With increasing number of Indian students heading overseas to countries like the US, UK, Canada, Australia and New Zealand, the demand for overseas education loans has been growing steadily in last several years. Students seek education loans to pay the tuition fees and living expenses during the course duration and hope to repay it after securing a job overseas.

And while getting education loan has become much easier and faster, it still requires one to have basic understanding of certain terms and jargons that are associated with education loan in order to make correct choices while applying for overseas education loan. 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, has emerged as a game-changer in the education loan landscape.

TYPES OF EDUCATION LOANS

1. SECURED EDUCATION LOAN – It is the money lent by banks or financial institutions to the borrowers in return for specific movable or immovable property that the borrower submits to it as collateral. This mortgaged property remains in the bank’s or financial institution’s custody till the borrower repays the entire loan with interest.

2. UNSECURED EDUCATION LOAN – It is the money lent by banks or financial institutions to the borrowers based on their creditworthiness. Unlike secured education loans, these loans do not require the loan applicant to mortgage any property to the bank. Based on one’s family income, past loan repayment record, CIBIL score; the bank or financial institution lends money to the borrower. Since nothing needs to be kept as collateral, they are also called ‘collateral-free’ or ‘mortgage-free’ loans.

Things to Keep in Mind while Selecting the Best Banks for your Home Loan Requirements

1. SBI Bank Education Loan

Mentioned below are various education loan schemes offered by the State Bank of India, including details like rate of interest, processing fees, etc.:

Purpose of the Loan: Financial assistance is available for deserving students pursuing higher education in India and abroad.

• Eligible Courses: 

1. India: Graduate or post-graduate degrees, Diplomas, professional courses (ICWA, CA, CFA), courses from recognised institutions (IIM, IIT, NIFT), and more.
   1. Abroad: Job-oriented professional or technical courses, post-graduate studies (MCA, MBA, MS), Ph.D. programs, and recognised diploma courses like aeronautical, pilot training.
   1. Student Eligibility: Indian nationals (including NRIs) with admission to a recognised institution. For PIOs or OCIs, loans are for studies in India only.
   1. Eligible Expenses: Tuition, hostel fees, exam fees, library fees, lab fees, books, equipment, travel expenses, study tours, project work, and a two-wheeler (up to Rs. 50,000), among others.
   1. Loan Amount: 
   1. India: Up to Rs. 10 lakh (medical courses up to Rs. 30 lakh). Higher limits are possible on a case-by-case basis.
   1. Abroad: Maximum Rs. 7.50 lakh (higher limits under SBI Global Ed-Vantage Scheme).

2. Bank of Baroda Education Loan

Depending on the kind of loan that has been taken out, a maximum loan amount may be offered. To find out the maximum loan amount that would be offered, get in touch with Bank of Baroda.

Benefits of a Bank of Baroda Student Loan

The benefits of applying for a student loan with Bank of Baroda include the following:

• Minimal interest rate

• Reduced paperwork
• Zero processing charges
• Faster Payment
• There are no upfront fees.
• No fees for early closure

• 0.5% of the discount is for female students.

3. HDFC Bank Education Loan

Students can apply for three distinct types of education loans from HDFC. Cheap interest rates are just one of the many benefits that these loans provide. These student loans from HDFC Bank have a 15-year repayment term.

HDFC Bank Education Loan Schemes

 Education loan for Indian Education

• Can be availed by an Indian resident between 16 and 35 years of age.
• Should have secured admission through entrance test or on merit basis.
• Co-applicants are mandatory in the case of full-time courses.
• You can avail yourself of a loan of up to Rs.30 lakh.
• Preferential interest rates are provided in case you have secured admission at a top university.
• Repayment tenure can go up to 15 years.
• Processing fee is a minimum of Rs.1000 and a maximum of up to 1% of the loan amount, which is higher.
• No hidden charges.
• Minimal and simple documentation.
• Avail pocket-friendly EMI repayment options.
• Rebate on the paid interest under Section 80E of the Income Tax Act 1961.
• No collateral required for an education loan of up to Rs.7.5 lakh.

4. Axis Bank Education Loan

An Education Loan has the incredible ability to shape and redefine lives because it enables access to higher education. The relevant educational degree and qualifications provide you with a myriad of perspectives for personal and professional growth. However, accessing world-class education often entails navigating high competition and meager admission rates at select universities globally.

Our competitive student loan interest rates, personalised guidance, and convenient repayment options will give you a loan experience like no other.

• Current Repo Rate: 6.50%
• Frequency of Repo Rate Reset: Every 3 months or as determined by the bank, whichever comes first.
• The bank reserves the right to set the margin over the Repo Rate.
• This margin may change during the loan’s duration.
• Customers who took out loans or received approval before October 1, 2019, will continue under the MCLR system. Existing customers interested in switching to the Repo Rate system should contact our customer service.

contact us for more details.