Top Education Loan Providers in India for Foreign Education

The immense opportunities provided in the field of education has been a major driving force in encouraging students to acquire better education both in India and abroad. However, talking about education from overseas, it is not an easy task to arrange for the required funds. You got to spend a massive lot of money to get a degree from the best of the universities abroad.

Thankfully though, there are a lot of banks in India that offer Educational Loans as well as Personal Loans at attractive rates to help students fulfill their career dreams.

Here is a quick rundown on top Education Loan providers for foreign education:

1. Axis Bank

Axis Bank is one of the premier lending institutions offering Education Loans to students. The whole process is completely seamless and hassle-free. They provide loans for students pursuing various undergraduate courses, diploma, professional education, and postgraduate courses. The loan covers student’s travel costs, expenses on books and stationery, library fee, etc besides the University fee.

You can avail Education Loan from Axis Bank for a maximum amount of Rs. 75 Lakh and a minimum amount of Rs. 50 Thousand.

The rate of Interest is based on MCLR and thus quite competitive. The effective rate of interest for Axis Bank Education Loan for foreign universities range from 13.7 % to 15.2 % p.a. The female students get a special concession.

Talking about loan margins, it is null for loans below 4 Lakh, but above 4 Lakh, it is 5 % for Indian universities and 15 % for studies in foreign universities. If you are applying for Education Loan in Axis Bank, you must have a parent or a guardian as a co-applicant, and this is done for a third party guarantee.

2. State Bank of India

State Bank of India is quite active in offering Students Loans for higher education in universities both in India and abroad. SBI offers Educational Loans for not only Postgraduate courses but for Graduation as well as Diploma courses. You can apply for Education loans varying from Rs 20 Lakh to Rs 1.5 Crore. The effective rate of Interest is 10.70%, and 0.50% concession is available for girl students as well as for beneficiaries of SBI RiNn Raksha or other such policy.

SBI offers SBI Global Ed-vantage Scheme, where you can pay out your Interest within the moratorium period, and in that case, once you start repaying your loan, you have to repay the principal amount you have taken!

Documents required for availing loans from SBI –

Admission letter from respective college or University

Application Form duly filled and signed

Detailed costs of the course

• KYC documents

3. Punjab National Bank

If you have got yourself enrolled in a foreign university, and admitted to the respective Graduate, Diploma, Postgraduate or a Professional Course, you can apply in Punjab National Bank via a special scheme named PNB Udaan.

The bank covers up all the extra expenses, including books and stationery, library fee, travel expenses, exam registration fee along with the educational expenses. PNB is unique in one aspect; it sanctions loans according to the applicant’s requirement. For loans above Rs 7.5 Lakh, the rate of Interest varies from MCLR+1.85% to MCLR+2.6%.

You must pay a margin of 15 %, but below Rs 4 Lakh, there is no such margin. You must pay a processing fee of 1 %, and you can select repayment options for up to 15 years.

4. HDFC Bank

If you haven’t yet secured a seat in your preferred University, but you would like to apply for a loan and get them beforehand, HDFC Bank would be a great option for the same. Here Education Loans are designed according to the foreign universities. You can apply for HDFC Education Loans for foreign education for Rs 20 Lakh and above, and the processing fee is up to 1.5 %. The bank is very much flexible about collateral and, the only condition here is that the borrowers and co-borrowers must be relatives, and they don’t have to stay at one geographical location.

5. IDBI Bank

IDBI Bank offers Educational Loans for a maximum amount of Rs 20 Lakh, and for an amount below Rs 4 Lakh, you don’t have to place any security or collateral. Here, the period of repayment is set with respect to the amount. Like if you apply for amounts lower than Rs. 7.5 Lakh, you can take up to 10 years, and otherwise, 15 years.

6. Canara Bank

Canara Bank also offers Education Loans that exclusively cover student expenses like library fee, books, and stationery along with the tuition fee. You can take loans up to Rs 20 Lakh, but you must provide collateral security if you need to apply for loans above Rs 7.5 Lakh. Now about the repayment period, it is similar to IDBI Bank, for an amount below Rs 7.5 Lakh, you can avail a loan for up to 10 years. And for the amount above Rs 7.5 Lakh, you can take loan for a maximum of 15 years. But you must provide a third party guarantee if you are acquiring loans between Rs 4 to 7.5 Lakh.

7. Bank of Baroda

Bank of Baroda has a special scheme known as Baroda Scholar Scheme, and if you have secured admission in any of the foreign universities, you can apply under this scheme. The bank loans to a maximum amount of Rs 20 Lakh and an interest of 15 % would be charged. There is no processing fee and no margin for loans up to 4 Lakh. Girl students avails 0.5% concession. 

The repayment tenure is as follows:

Above Rs. 7.5 Lakh- 15 years (Maximum)

Below Rs. 7.5 Lakh- 10 years (Maximum)

You require a third party guarantee for loans between Rs. 4 to Rs. 7.5 Lakh. The rate of Interest would be based on MCLR benchmark, i.e., up to MCLR +2.0%. 

Also Read: 7 Reasons Why a Personal Loan for Education is Recommended

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