The (Government of India) GOI has framed Educational Loan Scheme in consultation with Reserve Bank of India (RBI) and Indian Banker’s Association (IBA) to support our Education system and help eligible students. It covers all type of courses including professional courses in schools and colleges in India and abroad.
The salient features of the scheme related to study abroad are:
The scheme envisioned up to Rs. 15 lacs of loan for studies in foreign country
If your loan is up to Rs. 4 lacs then for that no collateral or margin is needed and the interest rate not to surpasses the Prime Lending Rates (PLR). For loans above Rs. 4 lacs the interest rate will not surpass PLR plus 1 percent.
Repayment need to be done within 5 to 7 years with one year grace period provision after completion of studies.
STATE BANK OF INDIA
State Bank of India (SBI) offers a term loan to Indian students aspire to study abroad. It provides finances for education for
All job-oriented technical and professional graduate and post-graduate degree courses like MBA, MCA, MS, etc.
Diploma courses at reputed institutions
Courses which is being offered by the Chartered Institute of Management Accountants (CIMA), London and the Certified Public Accountant (CPA), USA.
The maximum amount of loan is Rs. 30 lakhs. Collateral security is required only if the amount is more than Rs. 7.5 lakhs. You will need to ensure that you can pay 15% of your total fees by yourself. Â loan only covers tuition fees, Examination, caution deposit, cost of books and equipment, travel costs and other necessary expenses,Â Laboratory and Library fees.
SBI does offer a moratorium period where full interest can be repaid and the interest burden is reduced. You have to start repaying the education loan after first year of education and complete loan has to be paid back with 15 years. You have to provide the admission letter, details of education costs, co-applicant details and other required KYC documents.
Axis Bank has hassles free and one of the quickest loan approval system where you can apply for technical or professional courses, career-oriented courses, etc., and avail an education loan from Axis Bank with hassle-free process.
The upper limit is Rs. 20 lakhs which covers hostel fees, tuition fees, book costs, etc. IF the loan amount is below Rs. 4 lakhs you donât need any margin money (to be paid from your pocket) but for greater amounts of loans you should be capable of contributing 15% yourself. Your parent or guardian must be co-applicant, with third party guarantee or collateral security asked only for special cases.
The loan is disbursed directly to the institution where you have received admission from. They do not charge any processing fees or prepayment charges for education loan.
HDFC Bank has ties with various colleges/universities worldwide which enables them to offers education loans with flexible repayment tenures and preferential rates. You can get loans at you doorsteps. You have to be between 16 and 35 years of age to avail the loan facility.
The maximum loan amount can be Rs. 20 lacks. They provide loans to up to 100% of the educational requirement without any margin money. Loan can be sanctioned even before you have secured admission at a university in order to avoid last minute hassles.
It offers the flexibility of availing security collateral and co-applicants. Co-borrowers can be selected from different cities across India. The co-applicant can be any family member like parents, siblings, in-laws, uncle or aunt, which is mandatory for full-time courses.
They charge a processing fee of 1.5% of the loan amount. You donât have to pay any penalty for prepayment of the loan.
PUNJAB NATIONAL BANK
If you are planning to study abroad, Punjab National Bank (PNB) can help you with their âPNB Udaanâ education loan scheme. You should have acquired admissions for graduate, post-graduate courses, Diplomas, job-oriented professional and technical courses, CIMA/CPA courses, etc from a premier institution abroad.
It covers university fees, travel, exam fees, lab fees, library fees, book/equipment fees and other related expenses.
You have to pay the margin money of 15% or avail loans of above Rs. 4 lakhs. Assistantship and scholarships can be added to the loan margin. If you are taking admission in the top 200 universities, you will get loan at the base rate as interest, whereas for others they charge a certain margin on top of base rate. The moratorium period offered is up to a year, with no prepayment charges levied by PNB. You have to pay an upfront processing fee of 1%. The maximum tenure for availing loan is 15 years.
If you wish to study abroad, you can get loan from Canara Bank for eligible professional and technical courses, graduate and post-graduate courses. Their loan covers university fees, travel, exam fees, lab fees, library fees, book/equipment fees and other related expenses.
They can provide a maximum loan of Rs. 20 lakhs. If the loan amount is less than Rs. 4 lakhs, you have to pay the margin amount of 15% from your side but there is not need of collaterals. If your loan amount is less than Rs. 7.5 lakhs then you have to repay the loan in a maximum period of 10 years and for higher amount it is 15 years. If the loan amount is greater than Rs. 7.5 lakhs then a co-borrower and 100% collateral security will be required.
The IDBI bank can provide you educational loan if you have qualified using an entrance test or a merit based selection process for studying abroad. You can enrol for professional and technical graduate courses, post-graduation courses, diploma, and CPA/CIMA courses to avail education loan.
It covers university fees, travel, exam fees, lab fees, library fees, cost of computers, book/equipment fees and other related expenses. It offers standard features, where there is no security requirement for loans taken below Rs. 4 lakhs, the maximum loan amount can be Rs. 20 lakhs. The repayment tenure chosen can be up to 10 years for loans up to Rs. 7.5 lakhs and up to 15 years for loans above Rs. 7.5 lakhs. If your loan is between Rs. 4 lakhs and Rs. 7.5 lakhs then Third party guarantee has to be given. For loans above Rs. 7.5 lakhs, a co-borrower and 100% collateral security is required.
BANK OF BARODA
Bank of Baroda provides education loan using their âBaroda Scholarâ scheme where Indian students applying for professional and technical courses abroad can avail loan for those who are selected reputed foreign universities.
They sanction a maximum of Rs. 20 lakhs at a loan margin requirement of 15%. You can also get a holiday or moratorium period of one year or six months after getting employment, whichever is earlier. You can repay education loans taken up to Rs. 7.5 lakhs within 10 years. For loan above Rs. 7.5 lakhs you need to repay in 15 years.
For loans below Rs. 4 lakhs, no security is required. For loans from Rs. 4 lakhs to Rs. 7.5 lakhs, a third party guarantee should be given. For loans above Rs. 7.5 lakhs, a collateral security will be required. During the moratorium period you can pay only the interest. Girl/women applicants are eligible for a concession of 0.50% on the interest rates.