Best Education Loans for Studying Abroad
Last Updated : Sept. 27, 2024, 11:22 a.m.
Regarding the provision of funds for further studies, the best education loans for study abroad are meant for high expenses which even may go beyond rupees 20 lacs. Study loans are provided by several banks covering foreign education, covering tuition, cost of living, and other expenses. It’s paramount to select a loan provider who has adequate finances, gives relatively lower interest rates, and has a variety of repayment plans that are beneficial so that you do not strain yourself financially while concentrating on your education.
When searching for educational loans to finance your international studies, consider looking for lenders who allow the maximum loan amount and charge low interest rates even without collateral. Since we understand the importance of your educational aspirations, we have prepared a list of the best banks for abroad education loans so that you do not find yourself looking for financial assistance in the middle of your studies.
List of Banks that Offer Maximum Loans Without Collateral
These are the names of banks that provide education loans for studying abroad without collateral:-
HDFC Bank
You can meet your funding needs for studying abroad with the HDFC Bank education loan where you can borrow up to ₹50 lacs without collateral, and obtain preferential rates for top-ranked colleges and universities. A good credit score history can be beneficial for you and get you a lower rate. The loan can be repaid through EMIs over up to 15 years. Just ensure your admission is confirmed before applying.
Axis Bank
Apart from enhancing your academic studies furthering overseas, you can also pay the Axis Bank Education Loan within a maximum of fifteen years. One does not have to worry about the expenses incurred outside of India because the individual also gets a multi-currency-free forex card. For higher education expenses, people can avail of collateral-free loans up to INR 75 lacs. If you are interested in applying for an education loan then you can do that through an online application that will be submitted to Axis Bank’s official website.
ICICI Bank
ICICI Bank has a special feature of granting education loans for higher studies abroad over and above the provision of security. Both course fees and living costs are covered by the loans without the need for collateral or guarantee against the loan. The amount of loan reaches Rs 1 Crore but more typically depends on the academic program, school, and country of one’s study, with reasonable interest rates and easy payment options.
Bank of Baroda
Bank of Baroda education loan has attractive interest rates and flexible repayment tenures up to 15 years. For students admitted to select premier institutes, loans of up to Rs. 40 lacs are available without the need for collateral. The maximum loan amount is Rs. 125 lacs for studies in India and Rs. 150 lacs for studies abroad, providing comprehensive financial support for higher education both domestically and internationally.
Union Bank of India
Union Bank of India provides education loans of, up to Rs 40 lakhs without requiring collateral for students looking to pursue their education. The loans encompass expenses such, as tuition fees and accommodation costs while offering students repayment plans and competitive interest rates.
IDBI Bank
An education loan is provided as a term loan to students who have secured admission to pursue higher studies abroad with a maximum loan amount of Rs 70 lacs which is dependent upon the course you will opt for. Loan up to 4 lacs has no collateral but above > Rs. 4 lacs is 15% lacs and Above Rs. 7.5 lacs is 20%.
Punjab & Sind Bank
Students seeking for a higher degree or studies from abroad, Punjab & Sind Bank offers education loans , providing financial support and other related costs. With flexible and best repayment options of up to 15 years with no or zero collateral of Rs. 4 Lacs, which motivates and allows students to study and focus on their studies more without even repayment begins.
IndusInd Bank
When it comes to funding education, IndusInd Bank loans can be a popular choice over conventional student loans as they are unsecured and do not require any collateral assets for approval making the application process easier and more convenient, for covering study expenses abroad.
SBI Bank
Indian citizens have the option of applying for a term loan, for their education within India or overseas as long as they have confirmed their admission already secured in advance. The State Bank of India offers education loans of up to Rs 7.5 Lacs with one of the parents or a guardian serving as a co-borrower without the need, for any security or third-party guarantee.
Canara Bank
Canara Bank education loan is for students aspiring to pursue education in international universities and colleges offering loans of, up to Rs. 7,50,000 INR without requiring any collateral security at a competitive annual interest rate of 9.25%.
Bank of India
For Bank of India education loans exceeding ₹ 400000 and up to ₹ 750000 the Bank of India mandates that either parents or a co-borrower must serve as borrowers for the loan application process. The interest rate applicable to these loans is determined based on 1 Year RBL (Repo Based Lending Rate) + 1.70 %.
Here is the table for your better knowledge of bank names with their maximum loan amount -
BANK NAME | LOAN AMOUNT |
|---|---|
HDFC Bank | Rs.50 lacs |
Axis Bank | Rs.75 lacs |
ICICI Bank | Rs.1 Crore |
Bank of Baroda | Rs.150 lacs |
Union Bank of India | Rs.40 lacs |
IDBI Bank | Rs. 70 lacs |
Punjab & Sind Bank | Rs. 4 lacs |
IndusInd Bank | Rs. 30,000 to INR 50 lacs |
SBI Bank | Rs. 7.5 lacs |
Canara Bank | Rs.7.5 lacs |
List of Banks That Offers Maximum Loan Without Collateral
The below table shows the different types of banks offering the best education loans for abroad studies wanting with collateral:-
Bank | Loan (in INR) | Collateral | Interest Rate |
|---|---|---|---|
State Bank of India (SBI) | From 7.5 Lakhs to 1.50 crores | Tangible collateral & 3rd party Guarantee | Starting at 11.15% |
Punjab National Bank (PNB) | Above Rs.7.50 lacs | Parent(s) or guardian(s) shall be co-borrowers. Tangible collateral security that the bank will accept and is of a fair value. | Starting from 15% |
Indian Overseas Bank | Above 4 lacs to 300 lacs | Collateral security | 15% - 25% |
HDFC | Up to 40 lacs | Collateral required | 9.25%-13.99% p.a. (depending upon the loan) |
Axis Bank | Up to 1.5 crores | Collateral Required | 10.50%-15.20% p.a. |
Bank of Baroda | Up to 60 lacs | Collateral Required | 6.75% to 8.25% p.a |
Canara Bank | Minimum 7.50 lacs, Maximum no cap (as per project cost) Maximum Rs 100 lacs | 100% and above collateral coverage Less than 100% collateral coverage | |
Kotak Mahindra Bank | Up to 20 lacs | Required, as the loan amount is high. | 9%-11% |
Bank of India | Above 7.50 lacs | Joint borrowers include co-borrowers or parents. Tangible collateral that is acceptable to the bank and has an appropriate value. The student's future income is assigned to cover the installment payments. |
A Closer Look at the Collateral
You can apply for a loan for foreign studies by providing security to the bank. Under the Credit Guarantee Fund Scheme to Farmer Producer Companies (FPCs). The Maximum Guarantee Cover shall be limited to 85% of the eligible sanctioned credit facility or Rs. 85 lakh, whichever is lower.
Fixed Deposit: The FD value can help you secure the borrowed amount, and submit the deposit receipts and other documents of your FD to offer to the bank. But the FD must be in the bank from which you are applying for an education loan.
Land or Property: Your land or house can also be taken as collateral for your education loan. The security of the loan is released later after the loan payment has been made. And before that, the bank has the right to your property. In case you default, the bank can take over the same.
Insurance Policies: The value of your life insurance policy can help you secure an education loan for foreign studies.
Frequently Asked Questions (FAQs)
