State Bank of India (SBI) has announced an increase in the limit for its collateral-free education loan, designed to assist students who wish to pursue higher education abroad. The initiative, known as the SBI Global Ed-Vantage loan, aims to reduce financial barriers for Indian students seeking to study at foreign universities.
Key Features of SBI’s Global Ed-Vantage Education Loan
- Collateral-Free Loans
Students can avail loans of up to ₹50 lakh without the need for any collateral, making higher education abroad more accessible. The loan applies to a list of approved international institutions. - Flexible Repayment
The loan offers a repayment period of up to 15 years, with easy monthly installments (EMIs) that help students manage the financial burden over time. - Early Disbursement
Loans can be approved and disbursed even before students receive their Form I-20 or visa, making the process smoother and faster. - Tax Benefits
Under Section 80(E) of the Income Tax Act, students can claim tax deductions on the interest paid for the loan, easing their financial load. - Broad Coverage of Educational Expenses
The loan covers various costs including:- Tuition and hostel fees
- Examination, library, and laboratory fees
- Travel expenses
- Books, computers, uniforms, and project work
- Caution and refundable deposits
- Processing Fee and Interest Rate
A processing fee of ₹10,000 is charged, with a simple interest rate of 10.15% applicable on loans between ₹7.5 lakh and ₹50 lakh.
Expert Opinions on the Initiative
Ankit Mehra, CEO of GyanDhan, commended SBI’s decision as a “progressive step” that will ease access to loans for meritorious students. He highlighted that the new scheme would help students previously unable to secure loans due to stringent requirements. This initiative is expected to drive a shift from high-cost loans to more affordable options offered by SBI.
Saurabh Arora, Founder and CEO of University Living, noted that the Global Ed-Vantage initiative addresses the financial challenges faced by a large number of Indian students aspiring to study abroad. With the added benefit of tax deductions and comprehensive coverage for major expenses, it ensures a more accessible path to international education.
A Boon for Middle-Income Families
Rahul Subramaniam, Co-Founder of Athena Education, emphasized that SBI’s collateral-free loan is especially beneficial for middle-income families who may find the high costs of international education daunting. By offering loans without the need for collateral, the scheme opens doors for students targeting prestigious institutions like MIT, Stanford, and Oxford.
Conclusion
SBI’s collateral-free education loan is a game-changer for students aspiring to study abroad, providing them with financial support without the burden of collateral. With flexible repayment terms, tax benefits, and coverage of essential expenses, this initiative offers a clear path for students to focus on their academic goals.
For more information and to apply, visit SBI’s official website or contact your nearest branch.
