Everything You Need To Know About The Best Education Loan Scheme

India believes in imparting education like no other country. We have seen great leaders come from a small financial background.

Education is not dependent on money, but good education comes at a cost. To study abroad you need a little more money than normal. 

This cost, when taken care of, by a financial institution like a BANK is called an Education Loan

Want to study abroad read our Guide for student loan in the UK

Popular courses to consider if you are planning to study abroad

Indian banks and their education loan policies for students planning to study abroad.

Bank of Baroda

Name of the scheme: Baroda Scholar loan

Applicable for: Any graduate, postgraduate, job-oriented, doctorate, or technical courses in a reputed foreign university

 All diploma and degree courses are included.

Loan amount: For institutes mentioned in List A Borrowers can avail up to Rs. 60 lakhs

For institutes mentioned in List B Borrowers can avail up to Rs. 40 lakhs

Loan repayment: 

120 months for the tenure of a loan of up to Rs .7.5 lakhs 

180 months for the tenure of a loan of over Rs. 7.5

 Collateral is required only if the Education loan amount is more than Rs. 7.5 lakhs.

Punjab National Bank

Name of the scheme: PNB Udaan

Applicable for: Any graduate, postgraduate, job-oriented, doctorate, or technical courses in reputed foreign universities and courses offered by CPA in THE USA, CIMA – London, etc. 

All diploma and degree courses are included.

Loan amount: It depends on the need of the borrower.

The margin is 15% for loans of more than Rs. 4 lakhs. Tangible collateral is required only if the loan amount exceeds Rs. 7.5 lakhs 

Loan repayment:  The tenure for this loan is a maximum of 15 years. The repayment period starts after the end of the course plus 1 year.

Syndicate Bank

Name of the scheme: SYNDVIDYA Scheme

Applicable for: Any graduate, postgraduate, job-oriented, doctorate, or technical courses in reputed foreign universities and courses offered by CPA in THE USA, CIMA – London, etc. 

All diploma and degree courses are included.

Loan amount: Up to Rs 20 Lakhs

Tangible collateral is required only if the loan amount exceeds Rs. 7.5 lakhs. 

Loan repayment:  The tenure for this loan is a maximum of 15 years. The repayment period starts after the end of the course plus 1 year.

Looking for early payout while studying read Top 12 side hustles for a student with the best payout

Bank of India

Name of the scheme: Star Education Loan

Applicable for: Any graduate, postgraduate, job-oriented, doctorate or technical courses in reputed foreign universities and courses offered by CPA in THE USA, CIMA – London, etc. All diploma and degree courses included.

Loan amount: Up to Rs 20 Lakhs

Tangible collateral is required only if the loan amount exceeds Rs. 7.5 lakhs.  The rate of interest for male students is MCLR + 2% and the rate of interest for female students is MCLR + 1.5%. 

The bank may choose to provide a 1% concession on the interest rate during the course period in certain cases.

Loan repayment: The tenure for this loan is a maximum of 15 years. The repayment period starts after the end of the course plus 1 year. 

Also read, Tips to find student accommodation while studying abroad

Central Bank of India

Name of the scheme: Cent Vidyarthi

Applicable for: Any graduate, postgraduate, job-oriented, doctorate, or technical courses in reputed foreign universities and courses offered by CPA in THE USA, CIMA – London, etc. All diploma and degree courses included.

Loan amount: Up to Rs 20 Lakhs 

Tangible collateral is required only if the loan amount exceeds Rs. 7.5 lakhs

Loan repayment:  The tenure for this loan is a maximum of 15 years. The repayment period starts after the end of the course plus 1 year. The scheme offers life insurance protection to the borrowers.

Allahabad Bank

Name of the scheme: Allahabad bank education loan schemes

Applicable for: Any graduate, postgraduate, job-oriented, doctorate or technical courses in reputed foreign universities and courses offered by CPA in THE USA, CIMA – London, etc. All diploma and degree courses included.

Loan amount:  Up to Rs 50 Lakhs

Tangible collateral is required only if the loan amount exceeds Rs. 7.5 lakhs.  

Loan repayment:  The tenure for this loan is a maximum of 15 years. The repayment period starts after the end of the course plus 1 year. 

All set to pack your bags read What has to be included in the packing list for International Students

HDFC Bank

Name of the scheme: Credila offers educational loans

Applicable for: Any graduate, postgraduate, job-oriented, doctorate or technical courses in reputed foreign universities and courses offered by CPA in THE USA, CIMA – London, etc. All diploma and degree courses included.

Loan amount:  Up to Rs 20 Lakhs

Tangible collateral is required only if the loan amount exceeds Rs. 7.5 lakhs.  

Loan repayment:  The scheme has flexible loan terms and competitive interest rates. Borrowers can enjoy tax benefits under Section 80(E) of the IT (Income Tax) Act.

The tenure for this loan is a maximum of 15 years. The repayment period starts after the end of the course plus 1 year. 

State Bank of India

Name of the scheme: SBI Student Loan Scheme, SBI Global ED-VANTAGE Scheme

Applicable for: Any graduate, postgraduate, job-oriented, doctorate or technical courses in reputed foreign universities and courses offered by CPA in THE USA, CIMA – London, etc. All diploma and degree courses included.

Loan amount:  Rs.20 lakhs as a loan under SBI Student Loan Scheme and it offers Rs.20 lakhs to Rs .1.5 crore as a loan under SBI Global ED-VANTAGE Scheme. The repayment period of the loan is 15 years.

Loan repayment:  The scheme has flexible loan terms and competitive interest rates. The tenure for this Education loan is a maximum of 15 years. The repayment period starts after the end of the course plus 1 year. 

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