Top 5 Education Loan In India for Abroad Studies

Hello Friends are you ready to tackle the journey of your goals for studying abroad? Exciting, right? But before you start packing your bags, there’s one important thing you need to sort out: funding your education. Let’s face it, studying abroad can be costly. That’s where an Education Loan comes to help you.

What education loans can do for you is to close the gap that exists between you and your dream and enable you to concentrate on your books without having to bother about your pocket. In this article, let us discuss the top five education loans offered to students in India by Indian banks for studying abroad so that clients can come to a correct decision.

Why an Education Loan is Your Best Buddy for Abroad Studies

The first thing you should ask yourself is why take out a student loan in the first place. It’s simple. Education loans cover tuition fees, accommodations, travel expenses, and sometimes even books and laptops. Your dream of studying abroad can become a reality without putting too much pressure on your family’s finances. A major advantage of education loans is that they are tax-deductible. The interest rates on these loans are also lower than on other types of loans. Education loans also help to build your credit score. Taking out a loan can also allow you to gain experience in managing your finances. Click here to learn more about credit scores

Audience: Who Can Benefit?

As mentioned this guide is very specific to students from India planning for overseas education. If you are a fresh pass-out looking for a master’s degree or an undergraduate considering international universities, knowing about your education loan facility is important.

Understand the Repayment Terms.

Education loans usually come with a suspension period, meaning you don’t have to start repaying the loan until after you have finished your course. Some Indian banks allow you to start with a small EMI during this period, which is great if you’re juggling part-time work while studying abroad.

Comparison of Interest Rates and Loan Coverage

There are a lot of loans out there and they do not all start looking the same. Others may have low finance costs but will not pay rent and utilities. Others might have a slightly higher interest rate but they give you everything you need. Check out your options from Indian Banks and see what all the Education Loans bring to the table. Pro tip: Do not be just focused on the interest rate as you also need to know if the loan has provided additional expenses like transport, visa, and medical expenses.

Information About Government Schemes and Subsidies

You would be surprised to know that the Indian government provides concessional rates on Education Loans to the economically weaker section students. Yup, it’s true! These schemes can therefore go a long way in easing your expenses. On your application in Indian Banks, you can ask whether they offer such programs sponsored by the government. This could be a game changer in terms of who funds their Abroad Studies. Now let’s talk about the criteria to apply for in Indian bank

Criteria Used to Apply in Indian Banks

Before diving into specific loan options, it’s essential to understand the eligibility criteria typically required by Indian banks:

1. Citizenship: You have to be a citizen of India.

2. Admission Confirmation: A confirmed admission offer offered by a recognized foreign university.

3. Age Limit: In general, it is necessary to be between 18 and 35 years old.

4. Academic Record: If you have desirable academic records, then you stand a very high chance of getting approval.

5. Co-applicant Requirement: The majority of the banks seek a co-applicant who has a definite means of income.

Read this article to know more about the necessary documents required for education loans for abroad studies.

To streamline your application process, ensure you gather the necessary documents:

1. Identity Proof: Passport or Aadhaar card.

2. Address Proof: Receipts for the payment of utility bills or bank statements.

3. Admission Letter: From the foreign institution that registers the enrollment.

4. Academic Records: Documents of mark sheets and certificates from any previous school or college of study.

5. Income Proof of Co-applicant: Pay slips or tax returns in case of self-employment.

For more details: Education Loan for Abroad Studies

When evaluating education loans, consider these key features that can significantly impact your borrowing experience:

1. Loan Amounts Available: Depending on the lender some of them only lend up to 100% of the cost of the course fees plus living expenses.
2. Repayment Terms: A payment plan that is from five to fifteen years after enrolment and after the completion of the studies.
3. Interest Rates: Interchange rates that may be either fixed or floating; remember to compare shops!
4. Moratorium Periods: Most creditors allow you to borrow some funds without payback until the learner completes his/her studies through a grace period offer.

Top 5 Banks Loan For Higher Education Abroad

1. SBI

One of the largest public sector banks in the country, SBI has formidable education loan facilities for those students who want to pursue education overseas. SBI is a bank of first choice for many students preparing to take education loans because of factors like; reasonable rates of interest and; reasonable re-payment plans.

Features	Education Loan Details
Loan amount	Up to Rs. 7.5 lakhs
Processing fee	Up to 10,000/-
Loan Tenure	Upto 15 years
Interest rate	11.15%*
Processing time	Up to 7 days

 

2. IDFC Bank

Besides firmly establishing itself in the banking market IDFC Bank provides extensive education loan programs for students who wish to continue their education abroad. They offer a low interest rate that does not require margin money and a long payment period, which makes it easier for students to find their careers.

Features	Education Loan Details
Loan amount	Upto ₹2Cr (Collateral ) Upto ₹75Lac (Without Collateral)
Margin money	Nil
Processing fee	0.5% to 1.0%
Loan Tenure	15 Years (Including study and grace period)
Prepayment charges	Nil
Repayment during the course duration	Simple or Partial Interest
Interest rate	11.50 – 12.25%

 

3. AXIS Bank

AXIS Bank another tool leading plays a part in the banking industry provides moderately reasonable and easily accessible loans for students. Their loans embrace accommodation, tuition fees, and other expenses to make sure that students don’t need to worry as regards their financial obligations while learning.

Features	Education Loan Details
Loan amount	Up to INR 40 – 75 Lakh
Processing fee	0.75% of the loan amount + GST
Loan Tenure	Upto 15 years
Interest rate	11 – 11.5%
Repayment during the course duration	Simple Interest (SI)
Margin Money	0 – 5%
Co-applicant minimum income	INR 35,000 / month

 

4. HDFC Credila

HDFC Credila is especially focused on Education loans, especially International Education for the students They have features like quick education loan processing, a customized ‘Easy Emi’ facility for the repayment, and cross-currency translation assistance for borrowers.

Features	Education Loan Details
Loan amount	INR 20 – 75 Lakh
Processing fee	0.5 – 1.5% of the loan amount + GST
Loan Tenure	Upto 15 years
Interest rate	11.25 – 13%
Repayment during the course duration	Simple Interest (SI) or partial Simple Interest (PSI)
Processing time	Upto 7 days
Moratorium period	Course period + 1 year

 

5. Union Bank of India

Union Bank also provides loans for students who intend to pursue their studies in foreign institutions. They have the best interest rates In the market which doesn’t pinch the pocket of Indian parents at all. Other benefits they include they do not charge processing fees and they approve the loan very quickly hence students like you can proceed with your dream of studying in other countries.

Features	Education Loan Details
Loan amount	Up to INR 40 lakh
Processing fee	NIL
Loan Tenure	Upto 15 years
Interest rate	Starting ay 9.8%
Repayment during the course duration	Simple Interest (SI)
Processing time	Upto 7 days
Moratorium period	Course + 12 months

 

If you study these aspects and compare the lenders’ options then you can conclude which education loan is suitable for you.

Thus, it is not just a financial issue of obtaining an education loan, but it is equally about building ourselves for a future as qualitative individuals equipped to face the world challenges in the various realms of our lives which the education abroad experience of the diverse study fields provides – so think carefully!