Top Education Loans 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 loan for abroad. In this article, we will inform you about the top education loan providers in India. Here, we will discuss both private education loan providers in India as well as government and public education loan providers in India.
1. HDFC Credila
HDFC Credila offers education loans with preferential interest rates for reputed universities.
Maximum loan amount – As such there is no limit for the loan amount. HDFC Credila offers loan amount exceeding Rs 25 Lakhs, however, the applicant should meet their eligibility criteria and other obligations
Interest rate - HDFC Credila follows floating rate of interest which is linked HDFC Credila's Benchmark Lending Rate (CBLR) and the interest is calculated using Simple Interest Rate.
Processing fees - Up to 1.5% of the loan amount
HDFC education loans can be availed before the student has secured an admission at the university. Borrowers enjoy flexible security collateral. Co-borrowers can be living in a different city than the borrower, but they can only be relatives of the borrower.
2. State Bank of India
SBI finances international higher education for job-oriented professional and technical graduate as well as postgraduate degree courses. Some examples of these courses are MBA, MCA, MS, diploma courses at reputed universities etc. The loan offered by SBI covers tuition fees, exam fee, lab fee, library fee, caution deposit, books and equipment cost, travel expenses etc.
Loan amount - Rs. 20 lakhs to Rs 1.5 Crore
Collateral security required - For loans above Rs. 7.5 lakhs
Collateral not required - For education loans below Rs 7.5 lakhs
Loan margin - 15% for SBI education loan borrowers
Interest rate - 8.65%
Repayment tenure – 1 year to 15 years (after completion of course)
Processing fee: Fixed processing fee of Rs 10,000 is charged per applicant
SBI offers a moratorium period or repayment holiday is of 6 months after the course completion. The borrower has to submit college admission letter, completed loan application form, course costs, co-applicant details and other KYC documents to the bank.
3. Axis Bank
Students can seek loans for technical, professional courses, or career-oriented courses. The whole process of getting an education loan with Axis bank is hassle-free. The loan covers hostel fee, tuition fee, book cost etc.
Maximum loan amount - Rs 75 lakhs
Minimum loan amount - Rs 50,000
- Upto 4 lakhs- 15.2%
- Upto 7.5 lakhs- 14.7%
- Above 7.5 lakhs- 13.7%
Interest rate at Axis bank is linked to repo rate.
Loan margin - Not required for a loan amount below Rs. 4 lakhs. For loans above Rs. 4 lakhs, 15% has to be brought in by the borrower
Processing fee - None
Education loans require a parent or guardian to act as a co-applicant, with third party guarantee or collateral security, if applicable. Axis Bank might also consider LIC policy for 100% of the loan amount but it depends from case to case.
4. Punjab National Bank
PNB Udaan is a special education loan scheme for Indian students 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 fee, travel expense, exam fee, lab fee, library fee, book/equipment fee and other related expenses.
Maximum loan amount - PNB sanctions loans according to the requirement of the borrower,
Loan margin - 15% for loans above Rs. 4 lakhs. For loan amount below Rs. 4 lakhs, loan margin is not required. Assistantship and scholarships can be added to the loan margin.
Moratorium period - Up to a year afgter course completion
Processing fees - 1%
The tenure options available for PNB education loan borrowers is up to 15 years
- Upto 7.5 lakhs: 11.25%
- Above 7.5 lakhs: 11.85%
- For top foreign universities: 9.85%
5. Bank of Baroda
Under the Baroda Scholar scheme, admission secured for professional and technical courses at reputed foreign universities are sanctioned for education loan.
Maximum loan amount - Up to Rs. 80 lakhs
Interest rate - 7.85% to 9.85%
Processing fees - 1% of loan amount up to Rs.10,000
Loan margin requirement - 15%
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. Third party guarantee is required for loans between Rs. 4 lakhs and Rs. 7.5 lakhs and a tangible collateral security is required for loans above Rs. 7.5 lakhs.
6. Canara Bank
The Canara Bank education loan covers university fee, travel costs, exam fee, lab fee, library fee, book/equipment fee 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.
Maximum loan amount – Upto Rs. 20 Lakhs
Loan margin - 15% for loans taken above Rs. 4 lakhs
Repayment tenure - Can be up to 10 years for loans below Rs. 7.5 lakhs and up to 15 years for loans above Rs. 7.5 lakhs.
Security - Not required for loans below Rs. 4 lakhs. Third party guarantee has to be given for loans from Rs. 4 lakhs to Rs. 7.5 lakhs.
- Upto 4 lakhs- 11.15%
- Upto 7.5 lakhs- 11.65%
- Above 7.5 lakhs- 11.15%
7. IDBI Bank
The IDBI education loan covers university fee, travel, exam fee, lab fee, library fee, the cost of computers, book/equipment fee 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.
Maximum loan amount - Up to Rs. 20 lakhs
Repayment tenure - Up to 10 years for loans below Rs. 7.5 lakhs and up to 15 years for loans more than Rs. 7.5 lakhs
Third party guarantee is required for loans between Rs. 4 lakhs and Rs. 7.5 lakhs. Education loan has to be taken along with a co-borrower. 100% collateral security is required for loans more than Rs. 7.5 lakhs.
- Upto 10 lakhs-10.45%
- Above 10 lakhs-11.45%
8. Avanse Financial Services
Avanse offers various kinds of loans like pre-visa disbursement loan, fast-track loan, pre-admission loan, and certificate of availability of funds. Borrowers have to submit their KYC documents, course fee, collateral documents, income documents etc. when they avail an Avanse education loan.
Minimum loan amount - Rs. 1 Lakh
Maximum loan limit - Customized according to the borrower’s requirement
loan tenure can be taken between 12 months to up to 120 months
Avanse education loan covers tuition fee, travel cost, living expense, books /equipment fee and other related expenses.
Interest rate: 12.65%+ floating rate, it depends on the risks points secured by the applicant.
- Rate of interest will be floating
- Interest is calculated using Simple Interest Rate