How To Apply For Education Loan To Study Abroad?


How To Apply For Education Loan To Study Abroad
To apply for a student loan, follow these steps –

Check to see if the banks recognize the course you intend to take.Determine how much loan you will require and how much you will arrange.Compare the student loans various banks offer for studying abroad and choose the one that best meets your needs.Fill out the loan application form and visit your bank after you’ve decided on a bank and a loan amount.The bank will issue a loan document outlining the loan terms when your loan is approved.Following the signing of the loan agreement, the bank will disburse the funds in installments or as requested by the university.

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How can we get education loan for study abroad?

Education Loans for Studying Abroad – FAQs – What is the maximum loan amount you can get for studying abroad? As such, there is no limit set by the banks for offering education loans to students wanting to study abroad. It depends from bank to bank. The majority of the banks offer loans of up to INR 20-30 lakhs.

  • Also, if the loan amount is more than INR 20 lakhs then the interest rate also increases.
  • For which type of courses, do banks offer education loans for studying abroad? Generally, banks and NBFCs prefer to give loans for undergraduate and postgraduate courses.
  • Also, the majority of banks prefer to give education loans abroad for pursuing job oriented and professional courses.

Which is the best bank to receive an education loan for studying abroad? Popular banks providing education loans to students wanting to study abroad include HDFC, State Bank of India (SBI), Axis Bank, ICICI Bank, Punjab National Bank and the Bank of Baroda to name a few.

Can I get an education loan without any collateral? Students can avail of a loan of up to INR 4 lacs without collateral. For loans, up to INR 7.5 lacs, parents or guardians are made joint borrowers and a third party guarantee is obtained. For a loan exceeding INR 7.5 lacs property or any other asset is required as collateral.

Can I get the total cost of studying abroad as an education loan? Private banks and private lenders like Non-Banking Finance Companies (NBFCs) do cover the full cost of studying abroad. However, public banks may ask the students to cover 10-15% of the cost through self-financing the rest would be taken care of with the education loan.
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Which education loan is best for study abroad?

Documents required to take education loan from SBI –

Proof of Identity Proof of Residence/ Address Valid Passport Academic Records Proof of admission Statement of cost of study Two passport-size photographs

Some other Top Education Loan Providers in India to study abroad are:

ICICI Bank Union Bank of India J & K Bank Bank of Maharashtra Bank of Baroda Central Bank of India Bank of India

Allahabad Bank The Allahabad Bank offers education loans to Indian nationals who secure admission to professional or technical courses in recognized institutions abroad through the entrance test or merit-based selection process after completion of HSC (10 plus 2 or equivalent). The study abroad courses eligible for the Allahabad Bank Education Loan are :

Graduation: For Job oriented professional or technical courses offered by reputed universities Post Graduation: MCA, MBA, MS etc Courses conducted by CIMA London, CPA in USA etc Regular Degree or Diploma courses like Aeronautical, pilot training, shipping etc, the Institute duly recognized by the competent university, State Body, Local Aviation, or Shipping Authority. The quantum of the loan provided is need-based subject to repaying capacity of the parents or students with a ceiling of Rs.20 Lacs.

Axis Bank Axis Bank The features of the Axis Bank Education Loan for Education are:

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Education loans up to Rs.75 lacs are provided. No collateral is required for loans up to Rs.40 lakhs for Prime A category (Postgraduate studies) No collateral is required for loans up to Rs.15 lakhs for Prime B category (Undergraduate studies) 65 per cent of the loan amount should be produced as collateral is required for the Non-Prime category.

Axis Bank’s Education Loan aims to provide financial support to deserving students for pursuing higher professional or technical education in India and abroad. The education loan is provided to students who have obtained admission to career-oriented courses e.g.

  • Medicine, engineering, management etc., either at the graduate or post-graduate level.
  • For students aspiring to study abroad, axis bank education loan is an option for funding.
  • Axis bank is one of the few private banks that offer in-house financing to Indian students aspiring to study abroad or in India.

The education from Axis bank will be provided to those students who have obtained admission to career-oriented courses like medicine, engineering, management etc., either at the graduate or post-graduate level. Below is the criteria students need to fulfil to be eligible for Axis bank education loan-

Secured at least 50% marks during Higher Secondary School and Graduation, if applicable Secured admission to a graduate or postgraduate course in India or abroad through an entrance test or merit-based selection process

Punjab National Bank (PNB) The PNB offers the PNB Saraswati scheme for providing education loan to meritorious students to pursue higher professional and technical education in India and abroad. The major aspects of the PNB education loan scheme are:

Courses approved.Quantum of Finance: need based. Graduation: For job oriented professional or technical courses offered by reputed universities. Post graduation: MCA, MBA, MS, etc. Courses conducted by CIMA – London, the CPA in the USA etc. Degree or Diploma courses like Aeronautical, pilot training, shipping etc. provided these are recognized by competent regulatory bodies abroad for the purpose of employment in India or abroad. Repayment period: up to 10 years for loans of Rs.7.50 lacs or below and up to 15 years for loan above Rs.7.50 Lacs The margin of 5% for loan above Rs.4 Lacs

IDBI Bank Expenses Covered under Education Loan by IDBI Bank:

Fee payable to college / school / hostel Examination / Library / Laboratory fee Purchase of books / equipment / instruments / uniforms Caution deposit / building fund / refundable deposit supported by Institution bills / receipts Travel expenses/passage money for studies abroad Purchase of computers – essential for completion of the course Any other expense required to complete the course – like study tours, project work, thesis, etc. Insurance premium for student borrower, if insurance cover sought

IDBI Bank offers education loan to deserving and meritorious students for pursuing higher education in India and abroad. The facility is also being offered to the meritorious students who have secured admission through Management Quota. The quantum of finance is a maximum of Rs.20 lacs for studying abroad.

Cosmos Bank Lakshmi Vilas Bank DCB Bank Abhyudaya Co-Operative Bank Ltd Karur Vysya Bank Vijaya Bank United Bank of India State Bank of Hyderabad Indian Bank Andhra Bank Punjab & Sind Bank Oriental Bank of Commerce Tamilnad Mercantile Bank

HSBC Bank HSBC, in affiliation with Global Student Loan Corporation, offers education loan to students who are seeking to attain a world-class education at a college or university in the USA. HSBC India Student Education Loan Program enables students to borrow funds to cover the cost of education – tuition, fees, room charges, boarding, books, and other education-related expenses.

Some of the special features of the HSBC education loan to study abroad offered are that up to Rs.1 crore is given against residential property and the tenure is up to 15 years. Indian Overseas Bank (IOB) The IOB provides education loans to Indian nationals who have secured admission to professional or technical courses abroad.

The loan is offered only for Graduation and Post Graduation Courses offered by reputed universities. The quantum of loan available is up to Rs.40 lacs for studies abroad. The repayment period is for a maximum period of 5 – 7 years excluding holiday period of six months after getting the job or 12 months after completion of the course, whichever is earlier.

Avanse Financial Services Avanse provides education loans to Indian citizens above 18 years of age for pursuing graduation or post-graduation for job oriented professional or technical courses offered by reputed universities outside India as well as courses and universities approved by Avanse for education financing.

With a minimum amount criterion of Rs.1 lacs, and maximum 40 lakhs. The loan amount is calculated as per need. The repayment period can be 12 month to ten years depending on the loan amount. Syndicate Bank The Syndicate Bank’s comprehensive Education Loan Scheme, SyndVidya, provides need based finance to cover expenses related to education such as fees payable to college, hostel, examination, library, laboratory fees, caution deposit, building fund, or refundable deposit up to 10% of tuition fee, cost of books, equipment, travel expenses for studies abroad etc.

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Graduation: for job oriented professional or technical courses offered by reputed universities Post-graduation: MCA, MBA, MS etc. Courses conducted by CIMA-London, CPA in USA etc.

Canara Bank The Canara Bank offers education loans to study abroad for job oriented, technical or professional graduation and post-graduation courses. The quantum of finance is up to Rs.40 lacs and the repayment period is up to 10 or 15 years depending on the loan amount. Also read:

SBI education loan Education loan to study in UK Education loan to study in Ireland

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Can I get loan for abroad studies?

In foreign education loans without collateral, students can apply for study loans of up to INR 45 Lakhs. This loan amount limit can increase or decrease depending on the applicant’s and co-applicant’s profile, country, course, etc.
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Is student loan interest free?

The interest added depends on what you earn Student loan interest rates are usually based on the RPI rate of inflation (the rate at which prices rise). While studying, until the April following graduation, you’re charged RPI + 3%. After that it depends on your annual earnings
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How is education loan repaid?

Plan To Repay –

In case of SBI Student loans, repayment will start after the completion of course period and moratorium period (Repayment commences one year after the course completion or 6 months after securing a job, whichever is earlier). The Loans are sanctioned as Term Loans and to be repaid in EMIs over a maximum repayment term of 15 years (180 EMIs) for Student, Scholar and Global Ed-vantage Education Loans. The repayment of EMI starts 12 months after the completion of the course or 6 months after getting the employment, whichever is earlier for Student and Scholar Loan Schemes. In case of Global Ed-Vantage Loans, repayment of EMI starts 6 months after the completion of the course. The accrued interest during the moratorium period and course period is added to the principle and repayment is fixed in Equated Monthly Installments (EMI). If full interest is serviced before the commencement of repayment; EMI is fixed based on principle amount only. There are NO penalty charges for prepayment. You can prepay your education loan anytime.

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How much percentage is required for study loan?

Eligibility –

  • Applicant can be an Indian citizen or an NRI, but the co-applicant must be an Indian citizen.
  • Admit letter for the approved courses from the relevant authorities.
  • Must have secured at least 50% in Higher secondary and Graduation.
  • Co-applicant’s CIBIL score should be >600
  • University or college should be in the bank’s categorical list of educational institutions.
  • Co-applicant’s salary should be sufficient to pay simple interest during the moratorium period.
  • Co-applicant must have either 3 years of ITR or 2 years of Form-16.

Apply For Axis Bank Education Loan
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Can I get education loan without income proof?

The Bank of Baroda – The Bank of Baroda is another major lender of education loans in India and is emerging as a competitive lender in the education loan market. The Bank of Baroda offers abroad education loans under the Baroda Scholar Scheme. The Bank of Baroda has categorized universities into two different lists, called the prime list and the non-prime list, on the basis of their worldwide ranking and the courses offered by them.

  • Now, the most important point to be noted is that the interest rates and loan amounts offered to students seeking abroad education loans from the Bank of Baroda vary, depending on which of the above lists, the chosen course and the college belong to.
  • If you apply via the online process, it will be processed within 14 days.
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Here’s an overview of the same:

Important Points Prime University List Non- Prime University list
Interest Rate 9.45% (Female Students)9.95% (Male Students) 10.2% (Female students)10.7% (Male students)
Loan Amount Rs.8 Lakhs to Rs.80 Lakhs Rs.8 Lakhs to Rs.60 Lakhs
Loan Margin 0% 10%

Other important factors like the moratorium period, processing fees, loan tenure, repayment period, etc. are similar for institutes belonging to both the lists. Apply online for Bank of Baroda education loan online for faster processing.
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What is the maximum student loan limit?

$57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans. $138,500 for graduate or professional students -No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.
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How much income is required for education loan?

4. Income Amount – The income of your co-applicant doesn’t matter for a collateralized loan from government banks. However, as with private lenders (except international lenders), the income of a co-applicant is of great importance as they are required to initially pay the accrued interest during the moratorium period.
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How much study loan can I get to study abroad?

Education Loan for Abroad/Overseas Studies – Documents,Interest, Eligibility How much education loan can I get? You can avail of an education loan of a minimum of Rs.4 lakhs to a maximum of Rs.40 lakhs, or sometimes according to your requirement. How to get an education loan for abroad studies? To apply for an education loan for abroad studies, you must be a citizen of India and at least 18 years of age or have a parent/guardian representative.

You must also have an acceptance letter/ admission script from a recognized foreign university. How much student loan can I get in India? According to RBI guidelines, the cap amount for abroad education loans in India is Rs.40 lakhs. However, some private banks do offer nearly Rs.75 lakhs with certain collaterals.

How much education loan can get I for studying abroad? You can get an education loan between Rs.4 lakhs to Rs.40 lakhs to study abroad. However, some private banks offer more upper limit in loans, according to your requirement, with some terms and regulations.
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Can I get 20 lakhs education loan for abroad?

20 lakh for programs abroad. According to the rules, collateral security is not needed for loans up to Rs.4 lakh. Only when the loan surpasses a predetermined sum determined by the bank will collateral and a third-party guarantee be necessary.
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Which bank provide loan for study abroad?

Loan Scheme By National Bank Of Pakistan – NBP is providing study abroad loan to a number of Pakistani students in collaboration with other private banks like HBL, ABL, and MCB. NBP has different criteria for selection of students for different study programs. Students must have an excellent educational record.
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Can I get 20 lakhs education loan without collateral for abroad?

Top Lenders to Apply for Education Loan without Collateral – Lenders available for a loan without collateral to study abroad can be categorised into public and private lenders. Some prominent lenders include:

Public banks like SBI, Bank of Baroda, etc offer applicants with a loan of upto 7.5 Lakhs without collateral. Private banks like Axis Bank, ICICI Bank, HDFC, etc offer students a loan amount upto 40 lakhs without collateral. Private banks also have a repayment period of around 10-12 years, and an interest rate between 10-12%. Other lenders include NBFCs (Non banking financial companies) like Incred and Auxilo, which offer students with an abroad study loan without security of upto 40 lakhs, with a rate of interest between 10-18%. There are also some foreign lenders available like Leap Finance, Prodigy Finance, etc. these lenders support applicants by offering an overseas education loan without collateral of upto 80% of the total expenses. The interest rates are observed to lie between the range of 10-16%.

Know more about: HDFC Credila Education Loan This video talks about the various types of education loans- with collateral and without collateral, along with the most prevalent lenders in the market!
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