Ever since the first education loan came into existence in 1995 started by SBI Bank, multiple lenders, both public and private lenders have introduced various education loan schemes to cater to students wishing to study abroad.
However, hunting for the best bank to get education loan schemes can be quite confusing since there are various banks that provide education loans, but there is no one to explain to you what all factors to check out before finalizing an education loan scheme.
So, if you are looking for the best education loan scheme for abroad studies and don’t want to make mistakes while taking an education loan, read this article till the end as we’ve listed some of the best schemes offered by different banks.
Which banks provide the best education loan schemes for abroad studies?
We understand you straight-up want to know the answer to this question, and so the answer to this is Government banks. So, we’ve covered in this article the education loan schemes by major Government banks. if you want to know why are government banks’ education loan schemes are the best
But it is important to know that Government banks mostly provide secured education loans for abroad studies where you are required to pledge collateral security to get a loan against it.
What about students who couldn’t pledge collateral? Do not worry, private lenders in India also provide unsecured education loans to such students based on eligibility criteria. Read this article to know about unsecured education loan schemes provided by private lenders- Education loan schemes for unsecured education loans.
The government bank education loan schemes offer the lowest interest rates, larger loan amounts, no-payment moratorium periods, and so on.
Let us begin with the education loan for abroad studies scheme of SBI, which is considered to be one of the best banks for student loans.
1. The State Bank of India: SBI Global Ed-Vantage Scheme
The Global Ed-Vantage education loan scheme is one of SBI’s premier student loan schemes for students wishing to study overseas. Under this scheme, students are offered some of the lowest interest rates to fund their education.
|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 candidates0.5% 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|
2. The Bank of Baroda: Baroda Scholar Scheme
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 the Bank of Baroda’s study abroad education loan scheme. The bank has bifurcated universities across the world into prime institutes and non-prime institutes, based on their global ranking, and accordingly provides the loan deal.
|Education Loan Terms||For universities on the non-premier list||1.00% of the loan amount (refundable) (maximum 10,000/-)A non-refundable lump sum amount of INR 7,500 per property as Legal and Valuation charges|
|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 – NILAbove 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 the 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|
3. The Punjab National Bank: PNB Udaan Scheme
Punjab National Bank abbreviated is also known as the best bank for study loans for abroad studies. The Punjab national bank offers education loans for abroad studies under the PNB Udaan scheme.
|Education loan terms||PNB Udaan Education Loan Scheme|
|Loan amount range||Need-based finance|
|Loan Margin||Up to INR 4 lakhs – NILAbove 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|
4. Canara Bank: IBA Model Loan Product For Higher Studies Abroad
The Canara Bank offers abroad education loans under the IBA’s model loan product for higher studies in India and the Abroad scheme. Students who wish to pursue their undergraduate, as well as postgraduate courses abroad are eligible to apply for an education loan for abroad studies under this Canara Bank education loan scheme.
|IBA Model Loan Product 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 (Bachelor), Postgraduate(Master), 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: NilFor loan amounts above INR 4 Lakhs -15%|
It is natural for anyone to be confused about choosing the right lender when so many options are available in the market. The financial team of WeMakeScholars is well-equipped to help students determine which bank has the lowest interest rate on education loans, along with other important factors, thus helping them in deciding the best bank for education loans as per their needs. So, the best way to begin your education loan process would be to get in touch with our team at the earliest.