Loans to Study Abroad

Loans to Study Abroad

India is rated third among the countries with the most students studying abroad. Every year, approximately 150,000 students study abroad in a variety of undergraduate and postgraduate programmes. Many students choose abroad education for a variety of reasons, including practical learning and global exposure. The expense of studying abroad is a major worry when considering studying abroad. Scholarships have a number of restrictions, making education loans a more convenient way to study abroad and earn a degree at the university of one's choice. Let's look at the various conditions and loan options for studying abroad.

THIS BLOG INCLUDES:

Contents

1. Loans to Study Abroad
2. Why take Education Loan for Abroad
3. Important Information on Study Abroad Loans
4. Eligibility for Study Abroad Loans
5. Eligibility for Study Abroad Loans
6. State Bank of India
7. Syndicate Bank Education Loan
8. Vijaya Bank Education Loan
9. ICICI Education Loan
10. IDBI Education Loan
11. Bank of Baroda Education Loan
12. Allahabad Bank Education Loan
13. Canara Bank Education Loan
14. HDFC Education Loan
15. PNB Education Loan
16. Study Abroad Loans
17. What is Collateral?
18. Which of the following is approved as collateral?
19. How can I get an education loan to study abroad without collateral?
20. Loans to Study Abroad- Term and Conditions
21. Loan Coverage and Benefits
22. FAQs

Why take Education Loan for Abroad

There are a variety of nations where you can pursue higher education, thanks to the growing trend of studying abroad. Studying overseas can cost anything between 15 and 25 lakh rupees per year. The cost of studying abroad varies depending on the country, the courses offered, the duration of the programme, and the cost of living in the nation. Students can get educational loans from banks to help them follow their dreams. Every year, the market for studying abroad shrinks by 12%. Students who are struggling financially might turn to banks for help in obtaining cheap loans to study abroad. Banks provide loans for students to study abroad based on their needs and ability to repay the loan.

Important Information on Study Abroad Loans

Before applying for loans to study abroad, there are a few things to keep in mind:

• The money received from banks is meant to be returned with a little higher interest rate of 10-15 percent.
• For guarantee and collateral purposes, education loans for study abroad that exceed 6.6 lakhs require some documentation of determined property.
• For certain banks, there is a grace period during which students can begin repaying the loan once they begin working.
• For a better understanding of the co-financial applicant's background, financial statements must be submitted with the loan application.
• The amount of the loan that was applied for may differ from the amount of the loan that was granted. Before you apply, double-check all of your information.
• Checking your KYC is the most important component of the lending process. It aids the bank's assurance of the customer's trustworthiness.

Eligibility for Study Abroad Loans

Applicants must check their eligibility for student loans before submitting an application.

• Applicants must be Indian citizens and be at least 18 years old to apply for loans to study abroad.
• Co-applicants must have an account in an Indian bank.
• Before the loan is sanctioned or approved, the applicant must submit confirmation from the college/university.
• Co-applicants must be in good financial standing to qualify for the loan.
• The co-applicants' financial soundness is the most significant criterion for loan approval for study abroad.
• Applying for funds to study abroad and deciding which university to attend to pursue a suitable course are both time-consuming and exhausting processes. You must ensure that you make the best decision possible for your life. Leverage Edu assists you in making smarter decisions. We offer the best advice and support to help you achieve your objectives.

Eligibility for Study Abroad Loans

The banks listed below provide educational loans to students who wish to study abroad. To determine which loan best meets their needs, students must examine the amount offered, interest rate, repayment term, and collateral security.

State Bank of India

The State Bank of India, based in Mumbai, Maharashtra, is an Indian multinational public sector bank and financial services statutory entity. SBI is the world's 43rd largest bank and the only Indian bank in the Fortune Global 500 list of the world's largest firms for 2020, ranking 221st.

Syndicate Bank Education Loan

Syndicate Bank is one of India's oldest and most well-known commercial banks. Education is a vital area where parents are willing to invest in order to ensure that their children have a prosperous and bright future. Syndicate Bank provides highly efficient education loans with low interest rates. The Syndicate Bank Education Loan's major goal is to provide financial assistance to Indian students who want to pursue higher education in India or abroad. Students can apply for one of the following two education loans from the bank:

Vijaya Bank Education Loan

Vijaya Bank, which recently merged with Bank of Baroda, now offers a variety of educational loans to students who want to study in India or overseas. Vijaya Bank Education Loan Programmes offer low interest rates as well as additional incentives. The bank also provides free security loans up to INR 4 lakh, which are conveniently accessible to all Indian national students.

ICICI Education Loan

Under the ICICI Education Loan, an Indian multinational banking and financial services corporation, a student can borrow up to 50 lakh for education in India and up to one crore for study overseas. ICICI Bank also offers collateral-free loans of up to Rs. 40 lakh, which do not need the borrower to put up any assets or pledge any security. However, this loan must be repaid 6 months after the degree is completed.

IDBI Education Loan

IDBI Bank, formerly known as the Industrial Development Bank of India, is a government-owned financial services bank based in Mumbai. It is the tenth largest development bank in the world, with 1,853 branches, one foreign branch in Dubai, 3,350 ATMs, and 1,382 centres.

Bank of Baroda Education Loan

The Bank of Baroda was established in 1908 and is owned by the Indian government. Bank of Baroda offers a variety of bank loans with varying interest rates. In addition, you may be eligible for an education loan subsidy as well as tax benefits under Section 80E of the Internal Revenue Code for interest paid. The length of time it takes to repay a loan depends on the type and quantity of money borrowed. The loan can be repaid over a period of 10 to 15 years. For loans up to 4 lakhs, Bank of Baroda does not require collateral or security under any plan.

Education Loans for Abroad Studies

Allahabad Bank Education Loan

The oldest joint stock bank in India, Allahabad Bank, was founded in 1865. Allahabad Bank and Indian Bank merged in the year 2020. Following the merger, all account holders must use the Indian Bank IFSC code, cheque books, internet banking, and other services provided by the Indian Bank. The Allahabad Bank Education Loan will now follow the Indian Bank's rules and processes.

Canara Bank Education Loan

Canara Bank, one of India's largest banks, is controlled by the Indian government and was founded in 1906. Its main offices are in Bengaluru. Canara Bank Education Loans enable students continue higher education in India and abroad with interest rates ranging from 7% to 9%, with female candidates receiving a discount.

HDFC Education Loan

HDFC provides a variety of education loans to Indian students seeking admission to both domestic and international colleges. To eliminate the problem of concerns and security, HDFC Education Loan provides complete transparency to applicants while issuing loans. HDFC has built a substantial client base and a reputation as an industry leader over the last two decades.

PNB Education Loan

Punjab National Bank provides students with a variety of financing choices for their education in India and overseas. Educational loans are accessible for students from the 12th grade through the master's degree level.

Study Abroad Loans

Many organisations and non-banking services, in addition to banks, offer student loans for study abroad. Non-banking financial institutions offer a variety of popular loans, which are listed below.

• Avanse Financial Services: Students can apply for an Avanse study loan with a minimum loan amount of Rs 1 lakh and can increase their loan amount as needed. It provides pre-admission loans, pre-visa disbursement loans, fast-track loans, and also covers pre-admission charges such as application fees, exams fees, or consulting fees, making it one of the most dependable student loans.
• HDFC Credila: HDFC Credila provides student loans to students in more than 35 countries. Applicants can personalise their EMI options and choose from a variety of repayment options. The value of a Credila Education Loan starts at Rs. 1 lakh and can go up to Rs. 40 lakhs.
• Global Student Loan Corporation (GSLC): is a non-profit organisation that provides student loans to those who desire to pursue higher education in the United States. The loan is heavily reliant on the borrower's abilities and the presence of a co-signer who is based in the United States to share liability. The financing covers all fees, transportation, lodging, computer/laptop charges, and other educational expenditures in full.

• ISLP (International Student Loan Program): The ISLP provides student loans for study in the United States. A minimum loan of Rs. 10,95,532 is available to students, which can be returned over a period of up to 25 years. The loan will be used to pay for university tuition, health insurance, living expenses, and other other expenses.

What is Collateral?

Collateral is a moveable or immovable asset that can be presented to banks as a form of security in exchange for a loan. A collateral ensures that the bank has the right to confiscate your property if you default on your student loan. The majority of Indian banks demand collateral for school loans.

Which of the following is approved as collateral?

There are a variety of devices that can be used as collateral. They are as follows:

• Bonds
• FD
• Shares
• Mutual Fund Units
• Gold
• Life Insurance Policy
• Debentures
• Bank Deposits
• House
• Commercial Property
• Normal Land
• Agricultural lands are not accepted as collateral

How can I get an education loan to study abroad without collateral?

There are many education loans available without collateral because having such security is problematic for some people. Many of the country's most well-known financial institutions provide school loans with no collateral. The following are some of the most significant considerations to make while looking for the same:

• If you're taking out a loan up to INR 4 lakh, you can't put up any collateral with a government bank.
• According to the Reserve Bank of India, all banks in the country have the ability to issue education loans without collateral up to INR 7.5 lakh if all requirements are met.
• Those seeking a loan more than INR 7.5 lakh can turn to private or non-banking financial institutions (NBFCs), which offer loans up to INR 50 lakh without requiring collateral.

Loans to Study Abroad- Term and Conditions

• Educational loans are available under the heading "Study Abroad," which covers a wide range of nations. A loan could be requested for even before deciding to pursue higher education in the appropriate country. The final loan method will be tailored to the student's needs, the course, and the nation.
• The loan is granted in Indian Rupees (INR) and must be repaid in Indian Rupees alone.
• The loan amount is determined by elements such as the length of the course, the grace period following the loan, the co-applicants' aptitude, and future components of the study process.

• Some banks credit tuition fees directly to schools and universities, while others use a service intermediary. The tuition cost is always paid in instalments based on the college's requirements.

Loan Coverage and Benefits

Tuition costs, other expenses such as accommodation, uniforms, travel expenses, equipment (laptop or computer), books, and library expenses are all covered by the loan. Some banks also sell one-way airline tickets from India to their home country. Students can apply for education loans to study abroad in a variety of fields such as business, management, medicine, and engineering. The Indian government has introduced subsidised interest rates for students from economically disadvantaged backgrounds.

FAQs

Which loan is best for studying abroad?

 Bank of Baroda and SBI are the leading banks for loans to study abroad.

How much is the maximum loan amount you can get?

The maximum loan amount varies per bank, although most banks give loans of up to INR 20-30 lakhs. The interest rate rises in proportion to the amount.

What costs are covered under an education loan?

This differs by bank as well. An educational loan often covers tuition, examination fees, and hostel/accommodation fees. Some banks also offer students one-way flight tickets.

What are the documents required to apply for an education loan?

1. All qualifying exam transcripts 
2. Admissions proof
3. Two passport-size pictures 
4. Expenses estimated, including fees and lodging 
5. The borrower's six-month bank statement 
6. A tax assessment order that is not older than two years

When should I start repaying the loan?

After the course, the student must repay the loan in EMIs (Equated Monthly Installments). After completing the course, banks normally expect the student to repay the loan within 6 months to a year.

Applying for study abroad loans and selecting the correct university to pursue a suitable course is a time-consuming and difficult process. To ensure that you make the greatest decision for your life, Leverage Edu's professional mentors assist you in making better decisions, providing the finest counsel and assistance, and assisting you in reaching your goal. Today is the last day to sign up for a free session!