Education loans are required not only for higher education in India. It may even be required when studying abroad. So, if you want to study abroad, you should first learn how much it will cost there. If you are considering moving abroad for higher education, you must be looking for funding. Arranging funds can be one of the most difficult challenges, but there are NBFCs and leading banks providing abroad education loans in India to students.
In this article, we will discuss the best education loan providers in India for abroad study. We will discuss both private and government education loan providers in India in this blog.
HDFC Credila
HDFC Credila provides education loans with preferential interest rates to students attending reputable universities. Thousands of students studying outside of India have received funding from HDFC Credila and the bank is regarded as one of the top abroad education loan providers in India. The key highlight of HDFC Credila:
- Unsecured loan of up to Rs 75 lakhs
- Interest rates that are competitive
- Tax advantages and no maximum loan amount
- There are no hidden fees or margin money
- Loans can be approved even before the student has been admitted
State Bank Of India
The State Bank Of India is one of the best education loan providers in India for abroad study. SBI funds international higher education for job-oriented professional and technical graduates as well as postgraduate graduate programs in countries such as Italy, Russia, the United States, the United Kingdom, Finland, Austria, Norway, Poland, Denmark, Germany, Ireland, Spain, New Zealand, Canada, and Singapore, among others. MBA, MCA, MS, and diploma courses at reputable universities, are examples of these courses. SBI’s loan covers tuition, exam fees, lab fees, library fees, caution deposits, book and equipment costs, travel expenses, and so on. The Key highlights of the bank are as follows:
- Loan amount up to Rs 1.50 crores and loan amounts less than Rs 7.50 lacs
- Extremely good interest rate
- Quick online application process
- Payments can be made in instalments over a period of up to one year.
- Tax break: less than 80 per cent (E)
SBI provides a 6-month moratorium period or repayment holiday following course completion. The borrower must submit to the bank the college admission letter, completed loan application form, course costs, co-applicant information, and other KYC documents.
Axis Bank
Students can apply for loans for technical, professional, or career-related courses. The loan amount starts at Rs 50,000 with low-interest rates and covers hostel fees, tuition fees, book fees, and other expenses. The entire process of obtaining an education loan from Axis Bank, one of the top education loan providers in India for abroad study is simple and hassle-free. The key highlights of Axis Bank are as follows:
- There is no margin on education loans up to Rs 400,000
- 15% interest rate on education loans up to Rs 4,00,000 for overseas studies
- The education loan that you will take will be disbursed within two days of being approved
- Once the loan is approved, one can also pay off previous instalments made toward the re-financed course
- Zero processing fees
A parent or guardian must act as a co-applicant on an education loan, with a third-party guarantee or collateral security, if applicable. Axis Bank may also consider a LIC policy for 100% of the loan amount, but this depends on the circumstances.
Punjab National Bank
PNB Udaan is a specialized education loan programme for Indian students with outstanding academic records who want to study abroad. The loan is available to students who have been accepted for graduate or post-graduate courses ranging from diplomas to job-oriented professional or technical courses, CIMA/CPA courses, etc. University fees, travel expenses, exam fees, lab fees, library fees, book/equipment fees, and other related expenses are all covered by the PNB loan. The loan applicant must be an Indian citizen who has been admitted to a higher education programme at a recognised international college/university via an entrance exam or merit-based selection. He or she should also have passed the HSC. Key highlights of one of the top education loan providers in India for abroad study are as follows:
- Fees paid within 6 months may be considered depending on the individual merits of the case
- Margin: None, up to Rs 4 lakh More than Rs 4 lac – 15%
- Maximum repayment period of up to 15 years
- There are no payment fees
Bank Of Baroda
Admission secured for technical and professional courses such as MBA, MCA, MS, and others is sanctioned for education loans under the Baroda Scholar scheme. Being one of the best education loan providers in India for abroad study, the loan limit for specified institutes is Rs 80 lakhs, while the loan limit for non-specified institutes is Rs 60 lakhs. Key highlights of the bank are as follows:
- Processing fees: 1% (up to Rs. 10,000) for loans exceeding Rs. 7.5 lakhs
- There are no processing fees for amounts up to Rs 7.50 lakhs
- There is no margin on loans up to Rs. 4 lakhs
- Debit card for free
- There will be no documentation fees
- There are no security up to Rs 7.50 lakhs
Loans of up to Rs. 7.5 lakhs can be repaid in 10 years, and loans of more than Rs. 7.5 lakhs can be repaid in 15 years. Borrowers can get a six-month to one-year holiday or moratorium period after finding work. Security is not required for loans less than Rs. 4 lakh. For loans between Rs. 4 lakhs and Rs. 7.5 lakhs, a third-party guarantee is required, and tangible collateral security is required for loans above Rs. 7.5 lakhs.
Canara Bank
Canara Bank, one of the top education loan providers in India for abroad study covers education loans covering university tuition, travel expenses, exam fees, lab fees, library fees, book/equipment fees, and other related costs. A co-borrower is required for education loans above Rs. 7.5 lakhs and 100% collateral security is required. The key highlights of the banks are:
- Need-based financing has a maximum loan amount.
- Loan margin: 15% for loans exceeding Rs. 4 lakhs.
- Repayment period: The repayment period is limited to 15 years.
- Security is not required for loans less than Rs. 4 lakh. Visible collateral security is required for loans exceeding Rs. 4 lakhs.
- Interest rate: Collateral Security of 100% or greater – 9.4%, Collateral Security of 75% to 100% – 9.65%, Collateral Security of less than 75% – 9.9%
Acquiring an education loan for abroad studies is not difficult these days, since there are many best education loan providers in India for abroad study. Being admitted to a reputable university as an international student is one of the most important factors in obtaining the best loan for foreign studies!
FAQs
What are some of the best lenders to apply to for an education loan abroad?
- The State Bank Of India, Bank of Baroda, HDFC Credilia, Canara bank and many more are some of the best lenders to apply for an education loan abroad.
What are some of the reasons for the rejection of a study abroad loan for foreign studies?
- Age of the applicant or co-applicant, FOIR or fixed obligation to income ratio (where co-EMI applicants are higher than affordable), or Applying for a UG program, as a PG program is of short duration are some of the reasons for the rejection of a study abroad loan for foreign studies.
Which is the best education loan for abroad studies?
- HDFC Credilia Education Loan is one of the best education loans for abroad studies.
Which are the best banks for educational loans to study abroad?
- There are many banks for student loans overseas. However, there are some well-known banks: the State Bank of India, HDFC Bank, ICICI Bank, Bank of Baroda etc.
We hope that this guide has helped you a lot, you can also read some of our blogs that might be of interest to you:
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