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Indian Banks Offering Loans For Studying Abroad

Studying abroad is a dream for many young students and when it comes true, it can open the doors to unimagined avenues. However, this is not as easy as it seems. Arrangement of funds comes out as the biggest trouble in studying outside the boundaries of the nation. Fortunately, Indian Banks have come out with the solution to this issue. Today, almost all the banks are offering loans through which arrangement of funds have become less troublesome. Apart from the banks, there are also non-banking financial companies that provide loans and scholarships are also awarded to the aspirants for the same.

Eligibility criteria and documents required 

The basic eligibility criteria are that one should be a citizen of India, must have attained 18 years of age, have a good academic background, and have secured admission to such a university that has been recognized by the particular bank.

The documents required at the time of the loan are as follows:

  • Passport size photographs
  • Identity and Address proof
  • Marksheets and all other academic documents
  • Scorecard of the entrance exams taken such as GRE, GMAT, TOEFL, others, whichever is applicable
  • Income and bank statement
  • Documents of the collateral, if required

If the bank finds that the applicant meets the eligibility criteria and proper and legitimate documents have been submitted by the applicant, then it approves the loan and accordingly disburses the amount in installments or as asked by the institution. 

Comparison of loans 

Another important thing is to compare the loans offered by different banks. Following are the parameters on which loans are generally compared:

  • Amount of Loan
  • Rate of interest
  • Different costs it covers (tuition fees, living expenses, books, insurance, etc.)
  • Loan Margin (amount of loan to be arranged by the applicant)
  • Moratorium period (the period up to which no loan amount has to be paid)
  • Repayment period
  • Loan processing fee and time
  • Prepayment terms
  • Collateral requirements, etc.

An applicant is advised to visit all the banks and other financial institutions and ask for the same conditions so that a proper evaluation of the banks can be made. 

Banks and other companies that offer loans in India

  • SBI: It offers the SBI global Ed-Vantage scheme to pursue education abroad. It offers a loan from 20 lakhs to 1.5 crores depending upon the course and the institution with an interest rate of 10.5 percent. The Repayment period begins after a year of completion of the course or 6 months after securing a job up to a maximum of 15 years.
  • Syndicate Bank: It provides the maximum a loan of 2 crores with an interest rate ranging from 10.75 to 11.5 percent with a concession of 0.5 percent for girls.
  • HSBC: A loan of up to 1 crore can be availed from HSBC bank.
  • Axis Bank: It provides a loan up to a limit of 75 lakhs with an interest rate of 13.5%.
  • Bank of Baroda: The loan amount is 60 lakhs and the ROI is 9.70-11.20 percent.

Other banks such as HDFC Bank, Central Bank of India, Bank of India, Punjab and Sind Bank, and ICICI Bank provides a loan of a maximum of 20 lakhs and interest rate varies from 10.25 to 13 percent.

Apart from them, non-banking financial companies (NBFCs) such as Credila, Avanse, Incred, Auxilio provides a loan of 25 lakhs at maximum and interest rates can extend up to 14 percent considering the course and university chosen by the applicant. 

Scholarships

Region-wise scholarships are also available to the students to fund their education programs which are as follows:

  • United States of America
  1. Fulbright Foreign Student Program
  2. Hubert Humphrey Scholarship Program
  3. Abbey Road Summer Scholarships
  4. #YouareWelcomeHere Scholarship
  5. Other scholarships by different universities such as Harvard, MIT, NYU, etc.
  • United Kingdom
  1. British Chevening Scholarships
  2. Commonwealth Scholarships
  3. Castle Smart Scholarships
  4. Saltire Scholarships
  5. University-specific scholarships
  • Canada
  1. Canada Graduate Scholarships
  2. Banting Postdoctoral Fellowships
  3. Canada Memorial Scholarships
  4. University Specific Scholarships such as Carleton, Concordia, Dalhousie, etc.
  • Germany
  1. DAAD Scholarships
  2. Erasmus+
  3. Heinrich Boll Scholarships
  4. KAS Scholarship
  5. Others such as Hamburg University Scholarship, Frankfurt School Tuition waivers, etc.
  • Australia
  1. Australia Awards Scholarships
  2. Destination Awards Scholarships
  3. Research Training Programs, etc.

Apart from this, the Ministry of Human Resource Development also provides scholarships to Indian students to study in foreign countries. Studying abroad is a life-changing decision and therefore must be taken with utmost diligence and after considering all the situations and options.

What do you think of the above article? Share the post for others to learn and comment. Manya experts would like to hear from you and answer further queries. Do seek an appointment if you would like best-in-class guidance.

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