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Overseas Education Loan: Smart Picks for Indian Students

If you have ever noticed, there is always someone in every friend circle who heads abroad for higher education. With plenty of factors to support, pursuing a degree abroad is becoming a common trend. Why? Because today’s students are well aware of the fantastic career opportunities awaiting them. Also, the disposable income of Indians is rising significantly and so is the willingness to invest in top-notch international education.

Let us also not forget about the specialized student loans for studying abroad which have become more accessible than ever before. In short, the major worry about funding is getting easier. So, in this article, we will cover everything about overseas education loans for Indian students. Whether you are dreaming about studying in the city of the Eiffel Tower or walk through the historic halls of British universities, with this article your overseas education dream will become a reality!


Types of Overseas Education Loan

While checking out for the different types of overseas education loans, you will find that there are two broad categories of loans offered by different banks and financial institutions.

1. Secured Loan

To opt for a secured loan means you will need to provide some security or collateral against the loan amount. These can be in the form of tangible or intangible assets like property, policies, or even fixed deposits. By pledging the assets, you can benefit from lower interest rates, borrow a larger amount, or even get longer repayment terms. Just keep in mind that secured / collateral loans involve some extra checks.

Features of Secured Loans

  • Reduced Interest Rates

  • Larger Loan Amounts

  • Extended Repayment Periods

  • Lengthier Processing Duration

  • Waived Interest During Moratorium

  • Less Processing Fees

2. Unsecured Loan

If you are looking to study abroad but do not prefer to pledge any assets or security, an unsecured education loan for abroad might be the right option for you. These loans are processed rapidly, enabling you to move forward with your international study plans without delay. They typically feature more flexible repayment options and competitive interest rates, offering you financial support with minimal risk.

Features of Unsecured Loans

  • Higher Interest Rates

  • Reduced Loan Amounts

  • Fast Approval Time

  • Quicker Repayment Terms

  • 100% Funding

As we have seen the major loan types that will pave your way for studying abroad, let us list down the list of expenses that both of these overseas education loans might cover.


Expenses Covered by Education Loans for Studying Abroad

While the scope of expense coverage can differ based on the lender and the loan type, here are some expenses that overseas education loans generally cover,

  • Tuition Fees: Funds are transferred directly to your higher educational institution abroad.

  • Living Expenses: This can cover housing, food, transportation, and other daily expenses at your study destination.

  • Educational Supplies: Includes costs for books, computers, equipment necessary for your course, library subscription, and expenses related to research or field trips.

  • Health Insurance: The extent of coverage may differ between lenders, so it is important to confirm with the lender.

  • Visa Fees: These are often included in loans from Private Banks.

  • Travel Expenses: Flight costs are not the default inclusion. But may be included upon the borrower's request.


Overseas Education Loan Providers in India

After looking at the types of loans for overseas education, it is essential for you to know about the top education loan providers in India. Below mentioned is the table of the different types of Overseas Education Loan Providers with some of the banks in each one,

Types of Loan Providers in India
Popular Financial Institutions
Nationalized Banks

State Bank of India

Bank of Baroda

Bank of India

Bank of Maharashtra
Union Bank of India

Punjab National Bank

Private Banks

ICICI Bank

IDFC First Bank

Axis Bank

Yes Bank

Non-Banking Financial Company (NBFC)

HDFC Credila

Avanse

Auxilo

InCred

Tata Capital

International Lenders

Prodigy Finance

MPower Finance

In conclusion, while the lenders we have talked about are among the top choices in India, remember there are plenty more out there worth considering. Making the right choice on the right overseas education loan provider involves carefully comparing them on several aspects such as the loan amounts they offer, education loan interest rate for abroad study, the moratorium period, processing fees, and others. Once you have reviewed all these factors, you can decide between a secured or unsecured loan, whatever best suits your financial situation.

We understand how complex these options can be when each bank has its own vast info, set of procedures, and paperwork. But despite these challenges, we at ÉLAN are committed to ensuring that financial hurdles don't stand in the way of your dream to study abroad. As such we have come up with a simple solution in the form of a Compare Financial Institutions Tool where in you can compare 4 banking institutions at a time and get all the details you are looking for.

So, if you are ready to go on this life-changing higher education adventure and want to make sure financial concerns don't hold you back, then reach out to our ÉLAN Loan Experts. They are here to simplify the process and support your educational journey abroad by giving end-to-end support for Overseas Education Loans.

FAQs

  • What types of courses are covered under an overseas education loan?

    The courses covered under an overseas education loan are: Undergraduate degrees, Postgraduate degrees, Diplomas, Vocational training courses, Skill development courses, Ph.D.

  • Which NBFCs offer education loans and what are their interest rates?

    - Auxilo FinServ Pvt. Ltd. – Secured Loan: 10.25% to 11.5%, Unsecured Loan: 11.5% to 12.75%
    - Auxilo FinServ Pvt. Ltd.- Secured Loan: 10.25% to 11.5%, Unsecured Loan: 11.5% to 12.75%
    - Avanse Financial Services Ltd. – Secured Loan: 11% to 12.5%, Unsecured Loan: 11.5% to 14%
    - HDFC Credila Financial Services Pvt. Ltd.- Secured Loan: 10.25% to 11.5%, Unsecured Loan: 11.5% to 12.75%
    - InCred Finance - Secured Loan: 10.25% to 11.5%, Unsecured Loan: 11.5% to 12.75%
    - Tata Capital - Unsecured Loan: 12% to 13.5%, Secured Loan for USA: 11.5% to 12%

  • Which public bank provides the highest loan amount for education abroad?

    Some Nationalized Indian banks such as the Bank of India, State Bank of India, and Union Bank of India have no upper limit on the loan limit.

  • Are there any tax benefits associated with overseas education loans?

    Under Section 80E, students who take education loans to study at foreign universities are eligible for tax deductions. The interest paid on these loans can be claimed as a tax deduction for up to eight years.

  • Can you transfer your education loan to another bank for a lower interest rate?

    Yes, you can transfer your education loan from one bank to another. However, your current bank may charge a refinancing fee. Therefore, it is important to carefully evaluate all aspects of both the existing bank and the new bank before making the switch.

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