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Best Education Loans in India to Study Abroad 2024 - Top Banks List

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Best Education Loans in India to Study Abroad 2024 - Top Banks List

Edited By Sareena Kaur Sethi | Updated on Mar 26, 2024 02:57 PM IST

The best way of gaining international exposure, work experience, and world-class education is through pursuing a degree or course abroad. Therefore, it makes it even more essential for Indian students planning to pursue their degree in a host country to know about the best education loans in India to study abroad. This dream leads to a stream of endless opportunities that a person can gain fruitful benefits from given that they can afford to live, work, and study in a foreign country.

Hence, it generates a massive demand for education loans in India to study abroad in countries such as the UK, Canada, USA, Germany, Ireland, etc as a good proportion of people might not be able to self-finance their education themselves.

Now, the main question that arises is “Which is the best education loan in India to study abroad, and how to get it?” This article will answer all your queries regarding the requirements for education loans in India to study abroad, and financial institutes through which one can apply for the cheapest education loan for studying abroad.

We will be mentioning various possible providers of education loans in India to study abroad including Banks and Non-Banking Financial Companies (NBFCs) in India that are a credible source for providing student education loans to people if they want to pursue their education in a foreign destination.

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With the help of the best education loans in India to study abroad, these financial institutes provide as much assistance to aspiring students as they can while also enabling many dreams to come true by supporting them economically and facilitating a smooth transition into this new journey.

Read more: Factors to consider before taking an education loan

How to get a student loan in India to Study Abroad?

Student loans for studying abroad are provided by almost all the major banks in India, apart from this there are many private education loan providers in India. Candidates planning for an education loan to study in the UK, USA, Canada, or any other country, then you should know about the top student loan providers in India and more importantly their terms and conditions.

An applicant can choose a bank or NBFC of their choice after comparing them on several factors and filling in the required application form either online or offline to opt for the education loan as offered by the financial institute. After doing so one should submit necessary documents related to their finances, identity, academic background, property, and admission letter to get through with the application process. It can be followed by various other procedures which may vary according to the loan type, amount, and bank that a person chooses to associate with.

Requirements for Education Loans in India to Study Abroad

Some of the eligibility criteria and requirements that one needs to adhere to and keep in mind while choosing the best education loans in India to study abroad are as follows:

  • The borrower must be an Indian citizen to be eligible to apply for any of the education loans mentioned above.

  • An admission or acceptance letter from the university of your choice in a foreign country should be submitted at the time of loan application.

  • One should thoroughly complete the entire application process at the designated Bank or Financial institute in India by filling out forms and submitting passport-size photographs, photo ID, proof of residence and income, and academic transcripts.

  • The applicant must have a renewed and eligible passport before starting the application process for an education loan to study abroad.

  • Some additional documents will be required at some of the loan-providing institutions like KYC, tuition fee statements, minimum grade criteria mark sheets, etc.

  • In case the primary applicant for the education loan is not earning, there must be a co-applicant responsible for the application and loan sanction procedure.

Top Education Loan Providers in India

India in recent times, has become a hub for not just IT or Commerce departments but has some of the leading financial sectors in the world. These sectors consist of various financial institutions in the form of Banks and NBFCs that not only help you balance and maintain your assets but also help you in times of crisis or need. One such need is the increasingly high demand for education loans in India to study abroad.

To ease the process of fetching credible and reliable outlets for opting for education loans we have created a list of some of the most renowned and trustworthy Banks and NBFCs that will help you pursue your dreams of studying abroad but will also give you an idea as to which loan suits your needs and meets the requirements of the aspirants in the best way possible. We will be showcasing the best student loan providers in India belonging to the governmental as well as private financial institutions.

State Bank of India (SBI)

State Bank of India is one of the most sought-after choices when it comes to choosing a bank as an education loan provider in India. One can pursue their studies abroad in countries like the United States, Russia, Canada, Norway, Ireland, United Kingdom, New Zealand, Australia, etc by opting for student loans provided by SBI. However, these loans are mostly granted for degrees such as undergraduate, graduate, master's, and doctoral, which are more job and technical-oriented, and courses that are more job-oriented in the market. The SBI education loan covers tuition fees, exam or lab expenses, travel, safety deposits, and even miscellaneous expenses like books, supplements, or transportation.

Type of Student Loan

Amount

Rate of Interest

Student Loan

Max Rs. 1.5 Cr.

10.05% fixed

Global Ed-Vantage

Rs. 20 Lakhs-1.5 Cr.

10.05% fixed

Some of the other essential details regarding the education loans provided by SBI to study abroad are as follows:

  • The tenure for student loans as well as Global Ed-Vantage is for 15 years and can be repaid through EMI.

  • SBI also facilitates a moratorium period of around 6 months that can be enabled after the competition of your desired degree or course.

  • It has an application processing fee of approx. Rs. 10,000.

  • It has a margin of 15% for education loans to study abroad in case of an amount of Rs. 4 lakhs or above.

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HDFC Credila

HDFC Credila offers a customized choice to students who are planning to study abroad and are looking for a favourable and extensive feature-oriented education loan option. It has a specialized range of choices for different nations depending upon the loan takers' preferred study destination like the USA, Canada, Germany, etc. Most of the loan granting process will be initiated and completed before the visa process as guaranteed by the Bank making it a favourable option in terms of the best education loan providers in India.

Type of Student Loan

Amount

Rate of Interest

HDFC Credila

Min. Rs. 1 Lakhs

12.80%

Some of the other essential details regarding the education loans provided by HDFC to study abroad are as follows:

  • The tenure for HDFC Credila is 12 years and can be started repaying after the 1st installment.

  • SBI also facilitates collaterals in the form of houses, flats, FDs, and other assets or properties.

  • It has an application processing fee for an education loan of anywhere between Rs. 1000 and 1% of the loan-sanctioned amount.

  • It has a margin of 15% for education loans to study abroad in case of an amount of Rs. 4 lakhs or above.

Axis Bank

Axis Bank education loan for abroad proves to be one of the best sources in terms of providing student loans in India to study abroad. It offers necessary financial support the deserving students for pursuing higher professional or technical education in India and abroad. Axis Bank is one of the few private banks that offer in-house financing to Indian students aspiring to study abroad or in India. It also provides the cheapest education loan in India for studying abroad to those students who have obtained admission to career-oriented courses like medicine, engineering, management, etc.

Type of Student Loan

Amount

Rate of Interest

Prime Abroad

Min. Rs. 50,000

Favourable

Some of the other essential details regarding the education loans provided by Axis Bank to study abroad are as follows:

  • The tenure for the student education loan to study abroad is 15 years and there is no upper limit for the maximum amount of loan a person can take.

  • It also facilitates covering the majority or even the full amount of costs of transportation, visas, books, supplies, and tuition fees.

  • It has an application processing fee for an education loan that is anywhere between Rs. 1000 and 1% of the loan-sanctioned amount.

  • It has a margin of 15% for education loans to study abroad in case of an amount of Rs. 4 lakhs or above.

Punjab National Bank

PNB is a government-leading financial institute known for providing education loans in India to study abroad. One can opt for PNB Udaan as a means for financing their education while going to a foreign country to pursue a degree in the field of undergraduate, graduate, master, or doctoral studies.

Type of Student Loan

Amount

Rate of Interest

PNB Udaan

Need-based financing option

Favourable

Some of the other essential details regarding the education loans provided by Punjab National Bank to study abroad are as follows:

  • The tenure for repayment of the student education loan to study abroad is 15 years.

  • It also facilitates covering the majority or even the full amount of costs of transportation, visas, books, supplies, and tuition fees.

  • It has no external payment charges.

  • It has a margin of 15% for education loans to study abroad in case of an amount of Rs. 4 lakhs or above.

Canara Bank

Canara Bank offers an enticing range of coverage that includes tuition fees, books, housing facilities, equipment fees, and even travel expenses as a part of their student education loan to study abroad. It offers student loans for job-oriented, technical, professional, or STEM graduation and post-graduation courses.

Type of Student Loan

Amount

Rate of Interest

Student education loan

Need-based financing option

  • Collateral security-100% R.O.I- 9.4%

  • Collateral security-75% or more R.O.I- 9.65%

  • Collateral security- less than 75% R.O.I- 9.9%

Some of the other essential details regarding the education loans provided by Canara Bank to study abroad are as follows:

  • The tenure for repayment of the student education loan to study abroad is 15 years.

  • It demands collateral security for education loans above the amount of Rs. 4 lakhs.

  • It has a margin of 15% for education loans to study abroad in case of an amount of Rs. 4 lakhs or above.

  • The interest rates differ as per the collateral security as per the ranges.

Avanse Financial Services

This NBFC offers a variety of different education loans in India to study abroad which range from fast-track to pre-visa to pre-admission and even availability of funds. Avanse provides student loans to Indian citizens above 18 years of age for pursuing graduation or post-graduation for job-oriented professional or technical courses offered by reputed universities outside India as well as courses and universities approved by Avanse for education financing.

Type of Student Loan

Amount

Rate of Interest

Avanse

Min. Rs. 1 Lakhs

Starting from 9.5%

Some of the other essential details regarding the education loans provided by Avanse Financial Services to study abroad are as follows:

  • The tenure for repayment of the student education loan to study abroad is up to 5 years.

  • It can offer a flexible option for repayment and also customize the upper limit for loans according to the customers' needs.

  • There is no margin required for availing of student loans from Avanse Financial Services.

  • In terms of fast-track student education loans, the amount can be sanctioned within 7 hours of applying.

TATA Capital

Tata Capital provides student loans to Indian nationals who have secured admission to professional or technical courses abroad. The loan is offered only for Graduation and Post Graduation Courses offered by reputed universities. It is known to be one of the most renowned education loan providers in India at a reasonable interest rate.

Type of Student Loan

Amount

Rate of Interest

Tata Capital

Min. Rs. 75,000

Starting from 10.99%

Some of the other essential details regarding the education loans provided by TATA Capital to study abroad are as follows:

  • The tenure for repayment of the student education loan to study abroad is 6 years.

  • It can offer a flexible option for repayment and also customise the upper limit for loans according to the customers' needs.

  • There is no margin required for availing student loans from TATA Capital.

  • It has a processing fee of almost 2.75% of the loan amount sanctioned to a borrower to fund their education.

Also Read: Education loan FAQs

Education Loan Interest Rate in India to Study Abroad

The majority of aspirants in India planning to study abroad opt for Banks or Financial institutions that offer cheap education loan that covers a good proportion of their costs and expenses as a part of their education journey abroad. Here is a list of the best education loan providers in India, which provide loans for abroad education. The details of loan providers in India along with the average loan amount with their interest rates are provided below.

Name of Bank

Loan Amount

Interest Rate per annum

State Bank of India (SBI)

Maximum Rs. 1.5 Cr

10.05% fixed

HDFC Credila

Minimum Rs. 1 Lakhs

12.80%

Axis Bank

Minimum Rs. 50,000

Variable

Punjab National Bank (PNB)

Need-Based Amount

Variable

Canara Bank

Need-Based Amount

  • Collateral security-100% R.O.I- 9.4%

  • Collateral security-75% or more R.O.I- 9.65%

  • Collateral security- less than 75% R.O.I- 9.9%

Avanse Financial Services

Minimum Rs. 1 Lakh

9.5%

TATA Capital

Minimum Rs. 75,000

10.99%

Cheapest Education Loan in India for Study Abroad

In the face of growing costs in terms of tuition fees, living expenses, and other miscellaneous expenditures it becomes necessary for students planning to pursue their studies in a foreign country must apply for some of the cheapest education loan options in India to study abroad.

Now choosing an affordable loan option can be a tricky business however, if one considers several factors before opting a long-term financial borrowing it can end up fulfilling your various and mandate requirements from the loan. Some of the factors that a borrower should consider before applying for a reasonable education loan in India to study abroad are as follows:

  • One must consider giving their first preference to a government-owned financial institution when choosing a provider for your education loan to study abroad.

  • The majority of public banks or institutions offer a subsidized and cheap rate of interest for education loans which is way affordable if compared to the private banking sector in India.

  • The borrower must also keep in mind the tax benefits that a particular bank would provide you in case you chooses to opt for the education loan given by their institution.

  • The EMI installment procedure also becomes a considerable option while choosing the Bank or NBFCs for study abroad loan sanction and the criteria for same.

  • An applicant must also be aware of the processing fee charges when choosing an education loan as most of the banks apply it as a mandated charge before initiating the entire loan granting process, hence making it an essential factor to consider in terms of affordability.

  • Some of the most popular banks that offer the cheapest education loans in India to study abroad are the State Bank of India, Bank of Baroda, Union Bank of India, Punjab National Bank, Canara Bank, etc.

Also Read: Steps to Take Education Loan

Documents Required for Education Loans in India to Study Abroad

There are a few important factors as well as documentation that one needs to adhere to while applying for education loans in India to study abroad. As the application procedure can be a little laborious and time-consuming an applicant must have the rightful knowledge of the kind of documents they will need to provide from their end to the official loan-providing financial body. Hence, we have curated a list of the essential transcripts and documents that are required for the same:

  • Academic transcripts of the applicant

  • Proof of income or financial assets

  • KYC documents

  • Bank statements

  • Collateral documents

  • Birth certificate

  • Copy of passport

  • Identity proofs (such as Aadhar card, PAN card, Voter card, Driving license, etc.)

  • Proof of residence

  • Photographs of the applicant

  • Acceptance letter from the designated foreign university

Frequently Asked Question (FAQs)

1. Which bank is best for international student loans?

Some of the most popular banks that offer the cheapest education loans in India to study abroad are the State Bank of India, Punjab National Bank, Canara Bank, etc. These financial institutions provide as much assistance to aspiring students as they can while also enabling many dreams to come true by supporting them economically and facilitating a smooth transition into this new journey.

2. Who is eligible for an abroad study loan?

Some of the eligibility criteria before applying for a study abroad loan consist of being an Indian citizen and the age of 18 years or above. The applicant must have a renewed and eligible passport before starting the application process for an education loan to study abroad. They should have various documentation at hand while completing the education loan application procedure like an acceptance letter from a foreign university, photographs, photo ID, proof of residence and income, and academic transcripts.

3. Is it a good idea to take an education loan?

Yes, studying abroad with an education loan is the best choice. Not only will you get a chance to fulfill your dream but also save money. Under Section 80E of the Income Tax Act, students can claim a tax deduction for up to eight years on their education loan interest payments.

4. What is the maximum amount of education loan in India for study abroad?

Need-based funding is considered to cover costs, taking into account margin criteria. There is no limit to the maximum loan amount that can be authorized under the Education Loan Program. The maximum quantum is Rs.20 Lakhs for NRI students and Rs.30 Lakhs for premium institutes.

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Photography is considered both a science and an art, an artistic means of expression in which the camera replaces the pen. In a career as a photographer, an individual is hired to capture the moments of public and private events, such as press conferences or weddings, or may also work inside a studio, where people go to get their picture clicked. Photography is divided into many streams each generating numerous career opportunities in photography. With the boom in advertising, media, and the fashion industry, photography has emerged as a lucrative and thrilling career option for many Indian youths.

2 Jobs Available
Producer

An individual who is pursuing a career as a producer is responsible for managing the business aspects of production. They are involved in each aspect of production from its inception to deception. Famous movie producers review the script, recommend changes and visualise the story. 

They are responsible for overseeing the finance involved in the project and distributing the film for broadcasting on various platforms. A career as a producer is quite fulfilling as well as exhaustive in terms of playing different roles in order for a production to be successful. Famous movie producers are responsible for hiring creative and technical personnel on contract basis.

2 Jobs Available
Copy Writer

In a career as a copywriter, one has to consult with the client and understand the brief well. A career as a copywriter has a lot to offer to deserving candidates. Several new mediums of advertising are opening therefore making it a lucrative career choice. Students can pursue various copywriter courses such as Journalism, Advertising, Marketing Management. Here, we have discussed how to become a freelance copywriter, copywriter career path, how to become a copywriter in India, and copywriting career outlook. 

5 Jobs Available
Vlogger

In a career as a vlogger, one generally works for himself or herself. However, once an individual has gained viewership there are several brands and companies that approach them for paid collaboration. It is one of those fields where an individual can earn well while following his or her passion. 

Ever since internet costs got reduced the viewership for these types of content has increased on a large scale. Therefore, a career as a vlogger has a lot to offer. If you want to know more about the Vlogger eligibility, roles and responsibilities then continue reading the article. 

3 Jobs Available
Publisher

For publishing books, newspapers, magazines and digital material, editorial and commercial strategies are set by publishers. Individuals in publishing career paths make choices about the markets their businesses will reach and the type of content that their audience will be served. Individuals in book publisher careers collaborate with editorial staff, designers, authors, and freelance contributors who develop and manage the creation of content.

3 Jobs Available
Journalist

Careers in journalism are filled with excitement as well as responsibilities. One cannot afford to miss out on the details. As it is the small details that provide insights into a story. Depending on those insights a journalist goes about writing a news article. A journalism career can be stressful at times but if you are someone who is passionate about it then it is the right choice for you. If you want to know more about the media field and journalist career then continue reading this article.

3 Jobs Available
Editor

Individuals in the editor career path is an unsung hero of the news industry who polishes the language of the news stories provided by stringers, reporters, copywriters and content writers and also news agencies. Individuals who opt for a career as an editor make it more persuasive, concise and clear for readers. In this article, we will discuss the details of the editor's career path such as how to become an editor in India, editor salary in India and editor skills and qualities.

3 Jobs Available
Reporter

Individuals who opt for a career as a reporter may often be at work on national holidays and festivities. He or she pitches various story ideas and covers news stories in risky situations. Students can pursue a BMC (Bachelor of Mass Communication), B.M.M. (Bachelor of Mass Media), or MAJMC (MA in Journalism and Mass Communication) to become a reporter. While we sit at home reporters travel to locations to collect information that carries a news value.  

2 Jobs Available
Corporate Executive

Are you searching for a Corporate Executive job description? A Corporate Executive role comes with administrative duties. He or she provides support to the leadership of the organisation. A Corporate Executive fulfils the business purpose and ensures its financial stability. In this article, we are going to discuss how to become corporate executive.

2 Jobs Available
Multimedia Specialist

A multimedia specialist is a media professional who creates, audio, videos, graphic image files, computer animations for multimedia applications. He or she is responsible for planning, producing, and maintaining websites and applications. 

2 Jobs Available
Welding Engineer

Welding Engineer Job Description: A Welding Engineer work involves managing welding projects and supervising welding teams. He or she is responsible for reviewing welding procedures, processes and documentation. A career as Welding Engineer involves conducting failure analyses and causes on welding issues. 

5 Jobs Available
QA Manager
4 Jobs Available
Quality Controller

A quality controller plays a crucial role in an organisation. He or she is responsible for performing quality checks on manufactured products. He or she identifies the defects in a product and rejects the product. 

A quality controller records detailed information about products with defects and sends it to the supervisor or plant manager to take necessary actions to improve the production process.

3 Jobs Available
Production Manager
3 Jobs Available
Product Manager

A Product Manager is a professional responsible for product planning and marketing. He or she manages the product throughout the Product Life Cycle, gathering and prioritising the product. A product manager job description includes defining the product vision and working closely with team members of other departments to deliver winning products.  

3 Jobs Available
QA Lead

A QA Lead is in charge of the QA Team. The role of QA Lead comes with the responsibility of assessing services and products in order to determine that he or she meets the quality standards. He or she develops, implements and manages test plans. 

2 Jobs Available
Structural Engineer

A Structural Engineer designs buildings, bridges, and other related structures. He or she analyzes the structures and makes sure the structures are strong enough to be used by the people. A career as a Structural Engineer requires working in the construction process. It comes under the civil engineering discipline. A Structure Engineer creates structural models with the help of computer-aided design software. 

2 Jobs Available
Process Development Engineer

The Process Development Engineers design, implement, manufacture, mine, and other production systems using technical knowledge and expertise in the industry. They use computer modeling software to test technologies and machinery. An individual who is opting career as Process Development Engineer is responsible for developing cost-effective and efficient processes. They also monitor the production process and ensure it functions smoothly and efficiently.

2 Jobs Available
QA Manager
4 Jobs Available
AWS Solution Architect

An AWS Solution Architect is someone who specializes in developing and implementing cloud computing systems. He or she has a good understanding of the various aspects of cloud computing and can confidently deploy and manage their systems. He or she troubleshoots the issues and evaluates the risk from the third party. 

4 Jobs Available
Azure Administrator

An Azure Administrator is a professional responsible for implementing, monitoring, and maintaining Azure Solutions. He or she manages cloud infrastructure service instances and various cloud servers as well as sets up public and private cloud systems. 

4 Jobs Available
Computer Programmer

Careers in computer programming primarily refer to the systematic act of writing code and moreover include wider computer science areas. The word 'programmer' or 'coder' has entered into practice with the growing number of newly self-taught tech enthusiasts. Computer programming careers involve the use of designs created by software developers and engineers and transforming them into commands that can be implemented by computers. These commands result in regular usage of social media sites, word-processing applications and browsers.

3 Jobs Available
Product Manager

A Product Manager is a professional responsible for product planning and marketing. He or she manages the product throughout the Product Life Cycle, gathering and prioritising the product. A product manager job description includes defining the product vision and working closely with team members of other departments to deliver winning products.  

3 Jobs Available
Information Security Manager

Individuals in the information security manager career path involves in overseeing and controlling all aspects of computer security. The IT security manager job description includes planning and carrying out security measures to protect the business data and information from corruption, theft, unauthorised access, and deliberate attack 

3 Jobs Available
ITSM Manager
3 Jobs Available
Automation Test Engineer

An Automation Test Engineer job involves executing automated test scripts. He or she identifies the project’s problems and troubleshoots them. The role involves documenting the defect using management tools. He or she works with the application team in order to resolve any issues arising during the testing process. 

2 Jobs Available
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