State Bank of India (SBI), India’s largest public sector bank, has taken a transformative step to help students achieve their dream of pursuing higher education overseas. The bank recently announced an increase in the limit for collateral-free education loans under its Global Ed-Vantage scheme, allowing students to borrow up to ₹50 lakh without providing any collateral. This initiative aims to alleviate financial barriers for students and provide them with easier access to quality education abroad.

SBI Global Ed-Vantage: An Overview

SBI Global Ed-Vantage is a specialized education loan designed for Indian students who aspire to enroll in full-time courses at renowned foreign universities and colleges. With flexible repayment options and comprehensive expense coverage, this scheme is particularly beneficial for middle-income families and students from smaller cities who find global education financially challenging.

Key Features of SBI Global Ed-Vantage

1. Collateral-Free Loans Up to ₹50 Lakh:
   Under this scheme, students can borrow up to ₹50 lakh without offering any security or collateral, provided they are enrolling in select institutions.
2. Flexible Repayment Period:
   The repayment tenure extends up to 15 years, allowing students sufficient time to repay their loans through easy monthly installments (EMIs).
3. Pre-Approval Option:
   Students can secure loan approval even before obtaining their Form I-20 or visa, ensuring they can plan their academic journey without delays.
4. Tax Benefits:
   Borrowers can avail tax deductions on interest paid under Section 80(E) of the Income Tax Act, making the loan more cost-effective.
5. Broad Course Coverage:
   The loan is available for a range of programs, including graduate, postgraduate, diploma, certificate, and doctoral degrees.
6. Expenses Covered:
   The scheme covers:
   • Tuition and hostel fees
   • Examination, library, and laboratory fees
   • Travel expenses
   • Costs for books, equipment, uniforms, and computers
   • Study tours, project work, and thesis costs
   • Refundable caution deposits and building funds
7. Competitive Processing Fee and Interest Rate:
   A processing fee of ₹10,000 applies. The interest rate for loans ranging between ₹7.5 lakh and ₹50 lakh is set at 10.15%, with simple interest calculated during the course and moratorium periods.

Expert Opinions

Ankit Mehra, CEO of GyanDhan, lauded the initiative as a “progressive step” in making study-abroad financing more accessible. He noted that the relaxed requirements now enable a wider pool of students to qualify, reducing dependence on high-cost loans from private institutions and NBFCs.

Saurabh Arora, Founder of University Living, emphasized that the initiative bridges financial gaps, especially for the 1.3 million Indian students studying abroad. Its flexible repayment terms and comprehensive coverage make it a preferred option for many families.

Rahul Subramaniam, Co-Founder of Athena Education, highlighted that the scheme targets top institutions like MIT, Stanford, and Oxford, offering significant relief to middle-income families.

A Boon for Indian Students

This move is expected to reshape the landscape of study-abroad financing. With its extensive network and trusted reputation, SBI instills confidence in students and families alike. The scheme’s broad coverage, including essential and ancillary expenses, coupled with tax benefits, ensures a smoother path for aspiring global citizens.

For more details, visit SBI’s official website or contact your nearest branch.