Top Education Loan Providers in India for Education Abroad
Date : July 27, 2019
The banking industry in India is an extremely competitive market and the product are all quite similar, slightly differentiated. All the prevailing scheduled banks in India such as SBI, PNB, ICICI Bank, HDFC Bank, Axis etc. are pretty much at par. With opportunities growing across the globe, more and more Indian students are eager to study abroad at various universities. Although there are a number of scholarships and other financial aid options exist for students who aspire to study abroad, not all students become eligible for them. As a result, education loans are one of the important parts of the study abroad plan for a student. Education loans for studying abroad are provided by almost all the prevailing banks in India. We are presenting below names of some of the Top Education Loan Providers in India to study abroad aspirants. Studying abroad brings in promises of high-flying career options, with the sky being the limit. Institutions across the world offer a multitude of courses and students have various options to choose from.
Backing the foreign education is a major factor that affects the type of course that students enroll for and also the institution selected. The best form of financing is to avail an education loan for studying abroad. Banks in India propose various schemes depending on the institution selected and the course of study. The expenses covered under an education loan include tuition fees, exam fees, lab and library fees, travel, books and equipment, projects and study tours, caution deposit.
Features of education loans are:
•Any individual can avail an education loan to pursue studies at an approved university abroad aged between 18 and 35 years.
•Students can procure education loans for management courses, engineering courses, medicine, arts, architecture, pure science, hotel management, etc.
•Mainly, banks sanction education loans with tenure up to seven years, inclusive of the moratorium period.
•Education loans can be repaid in the form of monthly installments through ECS or via post-dated cheques to the bank.
•Borrowers must bring in a margin of 5% to 15% for loans taken for foreign studies.
•A co-applicant must be selected for education loans taken for full-time courses. Co-applicants can be any siblings, spouse, parents or other family members.
•During the moratorium period, borrowers with the principal payment must pay the interest, starting when the loan tenure begins.
•Banks sanction a maximum loan of Rs. 20 lakhs with the moratorium period and up to a maximum of Rs. 10 lakhs for loans without a moratorium period.
•No security must be submitted for education loans taken up to Rs. 4 lakhs.
•Third party guarantee must be furnished for loans between Rs. 4 lakhs to Rs. 7.5 lakhs and tangible collateral security is required for loans above Rs. 7.5 lakhs.
•The Central Government has also introduced an interest rate subsidy scheme for repayments done during the moratorium period for benefitting the weaker section of the society.
Given below are the top education loan providers in India aiding students who wish to pursue their education abroad.
State Bank of India offers a term loan to Indian students who wish to continue their higher education abroad. SBI funds further education for all job-oriented, technical and professional graduate and post-graduate degree courses like MBA, MCA, MS, etc., diploma courses at renowned institutions. It also sanctions loans for courses offered by the Chartered Institute of Management Accountants (CIMA), London and the Certified Public Accountant (CPA), USA. The education loan offered by State Bank of India covers tuition fees, caution deposit, examination, laboratory and library fees, cost of books and equipment, travel costs and other necessary expenses.
The loan amount given by SBI is up to a maximum of Rs. 30 lakhs, with collateral security required for loans above Rs. 7.5 lakhs only. The loan margin necessity is 15% for SBI education loan borrowers. SBI does offer a moratorium period in which the entire interest can be repaid so that when the definite loan tenure starts, the monthly installment can be just the principal amount. Borrowers start repaying the education loan after one year of completion of the course and the tenure can be taken to up to 15 years. The interest rate offered on education loans is up to 2% on the current base rate of SBI. Education loan borrowers must submit the admission letter, loan application form, details of course costs, co-applicant details and other required KYC documents while applying for a State Bank of India education loan.
Punjab National Bank offers the “PNB Udaan” education loan scheme for those aspirants who are planning to study abroad. Students who have procured admissions for various courses like graduate, post-graduate courses, job-oriented professional and technical courses, diplomas, CIMA/CPA courses, etc. Admissions secured by students should be only at premier institutions abroad. The PNB education loan covers university fees, library fees, travel, exam fees, lab fees, book/equipment fees and other related expenses. Indian aspirants who have secured admission through merit or an entrance examination are fit to apply for an education loan in Punjab National Bank.
They sanction as per the requirement of the borrower, with a loan margin requirement of 15% or loans taken above Rs. 4 lakhs. For education loan amounts below Rs. 4 lakhs, no loan margin is required. Assistantship and scholarships both can be added to the loan margin. PNB provides the base rate as the interest rate on loans taken for pursuing an education at top 200 universities across the world. For applicants other than this, PNB charges an interest rate which is the total of a certain percentage on the base rate. The moratorium period provided by PNB is up to a year, with no prepayment charges levied by PNB. An upfront processing fee of 1% must be borne by the borrowers. The tenure period available for PNB education loan borrowers is up to 15 years.
Axis Bank offers education loans at very competitive interest rates for Indian students planning to study abroad. Students can apply for any of the technical or professional courses, career-oriented courses, etc., and can avail an education loan from Axis Bank with a hassle-free process. It offers a maximum loan of Rs. 20 lakhs which cover tuition fees, hostel fees, book costs, etc. The minimum loan amount that can be funded by Axis Bank is Rs. 50,000. No margin is required for loan amounts below Rs. 4 lakhs, but 15% must be brought in by the borrower for loans above Rs. 4 lakhs. Education loans by Axis Bank are sanctioned within fifteen working days, subject to the submission of documents.
A parent or guardian is required as a co-applicant, with third party guarantee or collateral security asked only in special cases. They might also ask for a LIC policy for 100% of the loan amount on a case-by-case basis. The education loan amount will be disbursed directly to the institution where the borrower has received admission from. They do not charge any processing fees or prepayment charges for education loan borrowers. The interest rate charged by Axis Bank education loans ranges from 16.50% to up to 17.50%, with special rates for women applicants.
The features of the Axis Bank Education Loan for Education are:
Education loans up to Rs. 20 lacs and unsecured lending up to Rs. 7.5 lacs are provided.
There is no requirement of collateral for loans up to Rs. 40 lakhs for Prime A category i.e. Postgraduate studies.
No collateral is needed for loans up to Rs. 15 lakhs for Prime B category i.e. Undergraduate studies.
65 per cent of the loan amount should be produced as there is a requirement of collateral for the Non-Prime category.
HDFC Bank offers education loans with flexible repayment tenures and preferential rates for renowned universities. Aspirants can get education loans at their doorsteps for over 950 courses across 36 countries, worldwide. HDFC Bank provides education loans up to 100% of the educational requirement, with no necessity to bring in a loan margin. The maximum loan amount that can be accredited by HDFC Bank is up to Rs. 20 lakhs. HDFC Bank education loans can be availed and sanctioned even before the student has obtained admission at a university to avoid last minute hassles.
Indian students aged between 16 to 35 years are eligible to apply for an education loan to study abroad. Borrowers can have the benefit of flexible security collateral and co-applicant options from HDFC Bank. Co-borrowers can be picked from different cities across India while applying for an education loan with HDFC Bank. The co-applicant can be chosen from any of the family members like parents, siblings, uncle or aunt, in-laws, which is mandatory for full-time courses. The processing fees charged by HDFC Bank for education loans is up to 1.5% of the total loan amount, with no fees levied for prepayment of the loan.
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Aspirants can avail education loans from Canara Bank for studying abroad for eligible professional and technical courses, graduate and post-graduate courses which promises job opportunities. The basic requirement for eligibility at this bank is admission must be secured only at recognized educational institutions. The Canara Bank education loan covers university fees, travel, exam fees, library fees, book/equipment fees, lab fees, and other related expenses. Canara Bank sanctions loans as per the requirement of the borrower, with a loan margin requirement of 15% on loans taken above Rs. 4 lakhs. The maximum educational loan amount that will be sanctioned by Canara Bank is up to Rs. 20 lakhs.
The repayment tenure preferred can be up to 10 years for loans up to Rs. 7.5 lakhs and about 15 years for loans above Rs. 7.5 lakhs. No collateral is required for loan amounts below Rs. 4 lakhs and third-party guarantee must be given for loans between Rs. 4 lakhs and Rs. 7.5 lakhs. Education loans must be taken along with a co-borrower and 100% collateral security will be required for loans above Rs. 7.5 lakhs. The education loan can be availed from any of the Canara Bank branch nearest to the permanent address of the parent or guardian.
The Avanse Study Loan can be taken for pursuing an education at over 1600 foreign universities across the world. For the convenience of borrowers, Avanse provides pre-visa disbursement loans, fast-track loans, pre-admission loans and certificate of availability of funds. Indian citizens can avail this education loan with a co-borrower for pursuing graduate and post-graduate courses at reputed institutions. Borrowers must submit KYC documents, collateral documents, course fee and details, income documents, etc. when they avail an Avanse education loan.
The minimum loan amount which is sanctioned for foreign education is Rs. 10 lakhs with the maximum limit customized according to the borrower’s requirements. The Avanse education loan covers tuition fees, books /equipment fees, travel, living expenses, and other related expenses. No margin is required to sanction loan with them and the loan tenure can be taken between 12 months to up to 120 months. The moratorium period given by them is 6 months after completion of the course or three months after securing employment. As per the loan amount, the security requirement will be determined by Avanse Financial Services.
The IDBI Bank offers education loans to students going for higher studies abroad and has qualified an exam using an entrance test or a merit-based selection process. Students enrolling in professional and technical graduate courses, diploma, post-graduation courses, and CPA/CIMA courses are eligible to avail the education loan from IDBI Bank. The IDBI Bank education loan covers exam fees, university fees, travel, lab fees, library fees, cost of computers, book/equipment fees and other related expenses. IDBI Bank sanctions as per the requirement of the borrower, with no security requirement on loans taken below Rs. 4 lakhs.
The maximum loan amount that is sanctioned by IDBI Bank is up to Rs. 20 lakhs. The repayment tenure can be chosen up to 10 years for loans up to Rs. 7.5 lakhs and at most 15 years for loans above Rs. 7.5 lakhs. Third party guarantee must be given for loans between Rs. 4 lakhs and Rs. 7.5 lakhs. Education loans must be taken along with a co-borrower and 100% collateral security is required for loans above Rs. 7.5 lakhs. Aspirants can make balance transfers from existing loan accounts to a new IDBI education loan account.
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