Studying abroad requires a lot of money for tuition fees, living costs, travel, and other expenses. An education loan helps students cover these costs and fulfill their dream of studying overseas.
Attractive Interest Rates
Indian banks offer education loans at interest rates starting from 8.25%. Students with good credit scores can even get lower rates.
Banks Offering Education Loans
Popular banks like SBI, HDFC, ICICI, Axis Bank, and Punjab National Bank provide loans for studying abroad. Each bank has different schemes, such as lower rates of interest or higher loan amounts.
Loan Amounts Available
The loan amount usually ranges from ₹20 lakh to ₹1.5 crore, depending on the student’s requirement, the university chosen, and the country of study.
Eligible Courses and Universities
Loans are given only for courses offered by recognized universities and professional institutes abroad. A valid admission letter is mandatory.
Documents Required
Students need to submit:
Admission letter
Previous mark sheets
Identity proof and address proof
Proof of income/salary
In many cases, a co-applicant or guarantor is also needed.
Government Subsidies and Concessions
The government offers interest subsidies to certain groups, such as students from economically weaker sections and women candidates. Some banks provide additional concessions.
Repayment Rules
Repayment generally begins 6 to 12 months after course completion or once the student gets a job. Banks provide flexible EMI options for repayment.
Things to Check Before Applying
Students should carefully review:
Interest rates
Processing fees
Prepayment charges
Subsidy terms
Proper financial planning is essential.
How to Apply
Education loans can be applied for through:
A bank branch
An online portal
An education counselor
Keeping documents ready and taking guidance from the bank helps in smooth processing.
