Engineering is a popular course among students, which makes it easier for people to get education loans for courses like technical studies. Education loans are readily available for students studying abroad. Loan products for engineering cover 100% of the expenses, reducing the financial burden on the students. Parents who want to send their children abroad for higher education in engineering can take advantage of education loans and fulfil their dreams.
Engineering courses are in huge demand due to ample job opportunities with high salary packages upon graduating. However, the investment is significant in engineering. So, let’s study what an education loan for engineering is for studying abroad and also in India.
Education Loan For Engineering
An education loan for engineering helps to cover all expenses, including tuition fees, accommodation, books, and other related costs. Some of the education loan options for students are as follows:
| Financial Institution | Amount | Available for Indian Students | Additional Features |
| State Bank of India (Global Ed-Vantage Loan) | Up to USD 2,00,000 | Yes | The maximum loan tenure is 15 years. Margin-free loan up to USD 24,000No Collateral for up to USD 9,000. |
| HDFC Credila (Education Loan for Foreign Education) | Up to 100% of the cost in the university | Yes | The repayment tenure is up to 20 years. There is a requirement of a tangible collateral or guarantee of the third party is essential to avail the loan. There is a customised repayment option available for students. |
| Avanse Financial Services (B.Tech Education Loan) | Up to 100% of the cost | Yes | There is a quick and transparent loan processing option for students.Repayment period is up to 10 years. Tangible collateral or guarantee from the third party is essential for the loans. |
| ICICI Bank (Education Loan for Higher Studies) | Up to USD 1,30,000 | Yes | The repayment period is up-to 10 years. There is pre-visa disbursement available during the loan procedures. Tangible collateral or guarantee from the third party is essential for the loans. |
| Axis Bank (Education Loan for Foreign Studies) | Up to USD 90,000 | Yes | Repayment period is up to 15 years. Loan approval before admission is available in this plan. Tangible collateral or guarantee from the third party is essential for the loans. |
| Canara Bank | Up to USD 25,000 | Yes | Repayment up to 15 years. There is no collateral requirement for loans up to USD 5,000There are margin-free loans available for a few institutions. |
| Prodigy Finance | Up to 100% of the cost | No | There are flexible repayment terms. No collateral is essential for the loan. Loans are available for selected universities. |
| MPower Financing (Global Citizen Loan) | Up to 80% of the cost | Yes | There is no collateral requirement for the loan. Repayment is available for up to 15 years. It promotes specialised loans for international students. |
| MPower Ventures (MBA and STEM Loan) | Up to 100% of the cost | Yes | The repayment period is up to 15 years. There is no requirement for collateral it is specifically designed for MBA and STEM students. |
Benefits Of Taking An Education Loan To Study Engineering Outside India
Education loans are effective in reducing the burden on students and providing an opportunity to study at top-class universities. There are various benefits that students can avail from the education loans for B.Tech students to study abroad.
- Students can get a world-class education from renowned institutions.
- If students have a personal contingency fund, it can be invested in some better projects, earning interest from it.
- Students can also get tax benefits from the loans, and this benefit will help them save money.
- For study abroad student loans for engineering students, there is a moratorium period in education loans given to the students, Thus, the students have to pay the loan after the end of the moratorium period.
- Students can get low-interest educational loans.
- Students who can pay the loan on time also build a strong credit history, and thus, it is beneficial for them to take education loans.
Expenses For Studying Engineering Abroad
Engineering is considered one of the costliest degrees, as students are required to spend a considerable amount of money on their education. The first-year fees range around INR 40L abroad, including tuition fees, accommodation, and other costs. The three or four-year course will cost the students significantly, and therefore, there is a requirement for education loans. It will be added if the admission is in the top engineering schools; the fees and costs might increase for the students.
Top-Class Universities For Engineering Students to Study Abroad
Top colleges for engineering students are widespread, and various universities are providing the best engineering courses. It also consists of the highest paying engineering degrees for the students as they can learn from the best universities to gain the highest paying jobs upon graduation. Some of the top universities for engineering students are as follows:
| University | Location | Popular Courses |
| Massachusetts Institute of Technology (MIT) | Cambridge, USA | Aeronautics and Astronautics Mechanical Engineering Biological Engineering Civil and Environmental Engineering |
| Nanyang Technological University | Singapore | Civil Engineering Electrical and Electronic Engineering Environmental Engineering Materials Engineering Mechanical Engineering |
| Oxford University | Oxford, England | Engineering Science Biomedical Engineering Chemical Engineering Civil Engineering Electrical Engineering |
| Aalborg University | Aalborg, Denmark | Electrical Engineering Mechanical Engineering Computer Engineering Energy Engineering |
| Stanford University | California, USA | Aeronautics and Astronautics Management Science and Engineering Mechanical Engineering Biomechanical Engineering Engineering Physics |
Different Types Of Education Loans For B.Tech Students To Study Abroad
There are various types of education loans accessible for B.Tech students aiming to pursue their studies abroad. These loans can be broadly classified into secured and unsecured categories:
- Secured Loans: These loans necessitate the borrower to provide assets as collateral. Secured loans generally come with lower interest rates. The loan limits, interest rates, and repayment periods are contingent on the lender and the specific loan programme.
- Unsecured Loans: Conversely, unsecured loans do not mandate collateral but may have higher interest rates. Usually, a co-applicant with specific qualifications, such as a close relative of the student, is required. Similar to secured loans, the loan limits, interest rates, and repayment durations for unsecured loans also rely on the lender and the applicant’s profile.
The eligibility criteria for these loans typically have factors like Indian citizenship, confirmed admission to a recognised foreign university, a commendable academic record, and a steady source of income to meet the repayment obligations. The maximum loan amount, interest rates, and eligibility criteria may vary among different banks and financial institutions.
Expenses Covered Under Education Loan
Whether the student is studying in India or abroad, various expenses are covered under an education loan. Some of the essential costs are as follows:
- If there is 100% financing, then it covers all the tuition fees of the institute.
- It also includes examination fees.
- The purchase of books, instruments, and equipment will be included.
- It also includes travel expenses on the exchange programmes.
- Library and laboratory fees
- Caution deposit and refundable deposit
- Traveling expenses.
How To Get An Education Loan For Engineering?
Students can avail of education loans for engineering to study in India and abroad. They must be aware of the process of getting the loan, its EMI, repayment, and moratorium period. Some of the points to consider while getting an education loan:
- Students must check loan eligibility on the official website.
- Gather all the documents related to the loan and your details.
- Consult an education loan counsellor to get detailed information about the loan options.
- Students must also check the interest rate details and the education loan EMI calculator to find the interest rates and repayment options.
- There should be clarification about education loan repayment details.
- Students should also clarify the moratorium period for education loans and when they have to return the loan amount.
- It is also necessary to prevent an education loan default by maintaining the CIBIL score for education loan.
Pursuing engineering as a higher education can be a transformative journey for a student’s career. Education loans play a pivotal role in pursuing higher education. Students can avail of the benefits of education loans and take the path to success.
FAQs
Is an education loan available for engineering students to study abroad?
Education loans for engineering are available for students to study abroad. There are various international programmes available for students and also domestic financial institutions available to provide education loans.
How much education loan can an engineering student get to study abroad?
As per various projects of education loans in various financial institutions, there can be around USD 60,000 available for students in engineering.
Can I get a 50 lakh education loan?
Yes, you can get a 50 lakhs education loan as per your requirements of fees and costs for the education.
Which bank is best for the education loan?
Suppose you are looking for an education loan, especially for engineering. In that case, you must choose an institution with lower interest rates and a long repayment period so that you can get time to earn and return the money.
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