The journey of pursuing higher education abroad is both exciting and challenging. When it comes to financing. It is very crucial to choose the right lender for education. For students and parents who all are confused on choosing the right education loan, Zolve has emerged as a game-changer in the education loan landscape. Zolve acts as an aggregator, connecting students with multiple lenders and providing them with a range of loan options, so that they can embark on a new journey to fulfill their dreams of studying abroad.
In this article, you will go through the top five banks for education loans for overseas study, as well as a comparison of some of the best Indian banks that provide these services. You will also get details about the important documents and eligibility requirements to complete the process.
Eligibility Criteria to apply in Indian Banks
The requirements for documentation and eligibility may differ slightly throughout banks. Candidates need to fulfill the following eligibility requirements to complete their loan application process:
- Candidate must have Indian citizenship
- Candidates should have an acceptable academic record.
- Co-applicant with a reliable source of income, typically a parent or guardian
- The foreign institution's admissions letter
- All academic records, such as grades, diplomas, and certificates
- Proof of residence, identity, and age
- Revenue evidence of the co-applicant, such as pay stubs or an ITR
- Documents used as collateral (if relevant)
Note
Eligibility to apply for F-1 or M-1 visa
You will require a student visa to pursue full-time studies in the USA. Those who want to study in the USA may apply for one of two non-immigrant visa categories. The F and M visas are the names given to these types of visas. If you fulfill the following requirements, you may apply for an F-1 or M-1 visa:
- You have to be enrolled in a vocational, language training, or "academic" educational program.
- Immigration and Customs Enforcement's Student and Exchange Visitor Program must give its approval to your school.
- You have to be a full-time student at the university.
- You have to be enrolled in classes that will help you become skilled in English or be fluent in the language.
Documents Required for Education Loan for Abroad Studies
Education loan required documents vary from lender to lender and also depend on the type of education loan applied for. Here’re the general documents required by almost every lender:
Identity-Related Documents (From Both Applicant & Co-applicant)
KYC documents
● PAN card
● Driving license
● Aadhar card
Address proof
● Aadhar card
● Valid water/electricity/ LPG Bill
● Voter’s ID card
● Current house lease agreement
● Valid passport
Academic record documents (From Applicant)
● 10th result
● 12th result
● Proof of admission
● Undergraduate result semester wise (If required)
● Entrance exam results - abroad institutes (GRE, GMAT, TOEFL, IELTS etc.)
Financial Documents from the Co-applicant
For salaried co-applicant
● Salary slips of the last 3 months
● Copy of Form 16 for last 2-3 years or copy of IT Returns for last 2-3 financial years, acknowledged by Income Tax Dept.
● Bank account statement for the last 6 months (salary account).
For Self-employed co-applicant
● Business address proof (If Applicable)
● TDS certificate (Form 16A, if applicable)
● Last 3 years ITR
● Certificate of qualification (for C.A./ Doctor and other professionals)
● Bank account statement for the last 6 months
Technical Documents for Collateral
● Approved layout plan and permissions (if applicable)
● NOC and allotment letter
● Possession certificate (if applicable)
● Copy of prior sale deeds
● Conversion certificate where the property has changed from agricultural to non-agricultural use
● Urban clearance certificate
Legal Documents for Collateral
● Sale/gift/partition deed
● Khata certificate and extract
● Encumbrance certificate (EC)
● Latest property tax receipt
5 Best Banks offering Loan For Higher Education Abroad
- SBI Bank
As one of the largest public sector banks in India, SBI offers attractive education loans for students willing to study abroad. SBI is a preferred choice for many aspiring students because of competitive interest rates and flexible repayment options.
Features | Education Loan Details |
Loan amount | Up to Rs. 7.5 lakhs |
Processing fee | Up to 10,000/- |
Loan Tenure | Upto 15 years |
Interest rate | 11.15%* |
Processing time | Up to 7 days |
- IDFC Bank
With a strong presence in the banking sector IDFC Bank offers comprehensive education loan packages for students planning to study abroad. They have affordable interest rates with no margin money and long payment tenure so that it becomes easy for students to embrace their career.
Features | Education Loan Details |
Loan amount | Upto ₹2Cr (Collateral ) Upto ₹75Lac (Without Collateral) |
Margin money | Nil |
Processing fee | 0.5% to 1.0% |
Loan Tenure | 15 Years (Including study and grace period) |
Prepayment charges | Nil |
Repayment during the course duration | Simple or Partial Interest |
Interest rate | 11.50 - 12.25% |
- AXIS Bank
Another leading player in the banking industry AXIS Bank offers good , affordable and easy to get loans for aspiring students. Their loans cover a wide range of expenses, including accommodation, tuition fee, and other costs, ensuring students can focus on their education without worrying about their financial expenses.
Features | Education Loan Details |
Loan amount | Up to INR 40 - 75 Lakh |
Processing fee | 0.75% of the loan amount + GST |
Loan Tenure | Upto 15 years |
Interest rate | 11 - 11.5% |
Repayment during the course duration | Simple Interest (SI) |
Margin Money | 0 - 5% |
Co-applicant minimum income | INR 35,000 / month |
- Union Bank of India
Union bank also offers loans for students wishing to study abroad. They have the best interest rates In the market which doesn’t overburden the pocket of Indian parents. Also they have no processing fees and approve the loan very fast so the students like you can embark on your journey of study abroad.
Features | Education Loan Details |
Loan amount | Up to INR 40 lakh |
Processing fee | NIL |
Loan Tenure | Upto 15 years |
Interest rate | Starting ay 9.8% |
Repayment during the course duration | Simple Interest (SI) |
Processing time | Upto 7 days |
Moratorium period | Course + 12 months |
- HDFC Credila
HDFC Credila is Known for its specialized education loan offerings, aiming international education for aspiring students They offer benefits such as quick processing, customized repayment plans, and assistance in understanding foreign currency fluctuations.
Features | Education Loan Details |
Loan amount | INR 20 - 75 Lakh |
Processing fee | 0.5 - 1.5% of the loan amount + GST |
Loan Tenure | Upto 15 years |
Interest rate | 11.25 - 13% |
Repayment during the course duration | Simple Interest (SI) or partial Simple Interest (PSI) |
Processing time | Upto 7 days |
Moratorium period | Course period + 1 year |
Interest rates for education loans offered by various banks
The following lists the interest rates offered by several well-known Indian banks for loans for study abroad:
Bank | Interest Rate (%) |
HDFC Credila Education Loan | 13.80% (approx) |
Union Bank of India | 10.90% p.a. to 12.55% |
SBI | 11.15% |
Axis Bank | 13.70% to 15.20% |
Punjab National Bank | 9.40% to 12.10% |
IDFC Bank | 11.50 - 12.25% |
Indian Bank | 8.80% to 11.40% |
Key Features of Education Loan for Abroad Studies
Criteria | PSB | Private Banks | NBFCs | International Lenders |
Best known for | Secured loans | Unsecured and secured loans | Unsecured loans | Unsecured without co-applicant |
Popular choices | SBI, UBI, and BOB | Axis, ICICI, and IDFC | HDFC Credila, Avanse, InCred. And Auxilo | MPOWER and Prodigy |
Interest rate | Starting at 9.8% | Starting at 10.85% | Starting at 11.25% | Starting at 11.00% |
Maximum loan amount* | INR 1.5 Cr | INR 50 Lakh | INR 75 Lakh | 100,000 USD |
Margin money* | 10 - 15% | 0 - 10% | Nil | Nil |
Repayment tenure* | Up to 15 years | Up to 15 years | Up to 20 years | Up to 15 years |
Repayment options | Free or SI | PSI, SI or EMI | SI or EMI | SI |
Processing time* | 10-15 days | 5-7 days | 5-7 days | 5-7 days |
Financial co-applicant required* | No | Yes | Yes | No |
Tax benefit* | Yes | Yes | Only HDFC Credila | No |
Tips to choose the right education loan for study abroad
If you want to learn the steps of choosing the perfect education loan for study abroad, read the points given below-
1. Research Loan Options: Explore various banks, financial institutions, and loan aggregator platforms like Zolve to compare loan offerings, interest rates, repayment terms, and eligibility criteria.
2. Consider Loan Amount: Determine the total cost of your education abroad, including tuition fees, accommodation, living expenses, and other related costs. Choose a loan that covers your entire financial need without excessive borrowing.
3. Evaluate Interest Rates: Compare the interest rates offered by different lenders. Opt for a loan with a competitive interest rate to minimize the overall cost of borrowing.
4. Check Repayment Flexibility: Look for loans that offer flexible repayment options like moratorium periods for the repayment of principal and interest, to ease the financial burden during your study period and after graduation.
5. Assess Collateral Requirements: Understand whether the loan requires collateral or a co-borrower. Some lenders offer unsecured loans for smaller amounts, while larger loans may require collateral or a co-borrower.
6. Review Processing Time: Consider the processing time for loan approval and disbursement. Choose a lender with a streamlined and efficient loan processing system to avoid delays in funding your education.
7. Evaluate Customer Service: Examine the track record of lenders with relation to assistance with loan applications and repayments, promptness in answering questions, and quality of customer service.
8. Read terms and conditions carefully: Make sure you are aware of all the terms and conditions of the loan agreement, including repayment plans, late payment penalties, and any additional fees or charges.
Zolve: Best Platform to find Education Loan in India
If you are still confused about which loan to choose for higher studies, you can simply use Zolve. It is a loan aggregation platform where you can discover the optimal international education loans available in India. Zolve facilitates connections with numerous lenders, allowing you to contrast loan offerings based on interest rates, loan amounts, repayment schedules, and additional criteria. This platform empowers you to access many loan products according to your needs and financial circumstances. It also ensures you select the most appropriate international education loan for your academic journey abroad.
Conclusion
Every student has a dream of studying in top institutions, especially if they get a chance to study abroad, and education loans play a crucial role in pursuing their academic goals. The top lenders mentioned above, as well as innovative platforms like Zolve, facilitate loan aggregation so students can navigate the financial aspects of studying overseas more effectively. Also, by following these tips, you can make an informed decision and choose the right education loan that aligns with your financial goals and supports your academic aspirations abroad. It also gives them support to turn their educational ambitions into reality.
FAQ'S
FAQ 1: What is the maximum loan amount available for international education loans in India?
Answer: Up to Rs. 1.5 crore or higher, depending on the lender and course details.
FAQ 2: Are there scholarships or grants available for Indian students studying abroad?
Answer: Yes, various government and private scholarships are available.
FAQ 3: Do international education loans cover expenses other than tuition fees?
Answer: Yes, they cover accommodation, living, travel, and other study-related costs.
FAQ 4 What are the interest rates for international education loans?
Answer: Interest rates range from 9% to 14% per annum, depending on factors like loan amount and borrower's profile. You can find more details on Zolve.
FAQ 5: Can a student apply for an international education loan without collateral or a co-borrower?
Answer: Yes, for smaller amounts, but larger loans may require collateral or a co-borrower.
Disclaimer: The products, services, and offerings mentioned in this blog are subject to change and may vary over time.
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