Are you keen on pursuing your higher education from one of the prestigious universities across the globe? Are you determined to fulfill your childhood dream of studying abroad? If the answer is yes, then what is it that is holding you back?
Finances! Well, if that is the case, then we have got you all covered. Studying abroad surely is an expensive choice but with the quality of education and global exposure, spending lakh on the world-class education is totally worth it.
According to the Ministry of Human Resource Development, India is the second-largest country with 7.8 lakh students moving overseas in 2018 and 6.2 lakh in 2019 for their higher education.
But with the increasing cost of higher education, it is becoming challenging and unaffordable for deserving aspirants to pursue their dreams of studying abroad. However, there are numerous ways of funding their studies. Today we are going to know about one of them, Education Loan with Collateral that is also called as Secured Loan. This type of education loan is provided by Nationalized Banks (NBs), Private Banks, Co-operative Banks and NBFC’s in India.
An Education Loan with Collateral is a type of loan where the applicant attaches security with loan application. The security can be movable asset like a fixed deposit, LIC Policy, Govt. Bonds or immovable asset like a flat, individual house, land (non-agricultural), shop, provided the immovable asset should be located in the urban area. The security pledged against a loan is termed as collateral.
Although Secured Loans take a longer time in sanctioning as compared to that of unsecured loans, but it has numerous benefits.
Public Sector Banks (PSBs) require collateral to lower the risk involved in the credit. As the applicant has not begun to earn yet, the bank is unsure about the applicant’s future income. If the applicant fails to repay the education loan, in such circumstances, bank recovers the dues by selling the pledged security.
Paying hefty amount for overseas education surely digs a hole in the pocket but there are few ways that help students to avail added benefits.
While sanctioning of loan from the bank, student is required to mention about all the required expenses in the cost project in order to get it sanctioned.
List of expenses covered in education loan:
In order to be eligible for availing an Education Loan with Collateral, aspirants need to fulfill the following criteria:
There are a majority of banks and financial institutions that provide education loans to overseas aspirants. It gives an option of comparing and analyzing the various bank criteria that helps in taking an informed decision.
Public and private-sector banks and NBFCs provide education loan with collateral to Indian students. Let us understand the condition that needs to be taken into consideration while applying for a loan.
|State Bank of India||Bank of Baroda||Axis/ICICI Bank||NBFC’s|
|Study Level & Courses |
* Secured Loan for all level of courses- Bachelors & Master’s degree, UG Diploma / Cert, Grad. Diploma etc.
* Loan for Pathway Program including Foundation / Integrated Courses)
* Secured Loan for Bachelors degree, Masters Degree, PG/Grad. Diploma.
* No Loan for UG Diploma / Certificates courses
* Secured Loan for Graduate Degree, Masters Degree, PG / Grad. Diploma
* No loan for UG Diploma / Certificates courses
Secured Loan for all level of courses-
* UG Degree / Diploma
* Graduate Degree, Masters
* PG / Grad. Diploma
|Quantum of Finance||Up to Rs.1.5 Crores (No Limit, if project cost is more)|
* Premier Listing: Up to Rs.80 Lakhs (No limit)
* Non Premier Listing: Up to Rs.60 lakhs
* Axis – Up to Rs.75 Lakhs
* ICICI – Up to Rs.1 Crore
|Up to Rs.50 Lakhs *|
|Rate of Interest |
* ROI - 9.3%
* Less – 0.50% Concession for girl child
* Less – 0.50% towards Rin Raksha Insurance
* Premier – 8.5 % p.a & non-premier - 9.15 % p.a.
* Less – 0.50% Concession for girl child
|* ROI - 11.50 % to 13 % ||* ROI - 11% - 13%|
|Margin||* 90% (By Bank) + 10% (By Student on each disbursement)|
* Premier: 100% funding by Bank
* Non-Premier: 90% (By Bank) + 10% (By Student)
|85% (By Bank) +15% (By Student)||100 % funding by Bank|
|Moratorium Period||Course duration + 6 months||Course duration + 12 months||Course duration + 6 months||Course duration + 12 months|
|Tenure||15 years||15 years||15 years||10 years|
|Processing Fees||Rs. 10000/- + GST||Rs. 10000/- + GST|
* Loan below 20.00 lacs – No Fees
* Loan above 20.00 lacs - Rs. 15000/- + GST
|1.5% to 2% + GST on loan amount|
ELAN has tied up with the following banks to make the lengthy process of sanctioning loan hassle-free for the aspirants:
ELAN is an exclusive platform aiming to provide customized financial solutions for overseas education loan to students across India and in the South East Asia.
Here is a list of services that we provide Free of Cost:
We at ELAN suggest the aspirants to opt for secured education loan as it offers numerous benefits. We hope that you have got all your questions relating to secured loans answered.
So, what are you waiting for? Book an appointment with us today and let us get started with the whole process.