Top Education Loan Providers in India for Study Abroad: The opportunities to study abroad are growing widely for Indian students. Studying abroad is promising and has high career options for students. A huge number of graduate, master’s, and doctorate courses along with several professional courses. Most universities and schools abroad provide scholarships and financial aid to the students. With the growing aspirants, parents are under pressure when it is to arrange the finances. With growing aspirations, there is another responsibility that has to be fulfilled by students and their parents. However, the top education loan providers in India for study abroad are there to help students:
Top Education Loan Providers in India for Study Abroad:
Find below the list of
1. HDFC Bank:
HDFC bank has a provision for education loans with special interest rates for various reputed universities.
- The maximum loan amount offered – Up to Rs. 20 lakhs
- Processing fee – Up to 1.5% of the loan amount
The education loan from HDFC can be acquired before the student has attained admission to the university. Borrowers are given flexible security collateral and co-borrowers living in some other city than the borrower but need to be relatives of the borrower.
2. IDBI Bank:
The education loan from IDBI covers the university fee, travel, exam fee, lab fee, library fee, the cost of computers, book/equipment fee, and other expenses. This well-known bank sanctions the loan amount as per the needs of the borrower. with no security on loan less than the amount of Rs. 4 lakhs. The maximum loan amount will be up to Rs. 20 lakhs and the repayment tenure up to 10 years for loans less than Rs. 7.5 lakhs and up to 15 years for loan amount above Rs. 7.5 lakhs.
The bank demands a third-party guarantee for loans between Rs. 4 lakhs and Rs. 7.5 lakhs. Education loans need to be taken along with a co-borrower along with 100% collateral security for loans more than Rs. 7.5 lakhs.
3. Punjab National Bank:
PNB offers a special loan scheme for Indian students who want to study abroad. The loan is provided to the students who have got admission for graduate or post-graduate courses varying from diplomas, job-oriented professional or technical courses, CIMA/CPA courses, etc. The PNB loan consisted of the university fee, travel expense, exam fee, lab fee, library fee, book/equipment fee, and other related expenses. PNB sanction the loan as per the need of the borrower.
The loan margin is 15% for loans more than Rs. 4 lakhs and for the loan amount less than Rs. 4 lakhs, the loan margin is not needed. Assistantship and scholarships can also be added to the loan margin. The Moratorium period is up to a year with no prepayment charges levied by the bank and the Processing fee is 1%. The tenure options for PNB education loan is up to 15 years
4. State Bank of India:
SBI offers finances for higher education abroad. There are higher opportunities for seeking job-oriented professional and technical graduate as well as postgraduate degree courses. Some of the courses are MBA, MCA, MS, diploma courses at various reputed universities. The loan amount will be for tuition fees, exam fees, lab fees, library fees, caution money, books and equipment cost, travel expenses, etc.
- This bank offers loan amount of up to Rs. 30 lakhs
- The Collateral security required – For loans more than Rs. 7.5 lakhs
- Loan margin – 15% for SBI education loan borrowers
- Interest rate – Up to 2% on the current base rate of SBI
- Repayment tenure – 1 to 15 years
SBI also offers a moratorium period in which the interest can be repaid so that when the actual loan repayment tenure begins the monthly installment can be just the principal amount. The borrower needs to submit a college admission letter, loan application form, course costs, details of co-applicant, and KYC documents to the bank.
5. Axis Bank:
Axis Bank also provides loans for several technical, professional, or career-oriented courses. The process of getting an educational loan with Axis bank is simple. The loan covers hostel fees, tuition fees, and book etc. The bank provides a maximum loan amount of Rs. 20 lakhs and a minimum of Rs. 50,000. The Interest rate ranges from 16.5% to 17.5% with special rates for women. There is no processing fee. Education loans need a parent or guardian to act as a co-applicant with the guarantee from third-party or collateral security.
6. Bank of Baroda:
Bank of Baroda offers a Baroda Scholar scheme for easy admission to professional and technical courses at well-known foreign universities. The bank provides the maximum loan amount of up to Rs. 20 lakhs and the loan margin requirement will be 15%. If the loan is taken up to Rs. 7.5 lakhs then can be repaid within 10 years and but the loan above Rs. 7.5 lakhs can be repaid within 15 years
Borrowers will get a moratorium of six months to one year after getting employment. Security is not needed for loans below the amount of Rs. 4 lakhs. A third-party guarantee is needed for loans between Rs. 4 lakhs and Rs. 7.5 lakhs and tangible collateral security needed for loans more than Rs. 7.5 lakhs.
7. Canara Bank:
Canara Bank is another reliable way to acquire an educational loan for studying abroad. The loan covers university charges, travel costs, exam fees, lab fees, library fee, book/equipment charges, and other related expenses. Education loan needs to be taken with a co-borrower and 100% collateral security required for loans more than Rs. 7.5 lakhs. You can avail of loans up to Rs. 20 Lakhs and the loan margin is 15% for loans of the amount of Rs. 4 lakhs. The repayment tenure can be more than 10 years for loans less than Rs. 7.5 lakhs and till the period of 15 years for loans more than Rs. 7.5 lakhs.
There is hardly any need for security for a loan below Rs. 4 lakhs. And Third-party guarantee needed for loans from Rs. 4 lakhs – Rs. 7.5 lakhs.
8. Avanse Financial Services:
Avanse facilitates various kinds of loans such as pre-visa disbursement loans, pre-admission loans, fast-track loan, and certificates of availability of funds. Borrowers will submit their KYC documents, course fee, collateral documents, income documents etc when applying for an Avanse education loan. The expected minimum loan amount will be Rs. 1, 00,000 and the maximum limit can be according to the borrower’s need. The loan tenure can be between 1 year to 10 years. The education loan includes tuition fees, travel charges, living expenses, books & equipment fee etc.