education loan

Education Loans for Studying Abroad in 2023: Indian Banks, Interest, and Eligibility

Education Loan for Abroad Studies: Studying abroad can be a life-changing decision, however, this doesn’t come easy. For most students, the idea of studying abroad comes with the promise of a new life experience in an unfamiliar country. For students from low-income families, however, this goal can be out of reach. Those who want to pursue higher studies abroad, but find it difficult to arrange for funds, now have the option to make arrangements for funding their education. In this article, we will cover every detail related to education loans for studying abroad. Be it the process to apply for a loan, eligibility, or documents required for it. We will also cover various other aspects related to student loans like Indian banks giving student loans or the role of a guarantor. We will cover every aspect for all those who are looking for an education loan to study abroad.

Benefits of Education Loan
There may be times when the family's income and resources are insufficient to cover the cost of the student's education. In such cases, banks or other financial organisations must be approached for a student loan (NBFC). You can utilise a student loan to pay for all or part of your education expenses. A student who takes out a study abroad education loan is guaranteed to be able to complete their degree programme without encountering any financial issues.
Loans are frequently seen as bad debt. This expression implies that you are borrowing money for something whose value will diminish over time. An education loan is unique from other forms of loans since it is an investment in the borrower. Through this, you will eventually make far more money than you borrowed.

Eligibility criteria to apply for the education loan
The first and foremost thing is to check whether you are eligible to apply for an education loan or not. Provided below are the general terms and conditions that are usually followed by any bank in the process of granting an education loan. Kindly note that individual banks could have their eligibility guidelines which would have to be adhered to when applying to that particular bank.
The candidate must be an Indian national.
If the applicant is under 18 years old, then his or her parents will have to take out the loan.
The candidate must have a strong academic record.
The candidate must have been accepted to a reputable overseas university, institution, or college.
Since banks favour courses that are job-oriented, the applicant's chosen course must be technical or professional in nature.
Underwriting norms are the standards set out by loan providers to guarantee that only safe and secure loans are made available. They are also important as they are used to determine whether or not to provide a person a study loan for overseas study, as well as how much money the firm is prepared to loan and at what interest rate.

What all documents are required for applying for Education Loan for Study Abroad? Before applying for an education loan, the applicant must be completely aware of the documents required to apply for a study loan abroad. The following documents are required to apply for an education loan for abroad studies:
Filled application form
Photographs: Passport-size photographs of the applicant and the co-applicant.
Photo ID: Photo ID of the applicant and the co-applicant. It can be a PAN card, driving license, Voter ID card, Aadhar Card, or Passport.
Residence proof: Resident proof of the applicant and the co-applicant Academic documents:
Mark sheet and certificates of the applicant
Mark sheet (Score Report) of GRE, GMAT, TOEFL, IELTS, etc. whichever is applicable (The total academic standing and professional experience, in addition to the GRE score, are important considerations when applying for a loan.)
Admission proof: Admission letter shared by the university or college.
Bank statements: Last six months' bank statements of the co-applicant
Income proof: Income proof of the co-applicant (A foreign education loan can be obtained depending on a number of variables, including the financial situation, location, and assets of your co-applicant).
In the case of collateral (immovable property), it can be flat, home, or non-agriculture land the following documents are required:
Property title deed
Building approved plan
NOC for a mortgage from a builder or society


Document type

Technical Documentation

Apart from the above-mentioned documents, aspirants also need to have some other technical documents to avail of a student loan.
Title deed (all the pages to be attached)
Copy of approved layout plan and permissions case specific
Revenue document (Khata / Patta)
BDA ALLOTMENT -NOC AND ALLOTMENT LETTER
Non Encumbrance certificate
Possession Certificate (In case the flat is taken from a builder)
Latest Property tax receipt
Copy of Prior sale deeds
Conversion certificate
Urban clearance certificate (Case-specific)


Technical Documentation

Apart from the above-mentioned documents, aspirants also need to have some other technical documents to avail of a student loan.
Title deed (all the pages to be attached)
Copy of approved layout plan and permissions case specific
Revenue document (Khata / Patta)
BDA ALLOTMENT -NOC AND ALLOTMENT LETTER
Non Encumbrance certificate
Possession Certificate (In case the flat is taken from a builder)
Latest Property tax receipt
Copy of Prior sale deeds
Conversion certificate
Urban clearance certificate (Case-specific)


Legal documentation

In addition to the standard and technical documents, aspirants also need to have a list of legal documents for getting an education loan.
Sale /gift/partition deed in favour of customer – Minimum 13 years
Khata Certificate and extract in the name of the current owner
Encumbrance certificate – Minimum 13 years reflecting all sale transactions
Latest Property tax receipt

Top Education Loans Providers in India for Studying Abroad

HDFC Bank

HDFC Bank is one of the largest private banks offering education loans abroad. The maximum loan amount offered by the bank is up to INR 20 lakhs. To avoid the last-minute rush, the bank offers study loans abroad even before the student has secured admission to the university.

State Bank of India

SBI offers a maximum amount of INR 30 lakhs as an education loan for studying abroad with a loan margin of 15%. The Interest rate charged on the loan amount is up to 2% on the current base rate of SBI. Further, the loan repayment tenure can be 1 year to 15 years.

Axis Bank

Axis bank offers study loans abroad at competitive interest rates. A margin of 15% has to be arranged by the borrower if the loan amount exceeds INR 4 lakhs. The bank offers a maximum of INR 20 lakhs and covers different costs like tuition, accommodation, and books.

Punjab National Bank

PNB Udaan is the education loan scheme offered by the Punjab National Bank to students going to study abroad. The bank offers foreign education loans for students going to pursue graduate, post-graduate, job-oriented professional, and technical courses. The borrower needs to show a loan margin of 15% for the loan amount of above INR 4 lakhs. Also, the bank offers the base rate as the interest rate on loans taken for pursuing an education at the top 200 universities across the world.
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