The dream of studying abroad is seen by many students, but most of the students give up the hope of seeking education at a foreign institution when they learn about the costs associated with realizing this dream. If you are also planning to give up this dream, there is some hope for you. The Indian banking system places a lot of trust in the students and allows them to avail lucrative loans. Here you can have a look at top 8 education loans for Indians seeking foreign education and choose the best option.
Most banks would like you to be eligible for the loan before you apply to save time and hassle. So, make sure that you meet the following basic criteria and some other criteria before filing an application. The basic eligibility criteria for loans for Indians seeking foreign education are:
- You should be a citizen of India.
- You should be more than 18 years of age. If you are not, your parents can take the loan on your behalf.
- You must have secured admission at a reputed foreign college, institution or university.
- You must have a good academic background.
- It would be helpful if you pursue a professional or technical course that makes you suitable for a job.
- Education Loans for Indians Seeking Foreign Education
- SBI Student Loan Scheme and SBI Global ED-VANTAGE Scheme
SBI makes it easy for Indian students to seek foreign education without worrying about the expenses. This is the reason it is offering two types of loans. In the first one, a student can get a loan of up to INR 20 Lakhs that can be repaid in 20 years. The repayment should begin a year after the completion of the course and one must provide collateral if the loan amount exceeds INR 7.5 Lakhs. In the second option, a student can get a loan of up to INR 1.5 crore and must repay it within 15 years. Again, collateral is needed, and the repayment should begin within six months of completing the course.
- HDFC Bank Education Loan for Foreign Education
In this loan option, you can get a loan of up to INR 20 Lakhs with a nominal interest rate. The loan can be sanctioned even before the admission and can provide tax benefits to the borrower.
- Oriental Bank of Commerce Education Loan for Study in Abroad
In this loan, if you are applying to an institution in the US, the amount of loan sanctioned will depend on the fee structure of your institute. The best part about this loan is that you can pay it anytime you wish as there is no pre-payment penalty. It also provides an insurance cover. The margin for a foreign education loan that exceeds the limit of INR 4 Lakhs is 15 percent.
- PNB Udaan by Punjab National Bank
This loan is available to students who have secured a seat in any foreign institution. For loans of less than INR 4 Lakhs, there is no loan margin. But if the loan is more than the said amount, the loan margin of 15 percent is needed. There are no pre-payment charges, and the loan can be repaid in 15 years. You have to pay a processing fee of 1 percent on your own. The moratorium period is up to one year.
- Axis Bank’s Education Loan
The minimum loan amount offered by Axis bank for Indians seeking foreign education is INR 50,000 while the maximum is INR 20 Lakhs. Again, a loan margin is not needed if the loan amount is less than INR 4 Lakhs and its 15 percent if the loan amount is more than the said amount. A parent or guardian must be a co-applicant, and you might be asked to pay up for a LIC policy for 100 percent of the loan amount. There are no pre-payment or processing fees charged by the bank, and special rates are offered to women applicants.
- Canara Bank’s Education Loan
Canara Bank also offers a loan of up to INR 20 Lakhs to Indians seeking foreign education and needs a loan margin of 15 percent if the amount sought is over INR 4 Lakhs. If the loan amount is less than INR 7.5 lakhs, the repayment should be made within ten years. If the loan amount is more, the repayment can be made in 15 years. Security and loan margin are not required for loans of up to INR 4 Lakhs. If the loan is between INR 4 Lakhs to INR 7.5 Lakhs, you will need a co-borrower. If the loan is of more than INR 7.5 lakhs, you will need 100 percent collateral security.
- Bank of Baroda: Baroda Scholar Scheme
Indians seeking foreign education can try the Baroda Scholar Scheme if they have secured admission at reputed institutions for recognized courses. You can get a loan of up to INR 20 Lakhs with this bank as well, and the loan margin requirement is 15 percent too. You get a moratorium period of 6 months to a year. If the loan amount is less than INR 7.5 lakhs, the repayment can be within 120 months. If the loan amount is more than that, you can repay it in 180 months. Security is not needed when the loan amount is below INR 4 Lakhs, but the third-party guarantee is needed when the loan amount is between INR 4 Lakhs to INR 7.5 Lakhs. If the loan amount is more than INR 7.5 Lakhs, you need to provide tangible collateral security. Women applicants get a concession on the interest rates, and you need to pay only the simple interest during the moratorium period. If the loan amount is more than INR 4 Lakhs, and repayments are delayed, you might be asked to pay a penal interest of 2 percent.
Though we have tried our best to provide accurate information regarding top 7 education loans for Indians seeking foreign education, we urge you to contact the respective banks before deciding as loan policies change frequently. Be a smart consumer and do your research to be satisfied with the loan you seek.