Top Education Loan Providers In India For Abroad Study

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 top education loan providers in India for study abroad. We will discuss both private and government education loan providers in India in this blog. 

Comparing Top Education Loan Providers In India For Abroad Study 

Given below are some of the top student loan providers offering education loans with competitive interest rates and loan amounts. This table can help you decide on the best education loan that fits your needs.

Given below are some of the best banks providing education loans for abroad: 

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

HDFC Credila is the best bank for education loan to study abroad a wide range of student loan options with competitive rates, tailored to suit individual needs. The interest rates offered by HDFC Credila are determined based on factors such as the educational institution, the co-borrower’s profile, collateral security provided, and the student’s academic record. This ensures a customised and reliable loan experience for students.

HDFC Credila covers various expenses related to studying abroad, including exam fees, living and hostel charges, the purchase of equipment, books, uniforms, travel costs, library/lab charges, and laptops or computers. It’s important to note that only one economy class return ticket between India and the study destination is covered.

Here are some key highlights of the HDFC education loan for studying abroad:

• The minimum loan amount offered is Rs 1,00,000, and there is no upper limit set by HDFC Credila.
• The interest rate is linked to HDFC Credila’s Benchmark Lending Rate (CBLR), which is currently 12.80% per annum.
• Loan interest repayment begins immediately after the disbursement of the first loan instalment.
• The maximum repayment tenure for the loan is 12 years, allowing for flexibility in managing repayment.
• HDFC Credila accepts various types of collaterals, including residential houses/flats, commercial properties, non-agricultural land, fixed deposits assigned in favour of HDFC Credila, and HDFC second-charge property.

Eligibility For HDFC Education Loan

• The applicant must be an Indian citizen wishing to pursue higher education overseas.
• The co-applicant (usually a family member) should also be an Indian citizen.
• The co-borrower’s bank account should exist in any Indian bank with cheque-writing facilities.
• A valid college admission offer letter is required to apply for the loan.
• When applying for the loan, certain documents will be required, which may include (but are not limited to) proof of identity, address, income, academic records, and the college admission offer letter.

Documents Required For HDFC Educational Loan

• Completed Application Form
• 2 Passport Size Pictures
• Photo ID
• Proof of Residence
• Academic Documents
• Admission Proof (if available)
• Last 8 months of bank statements of co-applicants
• Co-Applicant’s income proof
• Collateral – Immovable Property (if applicable)

State Bank Of India

The State Bank Of India is one of the best education loan providers in India for study abroad. 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)

Documents For State Bank Of India

SBI provides a beneficial option known as a moratorium period or repayment holiday lasting for 6 months after the completion of the course. To avail this facility, the borrower needs to provide certain documents to the bank, including:

1. Academic Records: Class 10th, 12th, and graduation mark sheets (if applicable) along with the entrance exam results.
2. Admission Letter: A copy of the offer letter from the college or institution.
3. Course Expenses: A detailed schedule of the course expenses.
4. Scholarship Documents: Copies of any scholarship letters received.
5. Gap Certificate: If there was a gap between the previous education and the current course, a gap certificate should be submitted.
6. Photographs: Passport size photographs of the student, parent, or co-borrower.
7. Co-applicant’s Financial Information: Asset-liability statement of the co-applicant.
8. Bank Statements: The bank account statements of the parent/guardian/guarantor for the last 6 months.
9. Salary Details (For Salaried Individuals): Latest salary slip and Form 16.
10. Identification Documents: PAN card, Aadhaar card, or passport.
11. Other Valid Documents (OVD): Additional documents required for identity verification.

By submitting these documents, the borrower can initiate the process and benefit from the moratorium period or repayment holiday offered by SBI.

Axis Bank 

Axis bank is the best bank for overseas education. 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.

Axis Bank Education Loan Eligibility Criteria:

1. Indian citizenship is a prerequisite for availing of the Axis Bank Education Loan.
2. The student must have obtained a minimum of 50% marks in their Higher Secondary Certificate (HSC) and graduation.
3. The loan is available for students who are enrolled in career-oriented programs at the graduate or postgraduate level.
4. Admission to a recognised institute through an entrance exam or merit-based selection process after completing the HSC is mandatory.
5. The parent or guardian of the student should have a regular source of income.

Documents Required For Axis Bank Education Loan

• Income statements of the parent or guardian for the last six months, along with their bank statements or passbook.
• A copy of the offer letter from the educational institution, including the fee schedule.
• Mark sheets of the student’s Secondary School Certificate (SSC), HSC, degree courses, and national-level entrance exams.
• Proof of age.
• Proof of address.
• Photo ID of the student and co-applicants.
• Guarantor form (not mandatory).

Punjab National Bank

PNB Udaan is a specialised 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 postgraduate 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

Eligibility Criteria for Punjab National Bank:

1. Citizenship Requirement: Applicants must be Indian citizens.
2. Higher Education Admission: Candidates should have successfully secured admission to a recognised educational institution outside India.
3. Entrance Exam/Merit-Based Selection: The admission should have been obtained through a rigorous selection process, either by clearing an entrance exam or based on merit.

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 study abroad, 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 is 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.

Documents for Bank of Baroda Student Loan

• Applicant and Co-Applicant’s KYC (Know Your Customer) documents.
• Academic Documents: Proof of educational qualifications, such as mark sheets, certificates, or transcripts.
• Admission Proof: Document providing evidence of admission to the educational institution.
• Entrance Exam Result (if required): Result or scorecard of the entrance exam, if applicable for the admission process.
• Statement of Tuition Fees: Official document stating the tuition fees charged by the educational institution.
• Co-Applicant’s Proof of Income (if salaried): Supporting documents verifying the co-applicant’s income, such as salary slips, income tax returns, or bank statements.
• Last 6 Months Bank Account Statement: Recent bank statements of the applicant and co-applicant’s accounts.
• Property Document (if applicable)

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 studying abroad is not difficult these days, since there are many best education loan providers in India for studying abroad. 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! 

Avanse Financial Services

Avanse Financial Services provide a comprehensive range of loans designed to support students’ educational needs. They offer loans such as pre-visa disbursement loans, fast-track loans, pre-admission loans, and certificates of availability of funds. To avail of an Avanse education loan, borrowers must submit their KYC documents, course fees, collateral documents, income documents, and other necessary paperwork. Avanse student loans cover various expenses, including tuition, travel, living, books/equipment, and other related educational expenses.

Here are some key highlights of Avanse’s offerings:

• Quick approval: Avanse strives to sanction the loan within 72 hours, ensuring a swift process for students in need.
• Flexible loan options: Students have the choice between secured and unsecured loan options, allowing them to select the option that suits their circumstances best.
• Competitive interest rates: Avanse offers attractive interest rates starting from 9.5%, making the loans more affordable for borrowers. Additionally, the processing fees start from as low as 1%.
• Customisable repayment options: Avanse provides flexible repayment options, allowing borrowers to manage their loan repayments effectively based on their financial situation.
• Extended loan tenure: The loan tenure can be extended up to 15 years, providing borrowers with ample time to repay the loan without undue financial burden.
• Tailored loan limits: Avanse understands that each borrower has unique requirements. Therefore, they customise the maximum loan limit according to the borrower’s specific needs.

Avanse Financial Services aims to make the process of obtaining an education loan convenient, transparent, and beneficial for students, empowering them to pursue their academic aspirations without financial constraints.

Union Bank Of India 

The Union Bank of India offers educational funding opportunities to academically outstanding students pursuing technical, higher, or professional education in India or abroad. It is important to note that the student’s parent(s) must apply as a co-applicant, and in the case of a married student, their spouse/parent(s) or in-laws can serve as co-applicant(s). If the applicant does not have living parents, a guardian or close relative may act as the co-applicant. Additionally, the co-applicant must be an Indian citizen. The loan covers a wide range of courses, including PhD programs, graduation/postgraduate degrees, CIMA London, CPA USA (and similar institutes), and certified degree courses conducted by recognised institutions. However, it is important to note that overseas diploma courses are not covered.

Union Bank Of India Students Loan Eligibility Criteria:

• The applicant must be an Indian citizen.
• The applicant should have gained admission to an Indian or foreign institution for technical, higher, or professional education by successfully clearing the relevant examination and selection procedure.
• There are no specific age criteria for eligibility.

Key Features:

• There is no minimum loan amount specified for the education loan scheme.
• Need-based finance is determined by considering the account margins norms to cover the expenses adequately.
• The loan covers various expenses, including hostel charges, tuition fees, examination/library/lab costs, insurance premiums for the student borrower, caution deposit/building fund or refundable deposit, books/equipment/uniforms purchases, computer/laptop costs, travel charges, admission acceptance fee, and other related expenses.
• Repayment of the loan amount is to be made within 15 years, including the course duration and the moratorium period.

Documents Union Bank Of India Education Loan

• Completed application form and credit information.
• KYC (Know Your Customer) documents.
• Income proof (for salaried individuals).
• Last six months’ bank statements.
• Property documents (if applicable).
• Additional documents as per the bank’s requirements.

FAQs

Q1. What are some of the best lenders to apply to for an education loan abroad?

The State Bank Of India, Bank of Baroda, HDFC Credila, Canara bank and many more are some of the best lenders to apply for an education loan abroad. 

Q2. 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.

Q3. Which is the best education loan for studying abroad? 

HDFC Credila Education Loan is one of the best education loans for abroad studies.

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