Best Education Loan in India to Study Abroad
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Best Education Loan in India to Study Abroad

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Raj
Raj Vimal
Study Abroad Expert
Updated on Apr 9, 2024 18:49 IST

This guide blog is helpful in finding the best education loan in India to finance your dream of studying abroad at world-class universities. It covers the types of student loans in India, features to consider, eligibility criteria, and required documents to get a study loan.

Best education in India

Are you interested to know about the best education loan in India to finance your higher studies abroad? It is a tough task to analyze which bank is offering the most suitable student loan for studying outside India. Education loan is the best tool to allow students to borrow money to pay for their higher education in India or abroad. Many students considering studying abroad are unsure about the best education loan in India.

Studying at top universities in the world under experienced professors and world-class infrastructure can be a life-changing experience. We understand the importance of your dream is special to you and you don’t want to leave any stone unturned to make your dream come true. In this guide, we will help you to find the best education loan in India for studying abroad. You will also know about the different best education loan providers and more.

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Read More: Education Loan Interest Rates

Best Education Loan in India

Low-interest rates, student-friendly rules, more moratorium periods for student loans and easy repayment options are the key points to finding the best education loan in India. When it comes to apply for student loans then students prefer the Government education loan in India over the student loan offered by private institutions. It is always advisable to start planning your education loan early. For that, you should know when to start thinking about finances to Study Abroad.

  • Here we have mentioned a table to help you understand the current rate of interest of Indian Banks.

Banks in India

Education Loan Interest Rate

State Bank of India Education Loan

6.70% onwards

Canara Bank Education Loan

7.30% to 9.30%

Punjab National Bank Education Loan

7.15% onwards

Bank of Baroda Education Loan

7.15% onwards

ICICI Bank Education Loan

10.50% onwards

Axis Bank Education Loan

13.70% to 15.20%

Kotak Mahindra Bank Education Loan

Up to 16.00%

HDFC Bank Education Loan

  • To Study in India- 9.50% Onwards
  • To Study Abroad- 12.50%

A report by The Hindu predicts the number of Indian students studying abroad will reach two million by 2025, up from one million in 2019. Mostly, students are choosing to study in the USA, United Kingdom, Canada and other English-speaking countries. It is known to all that you need good financial support to back yourself up for financing your studies out of India.

Types of Education Loans for Studying Abroad

Students in India can choose from various education loans to finance their studies abroad or in India. It can be taken from banks, financial institutions, and other lending agencies to support your dream to study abroad.  Before you proceed to apply for student loans in India, here are certain things to know before applying for education loan to study abroad.

Education Loan Types

There are two main types of education loans in India.

  1. Secured Education Loan- Banks ask for collateral at the time of offering secured student loans in India. It can be anything such as a fixed deposit, property, etc. Usually, banks offer secured study loans with lower interest rates compared to unsecured loans
  2. Unsecured Education Loan- As you can understand by name, banks offer such loans without any collateral. This results in higher interest rates compared to secured loans.

Quick links to Education Loan Guides for the top study abroad destinations:

Education Loan for studying in the USA

Education Loan for studying in Canada

Education Loan for studying in the UK

Education Loan for studying in France

Education Loan for studying in Sweden

Education Loan for studying in the Netherlands

Education Loan for studying in Ireland

Education Loan for studying in Singapore

Education Loan for studying in Germany

Education Loan for studying in Australia

Features of Best Education Loan in India

Here are some important features of the best student loan in India that you should know. These factors will help you to do a quick analysis of study loans and choose the best education loan in India to study abroad.

  • Loan Amount- The maximum loan amount offered by the Banks and private institutions varies depending on courses, university and study duration. Analyze and choose the correct study loan for yourself.
  • Interest Rates- The most important factor to decide the best education loan in India. Students prefer the study loan with lower interest rates. Note that, banks offer lower ROI loans to students with good academic records and female students. Here we have mentioned a table to help you understand the current rate of interest of Indian Banks.
  • Processing Fees- Loan processing fees are the charges to cover the administrative cost for the education loan process. It varies from bank to bank.
  • Repayment Rules- An Education Loan with longer tenure allows for lower EMIs but increases the overall cost of a student loan. You can use the Education loan calculator available online to do analysis.
  • Moratorium Period- A longer moratorium period allows you to delay repayment until after your studies. Public sector banks usually offer a moratorium period and a grace period or EMI holiday for education loans.
  • Pre-visa and Post-visa Disbursement- It is an important factor to decide the best education loan in India for you. Some banks offer pre-visa disbursement to pay the tuition fees, travel arrangements and other expenses. On the other hand, some financial institutions offer Post-Visa disbursement to manage the cost of living during studying abroad. Understand your need and then apply for a student loan to study abroad.

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How to Choose Your Bank for Education Loan

Education Loan Providers in India

It is essential that you know about the top education loan providers in India to students for studying abroad. This will help you to compare public Vs private student loan providers and choose the ideal one for you. Below, we have mentioned an overview of the types of education loan providers in India.

Public Sector Banks

Here we have mentioned the list of public sector banks that offer student loans for studying abroad. The table will help you to get an overview of the rate of interest and maximum loan amount offered by these banks.

Bank

Rate of Interest (approx.)

Maximum Loan Amount (approx.)

State Bank of India (SBI) Education Loan

9.50% - 12.50%

Upto 1.5 Crore

Bank of Baroda (BoB) Education Loan

9.25% - 11.75%

Upto 75 Lakhs

Indian Overseas Bank Education Loan

9.75% - 12.75%

Upto 20 Lakhs

Punjab National Bank (PNB) Education Loan

9.95% - 12.95%

Upto 75 Lakhs

Bank of Maharashtra Education Loan

10.00% - 13.00%

Upto 20 Lakhs

Source: Official Website

Private Sector Banks

Check the details about the education loans offered by private banks in India to study abroad.

Bank

Rate of Interest (approx.)

Maximum Loan Amount to Study Abroad

ICICI Bank Education Loan

Repo Rate+3.75%

Upto 2 Crore

Axis Bank Education Loan

13.70% to 15.20%

Upto 75.00 Lakhs

Kotak Mahindra Bank Education Loan

Up to 16.00%

Upto 20.00 Lakhs

HDFC Bank Education Loan

  • To Study in India- 9.50% Onwards
  • To Study Abroad- 12.50%

Upto 45.00 Lakhs

Source: Official Website

NBFCs

Check out the details about study loans offered by Non-Banking Financial Companies (NBFCs) to study abroad

NBFCs

Rate of Interest (approx.)

Maximum Loan Amount to Study Abroad

HDFC Credila Education Loan

12.35% Onwards

No upper Limit

Avanse Education Loan

14.25% Onwards

No Upper Limit

Auxilo Education Loan

12.70% Onwards

Upto 1 Crore

Source: Official Website

Eligibility Criteria for Best Education Loan in India

The eligibility criteria for education loans vary from bank to bank. However, we have mentioned some generic eligibility criteria for student loans in India.

  • Profile of students, such as age, academic background, and nationality.
  • Course reputation or university selection.
  • Profile of Co-applicant such as financial stability and creditworthiness of the co-applicant (usually a parent or guardian).

List of Documents Required for Student Loan in India

Here is the list of required documents for student loans that students need to keep it handy at the time of application.

  • Valid ID card approved by the government such as PAN/ Passport/ Driver’s License/ Voter ID card
  • Proof of Residence/ Address (either): Recent copy of utility bill
  • Income Proof of applicant or co-applicant
  • Valid Indian Passport
  • Academic Records
  • Entrance Exam Results such as GMATGRETOEFL, and IELTS
  • Proof of admission including the offer letter or admission letter from the university
  • Statement of cost of study/ Schedule of expenses
  • 2 passport-size photographs

How to Apply for the Best Education Loan in India?

After completing the eligibility, and selecting the best education loan in India, candidates can apply for the student loan with the required documents. Below, we have mentioned the step-by-step process to apply for a study loan. Note that, these steps are generic and your application process may be different from this.

  • Visit the official website of your lender
  • Fill up the basic details asked there.
  • Upload the documents required for the application.
  • After verification, your application will get approval.

Once, you will complete the application process, then the amount will be credited into your account.

This is all about the best education in India. We have covered all the required information about the topic related to the query of a student who is going to study abroad. The details about study loan offered by the loan providers can get updated timely. It is advisable that select the study loan according to your need.

About the Author
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Written by
Raj Vimal
Study Abroad Expert

Raj Vimal has experience of 7+ years in SEO Content Writing, which includes 5+ years in the Ed-Tech industry. He has written articles about studying abroad, especially in the USA, UK, and other English-speaking coun... Read Full Bio

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