Numerous public banks in India offer education loans for both domestic and international studies. This article will delve into education loans specifically provided by two leading public sector banks: State Bank of India (SBI) and Union Bank of India (UBI). The focus will be on understanding the details of these loans to empower you with the information needed to make well-informed decisions regarding your educational financing options.
Overview of SBI and UBI: Government Banks
Public sector banks in India played a substantial role in facilitating education loans for Indian students pursuing overseas studies during the fiscal year 2021-22. The total disbursement across the 12 banks amounted to a noteworthy INR 7576 crore. Notably, the State Bank of India (SBI) stood out as a frontrunner in this effort, disbursing an impressive INR 3556 crore specifically allocated for abroad education loans.
SBI:
- Leading the disbursement efforts, SBI contributed significantly with a total amount of INR 3556 crore.
- Positioned as the top contributor among public sector banks for education loans for overseas studies.
- Demonstrating a robust commitment to supporting the educational aspirations of Indian students.
UBI:
- The Union Bank of India (UBI) secured a commendable position in the top 5, disbursing a noteworthy sum of INR 556 crore.
- Evidencing a significant role in facilitating financial assistance for Indian students pursuing education abroad.
- Reflects a strong commitment to promoting and supporting educational endeavors on an international scale.
Features of SBI Education Loan
This comprehensive guide offers crucial insights into the SBI abroad education loan, providing a detailed overview of essential components such as loan amounts, interest rates, fees, and associated terms. Exploring this information empowers potential borrowers to grasp the nuanced details that define the SBI abroad education loan, aiding them in making well-informed decisions as they pursue their educational goals. SBI education loan abroad university list is something that you should be aware of as the institutes in this list can be easily approved for loans.
Loan Details:
- Loan amounts range from INR 7.5 Lakh to a substantial INR 1.5 Crore.
- The interest rate is fixed at 11.15%, following a floating rate structure. Female applicants benefit from a significant 0.5% concession on the interest rate.
- An applicable non-refundable processing fee is set at INR 10,000 + GST.
- Margin money requirements vary, with 15% for loans between INR 7.5 Lakh and INR 20 Lakh, and 10% for amounts surpassing INR 20 Lakh.
- Property evaluation charges, around INR 7,500, apply, subject to potential changes based on location and property specifics.
- The moratorium period spans the course duration plus an additional 6 months, offering financial flexibility for borrowers.
- Repayment tenure is extended, providing borrowers with up to 15 years to manage and repay their education loans comfortably.
Features of UBI Education Loan
This comprehensive compilation provides crucial insights into the Union Bank of India (UBI) abroad education loan, offering a detailed perspective on key components such as loan amounts, interest rates, fees, and other essential terms integral to the loan. Examining these details enables potential borrowers to develop a nuanced understanding of the complexities and specifics that define the UBI abroad education loan. This knowledge serves as a valuable resource for making informed decisions and guiding individuals toward fulfilling their educational aspirations with confidence.
Loan Details:
- Loan amounts: 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 a 15% margin.
- Moratorium Period: Extends throughout the course duration plus an additional 12 months.
- Repayment Tenure: Stretches over 15 years.
Eligibility for Foreign Education Loan by Government Banks
The eligibility criteria for securing a foreign education loan through public banks in India, including UBI (Union Bank of India) and SBI (State Bank of India), may exhibit slight variations between these financial institutions. However, common prerequisites typically encompass:
- Citizenship or NRI Status: Applicants are generally expected to be either Indian citizens or Non-Resident Indians (NRIs) holding an Indian passport.
- Admission to a Recognized Institution: A fundamental requirement is obtaining admission to a recognized foreign university or institution for the desired academic course.
- Age Restrictions: Banks usually impose both minimum and maximum age limits for loan applicants.
- Co-Applicant Necessity: Most banks typically mandate a co-applicant, commonly a parent, guardian, or close relative. The co-applicant’s financial standing and creditworthiness might influence the loan approval process.
- Academic Track Record: A commendable academic history is typically insisted upon, often necessitating the submission of mark sheets from previous qualifying exams and standardized test scores, depending on the course and country.
- CIBIL Score Assessment: Loan approval is often contingent upon a favorable credit score, typically evaluated through the Credit Information Bureau (CIBIL) score.
- Collateral or Security Requirement: Larger loan amounts may necessitate collateral or security, which could involve assets like property, fixed deposits, or other valuable possessions.
- Course and University Approval: Banks commonly require that the selected course and university be approved by them. Some banks maintain a list of recognized universities and courses eligible for loan consideration.
- Margin Money Contribution: Some banks may expect the applicant to contribute a specified percentage of the total expenses as margin money.
- Bank-Specific Requirements: Each bank may have unique documentation and criteria. Prospective applicants are advised to directly verify the latest and specific eligibility requirements with the respective bank.
It is essential to acknowledge that eligibility criteria may be subject to change, and applicants are encouraged to verify the current requirements directly with the relevant bank to ensure accurate and up-to-date information.