Education Loans for Abroad Studies

Funding is an important decision-maker in a student’s pursuit of higher education. In this respect, scholarships, education loans for abroad studies or any other forms of financial aid are the prevalent resources students make use of to fund their studies. In this blog, we will focus on loans to study abroad available to students in India from banking institutions. This includes attractive loan schemes as well as the process of taking an education loan without collateral and much more.

Education Loans for Abroad Studies: Axis Bank Education Loan

In our list of education loans for abroad studies, the Axis Bank Education Loan is one of the most popular options among all major banks. In particular, it offers two major loan schemes to help individuals achieve their study abroad dream, namely, the ‘Prime Abroad’ and ‘Loan for Higher Study’. While the former permits an unsecured loan amount of INR 40 lacs and loan tenure of 15 years, the latter offers the provision of no collateral security for loans not exceeding INR 7.5 lacs. Both have door-to-door service. Axis Bank also operates a specified loan scheme for working professionals. Few vital 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

In order to receive the loan amount, applicants need to fulfil certain conditions of eligibility. Furthermore, as the process of loan is undertaken on a case by case basis, there may be other terms and conditions of eligibility attached.

Criteria	Particulars
Nationality	Must be a citizen of India
Grades	Must possess a minimum of 50% marks in high school and graduation
Admission	Must have been offer of admission in a career-oriented disciplines of engineering, medicine, management, etc at graduation or post-graduation level
Income	Evidence of regular income is mandatory for the co-applicant, i.e, parents/sibling/guarantor.
Other conditions	Any other loan eligibility conditions as adopted by Axis Bank

Documents Required

To prove your eligibility for the loan approval, you need to submit original and copies of important documents related to your prior education, intended course and university, offer of admission. Only sufficient verification and due process can the release of funds be made.

• Transcripts/marksheets/passing certificates of class Xth, class XIIth and bachelor’s degree [if applicable]
• Copy of the official letter of admission from the Institute along with fees schedule
• KYC documents
• Bank Statement/Pass Book of the last 6 months
• Optional–Guarantor Form

Note: More documents may be required at the first disbursal of funds. 

Education Loans for Abroad Studies: State Bank of India Global Ed-Vantage Scheme

One of the most trusted banks in India, the State Bank of India offers its Global Ed-Vantage scheme to help students in higher education in countries of USA, UK, Europe, Canada, Australia, New Zealand, Singapore, Japan and Hong Kong. More details below.

Criteria	Particulars
Courses	Bachelor’s/ Master’s/Doctorate courses in any discipline
Destinations Applicable	USA, UK, Europe, Canada, Australia, New Zealand, Singapore, Japan and Hong Kong
Amount	Starting from INR 20 lacs to INR 1.5 cr
Repayment Period	Up to 15 years [Period of repayment will start exactly after 6 months of the completion of the course]
Covered Costs	Tuition Fees, Hostel fees, Examination fee, library fee, laboratory fee, travel expenses, books and stationery
Processing Fee	INR 10,000 per application
Interest rates	Fixed: 10.15% [Effective rate of interest]*
Margin	Scholarship/assistantship will be included in the margin; Margin to be brought in on year-to-year basis as and when pro-rata based disbursements are made.
Other Features	Section 80 [E] tax benefit, Sanction of loan prior to i20/visa

*0.50% concession is applicable for students availing the SBI Rinn Raksha or any other similar existing life policy assigned in favour of the Bank. Girl students are allowed for a further concession of 0.50% concession.

Documents Required

Here are the essential documents required for Education Loan which need to be submitted at the time of application. The bank may ask you to submit additional documents depending on the specifics of the application.

• Proof of Identity/Address and Passport
• Transcripts/marksheets/passing certificates of class Xth, class XIIth and bachelor’s degree [if applicable].
• GRE/TOEFL/IELTS scores if required for the course.
• Official letter of admission from the institution of study. Conditional offer of admission may also be submitted.
• A statement listing the estimated cost of study or schedule of expenses.
• Proof of income of co-applicant/guarantor.

Education Loans for Abroad Studies: Punjab National Bank’s Udaan

The Udaan scheme of Punjab National is one of the highly appreciated education loans for abroad studies which provide financial support across not only for degree courses but also for professional and skill-oriented courses like an Education Loan for MBA and so forth.

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Criteria	Particulars
Courses	Bachelor’s degrees in professional/technical offered by recognised universities Master’s degrees such as Master of Science [MS], MCA, MBA, etc Professional courses like CIMA London, CPA Course etc Degree/Diploma courses in the practical fields of aeronautical, pilot training, shipping etc. only if these are recognized by competent regulatory bodies abroad for the purpose of employment abroad. Other courses may also be considered.
Universities	You can find the list of universities here
Eligibility	Must be a citizen of India Must possess an offer of admission in a higher education degree program in recognised universities through either entrance test or merit-based.
Amount	Starting from INR 20 lacs to INR 1.5 cr
Repayment Period	Up to 15 years
Covered Costs	Tuition Fees, Hostel fees, Examination fee, library fee, laboratory fee, travel expenses, premium of life insurance, caution deposit, books/stationery/other equipment, any other expense, etc
Interest rates	RLLR + 2.00 %
Margin	Up to INR 4 lac: no margin More than INR 4 lacs: 15% Scholarship/assistantship will be included in the margin; Margin to be brought in on year-to-year basis as and when pro-rata based disbursements are made.
Security	Up to 7.5 lacs: Parent(s)/guardian be appointed as joint borrower(s). Tangible security and /or 3rd party guarantee is not required. More than INR 7.5 lacs: Parent(s)/guardian be appointed as joint borrower(s). A suitable value of tangible collateral security acceptable to the bank.

Education Loans for Abroad Studies: HDFC Credila

Recognising the need for financial assistance, HDFC Bank launched HDFC Credila with special arrangements and benefits for overseas education applicants. Furthermore, as a considerable number of students prefer to study in specific countries such as the USA, UK and Europe and other major destinations it offers a specific scheme tailored to the needs of such individuals. The documents required are similar to that needed by other prevalent education loans for abroad studies. 

Criteria	Particulars
Eligibility	Borrower and co-applicants must be citizens of India Must possess an offer of admission in a higher education degree program in recognised universities
Amount	Starting from INR 1 lac
Repayment Period	Up to 12 years
Covered Costs	Tuition Fees, Hostel fees, Examination fee, library fee, laboratory fee, travelling expenses, books/stationery/other equipment, travel fare [one economy class return ticket between India and the chosen country of study, any other expense, etc
Interest rates	HDFC Credila’s CBLR + Spread)% per annum
Collateral	Residential House, Residential Flat, Fixed Deposit assigned in favour of HDFC Credila or Non-agricultural land
Other Features	Disbursal of the loan will be in Indian rupees.

Documents Required

At the time of application, you will be required to submit the following documents:

Application Form	Download it here
Photos	2 Passport Photos of both Applicant & Co-applicant
Photo ID	Permanent Account Number (PAN) Card/Passport/Driving License/Aadhaar Card/Voter’s ID Card
Residence Proof	Passport/Driving License/Aadhaar Card/Voter’s ID Card
Academic Documents	Transcripts/marksheets/passing certificates of class Xth, class XIIth and bachelor’s degree [if applicable];  CAT/GRE/TOEFL/IELTS scores if required for the course; Official letter of admission from the institution of study; Scholarship Documents
Financial Documents	Previous 8 months bank statements and income proof of co-applicant/guarantor

More loan-cum-Scholarship Opportunities

Apart from the above schemes, you can also explore the following scholarships and education loans for abroad studies.

• Dhirubhai Ambani Scholarship
• Inlaks Scholarships
• Canara Bank Scholarship
• Commonwealth Scholarship
• HDFC Scholarship
• GRE Scholarships
• Syndicate Bank Education Loan
• Vijaya Bank Education Loan
• ICICI Education Loan
• IDBI Education Loan
• Bank of Baroda Education Loan
• Allahabad Bank Education Loan
• PNB Education Loan
• Canara Bank Education Loan
• HDFC Education Loan
• LIC Scholarship

Education loans for abroad studies are an important means of fulfilling the various financial obligations that arise from it. Needless to say, having expert guidance goes a long way. Reach out to our experts and counsellors at Leverage Edu and we’ll help you throughout your application journey, from finding a suitable course and university to sorting out scholarships as well as submitting your application within the deadline to ensure that you get successfully shortlisted.