Education Loan For Abroad Studies

Education Loan For Abroad Studies

The best way to chase your dream of higher education in overseas universities is through an education loan. Students can pursue their dream of studying abroad by applying for education loans abroad. There are various options to choose from when it comes to the best bank for education loans abroad. Some of the public banks include Bank of Baroda and SBI education loan. If you wish to choose a private bank, like HDFC Credila, Auxilo, Axis Bank, ICICI Bank which is another good option.

NBFC’s, Private Banks & Nationalized Bank provide both Unsecured as well as Secured Loan. For an Unsecured loan student needs to declare academic performance, aspiring overseas country and university along with their parent’s annual income proof according to requirement. For Secured loan students need to place an eligible property whose title deed is clear for mortgage or other liquid assets such as LIC, Govt. Bonds, Post Office deposits, Term deposits and take the loan against it.

Quantum of Finance:

Unsecured Loan	ROI	Secured Loan	ROI
NBFC’s up to 40 lacs for USA and other country up to 20 lacs	11.50% – 13% (USA) 13%-15% (other country)	NBFC’s upto 50 lacs	11%- 12.50%
Private Bank: Prime A- 40 lacs Prime B- 25 lacs	11.50% – 12.7% (USA) 13%- 15% (other country)	Axis Bank upto 75 lacs ICICI Bank upto 1 cr	Axis Bank & ICICI Bank- 11% – 12%
BOB upto 7.5 lacs	Premier – 8.75% Non Premier – 9.50%	BOB upto 80 lacs- the premier BOB up to 60 lacs- Non Premier	Premier – 8.75% Non Premier- 9.50%
SBI up to 7.5 lacs	7.90%	SBI up to 1.50 cr	9.7% (0.50% for girl’s concession)

Criteria of Loans:

Unsecured Loan	Secured Loan
GRE: 300 \| TOEFL: 90 \| IELTS: 6.5	Academic: 55% (Less Backlogs)
Parents Annual Income: Above 5-6 lacs	Loan Sanctioned: 75-80% against property value
MS/PG level- Stem & Mgmt course UG Diploma/Bachelors- No loan	Loan for all level of courses
Academic: 60% (fewer Backlogs with no GAP)	Average Annual Income: 2.0 lacs
Cibil Score: 700+	Cibil Score: 650+
Age Criteria: up to 28 years	No Age Criteria

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