Best Education Loan Providers in India for 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

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.

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

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:

• Everything You Need to Know About Education Loan
• Collateral for Education Loan: Everything You Need to Know
• Know the A to Z of Study Abroad Loans: All Terms and Their Definitions

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

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

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