Indian students can avail of study abroad loans at an interest rate of 9.95% to 16%. Education loans at these rates are available at nationalised banks in India, private banks, and non-banking financial companies (NBFCs).
Some of the most popular government study abroad loan providers in India are the State Bank of India, Canara Bank, and Bank of India. Other banks include the Bank of Maharashtra, Punjab National Bank, and South Indian Bank. All these loans are available under the Model Education Loan Scheme of the Indian Bank Association (IBA).
Furthermore, study abroad students can also apply for education loans at private banks like IDFC, Kotak Mahindra, and Axis Bank. Moreover, students can also reach out to NBFCs like Karur Vysya Bank for loans.
Expenses Covered Under Study Abroad Education Loans
Study loans for abroad studies cover the following expenses:
- Tuition fees
- Hostel fees
- Examination, laboratory, and library fees
- Travel expenses for going abroad for studies
- Cost of uniforms, computers, books, and other study materials
- Project work, Study tours, and other study-related activities
Benefits of Government of India Student Loans
The IBA’s Model Education Loan scheme offers various advantages to borrowers. It includes a potential reduction of up to 1% on the Rate of Interest (RoI) if the interest amount is paid during the study period.
Additionally, female students can benefit from a 0.5% concession in the interest rate. Furthermore, there is a provision for a tax rebate on the interest paid for the education loan, helping borrowers alleviate their tax liabilities.
However, it is essential to note that specific terms and conditions may vary among different banks and financial institutions. Therefore, it’s recommended to consult the respective bank for detailed information regarding eligibility criteria, required documentation, and the exact benefits offered.
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