Earning a degree abroad is an odyssey, a chance to dip your toes in diverse academic waters and broaden your horizons. But like any voyage, it requires careful planning and provisions, especially financial ones. In this quest for knowledge, choosing the right bank for your overseas education loan becomes a crucial decision. Two nationalized giants, State Bank of India (SBI) and Union Bank of India (UBI), stand tall, each offering a compass to guide you through the financial tides.
Unveiling the Treasure Chest: Comparing the Quantum of Finance
Both banks offer generous chests of gold, with SBI education loan for abroad of up to Rs. 1.5 crore and beyond, depending on your academic voyage. UBI sails close behind, offering the same maximum, with an additional anchor – the Special Union Education Scheme for Abroad studies, providing unsecured education loan for abroad up to Rs. 40 Lakh for specific universities on their “prime list.” Remember, UBI’s unsecured option is a pearl for select universities, while SBI offers open seas for all academic destinations.
| Quantum of Finance | ||
| Banks | Secured | Unsecured |
| SBI | Up to Rs. 1.5 Cr and more depending on the project cost | Up to Rs. 7.5 Lakh |
| UBI | Up to Rs. 1.5 Cr and more depending on the project cost | Up to Rs. 40 Lakh under Special Union Education Scheme for Abroad studies |
Charting the Course: Interest Rates and Repayment Horizons
The interest rate, the hidden tax on your borrowed knowledge, is a crucial factor. SBI sets sail with a starting rate of 11.15%, offering concessions for female students and those enrolled in their Rin Raksha scheme. UBI, however, beckons with an alluring 9.80% starting rate. Every fraction of a percentage point can significantly impact your repayment burden, making UBI’s initial offering a tempting siren song.
But wait, there’s more to the map! Repayment horizons, the time you have to navigate the financial currents, are flexible for both banks, stretching up to 15 years. However, remember, the repayment journey should align with your career winds and expected income after graduation. Don’t get swept away by the longest horizon – choose a plan that suits your financial compass.
Anchoring Your Loan: Collateral and Security
Both banks, like seasoned sailors, demand security for their loans. Tangible treasures like residential properties or intangible assets like Fixed Deposits (FDs) act as anchors, ensuring smooth sailing. Before pledging any security, carefully assess the requirements of both banks and your own ability to provide the necessary anchor.
Unlocking the Eligibility Hatch: Who Can Set Sail?
To board the loan ship, certain criteria must be met. Both banks require Indian nationality, confirmed admission to a recognized institution, and a co-applicant with a steady income. However, specific schemes and benefits might have additional eligibility requirements, so be sure to check the official websites for hidden reefs. Remember, meeting all requirements strengthens your chances of loan approval, ensuring your academic voyage isn’t derailed by financial storms.
Reaching the Shores of Knowledge: Choosing Your Vessel
Choosing between SBI and UBI is like picking the perfect ship for your academic adventure. Consider your financial needs, the terms and conditions offered, and compare their offerings like a seasoned navigator. Seek free online counselling from experienced loan advisors, and don’t hesitate to clarify any doubts before making your final choice. Remember, a well-informed decision is the key to a smooth and successful educational voyage.
So, raise your sails, young scholar! With careful planning and the right financial compass, your overseas education adventure awaits. Bon voyage!