Published: December 5, 2024 | Reading Time: 4 minutes
Indian students consistently seek opportunities to study abroad due to the superior quality of education offered. According to the Ministry of External Affairs, approximately 1.3 million Indian students are pursuing abroad studies. Students face significant challenges while arranging funds for their studies, from higher interest rates from banks to arranging collaterals. SBI education loan interest rates for abroad studies are lower compared to other financial institutions and offer flexible repayment terms.
This comprehensive guide covers SBI abroad education loan interest rates, eligibility criteria, various loan schemes, and comparisons with other banks to help students make informed financial decisions.
State Bank of India (SBI) offers specialized loan products designed to finance students pursuing higher education abroad. These loans feature comparatively low interest rates for collateral-pledged loans and provide flexible repayment terms to ease the financial burden on students and their families.
SBI provides the following education loan schemes for students planning to study abroad:
SBI's education loan interest rates for abroad studies are highly competitive within the Indian banking sector. The rates are generally based on the Marginal Cost of Funds based Lending Rate (MCLR) and vary depending on several factors including:
The following table provides a comprehensive comparison of education loan interest rates across major Indian banks:
| Bank Name | Secured Loan Amount | Unsecured Loan Amount | Secured Interest Rate | Unsecured Interest Rate | Secured Loan Tenure | Unsecured Loan Tenure | Repayment Options |
|---|---|---|---|---|---|---|---|
| State Bank of India (SBI) | Up to ₹1.5 Crore | NA | 10.15% - 11.15% | NA | Up to 15 Years | NA | Flexible EMI, moratorium available |
| ICICI Bank | Up to ₹3 Crore | Up to ₹1 Crore | 10.00% - 12.50% | 11.00% - 12.50% | Up to 10 years | Up to 10 years | Flexible EMI, moratorium available |
| Bank of Baroda (BOB) | Up to ₹1.5 Crore | NA | 9.7% - 10.5% | NA | Up to 15 years | NA | Flexible EMI, moratorium available |
| IDFC Bank | Up to ₹1.5 Crore | Up to ₹62 Lakhs | 9.7% - 10.20% | 11.75% - 13.25% | Up to 15 Years | Up to 12 Years | Flexible EMI, moratorium available |
| AVANSE | ₹1 Crore | Up to ₹40 Lakhs | 10.5% - 11% | 12% - 13.25% | 10 years | 12 to 15 years | Flexible EMI, moratorium available |
| INCRED | NA | Up to ₹50 Lakhs | NA | 11.65% - 13.5% | 12 to 15 years | 12 to 15 years | Flexible EMI, moratorium available |
| AUXILO | 70% of valuation | Up to ₹40 Lakhs | 11% - 13% | 12% - 13.25% | 12 to 15 years | 12 to 15 years | Flexible EMI, moratorium available |
| HDFC Credila | ₹1 Crore | Up to ₹40 Lakhs | 10% - 10.5% | 12% - 12.5% | 12 to 15 years | 12 to 15 years | Flexible EMI, moratorium available |
| IDBI Bank | Up to ₹1.5 Crore | NA | 9.6% - 10.6% | NA | Up to 15 Years | NA | Flexible EMI, moratorium available |
Note: Interest rates and loan terms are subject to change. Students should verify current rates with respective banks before applying.
The SBI Global Ed-Vantage scheme is a specialized secured education loan product designed specifically for students aspiring to study abroad. This scheme offers substantial loan amounts with competitive interest rates, making international education more accessible to Indian students.
| Feature | Details |
|---|---|
| Loan Amount | Up to ₹1.5 Crore |
| Interest Rate | 9.15% - 11.15% |
| Processing Fee | INR 10,000 |
| Eligible Courses | Regular Graduate, Postgraduate, and Doctorate courses |
| Eligible Expenses | Tuition fees, Examination/library fees, Travel expenses, Purchase costs (Laptop, books) |
| Repayment Period | Up to 15 years |
| Repayment Commencement | Starts 6 months after course completion |
| Collateral Requirement | Required (tangible security from parents or third party) |
The SBI Student Loan Scheme for Abroad Studies is a more general loan product applicable to a wide range of programs across various countries. This scheme provides flexibility for students pursuing higher education both in India and abroad.
| Feature | Details |
|---|---|
| Loan Amount | Not specified (varies based on requirements) |
| Interest Rate | 11.15% |
| Processing Fee | INR 10,000 for loans above ₹20 lakhs |
| Eligible Courses | Students pursuing higher education in India or abroad |
| Eligible Expenses | Tuition fees, Examination/library fees, Travel expenses, Purchase costs (Laptop, books), Tours or project works |
| Repayment Period | Up to 15 years |
| Repayment Holiday | 12 months of repayment holiday |
| Collateral Requirement | Required for loans above ₹7.5 lakhs (tangible collateral security of parent or guardian) |
Students must meet specific eligibility criteria to qualify for SBI education loans for abroad studies. Meeting all requirements is essential for loan approval.
Nationality
Age Limit
Admission Requirement
Academic Qualifications
Co-Applicant Requirement
The application process for SBI education loans for abroad studies is straightforward, with both offline and online application options available.
Step 1: Choose Application Method
Step 2: Submit Required Documents
Prepare and submit the following documents:
Step 3: Loan Processing
Step 4: Approval and Disbursal
Education loan interest rates vary significantly across different banks and financial institutions. Students are strongly advised to research and compare available options before applying for an education loan, as these loans involve substantial amounts of money.
| Bank Name | Secured Loan Amount | Unsecured Loan Amount | Secured Interest Rate | Unsecured Interest Rate | Secured Loan Tenure | Unsecured Loan Tenure |
|---|---|---|---|---|---|---|
| State Bank of India (SBI) | Up to ₹1.5 Crore | NA | 10.15% - 11.15% | NA | Up to 15 Years | NA |
| Bank of Baroda (BOB) | Up to ₹1.5 Crore | NA | 9.7% - 10.5% | NA | Up to 15 years | NA |
| IDFC Bank | Up to ₹1.5 Crore | Up to ₹62 Lakhs | 9.7% - 10.20% | 11.75% - 13.25% | Up to 15 Years | Up to 12 Years |
| AVANSE | ₹1 Crore | Up to ₹40 Lakhs | 10.5% - 11% | 12% - 13.25% | 10 years | 12 to 15 years |
| INCRED | NA | Up to ₹50 Lakhs | NA | 11.65% - 13.5% | 12 to 15 years | 12 to 15 years |
| AUXILO | 70% of valuation | Up to ₹40 Lakhs | 11% - 13% | 12% - 13.25% | 12 to 15 years | 12 to 15 years |
| HDFC Credila | ₹1 Crore | Up to ₹40 Lakhs | 10% - 10.5% | 12% - 12.5% | 12 to 15 years | 12 to 15 years |
| IDBI Bank | Up to ₹1.5 Crore | NA | 9.6% - 10.6% | NA | Up to 15 Years | NA |
| ICICI Bank | Up to ₹3 Crore | Up to ₹1 Crore | 10.00% - 12.50% | 11.00% - 12.50% | Up to 10 years | Up to 10 years |
SBI offers excellent education loan options for students aspiring to study abroad, featuring competitive interest rates, flexible repayment terms, and comprehensive loan coverage. The two primary schemes—SBI Global Ed-Vantage Scheme and SBI Student Loan Scheme for Abroad Studies—cater to different student needs, whether covering a broad range of expenses or focusing on specific educational costs.
These loans help students alleviate financial stress, allowing them to focus on their studies. However, students should:
With proper planning and a clear understanding of the loan process, students can secure the necessary funds to study abroad and achieve their educational goals.
SBI education loan for abroad interest rate ranges from 9.15% to 11.15% for secured loans. The specific rate depends on factors such as loan amount, repayment tenure, and the applicant's credit profile.
Yes, some banks offer education loans for abroad studies without collateral, known as unsecured education loans. However, the amount varies across banks and interest rates are higher compared to secured loans. For SBI specifically, collateral is required for loans above ₹7.5 lakhs.
Yes, education loans from SBI cover expenses like laptops, books, travel, and tours or project works. These are considered eligible expenses under both the SBI Global Ed-Vantage scheme and the SBI Student Loan scheme.
Yes, banks often cover 100% of your expenses while studying abroad. SBI education loans cover tuition fees, examination fees, library fees, travel expenses, and purchase costs for educational materials.
Yes, the fees for accommodation provided by the school or college authorities, or for a hostel managed by the educational institution, are covered under the education loan offered by the State Bank of India.
Related Resources:
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This article was published on December 5, 2024, and provides information based on available data at that time. Interest rates, loan terms, and eligibility criteria are subject to change. Students should verify current information with State Bank of India and other financial institutions before making loan decisions.