Planning to study abroad is an exciting yet challenging journey, especially regarding financing your education. Though it can provide unlimited opportunities for career growth, its cost factor can be prohibitive. However, educational loans can be a savior to tide over the financial crunch. There are many ways in which one can secure loans.
Securing a study abroad education loan is one of the most crucial steps in this process. Fortunately, several government and private sector banks, as well as Non-Banking Financial Companies (NBFCs), provide financial assistance to students aspiring to pursue higher education overseas. This blog explores the top education loan providers in India, their features, eligibility criteria, and the documents required for application.
Related Reads: How to Get an Education Loan for Studying Abroad
Why Choose an Education Loan?
A study abroad education loan helps students cover:
- Tuition fees
- Living expenses
- Travel costs
- Miscellaneous charges
With competitive interest rates, flexible repayment terms, and high loan amounts, education loans ease the financial burden of studying abroad. They also help save hard-earned savings and put the onus on the student to repay the loan.
Top 10 Education Loan Providers in India
Here’s a list of the best banks and NBFCs offering education loans for studying abroad:
- State Bank of India (SBI)
- HDFC Bank
- Axis Bank
- Punjab National Bank (PNB)
- Bank of Baroda
- ICICI Bank
- Federal Bank
- Union Bank of India
- IDBI Bank
- Canara Bank
1. State Bank of India (SBI) Education Loan
SBI provides study abroad education loans for postgraduate and professional courses in the USA, UK, Canada, Germany, Australia, and more.
Highlights:
- Loan amount: Up to INR 1.50 crore
- Interest rate: Competitive rates
- Repayment tenure: Up to 15 years
- Quick online application process
- Moratorium period: 6 months post-course completion
- Processing fee: INR 10,000
- Tax benefits under section 80(E)
Required Documents:
- Admission letter
- Course expense breakdown
- Co-applicant details
- Bank statements and income proof
- KYC documents
Related Reads: Education Loan Without Collateral
2. HDFC Credila Education Loan
HDFC Credila offers customized study abroad education loans with flexible repayment options.
Highlights:
- Loan amount: No upper limit
- Interest rate: Linked to HDFC Credila’s Benchmark Lending Rate (CBLR) (currently 12.80% per annum)
- Repayment tenure: Up to 12 years
- Covers tuition, travel, books, accommodation, and living expenses
- Secured and unsecured loan options available
Eligibility:
- Indian citizen with a co-applicant
- Admission confirmation required
3. Axis Bank Education Loan
Axis Bank provides hassle-free student loans for professional and technical courses abroad.
Highlights:
- Loan amount: Starting from INR 50,000 with no upper limit
- Covers tuition, books, travel, and living expenses
- Repayment tenure: Up to 15 years
- Quick loan disbursement within two days of sanction
Eligibility:
- Indian citizens with 50% marks in HSC/graduation
- Parent/guardian must have a regular income source
4. Punjab National Bank (PNB) Udaan Education Loan
PNB Udaan is a unique study abroad education loan scheme for academically strong students.
Highlights:
- Covers tuition, travel, books, and living expenses
- Loan margin: None for loans up to INR 4 lakh, 15% for higher amounts
- Repayment tenure: Up to 15 years
Eligibility:
- Indian residents with admission to recognized institutions
5. Bank of Baroda Education Loan
Bank of Baroda provides Baroda Scholar Loan for students pursuing MBA, MCA, MS, and other professional courses.
Highlights:
- Loan limit: INR 80 lakh (specified institutes), INR 60 lakh (non-specified institutes)
- Processing fee: 1% (max INR 10,000) for loans above INR 7.5 lakh
- Repayment tenure: 10-15 years
Required Documents:
- Admission letter
- Bank statements and income proof
- Collateral security documents (if applicable)
6. ICICI Bank Education Loan
ICICI Bank offers study abroad education loans with minimal documentation and quick approval.
Highlights:
- Loan amount: Up to INR 2 crore
- Interest rate: Competitive
- Flexible repayment options
- No collateral required for loans up to INR 40 lakh
Related Reads: Collateral vs. Non-Collateral Education Loans: Which One is Better?
7. Federal Bank Education Loan
Federal Bank provides loans for meritorious students to pursue higher education abroad.
Highlights:
- Loan amount: Up to INR 20 lakh
- No security required for loans up to INR 4 lakh
- Easy documentation process
- Quick loan approval
8. Union Bank of India Education Loan
Union Bank of India supports students in technical, professional, and higher education programs.
Highlights:
- Loan amount: Need-based financing
- Covers tuition, travel, accommodation, and living expenses
- Repayment tenure: Up to 15 years
Eligibility:
- Indian citizen with secured admission to a recognized institution
9. IDBI Bank Education Loan
IDBI Bank provides study-abroad education loans with attractive interest rates.
Highlights:
- Loan amount: Up to INR 30 lakh
- Interest rate: 9% – 9.5%
- Repayment tenure: Up to 15 years
- 0.5% concession for female students
10. Canara Bank Education Loan
Canara Bank offers education loans for STEM courses with flexible repayment options.
Highlights:
- Loan amount: Need-based finance
- Interest rate: 9.4% – 9.9% (depending on collateral security)
- Repayment tenure: Up to 15 years
Choosing the Best Study Abroad Education Loan
While government banks generally offer lower interest rates, private banks and NBFCs provide customized plans based on the borrower’s profile. Students should compare:
- Loan terms
- Interest rates
- Processing fees
- Repayment options
- Collateral requirements
Conclusion
A study abroad education loan is a crucial financial tool that enables students to achieve their dreams of international education. With various loan providers in India offering competitive interest rates and flexible repayment options, selecting the best option requires thorough research and comparison. Before applying, consider factors like loan amount, interest rate, collateral requirement, and repayment tenure. For further assistance, connect with financial experts to ensure you make an informed decision.
