The best education loan schemes by public sector banks

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Dec

0 Comments Dec. 8, 2023

Study abroad loans have become a prominent financial tool for students looking for some aid to fund their education abroad. The State Bank of India introduced education loans in 1995 to make financing education abroad easier for students in need. We understand that aspirants are always keen to know which type of lender will be right for them. Students should do their research before directly applying for education loans to choose an appropriate lender.

Start by calculating your expenses, as you will have an estimate of the amount that you will require. Knowing the required amount in advance will save you from a last-minute rush. Today, multiple lenders are providing education loan for abroad studies with a variety of schemes. However, searching for the right kind of education loan abroad is not an easy task. Students who take out an education loan must pay close attention to every detail related to the above-mentioned factors.

Education Loan Schemes by Public Sector Banks

Students should approach the government banks to avail themselves of collateral-based education loan abroad. Government banks like SBI, Bank of Baroda, and Punjab National Banks are pioneers in lending collateral-based education loans to students. There are certain benefits to taking secured loans from a government bank.

Lower interest rates in comparison to private banks and NBFCs
Larger loan amounts up to 1 crore INR
There is no payment moratorium period where the borrower is free from any interest or debt repayment.
flexible and longer repayment duration

These are the lucrative benefits of taking education loans from government banks. However, education loan for abroad studies schemes can vary from bank to bank. Here we have enlisted the brief details of study abroad loan schemes provided by leading government banks in India.

State Bank of India's education loan programme

Global Ed-Vantage is one of the popular schemes offered by SBI for students wishing to pursue education overseas. Below are the brief details:

Terms of the Education Loan	SBI Global ed-vantage loan scheme
Eligible courses	Regular Graduate Degree Post-Graduate Diploma Certificate Doctorate courses in any discipline
Eligible Countries	The USA, UK, Canada, Singapore, Japan, Hong Kong, and New Zealand, as well as European countries, are covered under this scheme.
Interest Rate	10.75% p.a. 0.5% concessions for female students at the provided rate of interest Simple interest will be charged during the course period and the moratorium period.
Condition	This course is available for full-time and regular degrees only at foreign universities in the mentioned countries.
Processing Fee	10,000/- INR per application
Minimum Loan Amount	Rs. 20 lacs
Maximum Loan Amount	Rs. 1.5 Cr
Margin	10% of the total loan amount Scholarships and fellowship amounts will be deducted through margin money
Expenses Covered	Tuition fees, examination fees, laboratory expenses, and travel expenses are covered under this scheme.
Repayment tenure	15 years Repayment of the principle amount will commence after 6 months post-course completion.

Baroda scholar-education loan scheme

The Bank of Baroda is among the leading government banks in India. They provide study abroad loans under the categories of non-premier and premier institutions based on their global rankings. This bank provides loans to students falling under the list of these categorised institutions:

Terms of Education Loan	Conditions of the scheme for listed premier institutions	Conditions of the scheme for non-listed premier institutions
Available Loan Amount	80 Lacs INR	60 Lacs INR
Rate of Interest	10.40%	10.75% to 11.15%
Loan Margin	Nil	For up to 4 lacs INR, 10% of the total loan amount is loan margin
Repayment Period	For listed institutions, the maximum repayment time will last for 15 years.	The repayment period will last up to 10 years, inclusive of the moratorium period for non-premier institutions.
Moratorium Period	Course duration + 6 months or 12 months	Course duration + 6 months or 12 months
Expenses Covered	Tuition fees, Travelling, stationary and living expenses	Tuition fees, Travelling, stationary and living expenses
Processing fees	10,000 + GST non-refundable amount	10,000 + GST non-refundable amount

Punjab National Bank

The PNB Udaan education loan scheme is a need-based finance scheme that provides secured and unsecured study abroad loan funding to students who wish to study abroad.

Terms of the Education Loan	PNB Udaan Education Loan Scheme
Loan Amount range	The quantity of financing is need-based; students can take 7.5 lacs INR without any collateral, and for an amount more than this, an applicant would need to pledge the collateral for it.
Loan Margin	10% to 15% of the total loan amount
Rate of Interest	10.75% to 11.15%
Loan Tenure	15 years, inclusive of the Moratorium Period
Moratorium Period	Course period + 1 year
Prepayment Charges	Nil
Processing fees	Rs. 10,000 (refundable amount after first-time disbursement)

Union Bank of India

The education loan scheme of Union Bank is known as Union Education Premier Abroad. Union Bank has listed 100 universities in the premier institution category.

Terms of the Education Loan

Union Bank Education Loan Scheme

Eligibility

Students must have secured admission to postgraduate courses at premium universities abroad.

Expenses Covered

Tuition fees, Accommodation, living costs, Travelling and stationary (including a book, laptop, laboratory, and examination fee)

Loan Amount

7.5 lacs INR without collateral

1.5 crore INR with collateral

Loan Margin

15%

Interest rate

10% to 15%

Moratorium Period

Course period + 1 year

Processing Charges

Rs. 5000/- (refundable within 3 months from the date of loan sanction)

If the student does not take the loan amount within these 3 months post-loan sanction date, the amount will become non-refundable.

Repayment Period

15 years, inclusive of the course period and moratorium period

Central Bank of India

Cent Vidyarthi is the education loan scheme of the Central Bank of India, providing education loans to students who wish to obtain their higher education abroad.

Terms of the Education Loan	Cent Vidyarthi Education Loan Scheme
Expenses Covered	Tuition fees, Accommodation, living costs, Travelling and stationary (including a book, laptop, laboratory, and examination fee)
Loan Amount	A loan up to Rs. 200 lakh will require the applicant to pledge collateral to get finance from the bank.
Loan Margin	5% up to Rs. 4 lacs 15% for loan above Rs. 4 lacs
Rate of Interest	10.65% up to 7.5 lacs 11.25% more than 7.5 lacs
Moratorium Period	Course period + 1 year
Repayment period	15 years, inclusive of the course period and moratorium period
Processing Charges	1% of the total loan amount or 15% (non-refundable)

Tip: If you're confused about choosing the right kind of lender for your loan needs, connect with an expert to get the right answer to all your queries.

Conclusion

Applying for overseas education loans can be confusing at times. Different lenders have variations in their education loan schemes, so choosing the right one that fits your requirements will need some expert guidance. The Education Loan Guru team has your back. Our team of experts will support you in finding the right bank by assessing your overseas education loan requirements and the type of loan you need. The best way to kick-start your education abroad is to begin it with Education Loan Guru.

By Education Loan Guru