Top 6 Education loan for abroad studies in India
Looking at a good education loan for abroad studies is an even more expensive project. Studying abroad brings in promises of high-profile careers. Unfortunately, the reality is that the cost of studying at a reputable university abroad is usually high. Also, read ASUS ExpertBook B9 Price in India with Specifications.
Education abroad loans help students, regardless of their financial situation, realize their dream of studying at one of the best universities in the world.
Numerous banks and other financial institutions now offer student loans for students who want to study abroad. These lenders provide different educational loan schemes, but choosing the right one for you is not an easy task. And that’s where GyanDhan helps. We match you with the lender that best suits your profile and needs, and then we help you ensure loan approval in the most seamless and hassle-free way.
Characteristics of educational loans:
- Anyone between the ages of 18 and 35 can use a student loan to study at any authorized university abroad.
- Students can obtain education loans for management courses, engineering courses, medicine and undergraduate and graduate degrees, arts, architecture, pure science, hotel management, etc.
- Expenses covered by a student loan include tuition fees, exam fees, lab and library fees, precautionary deposit, travel, books and equipment, projects, and field trips.
- Borrowers must contribute a 5% to 15% margin for study abroad loans.
- During the default period, borrowers must pay the interest, and the principal payment begins when the loan tenure begins.
- Students can repay their education loans in monthly installments through ECS or by post-dated bank checks.
- Banks generally sanction educational loans with a tenure of up to seven years, including the moratorium period.
- One should select A co-applicant for educational loans taken for full-time courses. Co-applicants can include siblings, spouses, parents, or other family members.
- Banks will sanction a maximum of Rs. Twenty lakhs with the moratorium period and up to a maximum of Rs. 10 lakhs for loans with no moratorium.
- Students should present no collateral for educational loans taken up to Rs. 4 lakhs. You must provide a third-party guarantee for loans between Rs. 4 lakhs and Rs. 7.5 lakhs and tangible collateral are needed for loans over Rs. 7.5 lakhs.
- India’s Government also provides an interest rate subsidy scheme for repayments made during the moratorium period to benefit the weakest sector of society.
Top Educational Loan Providers in India:
Below are the top educational loan providers in India that help students who want to continue their education abroad.
1. State Bank of India Education Loan:
SBI provides a term loan to Indian students who aspire to further their higher education abroad. SBI funds higher education for all work-oriented technical and professional graduate and postgraduate courses such as MBA, MCA, MS, etc., diploma courses at reputable institutions, and also for courses offered by the Chartered Institute of Management Accountants ( CIMA), London, and the Certified Public Accountant (CPA) the USA.
The abroad education loan provided by the State Bank of India covers tuition fees, exams, laboratory and library fees, precautionary deposit, books cost and equipment, travel costs, and other necessary expenses.
SBI provides education loans a maximum of Rs. 30 lakhs. But, collateral is required if students take loans above 7.5 lakhs rupees. The margin of the loan requirement is 15% for SBI education loans for abroad studies borrowers. SBI offers a moratorium period during which the entire interest can be repaid so that when the actual loan tenure begins, the monthly installment can be just the principal amount.
Borrowers must begin repaying the student loan within one year of completing the course, and the term can be up to 15 years. The interest rate offered on student loans will be up to 2% over the current SBI base rate. Education loan borrowers must submit the admission letter, loan application form, course cost details, co-applicant details, and other required KYC documents when applying for a State Bank of India education loan. Also, read Oppo A54 Price in India, Specifications and Features.
2. Axis Bank Education Loan for abroad studies:
Axis Bank offers educational loans at competitive interest rates for Indian students planning to study abroad. Students can apply for technical or career courses, career-oriented courses, etc., and take advantage of an Axis Bank education loan with a hassle-free process. Axis Bank provides a maximum loan of 20 lakhs rupees that cover hostel fees, tuition fees, book costs, etc.
The minimum loan amount that can use is Rs. 50,000. No margin is required for loan amounts less than Rs. 4 lakhs, but the borrower must bring 15% for loans above Rs. 4 lakhs. Education loans are sanctioned by Axis Bank within fifteen business days, subject to submission of documents.
A parent or guardian is required as a co-applicant, with a third-party guarantee or collateral requested only for exceptional cases. Axis Bank could also ask for a LIC policy for 100% of the loan amount on a case-by-case basis.
The education loan will be disbursed directly to the institution from which the borrower has received an admission.
Axis Bank does not charge processing fees or prepayment fees from borrowers of education loans. The interest rate for Axis Bank educational loans ranges from 16.50% to 17.50%, with special rates for female applicants.
3. Punjab National Bank Education loan:
The National Bank of Punjab offers the “PNB Udaan” educational loan scheme for students planning to study abroad. Students who have obtained admissions for graduate and postgraduate courses. Diplomas, professional and technical work-oriented courses, CIMA / CPA courses, etc. Entries received by students must be made in top-notch institutions abroad.
The PNB education loan covers college fees, travel, exam fees, lab fees, library fees, book/equipment fees, and other related expenses. Indian citizens who have obtained admission by merit or an entrance examination are eligible to apply for an educational loan from the National Bank of Punjab. PNB penalties per borrower’s requirement, with 15% loan margin requirement or loans taken above Rs. 4 lakhs. For educational loan amounts below Rs. 4 lakhs, no loan margin required.
Assistantship and scholarships can be added to the margin of the loan. PNB offers the base rate as the interest rate on loans taken to continue your education at the top 200 universities worldwide. PNB charges an interest rate for other types of applicants that is the total of a certain percentage over the base rate. The moratorium period offered is up to one year, with no prepayment fees charged by PNB.
Borrowers must pay a 1% initial processing fee. Tenure options available to PNB education loan borrowers are up to 15 years.
4. HDFC Bank Education Loan for abroad studies:
HDFC Bank offers student loans with flexible repayment terms and preferential rates for reputable universities. Clients can get education loans right at their doorstep for more than 950 courses in 36 countries worldwide. HDFC Bank offers educational loans up to 100% of the academic requirement without providing a loan margin.
The maximum loan amount that HDFC Bank will sanction is up to Rs. 20 lakhs. HDFC Bank educational loans can be used and approved even before the student has obtained admission to a university to avoid last-minute problems. Borrowers can enjoy flexible security guarantees and co-applicant options from HDFC Bank.
Co-borrowers from different cities in India can be selected when applying for education with HDFC Bank. Indian residents between the ages of 16 and 35 can apply for a student loan. The co-applicant can be any family member such as parents, siblings, in-laws, uncle, or aunt, which is mandatory for full-time courses. Processing fees charged by HDFC Bank for education loans are up to 1.5% of the loan amount, with no prepayment fees charged on the loan.
Apply Online for HDFC bank education loan.
5. Bank of Baroda Education loan:
Indian students applying for vocational and technical courses abroad can benefit from an educational loan from the Bank of Baroda under the “Baroda Scholar” program. Bank of Baroda accepts assured admission for recognized courses at renowned foreign universities.
The maximum loan amount approved by the Bank of Baroda is up to Rs. 20 lakhs, with a loan margin requirement of 15%. Borrowers can also get a vacation period or moratorium of one year or six months after obtaining employment, whichever comes first. Clients can repay educational loans taken up to Rs. 7.5 lakhs in 120 months and educational loans above Rs. 7.5 lakhs in 180 months.
No security is required for loans below Rs. 4 lakhs, a third-party guarantee for loans between Rs. 4 lakhs and Rs. 7.5 lakhs and tangible collateral are required for loans above Rs. 7.5 lakhs.
Bank of Baroda Education Loan for abroad studies, borrowers only have to pay simple interest during the default period, and female applicants can get a 0.50% concession on interest rates. Bank of Baroda will charge 2% penalty interest for late payments if the loan amounts are more than Rs. 4 lakhs.
6. IDBI Bank Education loan:
The IDBI Bank student loan is offered to students pursuing higher education abroad and qualified through an entrance test or a merit-based selection process. Students who enroll in professional and technical graduate courses, postgraduate courses, diplomas, and CPA / CIMA courses are eligible to take advantage of the IDBI Bank education loan.
The IDBI Bank education loan covers college fees, travel, exam fees, lab fees, library fees, computer costs, book/equipment fees, and other related expenses. IDBI Bank penalties as per borrower’s requirement, no security requirements loans are taken below Rs. 4 lakhs.
The maximum loan amount that IDBI Bank will sanction is up to Rs. 20 lakhs. The chosen repayment tenure can be up to 10 years for loans up to Rs. 7.5 lakhs and up to 15 years for loans over Rs. 7.5 lakhs. A third-party guarantee must be given for loans between Rs. 4 lakhs and Rs. 7.5 lakhs. Students must take an education loan together with a co-borrower, and a 100% guarantee will be required for loans above Rs. 7.5 lakhs.
Clients can make balance transfers from existing loan accounts to a new IDBI student loan account.
Documents Required for Education Loan for abroad studies.
The list of required documents that one should submit to avail an education loan abroad are mentioned below:
- Liabilities and assets of all the borrowers.
- Proof of photo identity.
- Proof of address as an Indian citizen.
- Income Tax Returns that are less than two years old.
- Two copies of Passport-size photographs.
- Permission letter from the Foreign exchange.
- You need a letter that confirms your scholarship.
- Total course expenses approx.
- Admission proof offer from the institution.
- Relevant mark sheets or results.
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