Gopika
Updated May 11 2023

Education Loans for Abroad Studies in 2023

One of the most important factors is funding, which acts as an important decision-maker in a student’s pursuit of higher education. Some of the prevalent resources students make use of to aid their studies are scholarships, education loans for abroad studies. This blog's main focus is on the best student loans available to students in India from banking institutions. This comes with attractive loan schemes as well as the process of taking an education loan with collateral and more.

Best Education Loan in India for Study Abroad

Given below are some of the most popular education loan in India:

Axis Bank Education Loan

One of the most popular education loans for abroad studies is the Axis Bank Education Loan.

The two major loan schemes offered to help students achieve their study abroad dream are the ‘Prime Abroad’ and ‘Loan for Higher Study’. The

The first one allows an unsecured loan amount of INR 40 lakhs and a loan tenure of 15 years, the second one gives the delivery of no collateral security to loans not exceeding INR 7.5 lakhs. These loans offer door-to-door service. There is a specialized loan scheme operated by Axis Bank and it is for working professionals. Some of the important points of information have been listed in the following table.

Criteria	Particulars
Amount	Starting from INR 50,000
Covered Costs	Tuition Fees, Hostel fees, Books, etc
Interest rates	Up to INR 4,00,000: 15.2% [Effective Rate Of Interest]Between INR 4,00,000 and INR 7,50,000: 14.70% [Effective Rate Of Interest]Above 7,50,000: 13.70% [Effective Rate Of Interest]
Margin	Up to INR 4,00,000: no margin Above INR 4,00,000: 15%
Days for Disbursal	Within 15 working days of submission of loan application complete with documents
Other Features	Pre Admission Sanction

Eligibility

There are certain criteria the applicants have to fulfill so he can be eligible to receive the loan amount. Moreover, the process of loan is carried out on a case-by-case basis, and other terms and conditions of eligibility attached.

Criteria	Particulars
Nationality	Candidates have to be an Indian citizen.
Grades	The candidate should have a minimum of 50% marks in high school and graduation.
Admission	Must have been offered admission to a career-oriented discipline of engineering, medicine, management, etc . This is at a graduation or post-graduation level.
Income	The applicant has to submit evidence of regular income. This is mandatory for the co-applicant, i.e, parents/sibling/guarantor.
Other conditions	Any other loan eligibility conditions as adopted by Axis Bank

The State Bank of India: SBI Global Ed-Vantage Scheme

For students who wish to study abroad, the Global Ed-Vantage education loan scheme is one of SBI’s premier student loan schemes. The students get the lowest interest rates to fund their education under this scheme.

Education Loan Terms	SBI Global Ed-Vantage Scheme
Loan amount range	Above INR 7.5 lakhs -up to INR 1.5 Crore
Interest Rate	10.90% (effective ROI as of 21-1-2023) 0.5% concession granted to female candidates 0.5% concession granted to students availing of Rinn Raksha Loan Insurance Scheme
Loan Margin	Minimum 10%. Margin to be brought in on a year-on-year basis
Total Expenses covered by the education loan	Tuition Fees, Living expenses, Study aid expenses, travel expenses, library fees, etc.
Moratorium period	Average moratorium period comprises of the course duration + 6 months (can be extended to a year)
Total Loan Tenure	Up to 15 years
Processing Fees	Rs. 10,000 + Legal & Valuation Fees

The Bank of Baroda: Baroda Scholar Scheme

This is one of the few government banks, which can be compared to the ones offered by SBI. The loan scheme is called the Bank of Baroda’s study abroad education scheme. The

The Bank of Baroda is one of the few government banks, whose education loan terms can be compared to those offered by SBI. The Baroda Scholar loan scheme is Bank of Baroda’s study abroad education loan scheme. The bank has subdivided universities across the world into prime institutes and non-prime institutes, this is done on the basis of their global ranking, and according to this provides the loan deal.

Education Loan Terms	For universities in the premier list	For universities in the non-premier list
Available Loan Amount	Up to INR 150 lakhs	Up to INR 60 Lakhs
Interest Rate (effective ROI as of 21-1-2023)	10.60%	11.25%
Loan Margin	0%	Up to INR 4 lakhs - NIL Above INR 4 lakhs - 10%
Repayment period	Up to 15 Years	Up to 15 Years
Moratorium Period	Course Duration + 6-12 Months	Course duration + 6-12 Months
Expenses Coverage	Tuition + All expenses related to the candidate’s course	Tuition + All expenses related to the candidate’s course
Processing Fees	1.00% of loan amount (refundable) (maximum 10,000/-) A non-refundable lump sum amount of INR 7,500 per property as Legal and Valuation charges	1.00% of loan amount (refundable) (maximum 10,000/-) A non-refundable lump sum amount of INR 7,500 per property as Legal and Valuation charges
Processing Time	15 Days if processed through our team	15 Days if processed through our team

The Punjab National Bank: PNB Udaan Scheme

It is the best bank that gives study loans for abroad studies. The education loans are given under the PNB Udaan scheme.

Education Loan Terms	PNB Udaan Education Loan Scheme
Loan amount range	Need-based finance
Interest Rate	11.75%
Loan Margin	Up to INR 4 lakhs - NIL Above INR 4 lakhs - 15%
Total Loan Tenure	Up to 15 years
Total Expenses Covered	All expenses related to the course abroad
Processing Fees	1% minimum INR.10000/- (Refundable after 1st Disbursement)
Moratorium Period	Course period + 1 year

Canara Bank: IBA Model Loan Product For Higher Studies Abroad

The bank offers abroad education loans under the IBA's model loan product for higher studies in India and Abroad scheme. The applicants who wish to pursue their undergraduate, as well as postgraduate courses abroad are selected to apply for an education loan for abroad studies which comes under this Canara Bank education loan scheme.

IBA Model Loan Products For Higher Studies Abroad	Canara Bank Abroad Education Loan Scheme
Maximum Loan Amount	Need-based financing. For studies in India: INR 10 Lakhs
Canara Bank education loan ROI	11.15%
Eligible Courses	Undergraduate (Bachelors), Postgraduate(Masters), Ph.D., PG-Diploma Courses, etc.
Loan Tenure	Up to 15 years
Moratorium period duration	Course period, plus one year
Loan Margin	For loans of up to INR 4 Lakhs: Nil For loan amounts above INR 4 Lakhs -15%
Processing Fees	Nil

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