Education Loan Schemes by Private Sector Banks and NBFCs

Overseas education undoubtedly provides you with so many opportunities that will be a life-changing experience for a student. Due to many opportunities and job placements, the students are moving to countries abroad for their higher education.

However, the high cost of studying abroad often leads students to abandon their plans. However, study abroad loans have been a saving grace for many students, allowing them to pursue their plans to study abroad without having to abandon them. Students keenly interested in studying abroad seek education loans as the most sought-after financial aid available. With the advent of education loans and the increase in their demand by students, various kinds of lenders have also emerged.

Now almost all the private banks and NBFCs have started providing overseas education loan. Below, we have enlisted the brief details of education loan schemes provided by leading private banks and NBFCs.

The education loan scheme offered by private lenders

Students who are in need of education loans but don’t have the collateral to pledge have no reason to worry. They can take unsecured education loans from private lenders like NBFCs and private banks. Private banks like ICICI, Axis, and IDFC are considered one of the leading lenders of overseas education loans for both secured and unsecured loans. Unlike public banks, which have a rigid amount limit for unsecured loans of only 7.5 lakh INR, private banks offer an amount that ranges between 4 and 60 lakhs.

Below are the advantages of taking an unsecured loan from a private lender:

• Large amounts for unsecured loans go up to Rs. 75 lakh.
• After completing your studies, the university grants you a moratorium period during which you can search for a well-paying job.
• A longer repayment duration will allow you to pay back your debt more easily.
• Less documentation and no load of paperwork
• Short duration for sanctioning the loan

Unlike government banks, private lenders like NBFCs and private banks take less time in processing study abroad loan, and documentation is almost non-existent in the application process due to no collateral provision. For students who don’t have any collateral, unsecured loans are the one-stop solution for all their financial problems. Applicants in need of unsecured loans to finance their education abroad should apply for their loan from a private lender.

Education Loan Scheme by Axis Bank: 

Axis Bank is among the leading private sector banks in India and offers education loans to study in India and abroad.

The ICICI Bank Education Loan Scheme

ICICI Bank offers education loans to students to study in India and overseas. One of the main benefits of taking an education loan from ICICI Bank is that they have adopted an easy and simple loan process.

Education Loan Scheme by IDFC First Bank

An education loan from IDFC First Bank is an easy and simplified procedure. The education loan scheme by IDFC Bank is a great option for students looking to apply for non-collateral education loans.

The Education Loan Scheme offered by NBFCs

Other than public and private sector banks, there are many NBFCs that offer education with lucrative benefits, easy-to-meet eligibility conditions, and a wider range of colleges and courses. Unlike banks, NBFCs don’t have a rigid list of premiere institutions and top-ranked universities. Students with an average academic record can apply for education loans from the NBFCs. NBFCs are more open to providing financial assistance for other courses as well, rather than limiting it to STEM and professional courses, allowing students to avail of the loans.

The CIBIL score and income of the co-applicant are the main factors in proving your creditworthiness. An important point to remember while applying for an education loan from NBFCs is that they do not allow a moratorium period on the payment of EMIs of the principal loan amount. Moreover, the rate of interest is also high in comparison to banks due to the lack of collateral provision and the risk of NPAs for lenders.

Below are the education loan details of renowned NBFCs in India.

Avanse Education Loan Scheme: 

Established in 2013, Avanse is a new-age non-banking financial corporation and education loan provider, primarily providing unsecured loans for students wishing to study at foreign universities: 

The education loan scheme offered by Auxilo

Auxilo is a new-age NBFC and is in the process of making its name by lending large amounts of education loans. The education loans offered by Auxilo have the following features:

The Education Loan Scheme offered by InCred

Established in 2017, InCred is a new-age NBFC that provides education loans to students who wish to study abroad. Let’s have a look below at the features mentioned in the education loan scheme by InCred.

Education loans for studying abroad have become a lifeline for students facing financial hurdles. To support students in securing funds for higher education, numerous private banks and NBFCs offer tailored education loan schemes. Many of these institutions have specialized loan programs dedicated to students planning international studies.

For instant student loan online, Education Loan Guru stands ready to assist. They specialize in guiding students through the process of securing education loan for abroad studies.