The world is a smaller place now. The number of Indian students choosing to pursue their higher education abroad looking for the best univesity/course has been growing in the last decade. Studying abroad is an expensive affair considering the difference in currency valuations, living expenses, travel and the higher fees imposed on international students by universities. The dream of pursuing a course in a university abroad has been made easier with the advent of online banking and application process.
There are multiple banks offering education loans with varied features in terms of the amount of loan, interest rate, processing fee and types of courses or expenses covered. While you make you comparisons and decide which financial institution to opt for, here are the features of a special education loan scheme offered by the State Bank of India (SBI), called the SBI Global Ed-Vantage, offered exclusively for those planning to study overseas.
- The scheme exclusively covers students that wish to pursue full time regular courses at foreign colleges or universities.
- Online application process
- Loan amount ranges from Rs 20 lakh to Rs 1.5 crore
- Repayment period of up to 15 years
- Loan will be sanctioned prior to i20/Visa
- Applicable for tax exemption under section 80E (deduction allowed on total taxable income for interest paid towards repayment of an education loan)
- School/college/hostel fee.
- Examination/Library/Laboratory fee
- Travel expenses/passage money for studies abroad.
- Purchase of books/equipment/instruments/uniform/ computer at reasonable cost, if required for course completion and any other expense required to complete the course- like study tours, project work, thesis, etc. However, these expenses are capped at 20 percent of the total tuition fees payable for the complete course.
- Caution deposit /building fund/refundable deposit supported by Institution bills/receipts. It should not exceed 10 percent of the tuition fees for the entire course.
- Premium for ‘RiNn Rakhsha.' RiNn Raksha Plan is an insurance plan offered by the SBI Life Insurance Company and covers the loan borrower's family against the repayment liability of the loan in case of disability/death.
- Scholarship/assistantship to be included in loan margin.
- Margin to be brought in on year-on-year basis as and when disbursements are made on a pro-rata basis.
- Processing fee will be charged at Rs 10,000 per application.
- Repayment commences 6 months after completion of course.
- Accrued interest during the moratorium (repayment holiday) will be added to the principal and repayment in EMI fixed.
- Interest will be calculated on simple interest rate basis during course period + moratorium period.
- The interest rate is based on the bank's 1-year MCLR with a spread of 2 percent and will be reset every year.
- A concession of 0.50 percent is available for girl students.
- A concession of 0.50 percent is available for students availing SBI RiNn Raksha or any other existing policy offered by SBI.
- Tangible collateral can be offered as security. This also includes collateral security offered by Third Party (other than parents).
According to SBI's website, the SBI Global Ed-Vantage scheme is applicable on regular graduate/ post graduate/ doctorate courses in any discipline offered by foreign Institutes/ Universities in USA, UK, Canada, Australia, Europe, Singapore, Japan, Hong Kong and New Zealand.