India remains the leading place students come from to study abroad, along with China, sending over 1.3 million and 1.17 million students, respectively, in the first half of 2023. With over 1.3 million students studying abroad in the first half of 2023, India continues to be the number one source country. Bangalore is one major contributor. Many students opt to study overseas from Bangalore and are curious about ways to fund their international education dreams. This is to become an entrepreneur either to secure a job in an outstanding startup or to find the perfect balance in life. However, studying abroad requires proper financing, which can often only be achieved through education loans. If you are a student in Bangalore, you’ll be pleased to know that you can secure an education loan in Bangalore of up to Rs. 1 crore from various banks and NBFCs.
Let’s explore the most accessible study-abroad loan options available to you!
Highlights On Education Loans In Bangalore
| Category | Description |
| Top Banks in Bangalore | – Axis Bank |
| – ICICI Bank | |
| – IDFC Bank | |
| – Bank of Baroda | |
| Upper Loan Limits | – Up to Rs. 50 Lakhs (without collateral) |
| – Up to Rs. 1.5 Crore (with collateral) | |
| Interest Rates | – 10.85% – 13.25% |
| Top NBFCs in Bangalore | – HDFC Credila |
| – Avanse Education Loan | |
| – Auxilo Education Loan | |
| – Incred Education Loan | |
| Upper Loan Limits (NBFCs) | – Up to Rs. 75 Lakhs (without collateral) |
| – Up to Rs. 1.5 Crore (with collateral) | |
| Interest Rates (NBFCs) | – 11.25% – 14.00% |
| Eligibility Criteria | – Indian citizen |
| – Admission to a recognised university abroad | |
| – Good academic record | |
| – Co-applicant may be required (some loans) | |
| – Collateral may be required for higher amounts (some loans) | |
| – Repayment capacity assessment |
Best Banks For Education Loan In Bangalore
Several top-notch education loan providers in India, including banks and NBFCs, offer competitive interest rates and low processing fees. UniCreds has partnered with India’s leading banks and NBFCs to facilitate quicker approvals and customised loan amounts. Let’s understand the details:
Banks In Bangalore
| Education Loan Provider | Upper Limits Without Collateral | Upper Limits With Collateral | Interest Rates |
| Axis Bank Education Loan | Up to INR 50 Lakhs | INR 2.5 Crore | 11.00%–11.50% |
| ICICI Bank Education Loan | Up to INR 50 Lakhs | INR 1.5 Crore | 10.85%–12.50% |
| IDFC Education Loan | Up to INR 50 Lakhs | INR 1.5 Crore | 11.50%–13.25% |
| Bank of Baroda Education Loan | Up to INR 40 Lakhs | INR 1.5 Crores | 9.70% – 10.5% |
NBFCs In Bangalore
| Education Loan Provider | Upper Limits Without Collateral | Upper Limits With Collateral | Interest Rates |
| HDFC Credila | Up to INR 65 Lakhs | INR 1.5 Crore | 11.25%–13.00% |
| Avanse Education Loan | Up to INR 75 Lakhs | INR 1.5 Crore | 12.50%–13.50% |
| Auxilo Education Loan | Up to INR 65 Lakhs | INR 85 Lakhs | 11.25%–14.00% |
| Incred Education Loan | Up to INR 60 Lakhs | INR 85 Lakhs | 12.00%–14.00% |
Top Non-Collateral/Non-cosigner Student Loan In Bangalore
A few banks provide education loans for studying abroad without requiring collateral or a co-applicant. These loans are designed to help students pursue their academic ambitions overseas without financial constraints.
By eliminating the need for collateral or a co-applicant, these banks aim to make the loan application process more accessible and straightforward for students. When offering collateral-free education loans for studying abroad, these banks primarily consider your credit scores and academic performance. Refer to the table below to understand the NBFC providers.
Eligibility Criteria For Study Abroad Loan In Bangalore
Securing an education loan can significantly ease the financial burden of pursuing higher studies abroad. In Bangalore, various banks and NBFCs offer education loans with specific eligibility criteria. Understanding these criteria is crucial to increase your chances of obtaining a loan. Given below is an overview of the eligibility criteria required by the banks:
- The applicant must be an Indian citizen.
- The applicant must have secured admission to a recognised university or institution abroad through an entrance test or a merit-based selection process.
- The loan is available for full-time graduate, postgraduate, or professional courses.
- An excellent academic record is usually required. Banks and NBFCs may look for consistent performance throughout the applicant’s previous education.
- While some loans do not require a co-applicant, others may need one. The co-applicant can be a parent, guardian, or spouse with a stable income.
- Collateral might be required for loans above a certain amount. However, some banks offer collateral-free loans based on the applicant’s academic performance and creditworthiness.
- If applicable, the bank will assess the borrower’s repayment capacity, including evaluating the co-applicant’s financial standing.
Documents Required For Study Loan In Bangalore
Before applying for a collateral-free education loan to study abroad, applicants and co-applicants must gather the necessary documents to support their loan application. These documents prove identity, address, academic qualifications, financial stability, etc.
The list of required documents may vary depending on the lending institution and the applicant’s specific circumstances. Refer to the table below for a comprehensive list of documents needed for an education loan abroad without collateral security:
| Document Name | Description |
| Loan Application Form | The applicant must fill out the application form requesting the education loan. |
| Identity Proof | Valid identification documents such as PAN Card, Passport, or Voter ID card. |
| Address Proof | Recent copies of utility bills (telephone, electricity, or water) are proof of address. |
| Passport | Valid passport for identification. |
| Past Academic Record | Academic records include 10th, 12th, and undergraduate mark sheets and test scores for exams like GRE, TOEFL, IELTS, etc. |
| Proof of Admission | Conditional offer of admission or official admission letter from the educational institution. |
| Statement of Expenses | A comprehensive breakdown of the total cost of education, including tuition fees and living expenses. |
| Passport-size Photographs | Recent passport-size photographs of the applicant. |
| Loan Account Statement (if applicable) | Statement of loan account for the past year if the applicant has previously taken loans from any lender. |
| Business Address Proof (Self-employed co-applicant) | Proof of business address for self-employed co-applicants. |
| Last 2 Years IT Returns (Self-employed co-applicant) | Income tax returns for the past two years for self-employed co-applicants. |
| TDS Certificate (Self-employed co-applicant) | Tax Deducted at Source (TDS) certificate for self-employed co-applicants. |
| Certificate of Qualification (Self-employed co-applicant) | Qualification certificate for self-employed co-applicants. |
| Bank Account Statement (Self-employed co-applicant) | Bank account statement for the last six months for self-employed co-applicants. |
| Salary Slips (Salaried co-applicant) | Salary slips for the past three months for salaried co-applicants. |
| Copy of Form 16/IT Returns (Salaried co-applicant) | Copy of Form 16 or income tax returns for the past two years for salaried co-applicants. |
| Bank Account Statement (Salaried co-applicant) | Bank account statement for the last six months for salaried co-applicant |
How To Apply For An Abroad Education Loan In Bangalore With UniCreds?
UniCreds can assist you in obtaining an education loan to study abroad through its streamlined and user-friendly platform. Here’s how UniCreds can help:
- Eligibility Verification and Guidance: UniCreds can help you assess your eligibility for a non-collateral education loan based on your academic profile, financial background, and chosen course or university.
- Customised Document Checklist: We can provide a customised document checklist tailored to your specific situation and the chosen lender, reducing the risk of submitting incomplete documents and avoiding delays in the application process.
- Online Document Upload and Faster Processing: Increases allows you to upload documents online, eliminating the need for multiple visits to the bank and expediting the application process.
- Expert Loan Consultant Support: UniCreds offers expert loan consultants who can guide you through the application process, answer your questions, and address any concerns. This support can help you understand the loan process’s complexities and navigate available options.
- Negotiating Lower Processing Fees and Interest Rates: UniCreds might negotiate lower processing fees and interest rates with the lender on your behalf, potentially making the loan more affordable.
Taking an education loan in Bangalore is relatively easy if you fulfil all the required criteria of any bank or NBFC. With so many options available in the market, you can get confused. However, UniCreds is here to help you with expert guidance and innovative partnerships with the top Banks mentioned in this blog.
FAQs
Q1. Which bank is best for education loans in Bangalore?
ICICI Bank, HDFC Credila, Bank of Baroda, Axis Bank, etc, are the best banks for education loans in Bangalore. However, the best bank also depends on your chosen bank’s interest rates, collateral requirements, and upper limit.
Q2. Can I get a 100% education loan in Bangalore?
Some banks offer 100% education loans if you completely fulfil the eligibility criteria or are from a premium institution.
Q3. What is the eligibility for an education loan?
To be eligible for an education loan, the applicant must be an Indian citizen with a confirmed admission to a recognised institution and academic record. Additionally, a co-applicant with a stable income may be required.
Q4. Can I get an INR 7.5 lakh education loan without collateral?
Yes, you can take an INR 7.5 Lakh education loan without collateral, but this might also depend on your chosen bank.
Q5. How long does it take for an education loan to be sanctioned?
The time taken for loan sanctioning can vary from bank to bank. To account for any potential delays, it is recommended that the loan application process be started well in advance.
Loved what you just read? Check out the following blogs, too!
Recent Posts