Studying abroad is a dream for many Indian students, but the cost often poses a significant challenge. Thankfully, education loans are a lifeline, enabling students to pursue higher studies in prestigious universities across the globe. However, it is important to understand which bank is best for education loan for abroad so that you can save money. Choosing the right bank for an education loan is crucial to ensuring a stress-free financial journey. This blog will guide you through the best banks offering education loans for Indian students aspiring to study abroad.
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Which Bank is Best for Education Loan for Abroad?
Understanding which bank is best for education loan for abroad is important as it will help you to manage your finances properly. When it comes to choosing the best bank for an education loan to study abroad, the SBI Global Ed-Vantage Scheme stands out as a top choice for Indian students due to its competitive interest rates, high loan amounts, and extensive global university tie-ups. However, private banks and financial institutions like HDFC Credila education loan and ICICI Bank also offer personalised loan options with faster processing and flexible repayment terms.
Also Read: Compare the education loan interest rates of different lenders and avail study abroad education loans at the lowest interest rates in 2024
Top Banks for Education Loans for Students
Some of the top banks offering education loans for students include SBI, HDFC Credila, ICICI Bank, Axis Bank, and PNB. All these lenders provide dedicated schemes for studying in India or abroad. Public sector banks like SBI and PNB are popular for their lower interest rates and government-backed schemes, while private banks such as HDFC and ICICI stand out for faster approvals and flexible repayment options. Check the features of education loans below:
| Lenders | Major Features |
| State Bank of India (SBI) | -Loans provided under the SBI Global Ed-Vantage Scheme -You can get up to INR 1.5 crore -Interest rate starts from 11.15% (floating) |
| HDFC Bank Education Loan | -Loans up to INR 45 lakhs without collateral -Interest rate starting from 9.50% p.a -Around 950+ courses are eligible (Undergraduate, postgraduate and Diploma) |
| Punjab National Bank (PNB) | -Loans available under the PNB Udaan education loan scheme -Up to INR 1.5 crore loan can be taken, as directed by the IBA Model Education Loan -Zero processing fee for loans up to INR 4 lakh |
| Axis Bank Education Loan | -Up to INR 1 crore education loan without collateral -Interest rate starts from 10.5% -Low processing fees |
| ICICI Bank Education Loan | -Up to INR 1 crore education loan without collateral (similar to Axis Bank) -Repayment period of up to 15 years -Secured loans up to INR 2 crore |
Why Do You Need an Education Loan for Abroad Studies?
The expenses of studying abroad include tuition fees, accommodation, travel, insurance, and living costs, which can quickly add up. An education loan not only covers these expenses but also ensures your family doesn’t face an immediate financial burden. Additionally, repayment terms are often flexible, with moratorium periods allowing students to repay the loan after completing their studies.
Also Read: Check out the FAQs on the Restructuring 2.0 Scheme of RBI that provides benefits to the borrowers affected by the COVID-19 pandemic.
What to Consider While Choosing a Bank for an Education Loan?
When choosing a bank for an education loan, you must consider key factors such as interest rates, as even small differences impact repayment costs and loan coverage. You also need to evaluate the moratorium period, which gives repayment flexibility after graduation, and the processing time, especially if admission deadlines are tight. Check more details below:
- Interest Rates: Compare interest rates as even a small difference can significantly impact repayment.
- Processing Time: Ensure the bank can process your loan quickly, especially if deadlines are tight.
- Loan Coverage: Check what expenses the loan covers, including tuition, travel, and living costs.
- Moratorium Period: Choose a bank with a flexible repayment holiday to ease the transition after graduation.
- Customer Support: Opt for a bank with excellent customer service to address your queries promptly.
Among the options, SBI Global Ed-Vantage Scheme is often considered the best for Indian students due to its lower interest rates, high loan amounts, and government backing. However, private players like HDFC Credila and ICICI Bank are equally competitive, offering faster processing and personalized services. Check some FAQs on which bank is best for education loan for abroad below:
FAQs
Public sector banks like SBI and PNB are preferred for their low interest rates, while private banks like HDFC Credila and ICICI Bank provide faster processing and personalised services.
Interest rates for education loans typically range from 9% to 13%, depending on the bank and the loan amount.
Banks offer education loans ranging from INR 20 lakh to INR 1.5 crore, based on the student’s requirements and the university’s reputation.
Loans up to INR 7.5 lakh are usually collateral-free. For higher amounts, collateral such as property or fixed deposits may be required.
Education loans usually cover tuition fees, living expenses, travel, insurance, and other related costs, depending on the loan terms.
Repayment tenure typically ranges from 10 to 15 years, with a moratorium period during the course duration and up to 1 year after graduation.
Most banks require a co-applicant, such as a parent or guardian, but some private lenders may waive this for eligible students.
Yes, under Section 80E of the Income Tax Act, you can claim tax deductions on the interest paid on education loans.
Processing time varies from 1 week to a month, depending on the bank and documentation provided.
Yes, most banks allow prepayment without penalties, but it’s advisable to check the terms before signing the loan agreement.
Meta Description: Discover the best bank for education loans for Indian students aiming to study abroad. Compare top schemes from SBI, HDFC, ICICI, and more for a stress-free journey.
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