With educational opportunities intensifying, more and more candidates are inclined towards pursuing quality education not only in India but also from abroad. However, one requires a huge amount of money in order to pursue a course abroad from a reputed university. And so, budget can sometimes be a major constraint for the students.
Keeping all this in mind, several banks in India have introduced new plans or schemes like Axis Bank education loan which provide the students with loans and helps them have a promising career. The banks offer different types of loan schemes which ensure that the students are able to pursue whichever courses they want from their preferred international universities. Moreover, these educational loan schemes have just helped students, but have also proved beneficial for the banks.
To give the prospective students a glimpse or regarding the top loan providers for
overseas education, we have provided information regarding the same and also the
guidelines for it.
Axis Bank
The Axis bank assures an absolute hassle-free process for the education loans to students who are planning to advance their career at international universities. It offers loans to the students for various professional courses, technical courses, diploma courses, etc. which covers the cost of student’s tuition fee, travel expense, hostel fee, library fee, and much more other related things.
The bank offers a maximum loan amount of INR 20 lakhs and a minimum loan amount of INR 50,000. The Interest rate for the loan ranges from 16.5% to 17.5% and has special rates for female students. In terms of loan margin, the banks have no requirement for the loans below INR 4 lakhs. However, in case of loans above INR 4 lakhs, the loan margin is up to 15%. Plus, there is no processing fee.
One of the most significant aspects of Axis bank education loans is that it requires a
parent or guardian to act as a co-application. This works as a third party guarantee
or collateral security.
State Bank of India
For many years now, SBI has been financing and granting loans to students for higher education at several reputed universities. The loan offered by SBI is not just limited to various graduate and postgraduate courses like MCA, MA, MBA, but also for other job-oriented courses, technical courses and diploma courses. The loan offered by the bank covers almost every possible requirement such as tuition fee, travel expenses, library fee, safety deposit, lab fee, exam fee, equipment fee, etc.
SBI offered a maximum loan amount of INR 30 lakhs, with a loan margin of 15% for the SBI loan borrowers. The Interest rate on the loan is up to 2% on the current base rate of SBI. The loan repayment tenure is 1 year to 15 years. Lastly, it should be noted that Collateral security is required for the loans above INR 7.5 lakhs.
To make things easier, the bank offers a moratorium period where one’s entire interest can be repaid. With this, when one’s actual loan repayment tenure begins, he/her monthly instalment will just be the principal amount.
For all this, the person or the borrower needs to submit following documents to the
bank.
♦ college admission letter
♦ completed loan application form
♦ co-applicant details
♦ course costs
♦ other KYC documents
Punjab National Bank
PNB has a special education loan scheme known as PNB Udaan which is for Indian students who wish to study abroad. The PNB Udaan is available to only those students who have enrolled and got admitted to a various diploma, graduate, post-graduate, technical courses, CPA/CIMA and few more. Furthermore, the bank’s loan covers university fee, security deposit, exam fee, travel expense, library fee, book/equipment fee, etc.
Unlike many other banks, in PNB Udaan, the loan is sanctioned according to the borrower’s requirement. For the loans above INR 4 lakhs, the banks’ loan margin is 15%. But, for the loans below INR 4 lakhs, there is no required loan margin. The student’s scholarship or Assistantship can also be added to the loan margin.
The details regarding the base rate offered by PNB Udaan are given below
♦ In terms of interest rate, PNB offers a base rate to the borrower for pursuing
courses at the top 200 universities across the globe.
♦ In terms of the moratorium period, the PNB offers up to a year, in which no
prepayment charges are levied on the borrower by the bank.
♦ The processing fee is 1%
Moreover, PNB offers its borrowers tenure options of up to 15 years.
HDFC Bank
HDFC bank offers various educational loans which are constructed according to the preferential interest rates of reputed international universities. It should be noted that a student can avail the HDFC education loan even before he/she has secured a seat at the university. The bank offers a maximum loan amount of up to INR 20 lakhs, which comes with a processing fee of up to 1.5% of the loan amount. In terms of security collateral, the bank offers flexibility to the borrowers. Apart from this, the bank has no geographical restrictions for the borrowers and co-borrowers to be in the same place. However, it is mandatory that both of them are relatives.
IDBI Bank
Like other banks, IDBI bank educational loan also covers the student’s tuition fee, travel expense, hostel fee, library fee, and other related costs. The bank offers a maximum loan amount of INR 20 lakhs, with no security deposit for the loans below INR 4 lakhs. Its repayment tenure is set according to the loan amount
♦ Below INR 7.5 lakhs, it is up to 10 years
♦ Above INR 7.5 lakhs, it is up to 15 years.
Moreover, above loan amount of INR 7.5 lakhs, the bank requires 100% collateral security. Plus, it needs a third party guarantee for the loan amount between INR 4 lakhs and INR 7.5 lakhs.
Canara Bank
The educational loan offered at Canara bank covers students’ university fee, exam fee, travel expense, cost of book/equipment, etc. The loan is only granted if taken with a co-borrower.
The bank offers a maximum loan amount of INR 20 lakhs, with a loan margin of 15% for the loans above INR 4 lakhs. There is a requirement of 100% collateral security for the loans above INR 7.5 lakhs. But, no security is required for the loan below INR 4 lakhs. Talking about the repayment tenure, the bank has fixed specifications-
♦ Below INR 7.5 lakhs, it is up to 10 years
♦ Above INR 7.5 lakhs, it is up to 15 years.
Moreover, there is a requirement of third party guarantee for the education loan
between INR 4 lakh and INR 7.5 lakhs.
Bank of Baroda
The bank has a special scheme for the education loan, which is known as the Baroda Scholar Scheme. Under this scheme, education loan is sanctioned for the students who have secured admission in profession/ technical/ diploma course at a reputed international university.
The bank offers a maximum loan amount of INR 20 lakhs, with a loan margin of
15%. The repayment tenure has specific guidelines-
♦ Below INR 7.5 lakhs, it is up to 10 years
♦ Above INR 7.5 lakhs, it is up to 15 years.
Third party guarantee is required for the loans between INR 4 lakhs and INR 7.5 lakhs, but there is no security required for the loan below INR 4 lakhs. Plus, the borrowers can avail the moratorium period of up to 1 year after getting employed.
Avanse Financial Services
It offers several differed educational loans to the students, such as fast-track loans, pre-visa disbursement loan, pre-admission loan, certificate of availability of funds etc. But, to avail them, the borrowers need to submit some specific documents like-
♦ Complete application form
♦ collateral documents
♦ income documents
♦ a fee of the course
♦ KYC documents
Avnase offers a maximum loan amount of INR 1, 00,000, whose maximum loan limit is customised according to the person’s requirement. Apart from that, the loan tenure can be taken up to 120 months.