Avail Study Abroad Loan from the Best Banks of India

Read on to understand about the various banks offering some of the cheapest education loans in India.

There are several financial institutions offering education loan to students to help them achieve their academic ambitions of studying abroad.

Things to consider before applying for an overseas education loan.

1. Types of Overseas Education Loan
2. Rate of Interest
3. Marginal cost
4. Processing Fee

Let us take a look at some of the cheapest education loans in India offered by top loan providers: 

1. State Bank of India

SBI offers some of the cheapest education loans in India via the SBI Student Loan Scheme

• Under the list of approved universities loans are available for all professional, graduate and post-graduate courses
• Loan amount of 30 to 40 lakhs can be availed
• Repayment tenure – 10 to 12 years and can extend up to 15 years (depending on the case)
• Loan Margin Requirement – 15%; interest rates – up to 2% over the base interest rate offered by SBI
• Moratorium Period – Complete interest is could be paid during the moratorium period; principal payments are made after the loan tenure begins

2. Axis Bank

Another bank that is considered among the best bank for overseas education loan is Axis Bank that offers innumerable advantages. Have look at the pointers below.

• Axis bank offers hassle free loans for courses that are professional, and career-oriented like MBA, MS, etc. which are from the approved universities
• Loan amount of upto 20 lakhs covering everything from tuition to hostel fees
• Co-applicant – Mandatory to have a parent or guardian (collateral is optional in most cases)
• Loan margin requirement –
• 5% For Loans Above 4 Lakhs
• Loans Below 4 Lakhs Are Exempt
• Interest Rates Can Start as Low As 8.7%
• Special Provisions for Women and Girls
• No Processing Fees
• Loan Approval Period – 15 Days

3. HDFC Bank

HDFC being one of the India’s old banks has always been on the forefront in offering study abroad loans. Take a look at the benefits it offers:

• HDFC Offers Overseas Education Loan to over 950 Professional Courses Across 36 Countries at Approved Universities
• Loan Amount of Upto 20 Lakhs
• Flexible Provisions Available for Security Deposits, Co-Applicants or Collaterals
• Ages Limit – 16 To 35 Years
• Loan Margin Requirement – 0%; HDFC Pays Up to a 100% of the Necessary Amount
• Processing Fee – 1.5%
• Pre-Approved Loan Applications (Conditional)

5. Bank of Baroda Bank

Under the Baroda Scholar scheme BOB offers education loans in India. Take a look at the benefits it offers:

• BOB offers loans to all the courses from the recognized institutions in several countries offering professional and technical courses
• Loan Amount of Upto 20 lakhs
• For loans above 4 lakhs third party guarantees or collaterals are required
• Repayment tenure – over 10 years for loans of up to 7.5 lakhs and 15 years for higher loans amount
• loan margin requirement – 15%
• women get a discount in the interest rates
• Moratorium Period – Complete interest is could be paid during the moratorium period; principal payments are made after the loan tenure begins

The documents required by all the banks in general for the application of overseas education loan are as listed ahead. Read on.

Documents Checklist

Hardcopy or softcopy of all the documents mentioned below is mandatory to be submitted along with the loan application form.

1. Copy of the offer letter or letter of acceptance received from the admitting education institution.
2. Academic marksheets and/or diploma of SSC, HSC and graduation, if any.
3. A copy of first page of bank passbook
4. Two passport size photographs as per the dimension given
5. Residential proof such as Passport or Aadhaar card or Driving license, etc.
6. Income proof of the applicant if employed such as the pay slips, offer letter from previous and current employer, service certificate, if any.

Be careful not to mislead the bank with information. Remember, honesty is the best policy.

For any assistance related to education loan or overseas education, you may contact an experienced loan advisor or studies abroad consultants.

Good luck!

Read more: The Not to Be Missed Criterion of Study Abroad Loan