Which Bank Is Best For Education Loan For Abroad?
4. Canara Bank: IBA Model Loan Product For Higher Studies Abroad – The Canara Bank offers abroad education loans under the IBA’s model loan product for higher studies in India and Abroad scheme. Students who wish to pursue their undergraduate, as well as postgraduate courses abroad are eligible to apply for an education loan for abroad studies under this Canara Bank education loan scheme.
|IBA Model Loan Product For Higher Studies Abroad||Canara Bank Abroad Education Loan Scheme|
|Maximum Loan Amount||Need-based financing. For studies in India: INR 10 Lakhs|
|Canara Bank education loan ROI||Up to INR 7.5 lakhs: 8.90% Above INR 7.5 lakhs: 8.50%|
|Eligible Courses||Undergraduate (Bachelors), Postgraduate(Masters), Ph.D., PG-Diploma Courses, etc.|
|Loan Tenure||Up to 15 years|
|Moratorium period duration||Course period, plus one year|
|Loan Margin||For loans of up to INR 4 Lakhs: Nil For loan amounts above INR 4 Lakhs -15%|
It is natural for anyone to be confused about choosing the right lender when so many options are available in the market. The financial team of WeMakeScholars is well-equipped to help students determine which bank has the lowest interest rate on education loans, along with other important factors, thus helping them in deciding the best bank for education loans as per their needs.
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- 0.1 Which Bank is best to take education loan for abroad?
- 0.2 Which Bank gives study loan easily?
- 1 Can we get 0% education loan?
- 2 Which proofs are required for education loan?
- 3 What are the disadvantages of educational loan?
- 4 What is the interest rate for abroad education loan?
- 5 Which type of student loan has the lowest interest rate?
Which Bank is best to take education loan for 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:
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.
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
Which Bank has lowest interest rate on education loan abroad?
Central Bank of India provides education loans to students to study in India and abroad with interest rates starting from 6.85%. The bank also offers concession rates for female students. Students can get generous loan amounts that help them cover all the expenses related to the courses. Interest Rates (p.a.)
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Which Bank gives study loan easily?
A loan given out to parents of an Indian national/residing student for schooling at a recognized institute. This loans covers other expenses such as purchase of books and computer/laptop required for education. Loan Amount: Rs.4 lakhs
This education loan is specifically designed Indian students pursuing graduation, post-graduation, or any other professional courses in India. To avail this loan, the student should have secured admission in the course. Loan Amount: Maximum Rs.125 lakhs Maximum Tenure: 10-15 years
An education loan scheme given for MBA, MCA, MS, and other notified courses that help with job creation. To avail this education loan in India, the student must have secured admission to the notified institute and course. Loan Amount: Maximum Rs.150 lakhs Maximum Tenure: 10-15 years
This student education loan is given to Indian nationals who have secured admission into premier educational institutions in India. The loan amount depends on the categorization of the institute. Loan Amount: Up to Rs.80 lakhs Maximum Tenure: 10-15 years
A loan designed for students pursuing technical courses. Any Indian national who has secured admission in a course run by Industrial Training Institutes or National Skill Qualification Framework., etc shall be covered by skill loan. Loan Amount: Rs.1.50 lakhs Maximum Tenure: Up to 7 years
Vidya Lakshmi is a first of its kind portal for students seeking Education Loan. This portal has been developed under the guidance of Department of Financial Services
A student can apply for an education loan and get loan subsidy by checking his eligibility under few government subsidy schemes.
This study loan is offered to resident Indians who must have secured admission in the institute and should be employed during the course of study. Loan Amount: Maximum of Rs.20 lakhs Maximum Tenure: 10-15 years
A study loan given for executive development programmes abroad. The student must have secured admission in the university and be employed while applying & during the course of study. Loan Amount: Up to Rs.80 lakhs
A loan that helps provide a meritorious student in the Delhi the opportunity to pursue higher education with the financial support from the banking system, within reasonable terms and conditions. Loan Amount: Maximum Rs.10 lakhs Maximum Tenure: 15 years
Education loan or student loan is a form of monetary assistance availed by students to meet the expenses associated with their studies. The student loan includes expenses related to school fees, post-secondary education or cost associated to higher education. Bank of Baroda offers various education loans at attractive interest rates with repayment tenure of up to 15 years. No collateral needs to be provided for education loans of up to Rs.40.00 lakh for the identified premier institutes. Maximum Education Loan limit is Rs.125.00 lakh for study in India and Rs.150.00 lakh for study abroad. Opting for an education loan reduces the strain on existing savings and eliminates the need to liquidate the existing investments. The interest on an education loan is eligible for a tax rebate under Section 80 E of the Income Tax Act 1961 To apply for education loan online one needs to visit the bank’s website The student applying for the education loan must be a resident of India. He/she must have confirmed admission in recognized educational institutes in India or abroad. For study in India one can get Education Loan up to – Rs.125.00 lakh For study abroad one can get Education Loan up to – Rs.150.00 lakh Starting from BRLLR+0.25 % for study in India & BRLLR+1.75% for study abroad. For Current ROI kindly visit our page. The education loan can be paid using any online channel like net banking, mobile banking etc. The Borrower will have also a choice to pay the Education loan by visiting the nearby branch. Co-applicant should normally be parent(s)/guardian of the student borrower. In case of a married person, joint borrower can be either spouse or the parent(s)/parents-in-law as a co-applicant for Education Loan.
: Education Loan
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Can I get visa on education loan?
Situation 1: Re-applying for a visa to study in the same country, university & course with an abroad studies education loan – One of the best policies adopted by most Indian lenders is that students can hold on to their sanction letters of an abroad study education loan for up to six months’ time.
- This is applicable to students who have borrowed a collateral-based, abroad studies education loan from government banks.
- In light of the present circumstances in which countries are rejecting student visa applications due to the scare of the COVID-19 pandemic, most NBFCs have extended this time period to one year for unsecured education loan borrowers.
So, the study abroad education loans of students who re-apply for their student visa within six months of their education loan being sanctioned are not affected at any cost, unless they plan to apply to another country/course post the first rejection of their student visa.
- Such students are not required to inform their respective banks regarding the student visa re-application.
- This is applicable to both, secured, as well as unsecured education loans.
- Instead, they can directly re-apply and provide the same abroad studies education loan sanction letter which was issued to them in the beginning.
If you are still confused about re-applying for your student visa, or need further clarification regarding the above steps, do not hesitate to reach out to the financial team of WeMakeScholars.
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Can we get 0% education loan?
Education Loan At 0 Interest – It is not possible to get an education loan at 0 interest. Banks have their highest percentage of Non-Performing Assets (NPAs) from the product of education loan itself. And so, there also is much scrutiny for student loans from the lender’s side.
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Which loan is better for students?
Quick Guide: Which College Loans Are Best? Taking out a loan means paying regular charges called interest. You can save money by choosing a loan with a low interest rate. A low interest rate means you’ll have to pay back less money in the long run. A subsidized loan is your best option.
Federal Perkins Loans Colleges may award these loans to students with the highest financial need, using federal government money. The 5 percent fixed interest rate is low, and you don’t make any loan payments while in college. You can borrow a total of $27,500. Federal Direct Subsidized Loans These need-based loans have a low interest rate of 3.73 percent, and the government pays the interest charges while you’re in college. This interest rate is fixed, which means it will not change over time. You can borrow up to $3,500 your freshman year, and this limit increases to $4,500 for your sophomore year, and $5,500 each for your junior and your senior year. Federal Direct Unsubsidized Loans These non-need-based government loans also have a fixed interest rate of 3.73 percent. But they allow you to borrow more money than a Direct Subsidized Loan alone. You can pay the interest while you’re in college or add it to the amount of your loan. The second option means you’ll end up paying more money over time. Federal Direct Plus Loans These non-need-based government loans allow parents (and graduate students) to borrow the total cost of attending college, minus any other aid received. They have a 6.28 percent fixed interest rate. Private (Alternative) and State Loans These loans from banks, colleges, private organizations and state government agencies usually are not need based or subsidized. They may require good credit, which often means an adult with good credit must cosign the loan. Interest rates on these loans are often higher than on federal loans, and the rates may rise over time. These loans may also have terms that are not as favorable as those of federal loans.
This article is intended for informational purposes and is not intended as tax or financial advice. : Quick Guide: Which College Loans Are Best?
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Which bank is best for Indian students studying abroad?
Canara Bank – The Canara Bank education loan covers university fees, travel costs, exam fees, lab fees, library fees, book/equipment fees and other related expenses. Education loan has to be taken with a co-borrower and 100% collateral security is required for loans above Rs.7.5 lakhs. Highlights of C anara Bank education loan for abroad
Maximum loan amount: Need-based finance Loan margin: 15% for loans taken above Rs.4 lakhs Repayment tenure: The repayment period is of maximum 15 years Security: Not required for loans below Rs.4 lakhs. For loan amounts above Rs.4 lakhs, tangible collateral security is required Interest rate: Collateral Security 100% and above – 9.4%, Collateral Security 75% to 100% – 9.65%, Collateral Security less than 75% – 9.9%
Everything You Need to Know About Education Loan Collateral for Education Loan: Everything You Need to Know Know the A to Z of Study Abroad Loans: All Terms and Their Definitions
How much bank balance is required for a student visa?
THIS BLOG INCLUDES: # How Much Bank Balance is Needed for Student Visa to Other Countries 1. UK Student Visa 2. Germany Student Visa 3. Canadian Student Visa 4. Australian Student Visa For student visa applications to any part of the world, you will have to mandatorily present proof of sufficient funds to finance your education, accommodation, travel, and general requirements.
While it is not specified, for US student visa applications, you must have a minimum balance of $10,000 to get an F1 visa. It is usually said that your bank account must show at least 1.5 times the amount mentioned in your I-20 form or a minimum of 10,000 USD to be considered eligible for the F1 visa.
However, if you are being sponsored by your employer/family/parents, have received a scholarship and/or grants, or have taken out an education letter, you will have to submit due documents to prove the same. If you are being sponsored by a relative, you must mention the relation to the same relative in your application form.
The form I-20 is proof of finance that you need to submit along with your USA visa application. Ideally, only liquid cash is accepted as proof of finance by the US universities and embassies. To show this fund, you can attach a receipt of your salary slips, your ITR statement, your fixed deposits, duly attested by your respective bank, your savings bank statement of three months to a year, duly attested by your respective bank, your PF/PPF/passbook statements, duly attested by your respective bank, and property papers.
If you do not happen to have sufficient funds in liquid cash, you can present a Solvency, Sponsor, or Loan Letter. The solvency letter is particularly effective if you plan to take out an educational loan later. With the Sponsor loan, you can provide a certification from the bank, based on an analysis of your credit history, credit score, and assets, of your ability to take out a loan soon.
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What are the proof need for education loan?
Documents for Education Loan for all other Individuals –
KYC documents Bank Statement / Pass Book of last 6 months Optional – Guarantor Form Copy of admission letter of the Institute along with fees schedule Mark sheets / passing certificates of S.S.C., H.S.C, Degree courses
Which proofs are required for education loan?
Documents Required from Co-Applicant if Self-employed (Professionals/Individual): –
- Address proof
- Identity proof
- Last 6 months bank statement
- Last 2 years Income Tax Returns
- Proof of office (any one of the following : lease deed, utility bill, title deed)
- Any other income proof that is not reflected in the above mentioned documents
What are the disadvantages of educational loan?
Advantage of Education Loan | Disadvantages of Education Loans in India With ever increasing price of quality education, the cost of studying at a reputed institution is already quite expensive. According to a recent study, the cost of modern education is increasing rapidly at an average of 12-18% per annum.
People of all classes can get an Educational Loan irrespective of their source of income.
In short, no finding the middle ground with the value of education one receives.
An Education Loan can indirectly instil a sense of responsibility in the students from the very beginning of their career. Now-a-days banks and private or public organizations have made it really easy to avail Education Loan. After all the document verification, an Education Loan is generally issued within a week. These loans have comparatively low interest rates to ease the repayment by the students. A tax benefit on this loan is a good way to invest the amount somewhere else. A loan borrower is given a holiday period commonly called the Moratorium period after the completion of the course to find a job for himself after which he can start repaying the loan back. In some cases, the repayment period is also extended at special request of the borrower. For girl children and persons with disability, a few public banks offer a 0.5%-1% interest subsidy for Educational Loans in India.
Disadvantage of Education loan :
The banks ask for the mark sheet before disbursing the loan, so it is important to maintain a good academic record. (Now that you know, don’t let this be a disadvantage factor in your case). The Education Loan has a floating Rate of Interest with a variable index which changes with time. Depending on banks and type of loans that one is taking, the interest rate may change. Loans below 4 lakhs require no guarantor but for the ones above this amount a guarantor is mandatory. Obtaining an Education Loan for courses which doesn’t guarantee much employment rate is a complicated task. So banks can refuse a student this loan if he/she is taking admission to “mere degree granting colleges”. A few banks does not allow for change of course or college after the reimbursement of loans. Do check with the bank before applying for the loan.
The advantages of student loans definitely overpower the disadvantages of Student Loan helping the students to carry on their career responsibly for their better future. Parents can invest in their own lives or business to secure the future of the family and their children.
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What happens if education loan is not repaid?
FAQs – How to repay an education loan? – Education loan repayment is not an extensive process. You can contact your bank manager or lender, who will note your account details and start your repayment on an auto deduction mode. How do I get education loan? – You can get education loan from banks and digital lenders.
- Some of the banks offer lowest education loan interest rates,
- You also have education loan for CA students as directed by ICAI.
- What happens if you cannot pay an education loan? – If you cannot repay your education loan, you will get notices and warnings from your lender.
- If you fail to comply with them, you will be declared a defaulter.
It will be then tough for you to secure any other kind of loan for a considerable time. What happens if I don’t pay my education loan in India? – If you do not pay your education loan in India, the lender will start sending notices to you and your guarantor, if there is one. Or Click Here to Apply for Instant Personal Loan from the PaySense Website.
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Is it difficult to get student loan?
Easily available: Education loans are widely and easily available. In fact, they are a priority product in all banks as per the RBI’s guidelines. Varied loan amounts: Banks can offer loans anywhere between Rs.2 lakh and Rs.
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What is the interest rate for abroad education loan?
Abroad Education Loan Interest Rate in 2022
|1.||State Bank of India||Starts @ 9.05 % p.a.|
|2.||Bank of Baroda||Starts @ 9.7% p.a.|
|3.||Axis||Starts @ 10.5% p.a.|
|4.||ICICI||Starts @ 10.5% p.a.|
Which type of student loan has the lowest interest rate?
The interest rate on subsidized loans is one of the lowest you’ll find, and no co-signer is required. All eligible undergraduate borrowers qualify and they receive the same rate regardless of credit history.
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