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Financial Support for Abroad Studies

HomeFinancial Support for Abroad Studies

Education Loan for Abroad Studies

Studying abroad offers exponential professional opportunities in different markets, which is an advantage beyond comparison. Yet the journey has several difficulties, including budgeting, the application procedure, living expenditures, and travel costs. There are tailored education loan programmes offered by different banks. From the time you apply for a loan until the time the banks distribute the funds, you will get help along the way, making the admissions process simple. With end-to-end digitalization, the loan application procedure is simplified, and the loan sanctioning process is accelerated.

Education Loan Process

1

Determining the cost of education and loan amount

2

Compare Education Loans from different lenders

3

Applying for an Education Loan

4

Reading and Signing the Loan Document

5

Disbursement Process

6

Repayment

Below are some other points that must be paid attention to during the education loan process:

  • 1. Determine whether your course qualifies for an education loan. Courses with a high possibility of employment have a greater chance of receiving an education loan. Regarding loan acceptance, the college's or university's reputation is crucial. Also, not every bank offers financial help for degrees and vocational training.
  • 2. Under Section 80E of the Income Tax Act of India, 1961, only Education Loans obtained from banks and financial institutions that are subject to government regulation are eligible for tax advantages. To determine whether you qualify for an income tax rebate, ask for the financial institution's Gazette Certificate.
  • 3. Some banks pay the whole cost of education, including tuition, books and equipment costs, library and test fees, a one-time trip price (for international study), personal expenses, etc. Other banks just pay a portion of the cost.
  • 4. Types of collateral are accepted by most banks – Residential property (house/flat/bungalow), fixed deposit, life insurance, non-agricultural land.
  • 5. In order to prevent a last-minute rush, give yourself plenty of time to investigate, evaluate, and compare various study abroad loan programmes. It is suggested to begin early for a more enjoyable experience.
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Documentation Required:

For Student
• Photo ID proof
• Proof of residence
• Passport sized photograph
• Proof of admission
• Fee structure document
• Salary slips of experienced candidates.
• Visa copy
• Academic documents

For Co-applicants:
• Photo ID proof
• Proof of residence
• Passport sized photograph
• Income related documents

Collateral documents:
• Property documents
• FD documents

Top Education Loan Providers in India:

HDFC Credila
  • The minimum loan amount stands at Rs 1,00,000and no upper limit has been set by HDFC Credila on the loan. 
  • At present, HDFC Credila’s CBLR is 12.80% per annum.
  • The re-payment for loan interest will begin immediately after the disbursement of the 1st installment of the loan.
  • The maximum loan repayment tenure is of 12 years.
  • Collaterals accepted include residential houses/flats, commercial properties, non-agricultural land, a fixed deposit assigned in favour of HDFC Credila and HDFC second charge property.
State Bank of India
  • Up to Rs. 1.50 crore in loans, with a minimum loan amount of Rs. 7.50 lacs
  • Loan sanction prior to i20/Visa
  • Repayment through EMI upto 15 years
  • Tax benefit: Under 80(E)
  • Application processing fee is Rs 10,000
Axis Bank
  • No margin on education loans up to Rs 4,00,000
  • 15% margin on education loans up to Rs 4,00,000 for abroad studies
  • The education loan can be disbursed within two days after getting sanctioned
Punjab National Bank
  • Fees reimbursement paid within 6 months might be taken into consideration on individual merits of the case
  • Margin: Up to Rs 4 lakh – None, Above Rs 4 lac – 15%
  • Maximum upto 15 years of repayment
Bank of Baroda
  • Processing fees: 1% (Maximum Rs. 10,000) for loans above Rs. 7.5 lakhs
  • For up to Rs 7.50 lakh there are no processing fees
  • No margin on loans up to Rs. 4 lakhs
  • No security up to Rs 7.50 lakh
Canara Bank
  • Maximum loan amount: Need-based finance
  • Loan margin: 15% for loans taken above Rs. 4 lakhs 
  • Repayment tenure: The repayment period is of maximum 15 years
  • Security: Not required for loans below Rs. 4 lakhs. For loan amounts above Rs. 4 lakhs, tangible collateral security is required
  • Interest rate: Collateral Security 100% and above – 9.4%, Collateral Security 75% to 100% – 9.65%, Collateral Security less than 75% – 9.9%
IDBI Bank
  • Maximum loan amount: Up to Rs. 30 lakhs 
  • Repayment tenure: Maximum of 15 years after the completion of the moratorium period
  • Interest rate: Upto 7.5 lakhs – 9%, Above 7.5 lakhs – 9.5%, 0.5% concession for female student
  • A third-party guarantee is required for loans between Rs. 4 lakhs and Rs. 7.5 lakhs. An education loan has to be taken along with a co-borrower. 100% collateral security is required for loans more than Rs. 7.5 lakhs
Avanse Financial Services
  • The loan will get sanctioned within 72 hours
  • Interest rate starting from 9.5% and 1% onward processing fees
  • Loan tenure up to 15 years
  • Maximum loan limit can be customized according to the borrower’s requirement