Nowadays, taking an education loan for MCA abroad is easier. Many public and private banks offer personalised loans to aspiring students. You can apply online and offline to avail of these loans and cover the expenses abroad. However, it is important to fulfil the eligibility requirements to get MCA loans at competitive interest rates. You must also arrange supporting documents when filling out the application form. To know more details, read this blog further.
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Overview of Education Loan for MCA Abroad
An education loan for MCA abroad lets you turn your dreams into reality by providing the required financial support. Banks like SBI, ICICI, Axis, HDFC, Bank of Baroda and NBFCs like Prodigy Finance, Avanse, Auxilo, etc. offer loans at competitive rates starting from 9% p.a. You can avail of both secured as well as unsecured education loans without collateral.
By covering tuition, accommodation, and living expenses, an education loan for MCA allows you to concentrate on your studies without financial stress. Most lenders offer repayment options that start after you graduate, giving you ample time to establish a career. The loans can be repaid in up to 15 years in flexible instalments.
Interest paid might be eligible for tax deductions and you can get an income tax rebate on education loans under Section 80E. You can also avail of lower interest rates if you have a good credit score and offer collateral.
Benefits of Education Loans for MCA Abroad
Taking an education loan for a Master’s in Computer Applications (MCA) abroad offers several unique advantages that can significantly ease the financial burden on students and their families. These loans are designed to provide financial support for students aiming to enhance their education and career prospects without compromising their family’s savings. Check out the benefits below-
- Access to Funds Without Depleting Family Savings
Education loans provide students with the necessary funds to cover tuition and living expenses, allowing families to preserve their savings for emergencies or other financial needs.
- Repayment Flexibility with Moratorium Periods
Many education loans come with moratorium periods, meaning that repayment starts only after the completion of the course or after securing a job, offering students financial breathing space during their studies.
- Tax Benefits Under Section 80E of the Income Tax Act
Borrowers can avail of tax deductions on interest paid on education loans under Section 80E, reducing their taxable income and making loan repayment more manageable.
- Loans Specifically Tailored for Premier Institutions and Programs Abroad
Many banks offer loans specifically designed for students attending prestigious institutions abroad, ensuring that they receive adequate financial support for high-quality education.
- Collateral-Free Options for Top Universities
Some lenders provide collateral-free loans for students enrolling in top universities, making it easier for them to access funds without the need for additional security.
Also Read: A Master’s degree is a great choice. Check out the details on education loans for a Master’s in the UK to cover the study abroad expenses.
Interest Rates on Education Loans for MCA Abroad
When choosing an education loan, compare the education loan interest rates of different banks and NBFCs, loan amounts, repayment terms, and other features across multiple lenders to find the best fit for your needs and profile. It is ideal to apply for education loans with the lowest interest rates and favourable terms and conditions.
So, you must know the effective interest rates on education loans for MCA abroad. Usually, these start from 9% p.a onwards for those with an excellent CIBIL score. Keep in mind these important points-
- Interest rates are typically higher for NBFCs compared to banks.
- Floating rates are subject to change based on market conditions.
- Collateral-free loans have higher interest rates than secured loans.
Here are the interest rates of some of the banks offering education loans for MCA abroad-
Public Sector Banks
- State Bank of India (SBI): 11.15% p.a. (floating)
- Bank of Baroda: 9.70% p.a. for premier institutions
- Punjab National Bank (PNB): 4% to 12.75% p.a.
Private Sector Banks
- HDFC Bank: 12.50% p.a.
- ICICI Bank: 11.25% p.a.
NBFCs
- Avanse Financial Services: 14% to 16.5% p.a. (floating/fixed)
- MPower Finance: Starting from 12.99% p.a. (13.98% APR) (fixed)
- HDFC Credila: 10.5% to 14% p.a. (floating)
Also Read: Know all about LLB education loans to study abroad and the best public banks, private banks, and NBFCs providing education loans for LLB students.
Best Banks for Education Loans for MCA Abroad
Multiple banks and NBFCs in India offer education loans for MCA abroad. These help you provide the financial assistance and necessary funds required to cover the tuition fees, living expenses, travel costs and other costs related to studying abroad.
Various loan schemes like Baroda Scholar, PNB Vidya, SBI’s Global Ed-vantage, etc. offer competitive interest rates. Some of the best banks for education loans for MCA are SBI, Axis Bank, Central Bank of India, Indian Overseas Bank, ICICI Bank, and Bank of Baroda. Many NBFCs like Avanse, Prodigy Finance, and InCred also provide the required funds.
| Banks and NBFCs | Loan Amount and Interest Rates | Features |
| State Bank of India | Up to INR 1.5 crores at 11.15% p.a onwards | -Loans under the SBI Global Ed-vantage loan scheme -Covers a wide range of expenses -Interest concession for female students |
| Central Bank of India | Up to INR 2 crores at 8.10% p.a onwards | -Loans under Cent Vidyarthi loan scheme -Unsecured loans up to INR 7.5 lakhs -1% interest concession is offered if the interest is served during the moratorium period |
| Indian Overseas Bank | Up to INR 3 crores at 12.15% p.a onwards | -Higher loan amounts for top and premier colleges -Special discounts for IOB employees, wards of retired employees -Easy application process online |
| ICICI Bank | Up to INR 3 crores at 9.50% p.a onwards | -Unsecured loans up to INR 1 crores -Special benefits for CXOs and government employees -No margin money for premier institutes |
| HDFC Bank | Need-based financing | -Unsecured loans up to INR 45 lakhs -Flexible loan repayment period -Competitive interest rates starting from 12.50% p.a |
| Avanse Financial Services | Need-based financing at 14.25% p.a | -Unsecured loans up to INR 75 lakhs -Offers pre-visa loans -Loan sanctions within 3 days |
| InCred | Need-basedstarting from 11.00% p.a | Need-based starting from 11.00% p.a |
| Prodigy Finance | Need-based financing starting from 11.15% p.a | -Loans without collateral and co-signer available -Quick and easy online application process -100% financing to cover all major costs of studies abroad |
Eligibility Criteria
It is important to understand the eligibility criteria before applying for an education loan for MCA. The basic eligibility is that you must be an Indian citizen and have secured admission to the MCA program in a recognised university. Check out the details-
- You must be an Indian citizen
- Your age should be between 18 years to 35 years
- A strong academic background is essential
- Secured admission to a recognized university abroad through an entrance examination or merit basis.
- A financially stable co-applicant is often required.
- Providing a detailed breakdown of educational expenses is crucial.
Pre-Visa Loan Approvals for MCA Abroad
Pre-visa loan approvals can significantly enhance the chances of securing a student visa for pursuing a Master’s in Computer Applications (MCA) abroad. By obtaining a pre-visa loan, you can demonstrate your financial capability to cover tuition and living expenses, which is a critical requirement for visa applications.
Lenders like Avanse and Prodigy Finance offer specialized pre-visa loans that cater to the needs of international students, ensuring they have the necessary funds readily available.
- Pre-visa loans provide proof of financial backing, which is essential for visa applications. This assurance indicates to immigration authorities that students can sustain themselves financially while studying abroad.
- Securing an education loan reflects a student’s serious intent to pursue higher education abroad, which can positively influence visa approval decisions.
Also Read: Planning to pursue law? Check out the details on education loans for a Master’s in Law in the UK.
Documents Required
Applying for an education loan for MCA requires careful documentation. You must submit bonafide certificates for education loans and authentic documents for the lender to verify your eligibility and background related to identity, address, academics, and financial situation. Make sure to self-attest the documents for quicker processing of the loan. Here’s the list of required documents-
- Valid ID proof (Aadhaar card, passport, etc.)
- Address proof (utility bills, rental agreement, etc.)
- Mark sheets and certificates of your previous education (10th, 12th, graduation)
- Admission letter from the MCA program
- Detailed course fee structure
- Income proof of the applicant or co-applicant (salary slips, ITR, bank statements)
- Bank statements of the applicant and co-applicant
- If applicable, property documents for secured loans
- Passport-sized photographs of the applicant and co-applicant
- Filled out loan application form
How to Apply?
Securing an education loan is essential for many aspiring MCA students abroad. You must research banks and financial institutions offering education loans for studies abroad. Consider factors like interest rates, repayment terms, and eligibility criteria. Then, prepare the necessary documents such as admission letter, fee structure, academic records, and financial proof.
Most banks offer online application portals for convenience. Simply fill out the application form and upload the required documents. Alternatively, you can visit your nearest bank branch to submit a physical application form along with the necessary documents.
You can also apply via the government-backed Vidya Lakshmi portal to compare multiple loan options and apply to different lenders simultaneously. Just simply fill their common education loan application form.
This was all about the education loan for MCA abroad. To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
FAQs
Absolutely. You can easily get an education loan for MCA under various schemes like Baroda Scholar, PNB Vidya, SBI’s Global Ed-vantage, etc. at competitive interest rates. However, you must have secured admission to a recognised university for the MCA program.
Indian citizens who have secured admission to a recognized university for the MCA program through an entrance exam or merit basis are eligible for education loans. Besides, a financially stable co-applicant is often required.
The process to apply for education loans for MCA is straightforward and hassle-free. Research the lenders and check out their eligibility criteria, interest rates, repayment tenure, and other loan terms and conditions. Then, apply for the loan online or offline at your convenience.
Yes. Most private banks like HDFC offer unsecured loans up to INR 45 lakhs. Other banks like ICICI and Axis Bank offer education loans for MCA without collateral up to INR 1 crore. However, public banks usually offer unsecured loans up to INR 7.5 lakhs.
You must submit bonafide certificates for education loans and authentic documents for the lender to verify your eligibility and background related to identity, address, academics, and financial situation.
Most private banks offer education loans for MCA studies abroad up to INR 1 crore, while public banks typically provide loans up to INR 7.5 lakhs without collateral.
Yes, some banks and educational institutions offer scholarships or financial aid programs specifically for MCA students, which can help reduce overall education costs.
Interest rates for education loans generally range from 8% to 12% per annum, depending on the lender and the specific loan scheme.
Yes, many lenders consider the financial stability of a co-applicant, such as a parent or guardian, which can help secure a loan even with a low credit score.
Education loans typically cover tuition fees, accommodation costs, books, and other necessary expenses like a laptop or travel costs related to your studies.
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