Studying abroad is a dream for most students, but it is often hindered by financial challenges. Fortunately, several Indian banks and financial institutions are offering the best education loans in India for studying abroad, helping students who wish to study overseas. With flexible repayment options and competitive interest rates, the following top 10 banks and financial institutions offer excellent options for a loan for foreign education in 2024.
1. State Bank of India (SBI)
SBI has been a true name for education loans in the global scenario for those dreaming of studying abroad. Under its Global Ed-Vantage Scheme, students can borrow up to,
- INR 1.5 crore with an interest rate starting at 10.15% per annum as a secured education loan.
It will cover tuition fees, accommodation, etc., as needed. Also, SBI offers the best opportunity to repay the amount within 15 years and thus enables students to work out their finances better after the completion of their study period.
2. Union Bank of India (UBI)
The Union Education Scheme of Union Bank of India is a very attractive offer for the students who want to pursue education abroad. The loan amount can be up to a staggering,
- INR 1 crore with interest rates offered at 9.25% – 11.5% per annum, for a secured education loan.
- INR 40 lakh with interest rate offered at 9.75% per annum, for an unsecured education loan.
The bank can provide 100% funding in case of loans up to INR 40 lakh; however, for more loans, collateral is required. The Repayment Period for such loans can also go up to 15 years allowing students to repay their finances after completing their education.
3. HDFC Credila
HDFC’s Credila Education Loan is for students seeking to pursue higher studies abroad. The loan amount may be as high as,
- Up to INR 1 Cr for a secured loan, considering the requirements of the student. The interest rate is 10.25% – 10.75% per annum.
- Up to INR 75 lakh for an unsecured education loan, considering the requirements of the student. The interest rate is 11.75% – 12.75% per annum.
The co-applicant option is flexible, which means if the student doesn’t have a co-applicant he is still eligible for an education loan from HDFC Credila, which is a preferred choice by most students. It offers 100% financing without an upper limit and is, therefore, perfectly suited to those wishing to begin studying at the most prestigious universities in the world.
4. ICICI Bank
- ICICI Bank offers education loans up to INR 2 crore with interest rates starting from 10.25% per annum for secured loans and up to INR 1 crore at 11.25% for unsecured loans.
- With a streamlined application process and collateral-free options for loans up to INR 1 crore, ICICI Bank is ideal for students seeking a loan for foreign education.
5. Axis Bank
Axis Bank is one of the leading private sector banks in India, offering education loans tailored for students who aspire to study abroad. It offers education loans up to a sum of,
- INR 1 Cr with an interest rate of 9.99% per annum as a secured loan.
- INR 75 lakh with an interest rate as low as 10.75% per annum as an unsecured loan.
It sanctions a loan of up to INR 75 lakh without any collateral security in the bank. Additionally, the bank guarantees that the loan disbursement occurs with remarkable speed, allowing students to experience no delays during their time abroad.
6. Bank of Baroda (BoB)
The Baroda Scholar education loan from the Bank of Baroda is one of the best options for students. The loans can be taken up to,
- INR 1.5 crore, interest rates are highly competitive at 9.70% p.a., for a secured education loan.
Bank of Baroda offers a repayment tenure accompanied by a moratorium period up to the completion of the course plus one year.
7. Yes Bank
Yes Bank offers education loans with loan amounts,
- INR 1.25 Cr with competitive interest rates ranging from 11.25% to 12.75% per annum.
- Ranging from INR 25 lakh to INR 50 lakh, with competitive interest rates starting at 11.25% per annum for an unsecured loan.
The bank provides loans for students pursuing undergraduate, postgraduate, or doctoral programs abroad. Yes Bank’s education loan also offers flexible repayment options and a moratorium period, making it easier for students to manage post-study finances.
8. IDFC FIRST BANK
IDFC FIRST Bank offers education loans up to a sum of,
- INR 1 crore, with interest rates starting from 9.5% per annum for a secured education loan.
- INR 75 lakh, with interest rates starting from 10.75% per annum for an unsecured education loan.
No collateral is required for loans below Rs 75 lakh with the bank offering flexible repayment options that can stretch up to 10 years. The bank’s speedy loan processing and minimal paperwork make it an attractive bet for students.
9. Punjab National Bank (PNB)
PNB offers the PNB Udaan education loan scheme for students seeking financial assistance to study abroad. Loans can be as high as,
- INR 1.5 crore, and the interest rate starts from 8.80% per annum for a secured education loan.
The loan covers tuition, accommodation, and other expenses, and the margin requirement is only 15% for overseas education. With a wide network of branches, PNB is accessible to students across India.
10. Kotak Mahindra Bank
Kotak Mahindra Bank offers a Study Abroad Loan for students who want to pursue their study abroad. The bank sanctions loans without requiring any security, and the amount sanctioned is as high as INR 20 Lakh. One can get this loan with an interest starting from 10.75% p.a. Importantly, loans by this bank are pretty adjustable for students who are studying in world-class foreign institutions.
Key Points to Remember
- Interest rates of education loans differ from one bank to another and are often a determining factor. Usually, public sector banks offer lower rates compared to their private bank and NBFC peers.
- Loan Amount: Varying by course and country, different banks offer loan amounts ranging from INR 20 lakh to INR 1.5 crore.
- Repayment Terms: Seek out banks that provide extended repayment periods and moratoriums, as these can alleviate the financial strain following your studies.
- Collateral and Co-applicants: Most banks offer unsecured loans up to a certain limit, but few insist on collateral against higher loans. Flexibility in the co-applicants also plays a crucial role.
Conclusion
Securing the right education loan eases your financial burden and allows you to focus on your studies abroad. From public sector banking giants like SBI and PNB to private players like HDFC and Axis, the very thought has a set of perks associated with all of them. Compare interest rates, loan amounts, and repayment options before finalizing the best fit for you.
With the right financial planning, your dream of studying abroad can turn into reality!
