Several public banks in India can provide you with an education loan for both domestic and foreign education. In this blog today, we are going to discuss education loans from public banks for abroad education via two prominent public sector banks that is State Bank of India (SBI) and the Union Bank of India (UBI). Let’s explore these in detail so that you can make an informed decision.
Overview of UBI and SBI abroad education loan
Among the 12 public sector banks facilitating education loans for Indian students pursuing overseas studies, the fiscal year 2021-22 witnessed a substantial disbursement totaling INR 7576 crore. Notably, the State Bank of India (SBI) emerged as the frontrunner in this endeavor, disbursing an impressive amount of INR 3556 crore specifically designated for abroad education loans.
Furthermore, the Union Bank of India (UBI) also distinguished itself by securing a position in the top 5, having disbursed a noteworthy sum of INR 556 crore for the same purpose. This highlights not only the robust commitment of these public sector banks to supporting the educational aspirations of Indian students but also underscores the significant role played by SBI and UBI in facilitating financial assistance for pursuing education abroad.
Education loan features of SBI
This comprehensive list provides essential details about the SBI abroad education loan, offering a thorough overview of key aspects such as loan amounts, interest rates, fees, and various other terms associated with the loan. By delving into this information, prospective borrowers can gain a nuanced understanding of the intricacies and specifics that characterize the SBI abroad education loan, facilitating informed decision-making in pursuit of their educational aspirations.
- Loan amount options range from INR 7.5 Lakh to a substantial INR 1.5 Crore.
- The interest rate stands at 11.15%, featuring a floating rate structure. Female applicants enjoy a noteworthy 0.5% concession on the interest rate.
- A non-refundable processing fee is applicable, amounting to INR 10,000 + GST.
- Margin money requirements vary, with 15% for loans ranging from INR 7.5 Lakh to INR 20 Lakh, and 10% for amounts exceeding INR 20 Lakh.
- Property evaluation charges, approximately INR 7,500, are applicable, subject to potential changes based on location and property specifics.
- The moratorium period spans the course duration plus an additional 6 months, providing financial flexibility for borrowers.
- Repayment tenure is extended, allowing borrowers up to 15 years to comfortably manage and repay their education loans.
Education loan features of UBI
This exhaustive compilation offers vital insights into the Union Bank of India (UBI) abroad education loan, presenting a comprehensive view of critical elements such as loan amounts, interest rates, fees, and various other terms integral to the loan. Examining these details empowers potential borrowers to develop a nuanced comprehension of the intricacies and particulars defining the UBI abroad education loan. This knowledge serves as a valuable resource for making well-informed decisions, guiding individuals towards fulfilling their educational aspirations with confidence.
- Loan Amount: Secured loan up to INR 1.5 crore (expandable based on student profile) and unsecured loan capped at INR 40 lakh.
- UBI Education Loan Interest Rate: Secured loans range from 10-10.5%, while unsecured loans carry a fixed rate of 9.8%.
- Processing Fee: A refundable INR 5000, provided disbursement occurs within 3 months of sanction.
- Margin Money: Secured loans entail 10% for listed universities, 15% for non-listed universities, and unsecured loans require 15% margin.
- Moratorium Period: Extends throughout the course duration plus an additional 12 months.
- Repayment Tenure: Stretches over a span of 15 years.
Required documents for abroad education loan
Documents required for education loans from public sector banks for studying abroad may vary based on several factors, encompassing academic and professional backgrounds, the financial and credit profile of co-applicants, and the location of the provided collateral or asset. The generalized list of documents includes:
Applicant Documents:
- Identity proof: PAN/ Passport/ Driver’s License/ Voter ID card or government-issued identification document.
- Education loan application form.
- Address proof: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill/ Driving License/ Aadhaar card.
- Passport.
- Past academic record.
- 10th standard mark sheet.
- 12th standard mark sheet.
- Undergraduate result (semester-wise).
- Entrance exam results (e.g. GMAT, GRE, TOEFL, etc.).
- Proof of admission: admission letter (A conditional admission letter is also applicable).
- Statement of expenses.
- 2 passport-size photographs.
- Loan A/C statement of one year (if applicable).
- Bank account statement of the student (if applicable).
Co-applicant Documents:
- Identity proof: PAN/ Passport/ Driver’s license/ Voter ID card or government-issued identification document.
- Address: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill or copy of Driving license/ Aadhaar card.
- 2 passport-size photographs.
- Bank account statement of the co-borrower/guarantor, for the last 6 months (in case of takeover of education loan).
- If any previous loan is from other banks/lenders, then the loan A/C statement of 1 year.
- Legal documents of the collateral/property documents.
- Income proof for salaried co-applicant/guarantor:
- Salary slips for the last 3 months.
- Copy of Form 16 of the last 2 years or copy.
- Bank account statement for the last 6 months (Salary account).
- Brief statement of assets & liabilities of parent/guardian/other co-borrower.
- Income proof for self-employed co-applicant/guarantor:
- Business address proof.
- Last 2 years IT returns (If IT Payee).
- TDS certificate (Form 16A, if applicable).
- Certificate of qualification (for C.A./doctor and other professionals).
- Brief statement of assets & liabilities of parent/guardian/other co-borrower.
- Bank account statement for the last 6 months.
In summary, education loans from public sector banks, exemplified by the offerings of SBI and UBI, serve as crucial financial aids for domestic and international studies. SBI’s competitive features, including flexible loan amounts and extended repayment tenures, cater to diverse needs. UBI’s secured and unsecured options, coupled with reasonable interest rates, empower students in their educational pursuits. The blog underscores the significance of thorough documentation. Overall, these insights illuminate the vital role of public banks in facilitating educational aspirations, providing clarity and confidence to prospective borrowers in their pursuit of academic excellence.