Posted on 25-08-2021
Student Loans For Overseas Study
Students can take these loans to study abroad and have a life-changing experience with a degree from international universities to build a successful career.
How to Check if You are Eligible for Getting a Loan as an Indian Applicant?
- The applicant should be an Indian citizen.
- They must be above 18. If not, their parents can apply for the loan.
- They must have a sound academic background.
- The applicant must be enrolling in a recognised foreign university/institution/college.
- The registered course must be a technical or professional one (banks give preference to job oriented courses).
What are the Documents Required to Apply for an Education Loan?
The basic documents required to apply for the study abroad loan include:
- Application form (Completed)
- Passport-size photographs of the applicant and the co-applicant (usually the parents of the applicant).
- Photo identity proof of the applicant and the co-applicant.
- Residential proof of the applicant and the co-applicant
- Mark sheet and certificates of the applicant.
- Admission letter from the university or college.
- Last six months’ bank statements of the co-applicant.
- Income proof of the co-applicant.
In the case of collateral (immovable property)
- Property title deed
- Building approved plan
- NOC (no-objection certificate) for a mortgage from the builder or society
What are the Various Loan Options Available to Students for UG and PG?
- HDFC Education Loan
| Max Loan Amount | Rs. 30 Lakhs |
| Processing Fee | up to 1.5% of the sanctioned amount + taxes |
| Interest Rate | 9 – 14 % p.a |
| Margin | Up to 4 lakhs – Nil Above 4 lakhs – 5% |
| Tenure | Up to 15 Years |
- SBI Student Loan Scheme
| Max Loan Amount | Rs. 20 Lakhs |
| Processing Fee | No processing fee/upfront charges |
| Interest Rate | 9.33% p.a. |
| Margin | Up to 4 lakhs – Nil Above 4 lakhs – 5% for studies in India, 15% for studies abroad |
| Tenure | Up to 15 years |
- SBI Global Ed-Vantage Scheme
| Max Loan Amount | Up to Rs. 1.5 Crore |
| Processing Fee | Rs 10,000 |
| Interest Rate | 9.33% p.a. |
| Tenure | Up to 15 years |
- AXIS Bank
| Max Loan Amount | Rs. 75 Lakhs |
| Processing Fee | Up to 10 lakhs – NIL Above 20 lakhs- 0.75% of the differential loan amount + GST (Non-Refundable fee) |
| Interest Rate | 13.70% – 15.20% |
| Margin | Up to 4 lakhs – Nil Above 4 lakhs – 5% for studies in India, 15% for studies abroad |
| Tenure | 10 – 15 years |
In addition to banks, many NBFCs also offer education loan for studying abroad. Here are the few popular ones:
- HDFC Credila:
| Minimum Loan Amount | Rs. 1 Lakh |
| Max. Loan Amount | Rs 40 Lakhs |
| Interest Rate | Floating |
| Repayment Period | 10 years |
- Avanse Financial Services:
| Minimum Loan Amount | Rs. 1 Lakh |
| Processing Fee | 1-2% of the loan amount |
| Interest Rate | Floating |
| Repayment Period | 10 years |
It generally provides pre-admission loans, pre-visa disbursement loans and fast-track loans.
- International Student Loan Program (ISLP):
| Minimum Loan Amount | Rs. 10,95,532 |
| Repayment Period | 25 years |
This programme is specifically meant for students who want to study in the US. It covers tuition fees, health insurance, living, and miscellaneous expenses.
- Global Student Loan Corporation (GSLC): This programme is also specifically designed for students who want to study in the US. The loan covers 100% of fees, transportation, accommodation, computer/laptop expenses, and miscellaneous educational costs.
Conclusion
Education loans offer great aid in fulfilling your dream of studying abroad. We hope that this article proves helpful for choosing the right study abroad loan scheme to help you get one step closer to your foreign education dreams.