Studying Abroad is a dream for many Indian students, offering the opportunity to gain world-class Education, exposure to new cultures, and a Global perspective.
Apart from having the Ambition to achieve your dreams, it is also essential to have the necessary funds to avoid any hassles during your Academic period. Several nationalized banks in India offer Student Loans with competitive features to ensure you focus entirely on your studies when studying abroad.
However, it can take some time to research and finalize the Ideal Financial Institution for you because there are many considerations involved. That is why we provide you with this article highlighting the top five nationalized banks offering student loans for studying abroad and details of their features and other necessary prerequisites.
What are we waiting for then? Let us see which Nationalized Bank best serves your needs and interests!
Major Public Banks Offering Loans to Study Abroad
Public Banks are popular for Overseas Education as they prioritize Social Welfare, offer Lower Interest Rates, and provide more Security. In the following section, we have covered the Top 5 Nationalized Banks renowned for their unique features, so carefully go through the details.
State Bank of India (SBI)
SBI offers the Global Ed-Vantage Scheme, providing extensive financial support for students aiming to Study abroad, covering Tuition Fees, Living Expenses, and more with favorable Terms and Quick Processing.
Key Features
Find below the characteristics of the SBI Education Loan for Abroad Studies:
- Loan Amount: Secured Loan (SL) for up to 1.5 Cr.
- Types of Loan: Secured Loan
- Interest Rate: 11.15%: 0.50% Concession for Girl Child and 0.50% Concession for Rin Raksha Insurance
- Loan Tenure: 15 Years
- Processing Fee: 10,000 + GST
- Moratorium Period: Course duration + 6 months
- Tentative Time Taken for Loan Sanctioning: 25 Days
Applicants get a .50% Concession if they are a Girl Child and a .50% Concession if they have Rin Raksha Insurance. Now, let us comprehend the Criteria required to apply for a study abroad loan under the Global Ed-Vantage Scheme.
Eligibility Criteria:
- Indian Students who have secured Admission to Foreign Universities or Institutions.
- Co-applicant (Parent/Guardian) with a stable income.
Bank of India (BOI)
Bank of India’s Star Education Loan Scheme facilitates students’ studying abroad by offering substantial loan amounts with flexible repayment options and covering a wide range of educational expenses.
Key Features
Find below the characteristics of Bank of India Abroad Education Loan:
- Loan Amount: Up to 1.5 Cr. for Secured Loan
- Types of Loan: Secured Loan and Unsecured Loan
- Interest Rate: 11.75%
- Loan Tenure: 15 Years
- Processing Fee: 11,000 + GST
- Moratorium Period: Course duration + 6 or 12 months
- Tentative Time Taken for Loan Sanctioning: 10-15 Days
With a basic Rate of Interest (ROI) of 11.75%, there are several concessions offered under the Star Education Loan of BOI, including a 0.50% concession along with 0.50-100% Collateral Security for Girl Child on Loan amount above 20 Lakhs. Also, there is a 0.50% Concession on the basic ROI if your chosen University comes under 1000 in the Webometrics Ranking.
Furthermore, a 0.50% Concession is given on the ROI if you are enrolled in a Medical, Engineering, or Management course, followed by a 1% Concession if you pay the Interest during the Moratorium period.
From the following section, you can refer to the Criteria you must meet to apply for a Study Abroad Loan through BOI.
Eligibility Criteria
- Indian Applicants should have secured Admission to a recognized Abroad Institution for approved courses.
Bank of Baroda (BOB)
The Baroda Scholar Scheme by the Bank of Baroda is designed to support students aspiring to pursue Higher Education Abroad, offering competitive Interest Rates and comprehensive coverage of educational expenses, and living expenses such as Travel Costs, Tuition Fees and Living expenses. In the Bank of Baroda Education Loan for Abroad Studies, there is a list of Premier Universities that receive special benefits.
Key Features
Find below the characteristics of the Baroda Scholar Scheme.
- Loan Amount: Secured Loan up to 1.5 Cr for Premier Listed Universities and Secured Loan up to 60 Lakhs for Non-Premier Listed Universities
- Types of Loan:
- Interest Rate: 9.70% for Premier Listed Universities and 10.35% for Non-Premier Listed Universities.
- Loan Tenure: 15 Years
- Processing Fee: 10,000+ GST (Refundable) and 8,500+ GST for Verification Report and Search Report in Secured Loans
- Moratorium Period: Course Duration + 12 months
- Tentative Time Taken for Loan Sanctioning: 20-25 Days
To make things easier for Girl Child, there is an additional Concession of 0.50% on the overall ROI. To apply for a Study abroad loan through BOB, you must meet the Eligibility Criteria, discussed in the next section.
Eligibility
- Indian nationals who have secured Admission to recognized Foreign Universities.
- Co-applicant with a stable income.
Punjab National Bank (PNB)
PNB’s Udaan scheme is tailored for students looking to study overseas. It provides financial assistance for Tuition Fees and Living Expenses, with attractive Interest Rates and flexible Repayment terms.
- Loan Amount: Secured Loan up to 1.5 Cr.
- Types of Loan: Secured Loan
- Interest Rate: 10.50% for Secured Loans
- Loan Tenure: 15 Years
- Processing Fee: 1% of the Loan Sanctioned Amont +GST
- Moratorium Period: Course Duration + 12 Months
- Tentative Time Taken for Loan Sanctioning: 10-15 Days
Furthermore, a 0.50% Concession is available on the Basic Rate of Interest for a Girl Child, a 1% Concession if you serve the Interest during the Moratorium Period and 9.25% if your chosen University comes under the Top 50 World Universities listed by PNB.
After scrutinizing the key details, check if you fit into the Eligibility Criteria.
Eligibility
- Indian nationals who have secured Admission to a Higher Education Course in recognized Global Institutions through Entrance Tests or through Merit-Based Selection.
- Co-applicant with a stable income.
Nationalized banks in India offer various student loan options for those aiming to study abroad. These loans come with competitive Interest Rates, flexible Repayment Options and other benefits like Concessional Interest Rates for Female Students and Pre-Visa Disbursement options.
Choosing the right loan involves comparing each Bank’s Features, Interest rates, and Repayment Terms to find the most suitable choice for your educational needs. Read the fine print and understand the terms and conditions before committing to a loan.
You can consult your city’s trusted overseas education consultant if you need a clearer understanding of finalizing a Bank for a Study Abroad Loan. They will analyze your requirements and study goals and help you choose the right Financial Institution accordingly.
