How to get an Education Loan for Abroad Studies Studies
How to get an Education Loan for Abroad Studies
When it comes to study abroad it requires strong finances. As studying abroad is not only about tuition fees, but it also includes living expenses, travel expenses, and other essential costs. In addition, even before securing admission to foreign universities, you must prove that you have the funds to pay for your student life abroad. And here, an education loan comes to help you.
It is a facility provided by numerous banks and financial institutions to assist you in pursuing your dreams.
Here, in this blog, we’ll talk all about education loans in India to study abroad.
Types of Education Loans – Secured and Unsecured
In India, you can get two types of education loans. Secured and Unsecured.
Secured loans are those types of education loans which are provided to you when you pledge any valuable asset or property for security as collateral. At the same time, an unsecured loan is a loan without collateral.
A collateral loan or secured loan assures the lender of the repayment of the loan amount. At the same time, it helps the borrower get a loan at a low-interest rate for a longer tenure.
Unsecured loans allow even those students to get loans who have a low budget. However, to secure an unsecured loan, a student must qualify for the eligibility criteria like strong educational background, high credit score of co-applicant, etc.
Type of Lenders to Get Education Loan From
#1. Public Sector Banks
Public sector banks like Bank of Baroda, Indian Bank, Bank of India, SBI, Bank of Maharashtra, Canara Bank, CBI, Indian Overseas Bank, UCO Bank, Union Bank of India, etc., provide education loans for students abroad study.
#2. Private Banks
Private sector banks, including HDFC, ICICI, IDBI, Axis Bank, and Kotak Mahindra, provide students loans for their study abroad dreams. The interest rate for the loan varies bank by bank.
#3. Non-Banking Financial Companies (NBFC)
NBFC is a company involved in the loan and money business. They’re actually not the bank but operate like the one. These non-banking financial companies help students in getting their education loans seamlessly.
#4. International Lenders
International or foreign lenders also provide loans to the students. Such international lenders are Mpower, Prodigy, Lendkey, etc. However, interest rates from International lenders, repayment duration, and eligibility vary.
Interest Rate for International Education Loan in India
The interest rate for an education loan varies on the basis of where you take the loan, the loan amount, the scheme under which you secure your loan, etc. Here is the list of top banks and their interest rate for education loans. How to get an Education Loan
| Name of Lenders | Amount | Interest Rate (p.a.) |
| SBI | Up to Rs. 1.50 Crores | 6.5% |
| HDFC | 1.5 Cr | 12.5% |
| Axis Bank | More than 7.5 Lakhs | 6.5 % + 7.20% (Spread) |
| ICICI Bank | Up to Rs 2 Crore | REPO* + 3.45%(Spread) |
| Bank of Baroda | Up to 150 Lakh | 9.70% to 11.15% |
How to get an Education Loan
Eligibility Criteria for a Study Abroad Education Loan
To secure an education loan in India, students must have fulfilled its eligibility criteria. Here are some eligibility criteria for the education loan in India for students looking to pursue study abroad.
- The students must be residents of India applying for study abroad loans.
- The candidate must be between 18 and 35 years old.
- The co-applicant must have a good Cibil score and source of income.
- The students must have secured admission to foreign institutes.
- The applicant must have a great academic background.
- He/she must have scored well in GRE, TOEFL or any such exams.
- The applicant should have tangible collateral or a guarantor to get a loan.
To get the loan, candidates are required to fulfill these requirements. . 0 0 0.
How to get an Education Loan, How to get an Education Loan
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