Best Education Loan in India to Study Abroad
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This guide blog is helpful in finding the best education loan in India to finance your dream of studying abroad at world-class universities. It covers the types of student loans in India, features to consider, eligibility criteria, and required documents to get a study loan.
Are you interested to know about the best education loan in India to finance your higher studies abroad? It is a tough task to analyze which bank is offering the most suitable student loan for studying outside India. Education loan is the best tool to allow students to borrow money to pay for their higher education in India or abroad. Many students considering studying abroad are unsure about the best education loan in India.
Studying at top universities in the world under experienced professors and world-class infrastructure can be a life-changing experience. We understand the importance of your dream is special to you and you don’t want to leave any stone unturned to make your dream come true. In this guide, we will help you to find the best education loan in India for studying abroad. You will also know about the different best education loan providers and more.
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Read More: Education Loan Interest Rates
Best Education Loan in India
Low-interest rates, student-friendly rules, more moratorium periods for student loans and easy repayment options are the key points to finding the best education loan in India. When it comes to apply for student loans then students prefer the Government education loan in India over the student loan offered by private institutions. It is always advisable to start planning your education loan early. For that, you should know when to start thinking about finances to Study Abroad.
- Here we have mentioned a table to help you understand the current rate of interest of Indian Banks.
| Banks in India |
Education Loan Interest Rate |
|---|---|
| State Bank of India Education Loan |
6.70% onwards |
| Canara Bank Education Loan |
7.30% to 9.30% |
| Punjab National Bank Education Loan |
7.15% onwards |
| Bank of Baroda Education Loan |
7.15% onwards |
| ICICI Bank Education Loan |
10.50% onwards |
| Axis Bank Education Loan |
13.70% to 15.20% |
| Kotak Mahindra Bank Education Loan |
Up to 16.00% |
| HDFC Bank Education Loan |
|
A report by The Hindu predicts the number of Indian students studying abroad will reach two million by 2025, up from one million in 2019. Mostly, students are choosing to study in the USA, United Kingdom, Canada and other English-speaking countries. It is known to all that you need good financial support to back yourself up for financing your studies out of India.
Types of Education Loans for Studying Abroad
Students in India can choose from various education loans to finance their studies abroad or in India. It can be taken from banks, financial institutions, and other lending agencies to support your dream to study abroad. Before you proceed to apply for student loans in India, here are certain things to know before applying for education loan to study abroad.
Education Loan Types
There are two main types of education loans in India.
- Secured Education Loan- Banks ask for collateral at the time of offering secured student loans in India. It can be anything such as a fixed deposit, property, etc. Usually, banks offer secured study loans with lower interest rates compared to unsecured loans
- Unsecured Education Loan- As you can understand by name, banks offer such loans without any collateral. This results in higher interest rates compared to secured loans.
Quick links to Education Loan Guides for the top study abroad destinations:
Features of Best Education Loan in India
Here are some important features of the best student loan in India that you should know. These factors will help you to do a quick analysis of study loans and choose the best education loan in India to study abroad.
- Loan Amount- The maximum loan amount offered by the Banks and private institutions varies depending on courses, university and study duration. Analyze and choose the correct study loan for yourself.
- Interest Rates- The most important factor to decide the best education loan in India. Students prefer the study loan with lower interest rates. Note that, banks offer lower ROI loans to students with good academic records and female students. Here we have mentioned a table to help you understand the current rate of interest of Indian Banks.
- Processing Fees- Loan processing fees are the charges to cover the administrative cost for the education loan process. It varies from bank to bank.
- Repayment Rules- An Education Loan with longer tenure allows for lower EMIs but increases the overall cost of a student loan. You can use the Education loan calculator available online to do analysis.
- Moratorium Period- A longer moratorium period allows you to delay repayment until after your studies. Public sector banks usually offer a moratorium period and a grace period or EMI holiday for education loans.
- Pre-visa and Post-visa Disbursement- It is an important factor to decide the best education loan in India for you. Some banks offer pre-visa disbursement to pay the tuition fees, travel arrangements and other expenses. On the other hand, some financial institutions offer Post-Visa disbursement to manage the cost of living during studying abroad. Understand your need and then apply for a student loan to study abroad.
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Education Loan Providers in India
It is essential that you know about the top education loan providers in India to students for studying abroad. This will help you to compare public Vs private student loan providers and choose the ideal one for you. Below, we have mentioned an overview of the types of education loan providers in India.
Public Sector Banks
Here we have mentioned the list of public sector banks that offer student loans for studying abroad. The table will help you to get an overview of the rate of interest and maximum loan amount offered by these banks.
| Bank |
Rate of Interest (approx.) |
Maximum Loan Amount (approx.) |
|---|---|---|
| State Bank of India (SBI) Education Loan |
9.50% - 12.50% |
Upto 1.5 Crore |
| Bank of Baroda (BoB) Education Loan |
9.25% - 11.75% |
Upto 75 Lakhs |
| Indian Overseas Bank Education Loan |
9.75% - 12.75% |
Upto 20 Lakhs |
| Punjab National Bank (PNB) Education Loan |
9.95% - 12.95% |
Upto 75 Lakhs |
| Bank of Maharashtra Education Loan |
10.00% - 13.00% |
Upto 20 Lakhs |
Source: Official Website
Private Sector Banks
Check the details about the education loans offered by private banks in India to study abroad.
| Bank |
Rate of Interest (approx.) |
Maximum Loan Amount to Study Abroad |
|---|---|---|
| ICICI Bank Education Loan |
Repo Rate+3.75% |
Upto 2 Crore |
| Axis Bank Education Loan |
13.70% to 15.20% |
Upto 75.00 Lakhs |
| Kotak Mahindra Bank Education Loan |
Up to 16.00% |
Upto 20.00 Lakhs |
| HDFC Bank Education Loan |
|
Upto 45.00 Lakhs |
Source: Official Website
NBFCs
Check out the details about study loans offered by Non-Banking Financial Companies (NBFCs) to study abroad
| NBFCs |
Rate of Interest (approx.) |
Maximum Loan Amount to Study Abroad |
|---|---|---|
| HDFC Credila Education Loan |
12.35% Onwards |
No upper Limit |
| Avanse Education Loan |
14.25% Onwards |
No Upper Limit |
| Auxilo Education Loan |
12.70% Onwards |
Upto 1 Crore |
Source: Official Website
Eligibility Criteria for Best Education Loan in India
The eligibility criteria for education loans vary from bank to bank. However, we have mentioned some generic eligibility criteria for student loans in India.
- Profile of students, such as age, academic background, and nationality.
- Course reputation or university selection.
- Profile of Co-applicant such as financial stability and creditworthiness of the co-applicant (usually a parent or guardian).
List of Documents Required for Student Loan in India
Here is the list of required documents for student loans that students need to keep it handy at the time of application.
- Valid ID card approved by the government such as PAN/ Passport/ Driver’s License/ Voter ID card
- Proof of Residence/ Address (either): Recent copy of utility bill
- Income Proof of applicant or co-applicant
- Valid Indian Passport
- Academic Records
- Entrance Exam Results such as GMAT, GRE, TOEFL, and IELTS.
- Proof of admission including the offer letter or admission letter from the university
- Statement of cost of study/ Schedule of expenses
- 2 passport-size photographs
How to Apply for the Best Education Loan in India?
After completing the eligibility, and selecting the best education loan in India, candidates can apply for the student loan with the required documents. Below, we have mentioned the step-by-step process to apply for a study loan. Note that, these steps are generic and your application process may be different from this.
- Visit the official website of your lender
- Fill up the basic details asked there.
- Upload the documents required for the application.
- After verification, your application will get approval.
Once, you will complete the application process, then the amount will be credited into your account.
This is all about the best education in India. We have covered all the required information about the topic related to the query of a student who is going to study abroad. The details about study loan offered by the loan providers can get updated timely. It is advisable that select the study loan according to your need.
Q: What GPA is required for the University of South Dakota?
The University of South Dakota expects a GPA score of 2.5 from undergraduates and 3 from postgraduates on the 4-pointer scale. Along with the GPA scores, undergraduates must meet the basic eligibility and submit an ACT score of 21 or higher and an SAT score of 1070 or higher. In addition, they must submit the required documents, such as academic history, transcripts, letters of recommendation, English language scores, and more.
Q: How can I get admission in the University of Manchester?
The application process at the University of Manchester may vary depending on the course and level of study. However, here is the application process for UG and PG courses:
The Undergraduate Application Process:
Step 1: You can apply through the UCAS common application portal.
Step 2: Go to the website and select the course you are interested in.
Step 3: Ensure you meet the Entry requirements (Academic qualifications, English proficiency, etc.
Step 4: Once you decide on the course, submit documents such as SOP, Transcripts and personal statements.
Check out: tips to improve your SOP.
Step 5: You can track the application's progress through your given credentials by UCAS.
Step 6: Once the applicant submits the application to UCAS, it forwards to the University, and the admission teams carefully analyse the application document.
Step 7: The university will send you an offer letter once selected. Hence keep checking your UCAS portal for your application status.
The Postgraduate application process:
Step 1: Select the postgraduate course you are interested in from the University of Manchester.\
Step 2: Ensure you meet the entry requirements for the chosen program, as they vary depending on the course.
Step 3: Complete the online application by providing your personal information.
Step 4: Upload the required documents, such as Academic transcripts and proof of English language proficiency ( TOEFL/ IELTS). experience in your fields and references (depending on the course). You also may require Two LORs depending on the course.
To make your admission better, check out the following: How Admission Officers Evaluate your application.
Step 5: If your application is successful, you will receive an offer from the University of Manchester.
Q: Does the University of Essex require IELTS?
International students whose native language is not English must meet the University of Essex English language requirements to get admission. The university accepts IELTS scores as proof of English language proficiency. Mentioned below are the IELTS scores required for UG and PG admission at the university:
English Language Test | Score |
|---|---|
IELTS | Overall score of 5.5 to 8.0 with minimum of 5.5 to 7.5 in each section |
The university also accepts the score of other English language tests such as TOEFL and PTE for admission to undergraduate and graduate programs:
English Language Test | Score |
TOEFL iBT | Overall score of 72 to 114 |
PTE | Overall score of 59 to 84 with minimum of 59 to 80 in each section |
Also read: Required IELTS Score for UK Universities
Q: What GPA is needed to go to Ohio State?
There is no minimum GPA score for UG admission at Ohio State. However, International students must have a cumulative GPA of at least 3.0 (on a 4.0 scale or equivalent) for graduate admission. Applicants may submit a standardized test score (GRE or GMAT) if their cumulative GPA is below 3.0 for the last degree.
Q: Is university of West of Scotland good for international students?
The University of the West of Scotland has five modern and diverse campuses in United Kingdom. The University has welcomed more than 3,000 international students which are representing 1/3 of the globe. They also have 130 European partners who are actively in global study and exchange options through the Commonwealth universities programmes. The University also offers study abroad opportunities for UWS who are eligible for the same and also have more than 20 transnational education partners worldwide which helps them deliver UWS Bachelors and Masters Degrees around the world.
Q: Is it hard to get into the UTSA in San Antonio Texas?
According to various sources, University of Texas San Antonio has an overall acceptance rate of around 87% which makes it somewhat selective for international student admissions. Some of the general requirements to be considered for admission are given as follows:
- SAT/ACT scores
- Overall Student's GPA
- Letters of Recommendation
- High School Class Rank
- Additional Academic Records
Q: Is University of North Dakota good for Indian students?
The University of North Dakota is one of the top choices for international students to pursue their higher education. The UND warmly welcomes its international students as they have contributed a lot to the success of the university. Moreover, the university offers a top-notch environment, the best academic opportunities, technical & career training, etc. The university boasts over 1000 international students who represent more than 95 countries. Additionally, international students highly enjoy the facilities provided by the University of North Dakota. The UND is one of the largest research universities in the United States for international students.
Q: How much is the application fee for Alabama University?
The Alabama University application fee for International students vary by application type. Mentioned below are the application fee for UG and PG applications at Alabama:
- UG: USD 40 or INR 3,342.14
- MBA: USD 80 or INR 6,684.28
Raj Vimal has experience of 7+ years in SEO Content Writing, which includes 5+ years in the Ed-Tech industry. He has written articles about studying abroad, especially in the USA, UK, and other English-speaking coun... Read Full Bio
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