In this article, we are discussing How To Get an Education Abroad Loan In India.
Finances should never be a hindrance to your dream. Ritu- a typical middle-class Indian girl took out Education Abroad Loan, enrolled in the best university abroad, and retrained for a new career. So are you someone looking forward to study abroad but is finance holding you back from fulfilling your dream of studying abroad? Then this article is for you!
Education Abroad loan help students, irrespective of their financial status, realize their dream of studying at one of the best universities in the world. So secure your future by getting complete information about flexible Education Abroad Loan in India. So, Are you looking for an education abroad loan but don’t know how to start? Keep on reading this article to know more about How to get Education Abroad Loan in India. And make Education Abroad Loan your partner in Crucial times.
7 Super-Amazing Benefits of Education Abroad Loan
Education Abroad Loan should not be treated as a loan but as an investment that lets you study the course of your choice from a top-ranking institute. Listed below are the 7 Super-Amazing Benefits of Education Abroad Loan-
- Lower Interest rates
- Long moratorium period
- Tax benefits
- Save funds, stay liquid
- Builds financial discipline
- Multiple expenses covered
- Build your CIBIL score
Features of Education Abroad Loan
- Any individual aged between 18 to 35 years can avail of an education loan to pursue studies abroad at any approved university.
- Students can easily get education abroad loan for management courses, engineering courses, medicine, graduate and postgraduate, etc.
- Borrowers have to get in a margin of 5% to 15% for loans taken for abroad studies.
- In the time of the moratorium period, borrowers have to pay the interest, with the principal payment beginning when the loan tenure begins.
- Education Abroad loans can be paid in monthly installments through Electronic Clearing Service or post-dated cheques to the bank.
- A co-applicant has to be picked for education loans taken for full-time courses. Co-applicants can include parents, siblings, spouses, or other family members.
- The Government of India has also introduced an Education Loan Interest Rate Subsidy Scheme for the weaker section of society.
Education Abroad Loan in India - Expenses Covered
Following expenses are generally covered by Education Abroad Loan-
- Fees for admission, tuition, and examination
- Books, stationery, and equipment (computers, etc.)
- Airfare for joining the course abroad
- Hostel or boarding costs
- Insurance premium, if opted by the student.
- Additional costs like study tours, research costs, etc.
Education Abroad Loan In India- Eligibility Criteria
Provided below are the general terms and conditions that are usually followed by any bank in the process of granting an education abroad loan in India -
- The candidate must be an Indian national.
- If the applicant is under 18 years old, then his or her parents will have to take out the loan.
- The candidate must have a strong academic record.
- The candidate must have been accepted to a reputable overseas university, institution, or college.
- Since banks favour courses that are job-oriented, the applicant's chosen course must be technical or professional in nature.
Education Abroad Loan in India - Documents Requirements
The following documents are required to apply for an Education Abroad Loan in India-
- Application form
- Passport size photographs of the applicant and the co-applicant.
- Photo ID of the applicant and the co-applicant. It can be a PAN card, driving license, Voter ID card, Aadhar Card, or Passport.
- Resident proof of the applicant and the co-applicant
- Academic documents:
- Mark sheet and certificates of the applicant
- Mark sheet of GRE, GMAT, TOEFL, IELTS, etc. whichever is applicable
- Admission letter shared by the university or college.
- Last six months bank statements of the co-applicant
- Income proof of the co-applicant
- In the case of collateral (immovable property), it can be flat, home, or non-agriculture land the following documents are required:
- Property title deed
- Building approved plan
- NOC for a mortgage from a builder or society
How To Get Education Abroad Loan In India - Step-by-Step Process
- Check whether the course you are opting for is recognized by the banks or not.
- Find out how much loan amount you require and how much you can arrange on your own.
- Compare the loan provided by various banks for studying abroad and check which is the best for your needs.
- After choosing the bank and the loan amount, fill out the loan application form and approach your bank.
- When your loan is approved, the bank will issue a loan document that includes various components of the loan.
- After signing the loan document, the bank will disburse the amount in instalments or as asked by the university.
Important Tip : Application for Education Abroad Loan, approval and disbursement, the entire loan process is time-consuming. So it is always advisable to apply for a loan a little early.
Looking to study abroad but need financial assistance? Discover how to secure an education loan without the need for collateral by following our step-by-step guide. Explore various options, eligibility criteria, and essential tips to make your dream of studying abroad a reality. Don't let financial constraints hold you back, read our article now!
Top Banks in India Offering Education Abroad Loan
The State Bank of India: SBI Global Ed-Vantage Scheme
Loan Amount Range -
Above INR 7.5 lakhs -up to INR 1.5 Crore
Interest rate -
10.90% (effective ROI as of 21-1-2023)
0.5% concession granted to female candidates
0.5% concession granted to students availing of Rinn Raksha Loan Insurance Scheme
Total Loan Tenure -
Up to 15 years
Processing Fees -
Rs. 10,000 + Legal & Valuation Fees
Total Expenses covered by the education loan -
Tuition Fees, Living expenses, Study aid expenses, travel expenses, library fees, etc.
The Bank of Baroda: Baroda Scholar Scheme
Loan Amount Range -
1.5 Crore For Universities in the premier list
Up to INR 60 Lakhs For Universities in the non-premier list
Interest Rate -
10.60% For Universities in the premier list
11.25% For Universities in the non-premier list
Total Expenses Covered by the education loan-
Tuition + All expenses related to the candidate’s course
Total Loan Tenure -
15 Years
The Punjab National Bank: PNB Udaan Scheme
Loan Amount Range -
Need-based finance
Interest Rate -
11.75%
Total Expenses Covered-
All expenses related to the course abroad
Processing Fees-
1% minimum INR.10000/- (Refundable after 1st Disbursement)
Total Loan Tenure-
Up to 15 years
Canara Bank: IBA Model Loan Product For Higher Studies Abroad
Loan Amount-
Need-based financing. For studies in India: INR 10 Lakhs
Interest Rate-
11.15%
Loan Tenure-
Up to 15 years
Eligible Courses
Undergraduate (Bachelors), Postgraduate(Masters), Ph.D., PG-Diploma Courses, etc.
HDFC Education Loan
Loan Amount -
Rs. 20 Lacs +
Interest Rate -
9 – 14 %
Loan Tenure -
15 Years
To avoid the last-minute rush, the bank offers study loans abroad even before the student has secured admission to the university.
Axis Bank
Loan Amount -
20 lakhs
Interest rate -
Competitive interest rates.
Total Expenses Covered-
Covers different costs like tuition, accommodation, and books.
Loan Tenure-
15 years
Things to Remember When Taking Education Abroad Loan
Moratorium Period
Loan Margin
Exchange Rate
Collateral Rules of Loans for Study Abroad
Guarantor Obligations
Maximum Loan Amount
Conclusion
Studying abroad is a once-in-a-lifetime chance to experience new things you should not miss. Education Abroad Loan has become a significant relief for those who want to pursue quality education but face a substantial challenge while arranging the funds. This article covers all details regarding How To Get an Education Abroad Loan in India. We hope you like this article!
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