured admission to a recognized university or institution. For the SBI Global Ed-Vantage Scheme, a valid acceptance letter from an eligible university is required.
4. Eligible Courses: The loan is available for undergraduate, postgraduate, and professional degree or diploma programs, both in India and abroad.
5. Age: The applicant must be at least 18 years old. The maximum age limit for applying is 35 years.
6. Co-applicant: A co-applicant is mandatory. This can be a parent, spouse, parents-in-law, sibling, or first cousin. If the primary co-applicant does not have a stable income, a financial co-applicant can be considered.
7. Other Factors: SBI also considers factors like the future earning potential of the applicant and the financial standing of the co-applicant. A solid credit profile is also crucial for approval.

Documents Required for SBI Education Loan Without Collateral

When applying for an SBI Education Loan without collateral, there is a specific set of documents that need to be submitted along with the duly filled loan application form. These documents help the bank assess the applicant’s eligibility and ensure that the loan application is processed smoothly. Here’s a checklist of the required documents:

1. Academic Documents:
   – Mark sheets of 10th, 12th, and Graduation (if applicable).
   – Entrance exam result (if applicable for the chosen course).
   
2. Proof of Admission:
   – Offer letter or admission letter from the educational institution.
   – Student ID card (if available).
   
3. Course-Related Documents:
   – Schedule of expenses for the course.
   
4. Scholarship Documents:
   – Copies of any scholarship, free-ship, or financial assistance letter (if applicable).
   
5. Gap Certificate (if applicable):
   – A self-declaration from the student if there is a gap in studies.
   
6. Photographs:
   – Passport-sized photographs of the student, parent, co-borrower, and guarantor (one copy each).
   
7. Co-Applicant/Guarantor Documents:
   – Asset-Liability Statement of the co-applicant/guarantor (required for loans above ₹7.50 lakhs).
   
8. For Salaried Co-Applicant:
   Latest salary slip.
   Form 16 or latest Income Tax Return (ITR-V).
   
9. For Non-Salaried Co-Applicant:
   Business address proof (if applicable).
   Latest Income Tax Returns (if applicable).
   
10. Bank Account Statements:
    Bank statements for the last six months of the parent/guardian/guarantor.
    
11. Collateral Documents (if applicable):
    For loans with collateral: Copy of the sale deed and other property documents related to the immovable property offered as security.
    Photocopy of liquid security documents (if applicable).
    
12. Identity and Address Proof:
    Permanent Account Number (PAN) of the student, parent, co-borrower, and guarantor.
    Aadhaar card (mandatory, especially if applying under Government interest subsidy schemes).
    Passport (mandatory for students planning to study abroad).
    
13. Other Verification Documents:
    – Submission of Official Valid Documents (OVD) as per the bank’s guidelines (for KYC purposes).

These documents are required to help SBI assess your eligibility, verify your financial standing, and confirm your admission to the course. It’s important to ensure that all documents are submitted in the correct format and are up-to-date to avoid delays in the loan processing.

Steps to Apply for an SBI Education Loan Without Collateral

Applying for an SBI education loan without collateral involves a series of steps to ensure the loan is processed smoothly. Here’s a breakdown of the typical process:

1. Online Application:

• Visit the official SBI website or the Vidya Lakshmi portal to fill out the online loan application form.
• Register and provide the necessary personal and academic details as required by the bank.

2. Upload Documents:

• After filling out the application form, upload the required documents such as academic records, proof of admission, identity proof, and other supporting documents.
• You can also use platforms like Fly. Finance that offers a digitized document portal to help streamline this document submission process.

3. Branch Visit:

• Once the online application is complete, visit the nearest SBI branch to submit any additional documents and discuss the loan application with a bank officer.
• The bank officer will explain the terms and conditions of the loan and guide you through the further steps.

4. Loan Approval:

• After verifying your application and documents, the bank will process the loan request.
• Once approved, SBI will issue a sanction letter. This letter serves as proof of funding and can be submitted to your university or institution for confirmation of the loan.

5. Disbursement:

• After the loan is sanctioned, the funds are transferred directly to the university or institution as per the fee structure.
• The SBI education loan disbursement process is hassle-free. The loan may be disbursed in instalments depending on the fee payment schedule outlined by the educational institution.

By following these steps, you can successfully apply for an SBI education loan without collateral and receive the necessary financial support for your studies abroad or in India.

Must Read: 5 Things to Keep in Mind to Apply for an Education Loan

FAQs

To learn more about education loans, the best bank accounts for students, forex, banking experience for global students, or international money transfers, reach out to our experts at 1800572126 to help ease your experience with studying abroad.

Related Blogs
Vidya Lakshmi Education Loan Bank of Baroda	Bank of Baroda EDP Education Loan for Abroad Studies 2024
Bank Cash Withdrawal Limit for Savings, Current Account, and ATM	Bank of Baroda International Debit Card
Bank of Baroda Forex Rates	Bank of Baroda Personal Loans
IFSC Full Form: Indian Financial System Code	Education Loan for Pilot Training in India
SBI Pehli Udaan Debit Card	Bank of Baroda Forex Card

Follow Us on Social Media

• Instagram
• LinkedIn
• Twitter