Education loan plays an important role in helping students complete their higher education abroad. Without education loans, many students wouldn’t be able to fulfil their dream of studying abroad as the process could’ve proved extremely expensive for them to afford. If you pay close attention, you will realize that many banks release a list of courses as well as the name of institutions upon which they would provide education loans. Hence, the students need to check the website of the bank to know which courses and universities are included in that list. In this blog, we will discuss the education loan interest for abroad for different banks for education abroad.
Which Banks Provide Lowest Interest Rates?
The education loan interest for abroad is the amount of money that you need to pay while repaying the education loan amount. The interest charged by the bank will depend on numerous factors such as the loan amount, repayment tenure, and the university you’ve chosen.
Here are the banks that provide the lowest interest rates on education loans for students who have plans to complete their higher education abroad.
Bank of Baroda
Students can choose from different types of education loan interest for abroad from the Bank of Baroda. The bank also provides low-interest rates so that students don’t suffer from massive debts. The student loan amount will depend on the loan option you’re choosing. Here’s a list of different education loans as well as their interest rates:
| Different Types of Education Loans | Interest Rates/Annum |
| Baroda Scholar | 8.90% |
| Baroda Gyan | 8.75% |
| Baroda Education to Students of Premier Institutions | 6.75% to 8.75% |
| Baroda Vidya | 9.60% |
State Bank of India
This is one of the most popular banks in India that offer education loans to Indian students who want to pursue higher education overseas. Just like the Bank of Baroda, the State Bank of India also offers different types of education loans with flexible interest rates.
If you have plans to pursue vocational training or any other type of professional course, you can also choose the education loan from SBI.
| Different Types of Education Loans | Interest Rate/ Annum |
| SBI Student Loan | 8.65% |
| SBI Global ED-VANTAGE | 8.15% – 8.65% |
| SBI Scholar Loan | 6.70% – 8.15% |
| SBI Take Over of Education Loan | 8.65% |
Central Bank of India
The Central Bank of India also provides education loan interest for abroad to students who have plans to study in India or abroad. Even though the interest rate will depend on the specific education loan you’re choosing, the interest rate is significantly lower than the other banks.
| Different Types of Education Loan | Interest Rates/ Annum |
| Cent Vidyarthi | 8.50% to 9.00% |
| Cent Skill Loan | 8.65% to 8.70% |
| Cent Vidyarthi for Executive MBA | 6.85% to 7.35% |
Bank of India
The Bank of India offers different types of education loans to Indian students who want to complete their higher studies abroad. The bank will provide loans to the students as per their earning potential after successfully completing their studies.
| Different Types of Education Loans | Interest Rates/ Annum |
| Bank of India Education Loan Abroad | 8.55% to 9.35% |
| Bank of India Star Education Loan | 9.35% |
| Bank of India Star Vidya Loan | One Year MCLR + 1.70% |
Punjab National Bank
Apart from the repayment tenure, the education loan interest for abroad provided by the Punjab National Bank is also flexible. Students who are planning to take admitted to foreign institutions should choose the education loan provided by Punjab National Bank.
| Different Types of Education Loans | Interest Rates/ Annum |
| PNB Honhaar | 8.75% |
| PNB Pravasi Shiksha Loan | 8.90% |
| PNB Pratibha | Up To 8.00% |
| PNB Kaushal | Up To 8.25% |
| PNB Saraswati | Up To 9.50% |
Eligibility Criteria
This is one of the most important things you need to know while applying for an education loan for study abroad purposes. Here are the eligibility criteria you need to know about:
- The student should have plans to pursue different types of professional certification courses such as UG courses, vocational training, PhDs, doctorate degrees, PG courses, etc.
- The student should be a citizen of India.
- The student should be enrolled on a prestigious university.
Required Documents
Here are the documents that you need to submit while applying for an education loan interest for abroad studies:
- Offer letter from the university
- Voter ID card
- Academic mark sheets
- PAN card
- Bank passbook
- Aadhar card
- Passport
- Income tax returns
- Passport-sized photos
- Salar slips of the co-borrower
FAQs
Ans. Keep in mind that you will never get an education loan where you don’t need to pay any interest rate. Unlike a scholarship, an education loan will always come with a specific interest rate as the banks hold the highest percentage of NPAs.
Ans. An education loan is capable of covering different types of expenses such as hostel fees, tuition fees, travel expenses, exam fees, books, and project-oriented expenses.
Ans. If a student receives a job within the grace period, they will need to start repaying the loan amount along with the interest.
This is everything you need to know about education loan interest for different banks for education abroad. Make sure you contact Leverage Edu and the professionals will help you with your needs.
