SBI Steps Up Heat With Large Collateral-Free Study Loans

India's largest lender State Bank of India (SBI) has begun offering collateral-free study loans of up to ₹50 lakh for students heading to top foreign universities, entering an arena dominated by top private lenders.

- Devina Sengupta & Shayan Ghosh

MUMBAI: The move may prompt more lenders to raise loan caps to attract students headed abroad, industry experts said.

Students enrolling at Massachusetts Institute of Technology, Imperial College London, University of Oxford, Harvard University and University of Cambridge can access collateral-free loans up to the new limit, the bank's website showed. Though SBI has not announced the higher loan limit and did not respond to an emailed query, consultants working with the bank said the cap was raised in November-December.

The cost of studying abroad can cross ₹1 crore in tuition fees and accommodation expenses. Given that more Indians head out to foreign colleges every year, other lenders too are expected to follow suit, non-banking financial companies (NBFCs) and sector analysts said.