Education loans for the studying abroad

If you are considering pursuing higher education abroad, securing funding becomes a crucial aspect of your planning. While arranging funds can pose a significant challenge, there are prominent banks and non-banking financial companies (NBFCs) that offer study loans for international education. In this article, we will provide information about the top education loan providers in India, covering both private institutions and government/public entities that extend financial support to students for overseas studies.

In scenarios where family income and savings fall short, seeking a student loan becomes imperative. Unlike conventional perceptions about loans, an education loan for studying abroad is an investment in oneself, paving the way for future career opportunities that can far exceed the borrowed amount.

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Types of education loans

There are two main categories of study loans for international education that individuals can consider when seeking financial support for studying abroad:

Secured Loans:

In the case of secured loans for foreign studies, the borrower pledges certain assets as collateral. When opting for a secured loan, the borrower is required to mortgage property to the bank or financial institution. It’s important to note that the collateral provided cannot be agricultural land.

Unsecured Loans:

Unsecured loans are financial loans that are not backed by the borrower’s assets. These loans may be offered by various financial institutions under different terms or marketing packages. To qualify for an unsecured loan, specific conditions must be met. Unlike secured loans, unsecured loans do not involve the pledging of assets as collateral.

Let us explore different education loan options for studying abroad

HDFC Credila

HDFC Credila stands out as a leading provider of education loans with preferential interest rates for renowned universities. The institution offers specialized solutions with flexible interest rates based on factors such as the institution’s reputation, co-borrower details, collateral security, and the student’s academic record.

Funds cover up to 100% of various expenses, including exam fees, living costs, travel expenses, and the purchase of equipment/books.

Key features of education loans from HDFC Credila 

  • Minimum loan amount: Rs 1,00,000 with no upper limit.
  • Floating interest rate linked to HDFC Credila’s Benchmark Lending Rate (CBLR).
  • Maximum repayment tenure: 12 years.
  • Collateral: Accepts a variety of collaterals, including residential houses/flats, commercial properties, and fixed deposits.

Eligibility criteria:

  • Indian nationality.
  • Co-applicant must be an Indian citizen with a bank account in any Indian bank.
  • Admission offer letter from the college is required.

State Bank of India (SBI)

SBI, a trusted name in banking, extends education loans for postgraduate degrees in various countries. The SBI education loan covers a spectrum of expenses, from tuition fees to travel costs, providing a comprehensive solution for students pursuing job-oriented courses.

Key features of education loans from SBI

  • Loans up to Rs. 1.50 crore with a minimum of Rs. 7.50 lacs.
  • Favorable interest rates from 9.5% to 11.5%
  • Online application process.
  • Moratorium period of 6 months after course completion.

Eligibility criteria:

  • Indian citizenship.
  • Minimum 50% marks in HSC and graduation.
  • Parents/guardians must have a regular income source.

Axis Bank

Axis Bank facilitates education loans for technical, professional, and career-oriented courses with a streamlined process. Offering loans with no maximum limit, Axis Bank ensures coverage of up to 100% of the total study cost based on individual qualifications and requirements.

Key features of education loans from Axis Bank

  • No margin on education loans up to Rs. 4,00,000.
  • Quick disbursal within two days after sanction.
  • Parents or legal guardians must co-apply for student loans.

Eligibility criteria:

  • Indian citizenship.
  • Minimum 50% marks in HSC and graduation.
  • Admission to a recognized institute via entrance exam/merit-based selection.

Punjab National Bank (PNB)

PNB Udaan is a specialized education loan scheme for academically distinguished Indian students planning to study abroad. Covering a range of expenses, PNB’s education loan aims to support students pursuing graduate or post-graduate courses.

Key features of education loans from PNB 

  • Fees reimbursement considered within 6 months on individual merits.
  • Margin: Up to Rs 4 lakh – None, Above Rs 4 lac – 15%.
  • Maximum repayment tenure: 15 years.

Eligibility criteria:

  • Resident of India.
  • Admission to a recognized international college/university via entrance test/merit-based selection.

Bank of Baroda

Bank of Baroda offers the Baroda Scholar Loan for students heading abroad for professional or technical studies. With varying loan limits based on the institute’s specification, this loan aids students pursuing courses that promote employment generation.

Key features of education loans from

  • Processing fees linked to loan amount.
  • No margin on loans up to Rs. 4 lakhs.
  • Repayment tenure up to 15 years.

Eligibility criteria:

  • Indian citizenship.
  • Admission to professional/technical programs outside India.
  1. Canara Bank

Canara Bank’s education loan focuses on Master’s degrees under STEM courses, covering a range of expenses. The loan offers flexible repayment options, varying interest rates based on collateral, and attractive loan limits based on the borrower’s needs.

Key features of education loans from

  • Maximum loan amount: Need-based finance.
  • Loan margin: 15% for loans above Rs. 4 lakhs.
  • Repayment tenure: Maximum 15 years.

Eligibility criteria:

  • Indian citizenship.
  • Admission to Master’s degree under STEM courses.
  1. Avanse Financial Services

Avanse Financial Services offers a spectrum of education loans, including pre-visa disbursement, fast-track, pre-admission, and certificates of availability of funds. With a quick sanctioning process, flexible interest rates, and a variety of loan options, Avanse caters to the diverse needs of students.

Key features of education loans from Avanse Financial Services

  • Loan sanctioned within 72 hours.
  • Flexible interest rates starting from 9.5%.
  • Loan tenure up to 15 years.

Eligibility criteria:

  • Standard KYC documents, course fees, collateral documents, and income documents required.

Choosing the right education loan provider is a crucial step in realizing your international academic aspirations. Each institution mentioned here has its unique offerings and eligibility criteria. As you embark on this journey, carefully consider your academic and financial requirements to make an informed decision that aligns with your goals. Remember, investing in education is an investment in your future.