Best Education Loan Providers in India for Study Abroad

Best Education Loan Providers in India for Study Abroad

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Raj
Raj Vimal
Study Abroad Expert
Updated on Apr 9, 2024 19:03 IST

Do you know about the top education loan providers in India for studying abroad? Government and private sector banks and some NBFCs are education loan providers in India. Eligible students can apply to get a study loan with the required documents to finance their higher studies in India or abroad.

Best Education Loan Providers in India for Study Abroad
If you are thinking of moving abroad for higher studies, then you must be looking to arrange funds. Arranging funds can be one of the biggest challenges, however, there are leading banks and NBFCs that help students with education loans to study abroad. The best education loan in India should cover all your higher education expenses, including tuition, living costs, and miscellaneous fees. On top of that, a low interest rate will help you save money in the long run. Here, we will discuss both private education loan providers in India as well as government and public education loan providers in India.

HDFC Credila

HDFC Credila offers education loans with preferential interest rates for reputed universities. Thousands of students who are studying outside India have obtained funds from HDFC Credila. The admissions and educational systems in India and other nations are familiar to HDFC Credila. HDFC Credila offers specialised solutions with features and high service standards. In contrast to banks, which normally charge a fixed rate for a certain group of students, HDFC Credila offers a range of rates based on the institution, the co-borrower, the collateral security provided, and the student's academic record. Customized student loans are available through HDFC Credila.

What is covered?

Upto 100% of expenses such as exam fees, living and hostel charges, purchase of equipments/books/uniforms, travel costs, library/lab charges, and purchase of laptops or computers. Please note that only one economy class return ticket between India and the study destination is covered. 

Highlights of HDFC education loan for abroad

  • The minimum loan amount stands at Rs 1,00,000 and no upper limit has been set by HDFC Credila on the loan. 
  • Floating rate of interest linked to HDFC Credila's Benchmark Lending Rate (CBLR) will be the rate of interest.
  • At present, HDFC Credila's CBLR is 12.80% per annum.
  • The re-payment for loan interest will begin immediately after the disbursement of the 1st installment of the loan.
  • The maximum loan repayment tenure is of 12 years.
  • Collaterals accepted include residential houses/flats, commercial properties, non-agricultural land, a fixed deposit assigned in favour of HDFC Credila and HDFC second charge property.

Eligibility

  • Indian nationality holder to wish to pursue higher education overseas
  • Co-applicant should also be an Indian citizen
  • Co-borrower bank account should exist in any Indian bank with cheque-writing facilities
  • College admission offer letter should exist

Required Documents

Completed Application Form 2 Passport Size Pictures
Photo ID Proof of Residence
Academic Documents Admission Prood (if available)
Last 8 months of bank statements of co-applicants Co-Applicant's income proof
If, collateral - immovable property  

State Bank of India

SBI offers education loans for abroad studies to pursue postgraduate degrees in nations like Italy, Russia, the United States, the United Kingdom, Finland, Austria, Norway, Poland, Denmark, Germany, Ireland, Spain, New Zealand, Canada, Singapore, etc. that are job-oriented for professional and technical graduates. These courses include but are not limited to, MBA, MCA, MS, diploma programmes at reputable colleges, etc. The SBI education loan for abroad pays for tuition, books and equipment costs, exam fees, lab and library fees, caution deposits, travel costs, and more.

Highlights of SBI education loan for abroad

  • Up to Rs. 1.50 crore in loans, with a minimum loan amount of Rs. 7.50 lacs
  • Favourable interest rate
  • Online application process that is quick
  • Loan sanction prior to i20/Visa
  • Repayment through EMI upto 15 years
  • Tax benefit: Under 80(E)
  • Application processing fee is Rs 10,000

SBI offers a moratorium period or repayment holiday of 6 months after the course completion. The borrower has to submit the college admission letter, completed loan application form, course costs, co-applicant details and other KYC documents to the bank.

Required Documents

Class 10th, 12th, Graduation mark sheets (if applicable), entrance exam result

Offer Letter
Course expenses schedule Scholarship letter copies
Gap certificate (if applicable) Passport size picture of student/parent/co-borrower
Co-applicant's asset-liability statement

Last 6 months' bank account statement of parent/guardian/guarantor

Latest salary slip and Form 16 (for salaried people)

PAN

Aadhaar Passport
OVD submission  

Also Read:

Vidyalakshmi Education Loan

Indian Banks offering Education Loans for Studying Abroad

SBI Education Loan for Study Abroad

Education Loan Calculator

Public v/s Private Education Loan Providers

Education Loan Vs. Self Funding to Study Abroad

Axis Bank

Students can seek education loans for abroad studies for technical, professional courses, or career-oriented courses. Axis Bank provides student loans with no maximum amount, starting at INR 50,000, and covering up to 100% of the whole cost of study (including course fees, cost of books, living & travelling expenses) depending on the requirements and qualifications of the individual. The whole process of getting an education loan with Axis bank is hassle-free. 

Highlights of Axis Bank education loan for abroad

  • No margin on education loans up to Rs  4,00,000
  • 15% margin on education loans up to Rs 4,00,000 for abroad studies
  • The education loan which you will take can be disbursed within two days after getting sanctioned
  • One can also pay the older instalments which are paid towards the course re-financed once the loan is approved

A parent or legal guardian must co-apply for student loans and, if necessary, provide a third-party guarantee or collateral security. Axis Bank may also take into account a LIC policy for 100% of the loan amount, however, it would depend on the circumstances.

Eligibility

  • Indian citizenship holder
  • Minimum 50% marks in HSC and graduation
  • Student should be enrolled in career-oriented programs at the graduate or post-graduate level
  • Should have got admission from a recognised institute via entrance exam/merit-based selection process after completing HSC
  • Parent/guardian should have a regular income source

Required Documents

Income Statements Last 6 months' bank statement/pass book
Offer Letter's copy with fee schedule Mark sheets of SSC/HSC/ degree courses/national level entrance exams
Proof of Age Proof of Address
Photo ID Passport size pictures of applicant and co-applicants
Guarantor form (not mandatory)  

Punjab National Bank

PNB Udaan is a special education loan scheme for Indian students with great academic records planning to study abroad. The loan is available for students who have got admission for graduate or post-graduate courses varying from diplomas, job-oriented professional or technical courses, CIMA/CPA courses etc. The PNB loan covers university fees, travel expenses, exam fees, lab fees, library fees, book/equipment fees and other related expenses. The applicant for the loan should be an Indian citizen and should have obtained admission to a higher education program in a recognised international college/university through an entrance test or merit-based selection. He/she should also have cleared HSC.

Highlights

  • Fees reimbursement paid within 6 months might be taken into consideration on individual merits of the case
  • Margin: Up to Rs 4 lakh - None, Above Rs 4 lac - 15%
  • Maximum upto 15 years of repayment
  • There are no payment charges

Eligibility

  • Resident of India
  • Should have got admission to a higher education program in recognised institutions outside India via an entrance exam/merit-based selection process after HSC.

Also Read: Education Loan Calculator 2024: How to Use, Benefits and More

Bank of Baroda

For MBA, MCA, MS, and other recognised courses that promote employment generation, a Baroda Scholar Loan is offered. Students who are heading abroad for professional or technical study have the option to apply for an education loan under the Baroda Scholar Loan programme. The student must be admitted into the designated institute and programme in order to qualify for the Baroda Scholar Education Loan in India. The loan limit for specified institutes is Rs 80 lakhs and for non-specified institutes is Rs 60 lakhs. 

Highlights of Bank of Baroda education loan for abroad

  • Processing fees: 1% (Maximum Rs. 10,000) for loans above Rs. 7.5 lakhs
  • For up to Rs 7.50 lakh there are no processing fees
  • No margin on loans up to Rs. 4 lakhs
  • Free debit card
  • There will be no charges for documentation
  • No security up to Rs 7.50 lakh

Repayment tenure: Loans taken up to Rs. 7.5 lakhs can be repaid within 10 years and loans above Rs. 7.5 lakhs can be repaid within 15 years 

Borrowers can get a holiday or moratorium period of six months to one year after getting employment. Security is not required for loans below the amount of Rs. 4 lakhs. A third-party guarantee is required for loans between Rs. 4 lakhs and Rs. 7.5 lakhs and tangible collateral security are required for loans above Rs. 7.5 lakhs. 

Eligibility

  • Should be an Indian citizen
  • Should have obtained admission to professional/technical programs outside India via entrance exam/merit-based selection procedure

 Required Documents

Applicant and Co-Applicant's KYC Academic Documents
Admission Proof Entrance Exam Result (if required)
Statement of Tuition Fees Co-Applicant's proof of income (if salaried)
Last 6 month's bank account statement Property document (if applicable)

Check: Things to know before applying for foreign education loan

Canara Bank

The Canara Bank education loan covers university fees, travel costs, exam fees, lab fees, library fees, book/equipment fees and other related expenses. Education loan has to be taken with a co-borrower and 100% collateral security is required for loans above Rs. 7.5 lakhs. Courses eligible for this loan are Master's degree under STEM (Science, Technical, Engineering and Management) courses.

Highlights of Canara Bank education loan for abroad

  • Maximum loan amount: Need-based finance
  • Loan margin: 15% for loans taken above Rs. 4 lakhs 
  • Repayment tenure: The repayment period is of maximum 15 years
  • Security: Not required for loans below Rs. 4 lakhs. For loan amounts above Rs. 4 lakhs, tangible collateral security is required
  • Interest rate: Collateral Security 100% and above – 9.4%, Collateral Security 75% to 100% - 9.65%, Collateral Security less than 75% - 9.9%

Also Read:

IDBI Bank

The IDBI education loan covers university fees, travel, exam fee, lab fee, library fee, the cost of computers, book/equipment fees and other related expenses. IDBI Bank sanctions loan amount according to the requirement of the borrower, with no security on loans below Rs. 4 lakhs.  

Highlights of IDBI Bank for overseas education loan

  • Flexible tenure and loan enhancement facility
  • Attractive interest rate
  • Maximum loan amount: Up to Rs. 30 lakhs 
  • Repayment tenure: Maximum of 15 years after the completion of the moratorium period
  • Interest rate: Upto 7.5 lakhs – 9%, Above 7.5 lakhs – 9.5%, 0.5% concession for female student
  • A third-party guarantee is required for loans between Rs. 4 lakhs and Rs. 7.5 lakhs. An education loan has to be taken along with a co-borrower. 100% collateral security is required for loans more than Rs. 7.5 lakhs

Avanse Financial Services

Avanse offers various kinds of loans like pre-visa disbursement loans, fast-track loans, pre-admission loans, and certificates of availability of funds. Borrowers must submit their KYC documents, course fees, collateral documents, income documents, etc. when they avail of an Avanse education loan. Avanse education loan covers tuition fees, travel costs, living expenses, books /equipment fees and other related expenses.

Highlights

  • The loan will get sanctioned within 72 hours
  • Students can choose between secured and unsecured loan options
  • Interest rate starting from 9.5% and 1% onward processing fees
  • The repayment option is flexible
  • Loan tenure up to 15 years
  • Maximum loan limit can be customized according to the borrower’s requirement 

Check: Private Trusts offering Scholarships and Loans for studying abroad

Federal Bank

Federal Bank provides loans that are available for higher education, but not for vocational training or skill development study programmes, in both India and abroad. Meritorious students are given the chance to further their education with the help of the bank thanks to the Special Vidya Loan.

Highlights

  • Security is not required. up to 4 lakh rupees.
  • There is not much documentation needed.
  • No payback is required during the moratorium period, and affordable EMIs are available for repayment.
  • Speedy loan approval 
  • Loan amount upto 20 Lakhs to study abroad

Required Documents

Identity Proof Proof of Adress
Admission Letter Academic Qualification Mark Sheets
Proof of Fees Structure  
Check: Top Private Student Loans without Cosigner

Union Bank of India 

The Union Bank of India provides education to students holding excellent academic qualifications in order to pursue technical/higher/professional education in India or abroad. It should be noted that it is mandatory for the parent (s) of the applicant to apply as a co-applicant. If the student is married, his/her spouse/parent (s) or in-laws can act as co-applicant (s). If the applicant does not have parents (not alive) his/her guardian or close relative can act as co-applicant. Also, it is necessary for the co-applicant to be an Indian citizen. Courses covered include PhD courses, Graduation/post-graduation degree courses, CIMA, London, CPA, USA (and other similar institutes) conducted certified degree courses. Please note that overseas Diploma courses won't be covered.

Eligibility

  • Applicant must be holding Indian nationality
  • Applicant should have been accepted in an Indian institution or abroad for technical/higher/professional education by clearing the relevant exam and selection procedure
  • No maximum or minimum age criteria have been set for this

 Highlights

  •  No minimum loan amount has been fixed for the loan that can be approved under the education loan scheme.
  • Only after considering the account margins norms will the need-based finance meet the expenses.
  • Expenses covered include hostel charges, tuition fees, examination/library/lab costs, the insurance premium for the student borrower, caution deposit/building fund or refundable deposit, books/equipment/uniforms purchase, computer/laptop costs, travel charges, admission acceptance fee, other expenses.
  •  Students will have to repay the loan amount within 15 years (after the course and moratorium period).

Required Documents

Application form and credit information KYC documents
Income Proof (for salaried) Last 6 months bank statement
Property documents Additional Documents

Also Read: How to choose your bank for Education Loan to Study Abroad

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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Comments

(11)

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Siddesh G

9 months ago

My Father is a Retired Govt employee who is getting Pension and we have House.Can I get loan for my Abroad studies with that house as a collateral with Retired person as a Co-applicant?

Reply to Siddesh G

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Nex Prime

a year ago

Hi. I am an employee in an IT service company and I have a total of 2.5 years of experience in total (I have done two jobs in my career so far). I am thinking of taking an education loan for further study (At York University - Postgraduate certification in Digital and Content Marketing). The fee amo

...more

Reply to Nex Prime

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Suleman Tanwar

a year ago

Sir can I take education loan without collateral

Reply to Suleman Tanwar

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Piyush Kohli

a year ago

Hi Suleman, one can take an education loan up to 7.5 Lakh without collateral.

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Sethu Subha

a year ago

Sir I want to study medicine in china . Once if I get this loan I have to repay this after I graduated from the university isn't it?.

Reply to Sethu Subha

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Piyush Kohli

a year ago

Hi Sethu, yes you need to repay education loan after completing your studies this is referred as a moratorium period. Please go through the below URL and learn everything about student loans for studying abroad: https://studyabroad.shiksha.com/education-loan-applycontent61319

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Shirisha

2 years ago

He'llo sir!! Can we get education loan if you keep a house as collateral but you have housing loan for that house!!

Reply to Shirisha

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Piyush Kohli

2 years ago

Hi Shirisha, one property can b mortgaged for one loan only.