Top Education Loans Providers in India for Study Abroad

Here are the top education loan providers in India for students who wish to pursue their education abroad.

1. HDFC Bank

HDFC Bank offers education loans with preferential interest rates for reputed universities.

Maximum loan amount - Up to Rs. 20 lakhs

Processing fees - Up to 1.5% of the loan amount

HDFC education loans can be availed before the student has secured an admission at the university. Borrowers enjoy flexible security collateral. Co-borrowers can be living in a different city than the borrower, but they can only be relatives of the borrower.

2. State Bank of India

SBI finances international higher education for job-oriented professional and technical graduate as well as postgraduate degree courses. Some examples of these courses are MBA, MCA, MS, diploma courses at reputed universities etc. The loan offered by SBI covers tuition fees, exam fee, lab fee, library fee, caution deposit, books and equipment cost, travel expenses etc.

Maximum loan amount - Rs. 30 lakhs

Collateral security required - For loans above Rs. 7.5 lakhs

Loan margin - 15% for SBI education loan borrowers

Interest rate - Up to 2% on the current base rate of SBI

Repayment tenure – 1 year to 15 years

SBI offers a moratorium period where the entire interest can be repaid so that when the actual loan repayment tenure starts the monthly installment can be just the principal amount. The borrower has to submit college admission letter, completed loan application form, course costs, co-applicant details and other KYC documents to the bank.

3. Axis Bank

Students can seek loans for technical, professional courses, or career-oriented courses. The whole process of getting an education loan with Axis bank is hassle-free. The loan covers hostel fee, tuition fee, book cost etc.

Maximum loan amount - Rs. 20 lakhs

Minimum loan amount - Rs. 50,000

Interest rate - Ranges from 16.5% to 17.5% with special rates for women

Loan margin - Not required for a loan below Rs. 4 lakhs. For loans above Rs. 4 lakhs, 15% has to be brought in by the borrower

Processing fee - None

Education loans require a parent or guardian to act as a co-applicant, with third party guarantee or collateral security, if applicable. Axis Bank might also consider LIC policy for 100% of the loan amount but it depends from case to case.

4. Punjab National Bank

PNB Udaan is a special education loan scheme for Indian students planning to study abroad. The loan is available for students who have got admission for graduate or post-graduate courses varying from diplomas, job-oriented professional or technical courses, CIMA/CPA courses etc. The PNB loan covers university fee, travel expense, exam fee, lab fee, library fee, book/equipment fee and other related expenses.

Maximum loan amount - PNB sanctions loans according to the requirement of the borrower,

Loan margin - 15% for loans above Rs. 4 lakhs. For loan amount below Rs. 4 lakhs, loan margin is not required. Assistantship and scholarships can be added to the loan margin. PNB offers the base rate as the

Interest rate - Base rate for pursuing education at the top 200 universities across the world

Moratorium period - Up to a year with no prepayment charges levied by the bank

Processing fees - 1%

The tenure options available for PNB education loan borrowers is up to 15 years

5. Bank of Baroda

Under the Baroda Scholar scheme, admission secured for professional and technical courses at reputed foreign universities are sanctioned for education loan.

Maximum loan amount - Up to Rs. 20 lakhs

Loan margin requirement - 15%

Repayment tenure - Loans taken up to Rs. 7.5 lakhs can be repaid within 10 years and loans above Rs. 7.5 lakhs can be repaid within 15 years

Borrowers can get a holiday or moratorium period of six months to one year after getting employment. Security is not required for loans below the amount of Rs. 4 lakhs. Third party guarantee is required for loans between Rs. 4 lakhs and Rs. 7.5 lakhs and a tangible collateral security is required for loans above Rs. 7.5 lakhs.

6. Canara Bank

The Canara Bank education loan covers university fee, travel costs, exam fee, lab fee, library fee, book/equipment fee and other related expenses. Education loan has to be taken with a co-borrower and 100% collateral security is required for loans above Rs. 7.5 lakhs.

Maximum loan amount – Upto Rs. 20 Lakhs

Loan margin - 15% for loans taken above Rs. 4 lakhs

Repayment tenure - Can be up to 10 years for loans below Rs. 7.5 lakhs and up to 15 years for loans above Rs. 7.5 lakhs.

Security - Not required for loans below Rs. 4 lakhs. Third party guarantee has to be given for loans from Rs. 4 lakhs to Rs. 7.5 lakhs.

7. IDBI Bank

The IDBI education loan covers university fee, travel, exam fee, lab fee, library fee, the cost of computers, book/equipment fee and other related expenses. IDBI Bank sanctions loan amount according to the requirement of the borrower, with no security on loans below Rs. 4 lakhs.

Maximum loan amount - Up to Rs. 20 lakhs

Repayment tenure - Up to 10 years for loans below Rs. 7.5 lakhs and up to 15 years for loans more than Rs. 7.5 lakhs

Third party guarantee is required for loans between Rs. 4 lakhs and Rs. 7.5 lakhs. Education loan has to be taken along with a co-borrower. 100% collateral security is required for loans more than Rs. 7.5 lakhs.

8. Avanse Financial Services

Avanse offers various kinds of loans like pre-visa disbursement loan, fast-track loan, pre-admission loan, and certificate of availability of funds. Borrowers have to submit their KYC documents, course fee, collateral documents, income documents etc. when they avail an Avanse education loan.

Minimum loan amount - Rs. 1, 00,000 with the

Maximum loan limit - Customized according to the borrower’s requirement

loan tenure can be taken between 12 months to up to 120 months

Avanse education loan covers tuition fee, travel cost, living expense, books /equipment fee and other related expenses.