Dreaming of studying abroad? Getting financing for education serves as an essential requirement. Multiple education loan opportunities exist in India, which enable students to reach their academic targets. Review the best education loan companies in India for international study options.
Why Choose an Education Loan for Studying Abroad?
Studying abroad might cost a lot of money. Together with travel expenditures and required textbooks, tuition fees and living expenses can add up to a sizable sum. Getting a loan for college helps to simplify financial obligations.
- Affordable Repayment Plans – Most loans offer flexible repayment options.
- Moratorium Period – You start repaying only after course completion.
- Tax Benefits – Under Section 80E of the Income Tax Act, interest payments qualify for tax deductions.
- Builds Credit History – Repaying your loan on time improves your financial credibility.
Among various loan options the selection of a proper financing institution represents a vital choice.
Factors to Consider Before Applying for an Education Loan
Before applying for an education loan, consider the following:
- Eligibility Criteria – Ensure you meet the bank’s requirements.
- Interest Rate – Compare rates to find the best deal.
- Loan Coverage – Financial assistance from banks can either cover solely tuition expenses or both tuition expenses and travel and living costs.
- Repayment Terms – Check tenure, EMIs, and moratorium periods.
- Processing Time – Opt for lenders with faster approvals to meet admission deadlines.
Top Institutions Providing Education Loans For Study Abroad
SBI Overseas Education Loan
The State Bank of India (SBI) provides the Global Ed-Vantage Scheme as an educational benefits package for students interested in overseas education.
- Loan Amount: Up to ₹1.5 crore.
- Interest Rate: Starts at 11.15% per annum.
- Repayment Tenure: Up to 15 years.
- Moratorium Period: Course duration plus 6 months.
The scheme provides financial support that includes tuition fees as well as costs for travel and living expenses. Students who started full-time regular courses at foreign universities can benefit from this scheme.
BOB Overseas Education Loan
Bank of Baroda (BOB) provides the Baroda Scholar Loan for students pursuing higher education abroad.
- Loan Amount: Up to ₹1.5 crore with collateral; up to ₹7.5 lakh without collateral.
- Interest Rate: Starting at 10.40% per annum.
- Repayment Tenure: Up to 15 years.
- Moratorium Period: Course duration plus 12 months.
The loan pays for tuition costs alongside examination expenses and additional educational charges. BOB provides financial perks to female students along with students enrolled in premier institutions.
Credila Overseas Education Loan
HDFC Credila specializes in overseas education loans for students aiming to study abroad.
- Loan Amount: Up to ₹65 lakh.
- Interest Rate: Starting at 11.25% per annum.
- Repayment Tenure: Up to 15 years.
- Moratorium Period: Course duration plus 6 months.
HDFC Credila operates a fast loan service that provides adaptable financing solutions to meet education costs along with living needs.
Avanse Overseas Education Loan
Avanse Financial Services provides tailored education loans for students planning to study abroad.
- Loan Amount: Up to ₹1.25 crore.
- Interest Rate: Ranging from 10.5% to 16.5% per annum.
- Repayment Tenure: Up to 17 years.
- Moratorium Period: Course duration plus 6 months.
The Avanse financial assistance program supports educational fees as well as living costs, transportation costs and other educational payments. Their loans provide streamlined authorization processes with basic paperwork demands.
Collateral vs. Non-Collateral Loans
Overseas Education loans can be collateral-based or non-collateral.
- Collateral-Based Loans – Require property, fixed deposits, or assets as security. These loans offer lower interest rates and higher amounts.
- Non-Collateral Loans – Do not require security but come with slightly higher interest rates and stricter approval conditions.
The knowledge of distinctions among loans assists people in determining the best financing option according to their financial situation.
Government Schemes for Education Loans
The Indian government extends financial assistance through subsidies and scheme policies to increase access to educational funding.
- Central Sector Interest Subsidy Scheme (CSIS) – Covers the interest during the moratorium period for eligible students.
- Ambedkar Interest Subsidy Scheme – Available for students from economically weaker sections pursuing studies abroad.
- Padho Pardesh Scheme – Supports minority students with interest subsidies on education loans.
Checking eligibility for these schemes can reduce your repayment burden.
Choosing the Right Loan
When selecting an education loan, consider the following factors:
- Loan Amount: Ensure it covers all your expenses.
- Interest Rate: Lower rates reduce overall repayment.
- Repayment Tenure: Longer tenures mean smaller EMIs but more interest over time.
- Moratorium Period: Allows you to start repayment after course completion.
- Processing Time: Quick sanctions help meet admission deadlines.
How Eduloans Can Help
Searching through multiple loan choices becomes bewildering to many people. Eduloans helps you connect to suitable financial institutions. Here’s how Eduloans assists you:
- Personalized Counseling – Understanding your financial needs and academic goals.
- Loan Comparison – Providing comparisons of different loan options.
- Application Assistance – Guiding you through the application process for a hassle-free experience.
Eduloans delivers a trouble-free process for obtaining the correct education loan. Our organization will transform your overseas education aspirations into reality.