Although a number of scholarships and other financial aid options exist for study abroad aspirants, not all students become eligible for them. As a result, education loans are seen as one of the important parts of the study abroad plan of a student. Education loans for studying abroad are provided by almost all the major banks in India. We present below names of some of the Top Education Loan Providers in India for study abroad aspirants.
Top Education Loan Providers in India to Study Abroad
|Name of Bank||Loan Amount||Rate of Interest per Annum|
|State Bank of India||20 lakhs||Upto 7.5 lakhs- 11.01%
Above 7.5 lakhs- 10.75%
|Allahabad Bank||50 lakhs||Upto 4 lakhs- 11.45%
Upto 7.5 lakhs- 11.45%
|Axis Bank||20 lakhs and beyond depending on requirement||Upto 4 lakhs- 16.50%
Upto 7.5 lakhs- 17.50%
Above 7.5 lakhs- 15.50%
|HDFC||Upto 10 lakhs||Max-15.25%
|Credila||No limit. Depends on requirement||12.10%+ floating rate(depends on the risks points of the applicant)|
|Punjab National Bank (PNB)||20 lakhs||Upto 7.5 lakhs- 11.25%
Above 7.5 lakhs- 11.85%
for education at premier foreign universities- 9.85%
|IDBI Bank||Depends on requirement||Upto 10 lakhs-10.45%
Above 10 lakhs-11.45%
|Indian Overseas Bank (IOB)||Upto 40 lakhs||Upto 4 lakhs- 11.50%
Upto 7.5 lakhs- 12.00%
Above 7.5 lakhs- 12.25%
|State Bank of Mysore||Upto 40 lakhs||Upto 4 lakhs- 12.20%
Upto 7.5 lakhs- 12.20%
Above 7.5 lakhs- 11.20%
Above 10 lakhs- 11.70%
|Avanse Financial Services||No limit. Depends on requirement||11.5%+ floating rate(depends on the risks points of the applicant)|
|Syndicate Bank||20 lakhs||Upto 4 lakhs- 11.00%
Upto 7.5 lakhs- 11.25%
Above 7.5 lakhs- 12.25%
|Canara Bank||20 lakhs. Depends on requirement||Upto 4 lakhs- 11.15%
Upto 7.5 lakhs- 11.65%
Above 7.5 lakhs- 11.15%
Government of India
In consultation with Reserve Bank of India (RBI) and Indian Bankers’ Association (IBA), the Government of India has framed a Comprehensive Educational Loan Scheme. The new scheme covers all type of courses, including professional courses in schools and colleges in India and abroad.
The salient features of the scheme related to study abroad are:
- The scheme envisages loans up to Rs. 15 lacs for studies abroad.
- For loans up to Rs. 4 lacs, no collateral or margin is required and the interest rate is not to exceed the Prime Lending Rates (PLR). For loans above Rs. 4 lacs, the interest rate will not exceed PLR plus 1 percent.
- The loans are to be repaid over a period of 5 to 7 years with provision of grace period of one year after completion of studies.
State Bank of India
The State Bank of India offers the SBI Student Loan Scheme for Indian nationals to pursue their education abroad. The education loan for studying abroad is provided for job oriented professional, technical Graduation Degree courses, or Post Graduation Degree and Diploma courses like MCA, MBA, MS, etc offered by reputed universities.
For studying abroad, the maximum amount of loan given is Rs. 30 lacs and the repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier. The repayment period varies from 10 years to 12 years depending on the loan amount.
|Some other Top Education Loan Providers in India to study abroad on similar terms as that of Allahabad Bank Education Loan are:
The Allahabad Bank offers education loans to Indian nationals who secure admission to professional or technical courses in recognized institutions abroad through 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 loan provided is need based subject to repaying capacity of the parents or students with a ceiling of Rs. 20 lacs.
The features of the HDFC Bank Education Loan for Foreign Education are:
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.
The quantum of finance under the Axis Bank Education Loan scheme is capped at Rs 20 lacs for studies abroad, which would cover tuition fees, hostel charges (if any), cost of books, etc. The minimum amount of education loan is Rs 50,000. There is no margin for education loans up to Rs 4 lacs, and for loans above Rs 4 lacs there is 15% margin for studies overseas.
Credila is a non bank finance company exclusively focused on education loans. It is a subsidiary of HDFC Ltd.
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 pointers of the PNB education loan scheme are:
- Courses approved:
Quantum of Finance: up to 20 lacs
- 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.
- 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
- Margin of 15% for loan above Rs. 4 lacs
|Expenses Covered under Education Loan by IDBI Bank:
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. The repayment period is from 10 to 15 years. Find below the IDBI Bank education loan Rate of Interest table.
|Loan amount||Rate of Interest|
|Loans qualifying as Priority Sector Lending(PSL) :
Up to Rs. 20 lacs for studies Abroad
|BR+1% (currently 11.25%)
|Loan amounts not qualifying as Priority Sector Lending(PSL) :
Above Rs. 20 lacs for studies abroad
|BR+2% (currently 12.25%)
|Given below is a list of few other Education Loan Providers in India to study abroad.
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 Programme 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.
State Bank of Mysore
The State Bank of Mysore’s Gnanamitra Educational Loan scheme provides loans to students to cover tuition and other fees, maintenance costs, or books and equipment and cost of passage for studies abroad etc., for pursuing studies at recognised school, college or institution. The courses eligible for the loan are diploma, graduate, post-graduate courses in the faculties of Engineering, Technology, Architecture, Medicine, Dental Science, Agricultural Science, Veterinary Science and Computer Certificate courses of reputed institutes accredited to department of electronics or affiliated to university. The maximum amount of loan given is Rs. 20 lacs.
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, there is no maximum limit and the loan amount is calculated as per need. The repayment period can be 12 to 120 months depending on the loan amount. Click here to get the details of availing education loan from Avanse.
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, equipments, travel expenses for studies abroad etc. Only capitation fees, donation or external coaching fee are not covered. The loan scheme has a maximum limit of Rs.20 lacs for overseas courses. The repayment period is five to seven years. The study abroad courses eligible for the SyndVidya scheme 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
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. 20 lacs and the repayment period is up to 10 or 15 years depending on the loan amount.
article : studyabroad.careers360.com