State Bank of India (SBI) has taken a significant step to help students achieve their dreams of studying abroad. The bank recently increased the limit for collateral-free education loans for higher studies overseas.
What you should know about SBI’s collateral-free education loan for studying abroad:
What is SBI Global Ed-Vantage?
SBI Global Ed-Vantage is an education loan designed for students who want to pursue full-time courses at foreign colleges and universities. Under this scheme, students can get loans of up to ₹50 lakh without providing collateral. This initiative aims to ease the financial burden for students planning to study abroad.
Key Features
1. Collateral-free loan
Students can avail loans up to ₹50 lakh without providing any security or collateral. This applies only to selected institutions. Here is the list of these institutions.
2. Repayment period
The loan repayment period is up to 15 years, giving students enough time to repay through easy monthly installments (EMIs).
3. Early disbursement
The loan can be approved even before the student gets their Form I-20 or visa.
4. Tax benefits
Students can claim tax benefits under Section 80(E) of the Income Tax Act. This allows a deduction on the interest paid on the education loan.
5. The loan covers a wide range of courses, including:
Graduate and postgraduate degrees
Diploma and certificate programs
Doctorate programs in any discipline
6. Expenses covered
SBI’s education loan covers key expenses, including:
Tuition and hostel fees
Examination, library, and laboratory fees
Travel expenses for studying abroad
Cost of books, equipment, instruments, uniforms, and computers required for the course
Study tours, project work, and thesis costs (up to 20% of the total tuition fees)
Caution deposits, building fund deposits, or refundable deposits (up to 10% of tuition fees)
7. Processing fee and interest rate
A processing fee of Rs. 10,000 is charged per application.
Simple interest is applied during the course period and the repayment holiday (moratorium) period.
The interest rate for loans between ₹7.5 lakh and ₹50 lakh is 10.15%.
SBI’s collateral-free loan of Rs. 50 lakhs is a game-changer for Indian students planning to study abroad
Ankit Mehra, CEO and Co-Founder of GyanDhan, hailed this initiative as a “progressive step by SBI, in line with the broader trend towards unsecured loans in the study abroad space over the past few years.” According to him, this offering will “significantly ease access to education financing for meritorious students.” Mehra also noted that GyanDhan’s analysis showed over 2% of student applicants, who previously could not secure loans, now qualify for the SBI loan due to its relaxed requirements. Moreover, the progra m is expected to drive a shift away from high-cost NBFC loans to SBI’s lower-rate offerings. He anticipates that other public sector banks will likely follow SBI’s lead as the study-abroad market enters its next growth phase.
Catering to a diverse student base
Saurabh Arora, Founder and CEO of University Living, emphasised the importance of the program in bridging financial gaps. “SBI’s Global Ed-Vantage initiative offers up to RS. 50 lakh as a collateral-free loan with repayment flexibility of up to 15 years, ensuring greater accessibility for Indian students,” he remarked. Additionally, tax benefits under Section 80(E) and coverage of essential expenses—ranging from tuition fees to travel and living costs—further enhance the program’s appeal.
Arora highlighted the scale of the impact, pointing out that over 1.3 million Indian students were pursuing higher education abroad in 2023, according to the Indian Students Mobility Report 2024. This initiative, therefore, has the potential to transform the financial landscape for families who might otherwise struggle to afford such large sums.
A boon for middle-income families
Rahul Subramaniam, Co-Founder of Athena Education, praised SBI for its efforts in “making international education less daunting for middle-income families.” The Global Ed-Vantage loan caters to students targeting prestigious institutions like MIT, Stanford, Harvard, and Oxford, as well as top universities across the US, UK, Canada, and Europe. With no need for collateral such as property or other assets, the loan program opens doors for students who previously found global education financially inaccessible.
Subramaniam added that the program’s comprehensive coverage of expenses, including tuition, accommodation, travel, and other related costs, ensures a seamless journey for students. “With SBI’s large network of branches and its strong reputation as a trusted financial institution, this initiative instills confidence in students and their families,” he said.
Some other industry leaders have also lauded the State Bank of India’s decision to offer collateral-free education loans up to ₹50 lakh under the SBI Global Ed-Vantage scheme.
Aayush Nagpal, Founding Team and Business Head at GradRight, described it as a “game-changer” in the study-abroad financing landscape. He highlighted that this move by one of India’s most trusted banks sets a new benchmark, encouraging innovation among public sector banks like Bank of Baroda and Punjab National Bank, while also challenging private banks and NBFCs to enhance their offerings.
Piyush Kumar, Regional Director–South Asia, Canada, and LATAM at IDP, emphasised the importance of this initiative in easing the financial journey for students. “Over 1.3 million Indian students are currently pursuing higher education abroad,” he noted, adding that the scheme is particularly beneficial for students from tier 2 and tier 3 cities who are aspiring for global careers. “SBI is among IDP’s trusted banking partners, enabling thousands of Indian students to overcome financial and logistical barriers associated with studying abroad,” Kumar added.
Echoing similar sentiments, Waseem Javed, Founder and CEO of EduVib, called the initiative a “commendable precedent” that prioritises accessibility and flexibility. He pointed out the scheme’s wide coverage of expenses, from tuition fees to study tours, coupled with features like easy EMI repayment and tax benefits. “Such forward-thinking initiatives make higher education financing more inclusive for meritorious students while empowering them to compete on an international stage,” he said.
Conclusion
SBI’s collateral-free education loan is great option for students planning to study abroad. With flexible repayment terms and coverage for major expenses, this scheme reduces financial hurdles and helps students focus on achieving their academic goals.
