Studying abroad brings in a promising career with a wide range of job opportunities. Nowadays, education loans are seen as one of the important parts of the study abroad plan of a student. Funding the foreign education is a major factor that affects the type of course that students enroll for. Typically, an education loan covers accommodation charges, expenses related to the lab, library, travel, equipment, etc. The bank does not pay you any money instead the loan amount is credited directly into the institution’s account at the beginning of each semester.
Education loans are provided by all the major banks of India with flexible repayment options.
Given below are the top education loan providers to finance for studying abroad:
1. State Bank of India
SBI finances education for all job-oriented technical and professional graduate and postgraduate degree courses like MBA, MCA, MS, etc., diploma courses at reputed institutions and also 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, examination, Laboratory and Library fees, caution deposit, cost of books and equipment, travel costs and other necessary expenses. The maximum loan amount that can be provided is up to Rs. 30 Lakhs, with collateral security, required only for loans above Rs. 7.5 Lakhs. The loan margin requirements are 15% for SBI education loan borrowers. Borrowers have to start repaying the education loan after one year of the completion of course. The interest rate offered on education loans will be up to 2 % on the current rate of SBI.
2. Axis Bank
Students can apply for technical or professional courses, career-oriented courses, etc ., and avail an education loan from Axis Bank with the hassle-free process. Axis Bank offers a maximum loan of Rs. 20 lakhs covering hostel fees, tuition fees, book costs, etc. The minimum loan amount that can be availed is Rs. 50,000. A margin is not required for loan amounts below Rs.4 lakhs, but 15% has to be brought in by the borrower for loans above Rs. 4 lakhs. Axis bank might also ask for an LIC policy for 100% of the loan amount on a case-by-case basis. The interest rate for Axis Bank education loans ranges from 16.5% to 17.5% with special rates for women applicants.
3. Allahabad Bank
The Allahabad Bank offers education loans to students who want to study abroad after the completion of HSC(10 plus 2 or equivalent). The study abroad courses available for eligible for the Allahabad Bank Education Loan are professional or technical courses for graduation and post-graduation, courses conducted by CIMA (London), CPA(USA )and regular degree courses like Aeronautical, pilot training, shipping, etc. The quantum of the loan provided is need-based subject to repaying capacity of the parents or students of up to Rs. 20 lakhs.
4. HDFC Bank
HDFC Bank offers education loans with flexible repayment tenures and preferential rates for reputed universities. HDFC Bank provides education loans to up to 100% of the educational requirement with no necessity to bring in a loan margin. The maximum loan amount that will be sanctioned by HDFC Bank is up to Rs. 20 lakhs and with no collateral for loans amounting to Rs. 7.5 lakhs.
Credila is a non-bank finance company exclusively focused on education loans. It is a subsidiary of HDFC Ltd.
5. IDBI Bank
The IDBI education loan is offered to the students who go abroad to pursue higher studies and have qualified using an entrance test or a merit-based selection process. The education loan by IDBI covers university fees, exam fees, travel costs, lab and library fees, book/equipment fees and other related expenses. The maximum loan amount that will be sanctioned by IDBI Bank is up to Rs. 20 lakhs. The repayment tenure chosen can be up to 10 years for Rs. 7.5 Lakhs and up to 15 years for loans above Rs. 7.5 Lakhs. Third party guarantee has to be given for loans between Rs.4 Lakhs and Rs. 7.5 Lakhs.
6. Bank of Baroda
Under the “Baroda Scholar” scheme, Indian students can avail an education loan from Bank of Baroda. The maximum loan amount sanctioned by the bank is up to Rs. 20 lakhs, with a loan margin requirement of 15%. Borrowers can also get a holiday or moratorium period of one year or six months after getting employment. Security is not required for loans below Rs. 4 Lakhs. Bank of Baroda loan borrowers have to pay only simple interest during the moratorium period and women applicants can get a concession of 0.50% on the interest rates.