•  Content Creator : Prabh
• 01-11-2023

In today's global education landscape, the choice of an education loan provider holds paramount importance. Education loans serve as the gateway to turning academic dreams into reality, facilitating the pursuit of prestigious institutions worldwide, from the US and the UK to Australia and beyond. This guide is your compass for navigating the complex world of education loans in India, focusing on studying abroad. We'll delve into the types of loans, and crucial factors in selecting a provider, and present a curated list of India's top loan providers for studies in India or abroad to empower your informed decisions.

Choosing the Right Lender

When seeking an education loan for studying abroad, several vital factors demand consideration. These include:

• Interest rate stability
• Loan amount
• Collateral requirements
• Co-borrower suitability
• Repayment flexibility
• Potential fees
• Eligibility criteria
• Disbursement processes
• Currency exchange rates
• Prepayment options
• Lender reputation
• Government subsidies

Meticulous evaluation of these elements ensures you secure a reliable loan provider that aligns with your financial situation and educational aspirations.

State Bank of India (SBI) Education Loan for Study Abroad

SBI, a trusted and prestigious bank, provides the SBI Global Ed-Vantage education loan scheme for students pursuing higher education abroad. This loan covers regular graduate degree, post-graduate degree, diploma, certificate, and doctorate courses in various disciplines offered by foreign institutes and universities in countries like the USA, UK, Canada, Australia, Singapore, Japan, Hong Kong, New Zealand, and Europe (including Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, and the United Kingdom).

Key Features of SBI Global Ed-Vantage :

• Loan Coverage: You can secure a loan of up to Rs. 1.5 Crores, ensuring that your educational expenses are well taken care of.
• Loan Limit and Interest Rates:
• For loans up to Rs. 7.5 lakhs: Interest Rate - 11.15% (Floating)
• 0.50% interest rate concession for female students
• For loans above Rs. 7.5 lakhs: Interest Rate - 11.15% (Floating)
• 0.50% interest rate concession for female students
• An additional 0.50% concession for students with SBI Rinn Raksha or similar policies assigned to the bank.
• Flexible Repayment: SBI offers a generous repayment period of up to 15 years after course completion, making it easier for you to manage post-education finances.
• Early Approval: Get your loan sanctioned even before you receive your i20/Visa, ensuring a smooth transition for your studies abroad.
• Tax Benefits: Under Section 80 (E), you can enjoy tax benefits, reducing the financial burden.
• Added Security: For larger loan amounts exceeding Rs. 7.5 lakhs, collateral security in the form of tangible assets or third-party collateral (excluding parents) can be accepted.

With an education loan like SBI Global Ed-Vantage, your international education journey becomes not only achievable but also financially smart. It's designed to provide accessibility, flexibility, and financial prudence to students pursuing their dreams abroad.

HDFC Credila Education Loan for Higher Studies Abroad

HDFC Credila is a prominent provider of education loans in India, focusing on students pursuing higher studies overseas. 

Key features and eligibility criteria include:

• Eligibility Criteria:
• Borrowers and co-applicants must be Indian citizens.
• Confirmed admission to a recognized college or university is required.
• Both the borrower and co-applicants must meet HDFC Credila's credit and underwriting norms.
• Co-applicant Requirements: An earning co-applicant based in India is mandatory. And, the co-applicants can be close relatives, and their income affects loan eligibility.
• Loan Coverage: The loan covers tuition fees and various other expenses, such as living, travel, and study materials.
• Loan Amount: The minimum loan amount is Indian Rupees 1,00,000, with no upper limit.
• Rate of Interest: Floating interest rates linked to HDFC Credila's Benchmark Lending Rate (CBLR), with a spread.
• Loan Disbursement: The loan amount is disbursed in Indian Rupees. Tuition fees are paid directly to the educational institute, with other expenses disbursed in installments.
• Loan Repayment Terms:
• Interest repayment begins after the first installment disbursement.
• Maximum loan tenure is 12 years but may vary based on several factors.
• Collateral: Collateral options include various property types.

HDFC Credila specializes in supporting Indian students pursuing higher education abroad, offering tailored solutions and financial assistance for thousands of students across diverse countries and institutions.

ICICI Bank Education Loans

ICICI Bank is a prominent education loan provider in India, catering to students pursuing higher studies in India and abroad. These loans cover various expenses such as college fees, examination fees, travel expenses, insurance premiums, and more.

How to Apply for ICICI Bank Education Loans?

• You can visit the nearest ICICI Bank branch and fill out the form or apply online through the Vidya Lakshmi portal for ease and convenience. 
• Existing ICICI Bank customers can check their eligibility for instant sanction of Education Loans with minimal paperwork.

Loan Amount: Loans up to Rs. 1 crore for study in India and up to Rs. 2 crore for abroad. Unsecured Loan Amounts are available up to Rs. 1 Crore.

Rate of Interest: Interest rates start from 9.85% onwards.

ICICI Bank's education loans are designed to support students in achieving their academic aspirations, both in India and abroad, by offering financial assistance, competitive rates, and flexible repayment options.

Axis Bank Education Loan for Higher Studies Abroad

Axis Bank provides comprehensive education loans for students pursuing higher studies abroad, offering the following key features:

• Eligibility Criteria: Eligibility criteria include Indian citizenship, minimum academic marks, admission to career-oriented courses, and regular income for co-applicants.
• Loan Amount: Loans start from Rs. 50,000 with no upper limit, covering all educational expenses.
• Rate of Interest: Competitive interest rates are based on the loan amount.
• Loan Disbursement: Quick disbursal within two days post-sanction.
• Loan Repayment Terms: Flexible repayment options and tailored loan solutions.
• Collateral: Many loans are collateral-free.
• Interest Subsidy Scheme: Participation in the Government's Interest Subsidy Scheme for economically weaker students.

Axis Bank supports Indian students' higher education abroad with competitive rates and tailored solutions to reduce financial burdens.

Punjab National Bank (PNB) Education Loan Scheme - PNB Udaan

Punjab National Bank (PNB) offers comprehensive education loans under the PNB Udaan scheme to help students achieve their academic goals. Key features and eligibility criteria are as follows:

Key Features of PNB Udaan Education Loan:

The goal of PNB Udaan is to provide financial assistance to academically successful students pursuing higher education abroad in various courses, including undergraduate and postgraduate programs, professional/technical courses, programs offered by organizations like CIMA and CPA, as well as degree/diploma programs in fields such as aeronautics, pilot training, and shipping, provided they are internationally recognized for employment overseas.

The study loan covers expenses like college/school/hostel fees, examination/library/lab fees, the student borrower's life insurance premium (if applicable), caution deposits, equipment/books/uniforms, computer purchases, and other course-related expenses such as study tours or projects. It can also include personal living expenses and two-wheeler costs if necessary.

• Eligibility: Applicants should be resident Indians who have secured admission to a recognized foreign institution through an Entrance Test/Merit-Based Selection process after completing HSC (10+2 or equivalent).
• Margin: No margin is required for loans up to Rs. 4 lac; for amounts exceeding Rs. 4 lac, a 15% margin may be necessary. Scholarships/assistantships can be considered in the margin, and they can be introduced on a year-to-year basis as disbursements are made.
• Co-applicant Requirement: For loans up to Rs. 7.50 lacs, the parent(s)/guardian can act as joint borrowers without the need for tangible security or third-party guarantees. 
• Repayment (Maximum): Repayment terms can extend up to a maximum of 15 years, offering flexibility for students.
• Collateral: Loans exceeding Rs. 7.50 lacs require suitable tangible collateral security accepted by the bank, with the parent(s)/guardian as joint borrowers.

In summary, PNB offers a range of education loans catering to students' diverse needs, whether they're studying in India or pursuing higher education abroad. It's a trusted financial partner for those aspiring to achieve their educational dreams.

In Conclusion

Choosing the right education loan provider can be the defining factor in your academic journey. And the institutions like State Bank of India, HDFC Credila, Axis Bank, Punjab National Bank, and ICICI Bank stand out as trusted allies for students aiming to study abroad. They offer competitive interest rates, flexible terms, and a wide array of benefits to make your dreams attainable.

Now, with the financial support you need, your educational aspirations have no bounds. It's time to embark on your journey to an international education, equipped with the resources, knowledge, and confidence to take on the world. Go ahead and make your educational dreams come true on the global stage.