Education Loan For Abroad Studies
The best way to chase your dream of higher education in overseas universities is through an education loan. Students can pursue their dream of studying abroad by applying for education loans abroad. There are various options to choose from when it comes to the best bank for education loans abroad. Some of the public banks include Bank of Baroda and SBI education loan. If you wish to choose a private bank, like HDFC Credila, Auxilo, Axis Bank, ICICI Bank which is another good option.
NBFC’s, Private Banks & Nationalized Bank provide both Unsecured as well as Secured Loan. For an Unsecured loan student needs to declare academic performance, aspiring overseas country and university along with their parent’s annual income proof according to requirement. For Secured loan students need to place an eligible property whose title deed is clear for mortgage or other liquid assets such as LIC, Govt. Bonds, Post Office deposits, Term deposits and take the loan against it.
Quantum of Finance:
| Unsecured Loan | ROI | Secured Loan | ROI |
| NBFC’s up to 40 lacs for USA and other country up to 20 lacs | 11.50% – 13% (USA) 13%-15% (other country) | NBFC’s upto 50 lacs | 11%- 12.50% |
| Private Bank: Prime A- 40 lacs Prime B- 25 lacs | 11.50% – 12.7% (USA) 13%- 15% (other country) | Axis Bank upto 75 lacs ICICI Bank upto 1 cr | Axis Bank & ICICI Bank- 11% – 12% |
| BOB upto 7.5 lacs | Premier – 8.75% Non Premier – 9.50% | BOB upto 80 lacs- the premier BOB up to 60 lacs- Non Premier | Premier – 8.75% Non Premier- 9.50% |
| SBI up to 7.5 lacs | 7.90% | SBI up to 1.50 cr | 9.7% (0.50% for girl’s concession) |
Criteria of Loans:
| Unsecured Loan | Secured Loan |
| GRE: 300 | TOEFL: 90 | IELTS: 6.5 | Academic: 55% (Less Backlogs) |
| Parents Annual Income: Above 5-6 lacs | Loan Sanctioned: 75-80% against property value |
| MS/PG level- Stem & Mgmt course UG Diploma/Bachelors- No loan | Loan for all level of courses |
| Academic: 60% (fewer Backlogs with no GAP) | Average Annual Income: 2.0 lacs |
| Cibil Score: 700+ | Cibil Score: 650+ |
| Age Criteria: up to 28 years | No Age Criteria |
Before you make a decision
It is important that you gather all required details before deciding which bank to go for. Here are certain factors that you must bear in mind-
- Interest rate
- Tax benefits
- Eligibility and Documentation
- Loan Disbursal Time
- Costs covered
- Moratorium Extension
- Prepayment Terms
- Total Cost over EMI
- Service Charges