Largest Public Sector Bank in India, State Bank of India is offering study abroad loans with attractive concessions and low interest rates. The applicants should have secured a seat in any Graduate, Post Graduate or Professional course. Candidate should be Indian citizen. Salient feature of SBI study abroad education loan is you need not require any security for a loan up to Rs. 4 lakh. A third party guarantee is essential for an amount of Rs. 4 - 7.5 Lakh. For a loan of more than Rs. 7.5 lakh, a collateral security for the full value of the loan is a must.
SBI shall provide a maximum loan of up to Rs. 20 lakh. No margin is required if the proposed amount of loan is less than Rs. 4 lakh. For loans more than Rs. 4 lakh, candidates have to arrange a margin of 15 percent. The expenses covered in the loan include travel, tuition fees, books, computer and also a two wheeler. The two wheeler cost should be up to Rs. 50000.
Here comes the details of interest rates and repayment formalities. SBI charges 11.75 percent interest per year for loans up to Rs. 4 lakh. If the loan exceeds that limit and below Rs. 7.5 lakh, the charges will be 13.25 percent per annum. For any amount more than that, SBI shall arrange a loan at an interest of 12.25 percent per year. Loan repayment period for SBI is 5-7 years. The EMIs start immediately after one year holiday period of the completion of the course. If the candidate crack a job in less than a year after completion of the course, holiday period for repayment will be 6 months from the date of joining in the job.
The best part of SBI's study abroad loan is 0.5 percent concession in interest rates for all girl students. SBI is also one of a few banks that are offering foreign education loans at lower interest rates.