A number of opportunities for students all across the globe have been growing with time. In addition to that, there has also been a massive growth in a number of students that wish to pursue their studies abroad. The students are career driven, and the opportunities and further success that are studying in a university abroad create is enough to attract them. It is justified as well, due to the fact that institutions around the world offer a large number of courses and a variety of options to choose from. In addition to that, these universities also offer fantastic scholarship programs, which also add on to the job opportunities.
With all that, we have to keep in mind that to fulfill all these desires and ambitions, proper financing is essential. Funding for international education plays a vital role in the type and quality, of course, a particular student enrolls for, as well as the level of institution appointed to him/her. To finance foreign education, one should be opting for an educational loan for financial studies as it is the best option for that matter.
Educational loans to study abroad are provided by almost all the great banks in India. To avail these loans, you must be aged between 18-25 years. The banks in our country offer numerous schemes to the people in relation to the institution selected, and the course that they are pursuing. There are flexible repayment options that come with these schemes as well. This allows the borrower to plan all his finances properly. Education loans cover various expenses, in addition, boarding, lodging, tuition, and many other expenditures of the student.
Features of education loans:
- Generally, the individual must be aged between 18 to 35 in order to avail an education loan for studying abroad.
- Education loans for management, engineering, medicine, arts, architecture, graduate and post graduate, hotel management and many other courses can be obtained by students.
- The interest with the principal payment has to be paid by the borrowers during the moratorium period.
- The repayment of education loans can be done in monthly installments through ECS, and also via post dated cheques.
- For full-time courses, a co-applicant needs to be selected for the education loans. The co-applicants can be siblings, parents, spouse, or other members of the family.
- If the education loan taken is up to Rs. 4 lakhs, then no security is needed to be submitted.
There are certain choices that you have to make in choosing the best educational loan provider to study abroad, and to all those students’ aid, we are presenting to you a detailed list of some of the best education loan providers in India to study abroad.
Best Education Loan Providers in India to Study Abroad
State Bank of India
For them to continue their higher education abroad, State Bank of India offers term loan to these aspiring students. SBI takes the responsibility of financing the further education for graduate and post graduate courses including MBA, MCA, MS, etc., and also diploma courses at well-established and first rate institutions globally. SBI also offers educational loans for courses provided by Chartered Institute of Management Accountants (CIMA), London and the Certified Public Accountant (CPA), USA.
To study abroad, the maximum amount of loan offered by the State Bank of India is Rs. 30 lacs. The repayment commences a year after the student completes the course, or six months after securing a job. Depending upon the loan amount, the period of repayment varies from 10 to 12 years. The interest rate is up to 2% on the current base rate of SBI. To apply for an educational loan, the person has to submit the admission letter, loan application form, details of course costs, co-applicant details and other required KYC documents.
To avail an educational loan from Axis Bank without any hassle, students can apply for technical courses, professional courses, career oriented courses etc. Axis Bank offers competitive interest rates on these educational loans. A maximum loan of 20 lakhs is provided by Axis Bank. The loan covers hostel fees, tuition fees, book costs, etc. The interest rate on the educational loan offered by Axis Bank varies from 16.50% to 17.50%. No processing fees or prepayment charges are charged to the borrowers.
Educational loans with flexible repayment tenures and preferential rates are offered by HDFC Bank. These loans are offered by reputed universities situated across 36 countries, worldwide. HDFC Bank offers loans to the customers for almost one thousand courses. The maximum amount of loan that can be sanctioned by HDFC Banks is Rs. 20 Lakhs. A student can avail the loan even before taking admission in the university. No fees are levied for the prepayment of the loan, while 1.5% processing fees on the educational loans are charged by HDFC Bank.
Educational loan to deserving and meritorious students is offered by IDBI Bank in order for them to pursue higher education abroad. This facility is also provided to students who secure admission via Management Quota. Maximum educational loan for studying abroad provided by IDBI Bank to the students amounts up to Rs. 20 lacs.
Balance transfers can also be made by customers from their existing loan accounts to a brand new IDBI education loan account.
Punjab National Bank
“PNB Udaan” is the educational loan scheme offered by Punjab National Bank to the students who plan to go abroad for further studies. PNB sanctions educational loan according to the borrower’s requirement. They also offer the interest rate on loans which is the base price for pursuing an education in any of the top 200 universities across the globe. An upfront processing fee of 1% on the educational loan has to be borne, while no prepayment charges are levied by Punjab National Bank.
Educational loans for studying abroad for professional and technical, graduate and post graduate courses can be availed from Canara Bank. To avail this educational loan the individual must secure admission at a recognized educational institution. University fees, travel, exam fees, lab fees, library fees, book/equipment fees and other related expenses, are covered by the educational loan offered by Canara Bank. An educational loan up to Rs. 20 lacs can be sanctioned by Canara Bank.
Bank of Baroda
Those students who are applying for technical and professional courses abroad can avail an education loan from Bank of Baroda. These loans are sanctioned under the “Baroda Scholar” scheme. An individual must secure admission for a recognized course at a reputed university in order to avail this educational loan. An educational loan up to Rs. 20 lacs can be sanctioned by Bank of Baroda. The repayment period of educational loans up to Rs. 7.5 lacs is 120 months, and for that of above Rs. 7.5 lacs is 180 months. If the loan borrowed is above Rs. 4 lacs, Bank of Baroda also charges a penalty of 2% for delayed payments.
Avanse Financial Services
Avanse offers a variety of education loans for the convenience of borrowers including Avanse offers pre-visa disbursement loans, fast-track loans, pre-admission loans and certificate of availability of funds. For pursuing an education in over 1600 foreign universities all across the globe, the Avanse Study Loan can be availed. Tuition fees, travel, living expenses, books, equipment fees and other such expenses are covered by this educational loan. The maximum amount of loan offered can be customized according to the requirements of the borrower, while the minimum amount that can be sanctioned is Rs. 1 lac.
SyndVidya which is Syndicate Bank’s educational loan scheme provides need based finance and covers expenses related to education. This includes college fees, hostel, examination, library, laboratory fees, caution deposit, travel expenses, and much more. For overseas courses the maximum amount of educational loan that Syndicate Bank can sanction is Rs. 20 lakhs and the repayment period of these loans ranges from 5 to 7 years.
Oriental Bank of Commerce
Oriental Bank of Commerce offers an educational loan up to 25 lacs for studying abroad. However, the maximum amount can be more depending on the university fee. Life insurance cover is also provided by OBC to the students. The interest rate offered is 11.30% floating rate per annum.
Affiliated with the Global Student Loan Corporation, HSBC offers educational loan to those students who are pursuing a top class education at an institute in the USA. This education loan covers the cost of tuition fees, room charges, boarding, books, and other education-related expenses.
What makes HSBC education loan stand out is the fact that up to Rs. 1 crore is given against the residential property. The tenure is up to 15 years.
Numerous scholarships and other options that provide financial aid to the students who aspire to study abroad are available, but not every single student is eligible for those. Thus education loans play a vital role in the plan of a student to study abroad. It is important to go through all of these top education loans that we explained above before deciding because you should be chosen according to your requirements and circumstances. Almost all the key banks in India provide education loans, but the ones that we’ve gone through are possibly the best of the lot.