Education loan in India for study abroad comes with its own set of advantages, but before you think of availing one, it is essential to find out what is study loan for abroad, what all options you have at your disposal and who can help you with processing and documentation. Starting with, this blog will give you a complete insight into everything that you need to learn and know about student loans.
Two types of student education loan for abroad
Unsecured study loan for abroad and secured education loan for study abroad are two main types of loans that you can consider. The tables below will help you compare your options.
Unsecured education loan for students going abroad
| Basis | Private Banks | Public Banks | Non-Banking Financial Companies |
| Maximum Amount | Rs. 40 Lakhs | Up to Rs. 7.5 Lakhs | Rs. 25 Lakhs |
| Interest Rate | 11.25-13% | N.A. | 12-14% |
| Processing Charges | No charge for more than Rs. 20 lakhs.Rs.750 on each lakh above Rs. 20 lakhs loan | 10,000+ GST | 1% – 2% of Loan sanction value |
| Colleges that are supported | 200+ | No unsecured loans offered for higher education fee. | 500+ |
Secured education loan for international studies
| Basis | Private Banks | Public Banks | Non-Banking Financial Companies |
| Maximum Amount | Up to Rs. 80Lakhs | Up to Rs. 1.5 crores | No upper limit |
| Interest Rate | 11-13% | 8.85-10.25% | 12-14% |
| Processing Charges | No charge for more than Rs. 20 lakhs.Rs.750 on each lakh above Rs. 20 lakhs loan | 10000 + GST | 1% -2% |
| Payment to be made while studying | Simple Interest | None | Simple Interest |
Rate of Interest- single most important factor
It is the rate of interest that determines the overall cost of education loan in India for study abroad. Subject to change at its own conditions, the present interest rates for different banks is shown in the table below-
| Bank | Type of Bank | Loan Amount | Rate of Interest |
| Bank of Baroda education loan | Public Sector | For all loan types and amounts | 8.50% onwards |
| SBI education loan | Public Sector | Up to Rs. 7.5 Lakhs | 9.25% |
| Above Rs. 7.5 Lakhs | 9.50% | ||
| Credila education loan | Private Sector | For all loan types and amounts | 11.50% onwards |
Important points to consider before availing student loan
While education loan in India for study abroad is readily accessible, there are certain key considerations before you go further. Consider these points before going ahead-
- Interest rate
- Tax benefits
- Eligibility and Documentation
- Loan Disbursal Time
- Costs covered
- Moratorium Extension
- Prepayment Terms
- Total Cost over EMI
- Service Charges
Conclusion
Eduloans offers enough room to students to clarify their confusions and make wise decisions. There are certain students and parents who do not know as to how to go about this entire situation. However, with Eduloans you can simply raise your request and we shall approach you for complete documentation, processing and disbursal for study loan for abroad. Apart from private and public banks, we also help you explore your choices for NBFCs, which can be more professional and swifter without a need of offer letter from university or college, sometimes.