Pursuing higher education from a foreign university surely costs a hefty amount but with the world-class quality of education and access to global opportunities, it is worth the investment. With the increasing number of students moving abroad for their higher studies, there is also an increase in the number of students opting for an overseas education loan. It serves as a convenient option for students as it does not require to be paid from the very first month it is availed. The equated monthly instalments (EMIs) begin at a later period when a student finishes the course and starts to earn. This is one of the major reasons why taking an education loan is a highly sought-after option among study-abroad aspirants.
Even though students are willing to apply for an overseas education loan to fund their higher education, the big question is still looming in their minds. Wondering what it is? Well, there is a lot of confusion in selecting the right financial lender. In our latest article, we are going to analyse two leading choices, which are Banks and NBFCs. Keep reading to decide on a suitable loan option to fund your foreign education.
Students can apply for an overseas education loan cancellation at different stages of application. Let’s take a look at these stages:
Banks
Banks are financial institutions authorized by the Reserve Bank of India (RBI) to provide a range of services, including student loans for studying abroad. These include both nationalized banks (government-owned) and private banks (privately owned but regulated by the RBI). Banks generally offer more structured education loans, with benefits like government subsidies, interest rate concessions, and tax deductions.
NBFCs
Non-Banking Financial Companies (NBFCs) are financial institutions that provide services similar to banks, such as loans but do not hold a banking license. Though regulated by the RBI, NBFCs often operate with more flexibility, especially in terms of lending criteria. They are known for offering quick processing and more tailored loan products to suit different student profiles.
After having a brief understanding of these two leading loan providers, let’s have a glance at the key features and their education loan offerings.
Understanding the differences is essential for selecting the best loan option. Given below is an in-depth comparison between Banks and NBFCs, enabling students to make an informed decision.
These are the notable differences between banks and NBFC education loans.
Choosing between a Bank or an NBFC for your overseas education loan largely depends on your individual financial needs, loan preferences, and timeline. Ultimately, for your long-term financial relief, you must evaluate all the factors and decide accordingly. To know more about the best banks and NBFCs, you can reach out to team Élan Overseas Education Loans. Our Expert loan advisors will guide you through the best loan options including the education loan without collateral.
Get expert guidance today to secure the best loan for your dream education abroad.
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BOB vs SBI Abroad Education Loan