Education loans in India have seen an increase over the past few years, as more and more Indians are spending a higher amounts of money on education. The government of India is doing its best to provide all its citizens access to the financial aid they require to pursue the education they want. State Bank of India (SBI), India’s premier lender is a big player in the education loan market and has various innovative and interesting schemes for people seeking to study courses across the country and abroad. SBI is known for providing individuals loans at very reasonable rates.
SBI recently launched its latest education loan scheme called SBI Global Ed-Vantage. Under this scheme, individuals who are looking to pursue higher education abroad will be be able to apply for loans through SBI. The scheme will cover courses in science, technology, education, mathematics, management, and medicine from institutions in the United States of America, United Kingdom, Australia, Canada, Europe, Japan, Singapore, and Hong Kong.
The loan amount under this scheme will be between Rs.20 lakh to Rs.1.5 crore for financing up to 80% of the cost of the course. The new scheme will give a 0.5% concession to female students. Students who take up this scheme will be given 6 months after completion of the course to begin the repayment of the loan. The various features of the SBI Global Ed-Vantage scheme have been listed below:
SBI Global Ed-Vantage Feautures:
- The processing fee per application under SBI Global Ed-Vantage is Rs.10,000.
- The loans offered under this scheme are between Rs.20 lakh and Rs.1.5 crore.
- The loans under this scheme are fully collateralized. Security equivalent of the loan amount needs to be pledged to the bank.
- The fee will be disbursed directly to the institution in which the individual is looking to pursue studies.
- Living expenses will be remitted to the SBI Foreign Travel Card.
- SBI Global Ed-Vantage will finance up to 80% of the expenses of the course with a margin of 20%. Scholarships will be included in the 20% margin.
- Currently the interest rate on the SBI Global Ed-Vantage scheme is 10.75% p.a.
- Simple interest will be charged during the course and moratorium period.
- A 0.5% concession is given to applicants availing SBI’s Life Insurance scheme (SBI Life Rinn Raksha).
- A 0.5% concession is given to female applicants.
Expenses covered under the SBI Global Ed-Vantage:
- Tuition fee.
- Library and Examination fees.
- Passage expenses/Travel expenses.
- Cost of books/uniforms/instruments/computer.
- Other expenses for completion of course, such as, study work tour, etc. This is subject to the condition that these expenses do not exceed 20% of the total tuition fees.
- Building fund/refundable deposits/caution deposits. This is subject to the condition that these expenses do not exceed 10% of the tuition fees.
Under the SBI Global Ed-Vantage scheme the individual will get 6 months post completion of the course to begin repayment of the loan via Equated Monthly Instalments (EMIs). Simple interest will be charged during the duration of the course and the moratorium period. The moratorium period can last up to 15 years post completion of the course.
Global Ed-Vantage application procedure:
The documents required to avail the SBI Global Ed-Vantage scheme are:
- Letter of admission from the educational institute applied to.
- A fully filled loan application form.
- Two passport size photographs.
- Applicant’s Permanent Account Number (PAN) card. PAN card of co-applicant.
- Photograph identity proof issued by the government of India, such as, Driving License, Passport, Voter’s Identity, Aadhaar Card, etc.
- Proof of residence (Driving License, electricity bill, water bill, passport).
- A statement reflecting the cost of the course.
- Student or co-borrower’s last 6 months’ bank account statement.
- IT assessment order/IT returns statement of the co-borrower.
- Proof of income of the co-borrower/guardian.
The SBI Global Ed-Vantage scheme will allow the individual to receive a tax exemption under Section 80(E) of the Income Tax Act.
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