The best way to chase your dream of higher education in overseas universities in through education loan. Students can pursue their dream of studying abroad by applying for education loan for abroad. For those students who are unemployed, the parents must become guarantor. There are various options to choose from when it comes to the best bank for education loan for abroad. Some of the public banks include Bank of Baroda education loan and SBI education loan. If you wish to choose private bank, you have HDFC Credila education loan, which is another good option.
Comparing the Rate of Interest
Here is your comparative table for the rates of interest, which is one of the most important factor for considering the best education loan in India for studying abroad.
|Bank||Type of Bank||Loan Amount||Rate of Interest|
|Bank of Baroda education loan||Public Sector||For all loan types and amounts||8.50% onwards|
|SBI education loan||Public Sector||Up to Rs. 7.5 Lakhs||10.25%|
|Above Rs. 7.5 Lakhs||10.50%|
|Credila education loan||Private Sector||For all loan types and amounts||11.85% onwards|
If you look at interest rates I would say bank of Baroda is the best study abroad loan option especially if you are going into para preferential list of universities. Although this rate is fluctuating and depends on the repo rate of RBI however it is still the least in the market To study abroad. For unsecured loan the most competitive interest is provided by HDFC Credila which provides loan at around 11%. ICICI bank as well as the minimum rate for unsecured loan at 10.25 which is for its A1 university listing.
Comparative table for best banks for education loan for studying abroad
|Features||Bank of Baroda education loan||SBI education loan- Global Ed-vantage||Credila education loan by HDFC|
|Max Loan Amount||Rs. 80 Lakh||₹1.5 crore||Rs. 40 lakhs (can go up to Rs. 1 crore in certain cases)|
|Interest Rates||Loans upto Rs. 4 lakh||9.65 % – 10.40% , for Girls – 9.15%||Loans Up to Rs. 7.5 Lakhs||10.25%||11% to 12.5%|
|Loans Rs. 4.0 – 7.5 lakh||9.65 % – 10.40% , for Girls – 9.15%||Loans Above Rs. 7.5 Lakhs||10.50%|
|Loans > Rs. 7.5 lakh||9.65 % – 10.40% , for Girls – 9.15%||–||–|
|Margin requirement (by student/family)||Loans upto Rs. 4 lakh||0%||Loans Up to Rs. 4 lakh||0%||Nil|
|Loans above Rs. 4 lakh||10%||Loans above Rs. 4 lakh||10%|
|Max Tenure Post Moratorium||10-15 years (depends on the loan amount)||Maximum 15 years||–|
|Co-Applicant required (Y/N)||Yes||Yes||Yes|
|Collateral Security (Fixed deposit/ Property, LIC)||Required for Loans > Rs. 7.5 lakh||Required||Options available for collateral and non-collateral loan requirements|
|Moratorium Period||After course period||12 months||After course period||12 months||Only interest amount to be paid during moratorium period; EMI begins after course completion+6 months|
|After getting job||6 months||After getting job||6 months|
In case you look at the loan amount for a secured loan State bank of India overseas education loan is the best which has maximum limit of 1.5 CR. In case you’re looking at an unsecured loan the best Amount of loan is provided by advance which is INR 60 lakhs.
Before you make a decision
It is important that you gather all required details before deciding which bank to go for. Here are certain factors that you must bear in mind-
- Interest rate
- Tax benefits
- Eligibility and Documentation
- Loan Disbursal Time
- Costs covered
- Moratorium Extension
- Prepayment Terms
- Total Cost over EMI
- Service Charges
Your Key Takeaway
There are various ways to choose the best bank for getting your education loan approved. However, a lot of times, technical things can become too complex to understand. This is where Eduloans come into play. We help you simplify this entire education loan for study abroad process. We also help you in thorough documentation and loan processing. We can assure you at Edu loans with over 12 partnering banks, 12,000 students on our platform, 4.9 Google reviews points, experienced and dedicated education loan counsellors, we are the best bet for you to get the most suited overseas education loan option based on eligibility, cost and convenience. Reach out to us and we are free and solve your problem of overseas education loan.