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 study loans for abroad. In this article, we will inform you about India's top education loan providers. Here, we will discuss both private education loan providers in India as well as government and public education loan providers in India.
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.
- 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
|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.
Class 10th, 12th, Graduation mark sheets (if applicable), entrance exam result
|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)||
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.
- 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
|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.
- 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
- 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.
- Should be an Indian citizen
- Should have obtained admission to professional/technical programs outside India via entrance exam/merit-based selection procedure
|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)|
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%
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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.
- 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
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.
- 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
|Identity Proof||Proof of Adress|
|Admission Letter||Academic Qualification Mark Sheets|
|Proof of Fees Structure|
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.
- 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
- 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).
|Application form and credit information||KYC documents|
|Income Proof (for salaried)||Last 6 months bank statement|
|Property documents||Additional Documents|
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