Dreaming of studying abroad but worried about the financial burden? You’re not alone. In 2024, over 7.5 lakh Indian students went overseas for higher education, and nearly 70% of them depended on a study loan abroad. It might be difficult to decide whether to go for a private bank or an NBFC since both have advantages and disadvantages. A correct choice will allow you to concentrate on your studies without any worries, whereas an incorrect one might result in you being overwhelmed with documentation or heavy installments.
Understanding the Difference
Remote the RBI control private banks as Axis, ICICI or HDFC and give structured loan products as the Axis Bank Overseas Education Loan that has fixed eligibility and repayment terms. In contrast, NBFCs (Non-Banking Financial Companies) operate more flexibly, providing a NBFCs education loan that’s easier to access for students with limited collateral or non-traditional profiles.
Comparing Loan Features for a Study Loan Abroad
When applying for a study loan abroad, the choice often depends on personal eligibility and financial strength.
- Collateral Requirements: If a bank is going to grant a high-value loan, it will certainly ask for collateral, while Non-Banking Financial Companies (NBFCs) usually give unsecured loans of up to ₹50 – 60 lakhs.
- Interest Rates: The Axis Bank education loan is available at attractive rates starting from around 9.5%, while NBFCs may charge slightly higher rates, but give more flexibility to the customer.
- Processing Speed: NBFCs typically process applications within 48–72 hours, while banks can take up to two weeks.
- Coverage: NBFCs can cover 100% of tuition and living expenses, whereas banks may finance up to 85–90%.
Flexibility and Accessibility with NBFCs
A NBFC study loan offers more than just funding it offers adaptability. Many students studying in newer or lesser-known universities find NBFCs more welcoming. These institutions evaluate students holistically, considering university ranking, job potential, and academic background.
- No collateral for top-ranked universities.
- Extended repayment periods up to 15 years.
- Simple online applications and minimal documentation.
Axis Bank Overseas Education Loan remains a good option for students who like to follow a planned method and want to avail tax benefits.
If you have a hard time comparing different lenders or picking the suitable plan, the Credila Overseas Education Loan platform is there to help students by providing a quick and easy way to analyze, apply, and get the financing that fits them best.
Why Choose Credila Overseas Education Loan?
Unlike traditional banks, the Credila Education Loan platform collaborates with multiple banks and NBFCs to ensure better approval odds. It provides tailor-made solutions based on country, course, and financial profile. With faster processing, transparent communication, and flexible options, Credial bridges the gap between lenders and students pursuing a study loan abroad.
Final Verdict
Choosing between private banks and NBFCs depends on your financial background and flexibility needs. In case you like regulated, organised systems and want lower interest rates, the Axis Bank Overseas Education Loan is the best option. If speed, flexibility, and minimal documentation matter more, go for an NBFCs education loan, ideally through a trusted partner like Credial Overseas Education Loan.
Conclusion
An education loan overseas is not just a money source it is a wise investment in your coming years. Banks as well as NBFCs have good points, but which one will suit you best depends on your personal profile and how comfortably you can make the repayments.
Looking to simplify your education loan process? Visit Eduloans.org today. Their professionals assist students in comparing leading banks and NBFCs, thus facilitating quicker approvals and attractive terms. Why not have Eduloans take care of the money matters while you concentrate on your dream university abroad?
Yes, both banks and NBFCs offer loans for second degrees, provided your academic and financial background is strong.
It is best to take out a loan 3-6 months before one’s course starts to have the approval and money release done without a hitch.
Non-banking financial companies may accept a co-applicant with a moderate income if the student has good academic potential and a high rank at the university.
Most banks allow loan prepayment; however, in the case of some lenders, a small penalty will be charged if the loan is paid off before the lock-in period.
Some non-banking financial companies can partially fund a part-time or blended program if the university and course are suitable.