Top Education Loans Providers in India for Study Abroad

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Piyush
Piyush Kohli
Study Abroad Expert
Updated on Feb 7, 2022 20:16 IST

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 

Interest rate:

  • 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 lakhs15% 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 

Interest rate:

  • 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. 

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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.  

Interest rate:

  • 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. 

Interest rate:

  • 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

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About the Author
Piyush Kohli
Study Abroad Expert

With a plethora of knowledge of the education domain, Piyush Kohli has been involved with study abroad for over 5 years and counting. He comes with prior experience on the complexities of the study abroad applicatio... Read Full Bio

Comments

(7)

S

Shirisha

31/10/21

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

P

Piyush KohliStudy Abroad Expert

31/10/21

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

N

Nomad

9/10/21

Hi sir, can i get a education loan for uk. Collateral as an openland. And i live in Hyderabad.

Reply to Nomad

P

Piyush KohliStudy Abroad Expert

11/10/21

Hi, if it is agricultural land then it cannot be used as collateral. Please refer to the below link and learn everything about getting education loan for abroad:
https://studyabroad.shiksha.com/education-loan-applycontent61319

Can I submit my flat which I purchased by taking homeloan & still im paying EMI of the same ,as collateral property for getting education loan .Pl clarify sir.

Reply to Harsh Katenge

P

Piyush KohliStudy Abroad Expert

30/9/21

Hi Harsh, if you have already taken a loan against a property then you can't keep it as mortgage for another loan.

Sir mujay mbbs abroad krna hai bangladesh mai apply kr sakti hu iss ke liyai

Reply to Humaira Rasool

P

Piyush KohliStudy Abroad Expert

30/9/21

Hi Humaira, you need to approach the bank along with your documents and check whether you are eligible for an education loan or not.

03/9/19

9915449401 hanji i need this education loan

Reply to

P

Piyush KohliStudy Abroad Expert

04/9/19

Dear Shiv, in order to apply for education loan, you need to contact the banks directly. Also, you can apply for a bank loan by going through the below link. Our experts will call you back after checking your details.
https://studyabroad.shiksha.com/apply-education-loan

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