SBI Ed Vantage scheme's collateral-free loans for up to ₹50 lakh, what it means for students planning to study abroad
Are you planning to study abroad soon? Did you know SBI is offering collateral-free loans of up to ₹50 lakh via the Global Ed Vantage scheme? Check details.
Are you planning to move abroad for higher studies but worried about your managing finances? You may just be a tad bit closer to your dream of studying abroad as India's premier bank, the State Bank of India is offering collateral-free education loans of up to ₹50 lakhs through the SBI Global Ed Vantage scheme.

For the unversed, the Ed Vantage scheme is an overseas education loan offered exclusively to those who wish to pursue full-time regular courses at institutions abroad, as defined by SBI.
What is collateral?
Before we examine how a prospective study abroad applicant will benefit from this scheme, let's first understand what exactly does collateral mean.
Simply put, collateral refers to a valuable asset that a borrower pledges as security for a loan, as explained in a report by Investopedia. For instance, when an individual takes a car loan, the vehicle will serve as the collateral. In case, he/she defaults in loan repayment, the lender (bank) may seize the collateral and sell it to make up for the losses.
What does a collateral-free loan mean?
In the event of a collateral-free loan, a borrower does not need to pledge any assets as security. In such cases, the loan is tentatively sanctioned vis-a-vis the financial condition of the applicant to determine loan eligibility. This type of loan is particularly beneficial for those who do not have assets required to pledge for a loan.
5 ways how SBI's Ed Vantage scheme can help prospective study-abroad candidates
Through the SBI Ed Vantage scheme, students planning to study abroad may be entitled to some of the following benefits:
1. Higher loan amount:
Through the Ed Vantage scheme, students may apply for a loan up to ₹3 crores.
2. Collateral-free loan:
SBI provides collateral-free loan up to ₹50 lakh for select institutions. Some of these include Massachusetts Institute of Technology (MIT), Imperial College London, University of Oxford, Harvard University, University of Cambridge, Stanford University, ETH Zurich - Swiss Federal Institute of Technology, National University of Singapore (NUS), University College London, and California Institute of Technology (Caltech) among others.
The full list can be checked here.
3. Longer repayment tenure
Students can repay the loan amount through easy EMI's for a period up to 15 years.
4. Eligible courses
Students can opt for several courses through this loan scheme. These include regular graduate degree/post-graduate degree/diploma/certificate/doctorate courses in any discipline offered by foreign institutes in USA, UK, Canada, Australia, Singapore, Japan, Hong Kong, New Zealand and Europe [Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, United Kingdom]
5. Expenses covered in a range of areas
The loan amount covers expenses in a range of areas which include:
Fee for college/school/hostel/examination/library/laboratory.
Expenses for travel/passage money for studies abroad.
Purchase of books/equipment/instruments/uniforms/ 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, the loan is subject to the condition that these should be capped at 20% of the total tuition fees payable for completion of the course, as per SBI.
