A good education can often be the gateway to success in life. Pursuing higher education in universities abroad gives a good opportunity for better job placements. This opportunity is also seen as a great learning experience in many fields.
No wonder, in the year 2017-18 close to 8 lakh Indian students went abroad for higher studies
The cost of education together with living expenses abroad comes up to a huge sum which is a big worry for all throes dreaming of studying abroad. That is where an educational loan comes handy
Almost all banks and many NBFCs and fintech lenders are providers of education loans in India. We bring you a list of some of the top educational loan providers for studies abroad.
Educational loans come under priority sector lending, so all banks do have packages for educational loans.
SBI offers education loans for students desiring to pursue higher education both in India and abroad. Depending on the amount of the loan required, there are 2 types of education loans from SBI.
Loans for up to amounts of Rs 20 lakh are available under this scheme. The details of the scheme are as below:
| Maximum Amount | Tenure of the Loan | Margin Requirement | Rate of Interest | Processing Fee Charged |
|---|---|---|---|---|
| Rs 20 lakhs | 15 yrs excluding moratorium of 1 yr | For loans up to Rs 4 lakh -Nil Above 4 lakh- 5% for studies in India or 15% for studies abroad | 10.05% fixed | Nil for loans upto Rs 20L |
This is a loan exclusively available for students wishing to pursue higher studies abroad.
| Maximum Amount | Tenure of the Loan | Margin Requirement | Rate of Interest | Processing Fee Charged |
|---|---|---|---|---|
| Rs 20 L - Rs 1.5 cr | 15 yrs excluding moratorium of 1 yr and course period | Needed on a year-on-year basis | 10.05% fixed | Rs 10,000 |
Girl applicants will get a rebate of 0.5% on the interest rate on both the schemes. Collateral requirement for loans above Rs 7.5 lakhs.
HDFC education loan comes with attractive terms and conditions as below.
| Maximum Amount | Tenure of the Loan | Margin Requirement | Rate of Interest | Processing Fee Charged |
|---|---|---|---|---|
| Rs 20 lakhs | Up to 15 yrs excluding moratorium of 1 yr | For loans up to Rs 4 lakh -Nil Above 4 lakh- 5% for studies in India or 15% for studies abroad | 9.55 -13.25% | Rs 1000 or 1% of the loan, whichever is higher |
For loans above Rs7.5 lakhs collateral is required.
To help many students fulfil their dream of getting a higher degree, ICICI Bank allows education loans. ICICI bank allows loans even for Undergraduate students abroad.
| Maximum Amount | Tenure of the Loan | Margin Requirement | Rate of Interest | Processing Fee Charged |
|---|---|---|---|---|
| Rs 50 lakh for courses in India and Rs 1 crore for those abroad | 5yrs for loans without collateral and 7yrs with collateral | No margin for loans upto Rs 20 lakh. 5-15% for those above Rs 20lakh | Starts from 11.75% | 1% of the loan amount plus taxes |
| Maximum Amount | Tenure of the Loan | Margin Requirement | Rate of Interest | Processing Fee Charged |
|---|---|---|---|---|
| Rs 50 lakh for courses in India and Rs 1 crore for those abroad | 6yrs for loans without collateral and 8yrs with collateral | No margin for loans up to Rs 20 lakh. 5-15% for those above Rs 20lakh | Starts from 11.25% | 1% of the loan amount plus taxes |
Collateral-free loans for select institutes: Up to Rs 20 lakh for UG and up to Rs 40 lakh for PG courses.
Axis Bank brings you Education Loans for studies both in India and abroad starting from Rs. 50,000 at attractive interest rates. The loan is available in different variants to suit the needs of individuals.
| Variant | Maximum Amount | Tenure of the Loan |
|---|---|---|
| PRIME ABROAD | Rs 40 lakh | 15 years |
| PRIME DOMESTIC | Rs 40 lakh | 15 years |
| Loan for working professionals | Rs 20 lakhh | 10 years |
Rate of Interest: Up to Rs 4L - 15.2%, 4 - 7.5 L - 14.7%, Above Rs7.5L - 13.7%
Processing Fee : Nil up to Rs 10 lakh, Rs 15000+GST for amounts up to Rs 20 L, 0.75% of differential loan amount above 20 lacs + GST
Punjab National Bank runs a scheme called PNB Udaan to provide education loans for students looking to pursue higher education abroad
| Maximum Amount | Tenure of the Loan | Margin Requirement | Rate of Interest | Processing Fee Charged |
|---|---|---|---|---|
| Need-based finance based on repayment capacity | 15 years | No margin for loans up to Rs 4 lakh. 15% for those above Rs 4lakh | Floating Rate based on Repo Rate Up to Rs7.5L-9.05% Above 7.5L -9.75% | 1% of the loan with a minimum of Rs 10000 |
Other than banks there are many NBFCs that offer education loans for higher studies abroad. Quite often, education loans from NBFCs come with easier eligibility conditions.
Also, NBFCs are more open to lending for courses other than the ones in the mainstream. Processing of loans may also be faster when you avail of education loans from NBFCs. But they may look for more collateral depending upon the credit score and the course you are trying to pursue
NBFCs do not allow moratorium on the payment of EMIs on education loans and carry a higher rate of interest than the banks.
NBFCs do not allow moratorium on the payment of EMIs on education loans and carry a higher rate of interest than the banks.
Established in 2013, Avanse is a new-age education loan provider who looks to make seamless loans to those Indian students looking to study abroad. Details of the educational loans by Avanse are:
| Maximum Amount | Tenure of the Loan | Margin Requirement | Rate of Interest | Processing Fee Charged |
|---|---|---|---|---|
| Need-based Starting from Rs 1lakh | 10 years including course tenure | No margin required | Avanse Base Rate +Spread Depends on your credit profile and the course undertaken | 1-2% of the loan amount decided on a case to case basis |
Collateral requirement depending upon the loan amount and other factors.
HDFC Credila is India’s first dedicated education loan which was formed with a view of enabling students to fulfil their aspirations of higher education abroad. Loan approval from Credila is available even before getting confirmed admission.
| Maximum Amount | Tenure of the Loan | Margin Requirement | Rate of Interest | Processing Fee Charged |
|---|---|---|---|---|
| Need-based Starting from Rs 1lakh | 12 years | No margin required | Credila Benchmark Lending (12.55% current) Rate+Spread Depends on your credit profile, collateral offered, the course undertaken, etc | 1-1.25% of the loan amount decided on a case to case basis |
Tata Capital is another well-known NBFC that is into lending educational loans for higher education abroad
| Maximum Amount | Tenure of the Loan | Margin Requirement | Rate of Interest | Processing Fee Charged |
|---|---|---|---|---|
| Rs 75000-Rs 25 lakhs | 6 years | No margin required | 10.99% onwards | Up to 2.75% of the loan amount |
Auxilo is a new entrant to the education loan space but has made a name by lending out educational loans to many students. The main features of Auxilo education loan are:
| Maximum Amount | Tenure of the Loan | Margin Requirement | Rate of Interest | Processing Fee Charged |
|---|---|---|---|---|
| Based upon the needs of students | 10 years | No margin loans are available | Auxilo base interest rate (12.7% current)+ a spread Depends on your credit profile, collateral offered, the course undertaken, etc | Up to 2% of the sanctioned loan amount |
Loans without collateral are also available. However, if collateral is provided, you can avail attractive rates of interest offered exclusively for collateral backed loans.
InCred is an NBFC that allows education loans to all aspiring students. The details for their loans for studies abroad are as follows:
| Maximum Amount | Tenure of the Loan | Margin Requirement | Rate of Interest | Processing Fee Charged |
|---|---|---|---|---|
|
Rs 1 crore (Secured ) Rs 40 lakh (unsecured) |
10-15years | No margin loans are available | 12% onwards Depends on your credit profile, collateral offered, the course undertaken, etc | 1-1.5% of the sanctioned loan amount |
If you provide collateral for an InCred education loan, then you may typically get a better rate. Also, you may qualify for a higher loan amount as well as improve your chances of loan approval in certain cases.
Though there are many education loans available in the market, there may be times when you are not able to get an educational loan or it falls short. At those times, your parents, siblings, spouse or any earning member of your family can avail of Money View instant personal loan as a substitute for an education loan or to supplement your education loan amount.
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The entire process right from application to disbursal happens online so that you do not have to make numerous trips to banks/financial institutions. Moreover, we have an in-house credit assessment model which takes into consideration many more factors than a credit score to assess your creditworthiness.This allows many more people to avail of our loans.
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