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Student Loan Providers For Study Abroad in India

Top Student Loan Providers in India for Study Abroad

by Ankur Gupta
Reading Time: 8 minutes

Student Loan Providers For Study Abroad in India is one of the three major concerns for study abroad aspirants. The other two being, international admission procedures and student visa hassles. Every year numerous students give their best to clear international entrance examinations to secure seats at elite foreign universities. A sizeable chunk of these students relies on Student Loan Providers For Study Abroad to finance their education. Choosing the best banks for student loans becomes an exercise of 3-7 months. While there are many options available for getting a student loan, most of the Indians students are still unaware of them. Here in this article, we will provide you with information about the best education loan providers in India to finance study abroad programmes of aspiring students.

Student Loan Providers For Study Abroad in India – About

Contrary to popular belief, it’s not that only banks can provide education loan to students. With relatively newer norms of Indian Banking Association (IBA) and RBI, non-banking institutions and international lenders can also help students achieve their study abroad aspirations. The difference between the services of these student loan lenders comes from the student’s ability to match the education loan eligibility criteria.

Interesting fact is that some Indian applicants can also apply for federal student loans in countries like USA and Canada. These loans are government federal student aid funds provided to ‘eligible non-citizens’. To know more about ‘eligible non-citizens‘ category, read the article “Education Loan For Study Abroad-Eligibility Criteria’.

Student Loan Providers For Study Abroad in India – Top 5 Factors to consider

Factors to consider for choosing top student loan providers for study abroad
Features of Loans for Students National and Private Banks Non-Banking Financial Companies (NBFCs) International Private Student Loans Company
Student Loan Interest Rate 7.00 to 15.00% 9.00% to 18.00% 11.00% to 23.00%
Collateral for Study Abroad Education Loan Need compulsory collateral (immovable/movable asset) to sanction student loan Optional requirement of collateral or security Need collateral and an international cosigner for student loan sanction
Overhead Charges Least overhead charges are taken, though students should check for property inspection and legal charges Extra charges for study abroad loans like origination fees, processing fees, loan insurance fees, etc. Nominal extra charges for forex services and students loan insurance
Education Loan Subsidy All loans for students can be clubbed with government education loan subsidies for study abroad No provision for education loan subsidies for study abroad Internal subsidies and discounts provided to students who pay regular EMIs during the course tenure
Repayment Norms
  • Some banks charge early education loan repayment fees.
  • Students can repay education loan after completion of academic course or attaining employment.
  • No early repayment fees and flexible EMIs
  • Students need to pay at least interest instalments or margin EMIs from the beginning of loan tenure
  • Compulsory regular EMI payment
  • No early repayment charges. Easy student loan refinancing options.

Student Loan Providers For Study Abroad in India – List of Top Loan Providers

There are more factors to consider for selecting the best student loan providers for study abroad. The timing between the international admission application and student loan application can make a considerable difference for any student. Most student loan providers inform the students about all aspects to avoid any last minute hassle. But, students should still compare and choose the providers based on their comparative merits. Here is a list of the top 5 education loan providers for study abroad.

Student Loan Providers For Study Abroad – SBI Bank

SBI Global Ed-Vantage Scheme is the most cost-effective education loan in India to study abroad. It is the flagship study abroad program by one of the highest ranking student loan providers in India: the State Bank of India. The student loan scheme covers a large number of International Universities for Indians. Though the bank has a comparatively stringent verification process, the low interest rates cover other concerns. All details about the SBI Education Loan to Study Abroad are as follows:-

SBI Ed-Vantage Loan Scheme Features Details
Quantum of Student Loan ₹20.00 lakhs to ₹1.50 Crores
Interest Rate 10.80%
Collateral/Security requirement
  • Mandatory collateral requirement
  • Immovable property collateral- valued at 75% to 80% of the actual value
  • Movable assets- Valued at 100% of actual value
Extra Charges
  • Processing fees- ₹10,000
  • No other additional charges
Subsidy and Repayment norms
  • All govt. subsidies for study abroad loans applicable
  • 0.50% each concession for girl students and loan insurance customers
  • No early repayment charges. 1.00% additional concession for paying complete interest within course duration

Additional Benefits:-

  • Choice of student loan extension to 15 years tenure
  • Approval of study abroad education loan before I-20, CAS or other immigration letter issuance
  • Scholarship adjustable education loans. Students can pay margin money with a scholarship award sum

ALSO READ: TOP 5 AFFORDABLE COUNTRIES TO STUDY ABROAD

Student Loan Providers For Study Abroad – Bank of Baroda

Bank of Baroda provides education loan for abroad studies under the service name of Baroda Scholar Scheme. The BoB Education Loan includes even those courses which are commonly not considered by other education loan banks (private or government). While most student loan providers levy forex charges, BoB Education Loan helps students with direct payments to college-university, to avoid any such charges. Find below the terms and conditions of the Baroda Scholar education loan for abroad studies.

Baroda Scholar Scheme Features Details
Quantum of Student Loan
  • Up to ₹80.00 Lakhs for 100 premier international institutions
  • ₹60.00 Lakhs for other foreign institutions (close to 40 lakh institutions accepted)
Interest Rate
  • 9.90% for premier institutions
  • 10.65% for other institutions
Collateral/Security requirement
  • No security required for loans up to ₹7.5 lakhs
  • Above ₹7.5 Lakhs- Tangible security equal to 100% of loan amount
Extra Charges
  • Processing charges- 0.75% of loan amount (max. cap ₹10000)
  • Legal charges and verification costs- ₹7500 (lump sum)
Subsidy and Repayment norms
  • 0.50% for female students
  • All government subsidy schemes auto-applicable at the time of application

Additional benefits of BoB Education Loan- Baroda Scholar Scheme:-

  • No margin payment for international student loans of up to ₹4.00 lakhs
  • Free international debit card for students
  • Simplified moratorium/holiday period*- 1 year from course duration
  • Maximum number of accepted universities (over 40 lakh international institutions)

Student Loan Providers For Study Abroad – Auxilo Finserve

NBFC Student Loan Providers in India help students to avoid the tough education loan eligibility conditions of nationalised banks. Auxilo Education Loan for abroad studies provides both pre-admission and pre-visa loans for students. With a network across maximum number of countries and quick turnaround time, Auxilo helps students to expedite the process. Auxilo Finserve also allows students with international scholarships to repay their loans using the scholarship funds. Read below the complete education loan details including interest rates, collateral norms and other details for Auxilo Study Abroad Loans.

Auxilo Study Abroad Loan Scheme Features Details
Quantum of Student Loan Up to ₹1.00 Crore (no cap for meritorious students and premier institutions)
Interest Rate 12.70% (base lending rate) + 1.50% to 2.00% (spread)
Collateral/Security requirement Equivalent to 100% of the sanctioned loan amount
Extra Charges
  • Processing fees- 2% of the loan amount
  • Legal and Collateral Evaluation charges- ₹4000 (lump sum)
Subsidy and Repayment norms
  • Internal concession scheme based on financial needs of an applicant
  • Three options of repayment: Part-payment, Pre-payment and EMIs

Additional benefits:-

  • Low turnaround time; 6-12 days
  • Additional financial support for mobile bills, air tickets, vaccination, in-flight and post-landing services
  • Availability of both pre-visa and pre-admission loans
  • Concession on interest rates based on international admission test scores (GMAT, GRE, LSAT, IELTS, etc.)

ALSO READ: STUDY IN USA – INTERNATIONAL STUDENT WORK PERMIT

Student Loan Providers For Study Abroad – HDFC Bank Ltd.

HDFC Bank provides international education loans for students under its Credila services. Most student loan providers only fund foreign education for Indians at the beginning of session intakes/admissions only. HDFC Credila provides the only study abroad education loan in India which is available between the course timeline. This means students can take education loans while they are studying as well. HDFC Credila Education loans also provide benefits of customized interest rates for premier international universities and institutions. With this feature, students have an opportunity to negotiate their interest rates with HDFC. Following are the study abroad education loan details of HDFC Credila.

HDFC Credila Education Loan Features Details
Quantum of Student Loan Min: ₹1.00 Lakh; Max: ₹25.00 Lakhs (higher for premier institutions)
Interest Rate 12.55% + 1.25% to 2.25% (based on applicant financial viability)
Collateral/Security requirement Equivalent to 100% or sanctioned loan amount
Extra Charges
  • Variable processing charges up to 1.5% of loan amount
  • No Pre Payment Charges
  • Document security charges: ₹2000 to ₹4000
  • Legal charges: Actual cost (no overheads)
Subsidy and Repayment norms
  • No subsidy provision
  • Flexible repayment tenure up to 12 years
  • Facility of refinancing education loan to study abroad available

Additional benefits:-

  • No margin payment for any instalment (irrespective of institution, qualification or other criteria)
  • Multi-city borrowers and co-applicants accepted
  • Doorstep servicing of loan instalments, preferential education loan rates for premier international institutions
  • Least turnaround time in the industry for international study loans

ALSO READ: EDUCATION LOAN SUBSIDY: COMPLETE GUIDE

Study Abroad Education Loan Suggestion: As mentioned earlier, Indian students are eligible for federal student aid programs in countries like USA and Canada. But, due to recent changes in laws, students find it difficult to get any such student aid. Students, in this case, may apply for state-federal student loans. Such loans for students are provided by State Universities and State Governments in these countries.

Prodigy Finance International Student Loans Company

Students who are not able to secure an education loan in India to study abroad need not worry as international loans are also an option. Prodigy Finance provides students with international education loans at nominal interest rates. The additional benefits of financing studies abroad with Prodigy Finance help them to have more financial control as compared to domestic education loans. International Student Loan companies like Prodigy Finance and Salie Mae Student Loans prefer applicants who have secured scholarships to study abroad. While students need a co-signer to apply for study abroad loans, with Prodigy Finance they don’t. This makes them get all the benefits of a student loan without collateral or cosigner obligations. Prodigy Finance is one among many international private student loan providers like Mpower, Wells Fargo, etc. Check below more education loan details for Indian applicants by Prodigy Finance.

Prodigy Finance Education Loan Features Details
Quantum of Student Loan US$15,000 to US$220,000 (₹10.00 Lakhs to 1.50 Crore approx.)- depending on academic institution and credit scores
Interest Rate
  • 11.57% (charged on US Dollars amount subjective to interest rate parity)
  • Equivalent to 13.5% (approx.) in Indian rupee terms depending on loan tenure and course duration
Collateral/Security requirement
  • No Collateral required and no foreign co-signer required
  • Only Credit Score (CIBIL) should be above 750 out of 900
Extra Charges All additional charges included in the APR (Annual Percentage Rate) of Interest
Subsidy and Repayment norms
  • No subsidy
  • Provision of concession on 6 consecutive interest payments: 0.50%
  • Provision of concession on paying regular EMIs during course tenure: 0.50%

Colleges Admissions, Study Abroad, Login with user details, find Courses, Exams, ScholarshipsAdditional benefits:-

  • A chance to develop an international credit history which helps in getting international permanent visa
  • Complete coverage of living expenses, academic expenses and non-academic expenses
  • No early repayment charges, no pre-payment charges, and no part-payment charges
  • Assistance in post-sanction loan management, loan consolidation, and loan refinancing

ALSO READ: EDUCATION LOAN SUBSIDY: COMPLETE GUIDE

Student Loan Providers For Study Abroad in India- Other Loan Providers

Depending on personal requirements, students should also consider factors like penalty charges, multi-city servicing, income tax benefits, and turnaround time of student loan providers. Students should consult with study abroad experts, to prevent the student loan application process from becoming another hassle. Keeping a close eye on the changing banking norms and interest rates always helps in this case. Students should also regularly read more about the new services launched by these loan providers.

The key to finding the best education loan in India is to follow the education loan providers. Other lenders like Buddy4Study Edu Loans also provide international student loan services. Such education loan experts provide customized student loans services. In collaboration with multiple student loan company schemes and lenders, they are also able to negotiate for better interest rates and flexible repayment options.  For more information regarding education loans for study abroad, keep visiting this section. Happy learning!

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