Study Abroad Education Loan: Pursuing higher education in other countries instead of India is very difficult to middle-income group families. Also, students who come from low financial backgrounds will face a lot of issues to study abroad.
Usually, studying abroad can be the toughest decision and not so easy for every Indian. So, students who are eagerly looking out for possible ways to reach the goal of studying abroad can opt for a study abroad education loan.
Education Loan Study Abroad is the best among other options to pursue your desired course in abroad universities. There are various lenders from government and private who provide the service of foreign studies students loan to applicants with plenty of benefits.
Explore every bit of information about study abroad loans from the below modules and start processing your loan application smoothly. Before digging deep into the same let’s see the detailed view on what it is exactly and how it works.
What is an education loan for study abroad? | How does a study loan for abroad works?
Education loan for studying abroad is a financial asset offered to students for studying or learning programs in various reputed and top universities or institutes. Borrowers should give back the ROI and pay the loan amount within a given time.
All Indian students and non-residents of India people can also apply for these loans. Foreign education loan offers academic & living expenses along with extra costs like transportation, food, and others.
A study abroad education loan works smoothly when the student is eligible with the given criteria and also based on the university, course, and location you choose from the lenders.
What is the Maximum Loan Limit For Education Loans to Study Abroad?
As we all know that there is no maximum loan amount for education abroad as it completely depends on the student & co-applicant profile, country, course, etc., and lenders’ loan schemes. But there is a maximum loan limit for abroad study loans.
Want to know what is the final loan limit to study abroad? Check here. Students can get a study abroad education loan of upto Rs. 45 lakhs with no collateral and Rs. 1.5 crores with collateral. Also, remember that this loan amount limit can be increased or decreased as per your wishes & loan schemes.
If you want to know more about non-collateral education loan details for studying in abroad, please check How to Get Education Loan for Abroad Studies without Collateral
Features of Study Abroad Student Loans
You can avail of many features by applying for student education loans for foreign studies. Some of them are listed here for your reference:
- These study abroad education loans can be availed by any individual with the age of 18 and upto 35 years.
- You can get a loan for foreign studies in many courses like graduate and postgraduate degrees in various streams such as management, engineering, medicine, the arts, architecture, pure science, hotel management, and other professions.
- Coverage of all academic and living expenses is the best feature of these education loans.
- Study abroad student loans provide all facilities like tuition fees, books & equipment, lab and library fees, exam fees, projects and study tours, caution deposit, and travel.
- Mortgage holders should fetch a margin of 5% to 15% for applied loans to study abroad.
- The tenure given to the borrower by the banks would be generally 7 years including the moratorium period.
- Borrowers can repay these loan amounts in monthly installments via Electronic Clearing Service (ECS) or through post-dated cheques to the bank.
- People who got sanctioned with education loans for abroad studies should pay interest during the whole moratorium period.
- You have to choose the co-applicant from your family members.
- Banks will sanction a loan amount of 20 lakhs rupees with the moratorium period and 10 lakhs rupees without the moratorium period.
- For the low or middle-income group people, the central government has started with an interest rate subsidy scheme for repayments made within the moratorium period.
Study Foreign Education Loan Eligibility Criteria
Students have many options in courses and institutes to get funding for their higher studies but one important part of this procedure is eligibility. Any loans can be sanctioned when the students get eligible for the lender’s provided criteria.
Eligibility criteria for foreign education loans are simply different from the domestic education loan and also varies from one lender to another. So, have a look at the most common eligibility requirements for an education loan for foreign studies below:
- Applicants must be Indian residents.
- Wards of PIOs and NRIs are involved in this requirement.
- Students need to get an admission letter or acceptance letter from the educational university.
- They should pass the international entrance exams with good scores and get visas and work permits.
- Also, they have to show financial viability for refunding the taken study abroad education loan amount.
List of Documents Needed For Abroad Education Loan with Collateral
To apply for an education loan for abroad studies with collateral require various documents like KYC, educational, property, co-applicants financial documents, etc. These documents may differ from lender to lender and scheme to scheme.
So, students should check the required documents listed on the lender’s website. Here, we have given the most commonly asked documents of applicants and co-applicants to apply to study abroad student loans:
Address Proof
- Valid water/electricity/ LPG Bill
- Current House Lease Agreement
- Aadhar Card
- Voter’s ID card
- Valid Passport
KYC Documents
- Aadhar Card
- PAN Card
- Driving License
Academic Record Documents (From Applicant)
- 10th Result
- 12th Result
- Under Graduate Result Semester Wise (If needed)
- Entrance Exam Result- Abroad institutes (GRE, GMAT, TOEFL, IELTS, etc.)
- Entrance Exam Result- Domestic institutes (CAT, CET, GMAT, CMAT, JEE, NEET, GRE,
etc.)
- Proof of Admission
For Salaried Co-applicant
- Bank account statement for the last 6 months (salary account).
- Salary slips for the last 3 months
- Copy of Form 16 for the last 2-3 years or copy of IT Returns for the last 2-3 financial years, acknowledged by Income Tax Dept.
For Self-employed Co-applicant
- Business address proof (If Applicable)
- Bank Account statement for the last 6 months
- Last 3 years ITR
- TDS Certificate (Form 16A, if applicable)
- Certificate of qualification (for C.A./ Doctor and other professionals)
Collateral Related Documents (If applicable)
- Tax copy or electricity bill
- Title Deed & Sales Deed
- Chain deed of 30 years
- Registration receipt
- Allotment letter
- OC and Completion Certificate (if the property is constructed)
- Government-approved building plan
What Are The Documents Required For Unsecured Education Loans To Study Abroad?
Generally required documents for a non-collateral student loan for abroad studies are mentioned below:
Documents needed from the applicant are as follows:
- Loan application form
- Passport-size photographs
- Past academic record – 10th, 12th, undergraduate mark sheet, test scores of entrance tests like GRE, TOEFL, IELTS, etc.
- Statement of expenses – the entire cost of education.
- Identity proof – PAN Card, Passport, Voter ID card.
- Passport
- Address proof – a recent copy of the telephone bill, electricity bill, or water bill.
- Proof of admission
- Loan account statement of one year.
The necessary documents from the co-applicants are as follows:
- Address proof
- Identity proof
- Income proof – the documents for the same will differ depending on the type of employment, such as self-employed or salaried.
Self-employed co-applicants:
- Business address proof
- Last 2 years IT returns
- Last 6 months’ Bank account statement
- TDS Certificate
- Certificate of Qualification
Salaried co-applicant:
- Bank account statement for the last 6 months.
- Copy of Form 16 for the last 2 years or copy of IT Returns for the last 2 years.
- Salary slips for the last 3 months
Top Banks List That Provides Student Education Loan For Abroad in India
The following are some of the best banks in India that provide Student Loans for Studying Abroad and support students to fulfill their desired courses in abroad universities:
State Bank of India (SBI):
| Interest Rate | 8.65% p.a. onwards |
| Maximum Loan Amount | Rs.1.5 crore |
| Maximum Tenure | 15 years |
| Processing Fees | Rs.10,000 |
Bank of Baroda:
| Interest Rate | Up to 9.85% p.a. |
| Maximum Loan Amount | Rs.80 lakh |
| Maximum Tenure | 15 years |
| Processing Fees | Nil |
HDFC Bank:
| Interest Rate | 9.55% p.a. onwards |
| Maximum Loan Amount | Rs.30 lakh |
| Maximum Tenure | 15 years including the moratorium period |
| Processing Fees | Maximum of 1% of the loan amount or minimum of Rs.1,000 whichever is higher |
Axis Bank:
| Interest Rate | 13.70% p.a. onwards |
| Maximum Loan Amount | Rs.20 lakh |
| Maximum Tenure | 15 years |
| Processing Fees | At the discretion of the bank |
Federal Bank:
| Interest Rate | Up to 10.05% p.a. |
| Maximum Loan Amount | Rs.20 lakh |
| Maximum Tenure | 15 years |
| Processing Fees | Nil |
Punjab National Bank:
| Interest Rate | RLR+BSP+2.00% onwards |
| Maximum Loan Amount | As per requirement as repayment capacity |
| Maximum Tenure | 15 years |
| Processing Fees | 1% of the loan amount, subject to a minimum amount of Rs.10,000 |
Canara Bank:
| Interest Rate | Up to ongoing one-year MCLR+1.50 % |
| Maximum Loan Amount | As per eligibility |
| Maximum Tenure | 15 years |
| Processing Fees | Nil |
Note: The above-provided loan details from various banks are not accurate every time. They may vary from time to time so check the exact loan details carefully from the banks’ website.
You can even benefit from Government and Private subsidies and apply for an education loan to study abroad. For more information on this education loan interest rate subsidy for study abroad, take a look at the sister guide called Student Loans for Studying Abroad.
How to Apply for Abroad Education Loans?
After gathering all the information about study abroad education loans like eligibility, documents, the best loan provider and scheme, etc. It’s time to start applying for the student loan.
Wondering How to Apply for Education Loan for Abroad Studies? Follow these steps carefully and get financial help to study abroad:
- First of all, meet the loan eligibility criteria.
- If you fulfill the eligibility, get details about the loan options online.
- Choose the perfect lender either government or private as per your requirement.
- Communicate with the lender about the study abroad education loan in detail and apply online or offline.
- Check the required documents before applying for the loan and gather all of them to proceed with the next step.
- Fill in the application form online and submit it with the other documents online or offline with the help of a loan provider representative.
- If you choose the study abroad education loan with collateral, then complete the examination of the property and other secured legal documents.
- Finally, get approval from the lender along with the sanction letter of your education loan for studying in a foreign.
FAQs On Study Abroad Student Loan Scheme
- Can I get an education loan for abroad studies without collateral?
Yes, you can get collateral-free education loans for abroad studies from various private and public lenders.
- Which bank is best for education loans abroad?
The best abroad education loan schemes of 2023 are provided by various banks and the top 3 banks are SBI, Bank of Baroda, and The Punjab national bank.
- Which countries are covered under education loans for abroad studies?
There are various countries like the United States of America, United Kingdom, Canada, Australia, Germany, New Zealand, Singapore, and many others that are covered under student loans for abroad studies.
- What are the types of education loans for study abroad?
The most popular and common types of international student loans are Pre-visa loans, bridge loans, consolidated loans, pre-admission loans, and refinancing loans.
Final Words
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Are you looking for other education loans specific to your requirement? Check out our main page Student Education Loan via LearnCBSE.In and find various guides like What is Education Loan, Which bank gives education loan without collateral for abroad and more.