Top 20 Education Loans in India for Studying Abroad

Federal Bank Education Loan

Federal Bank provides educational finance to the students who are studying for higher education, including studies abroad.

The Federal Bank can be an option for the students who wish to have a traditional banking experience while taking a loan for their studies.

The students should check the current eligibility criteria for overseas studies, maximum loan limit, and securities involved.

This loan is suitable for: Students seeking a private-sector bank alternative.

Karnataka Bank Education Loan

Another choice among the banks that students have to approach to secure financial aid for higher education is Karnataka Bank.

Depending on the applicable scheme, the loan would assist in financing the approved educational expenditure. The applicant needs to verify the eligibility criteria for his chosen foreign university/program.

The loan needs to be compared to other options available in the market considering the cost of borrowing.

This loan is suitable for: Students comparing regional and private-sector banking options.

Kotak Mahindra Bank Education Loan

There is an option of education financing offered by Kotak Mahindra Bank that may be considered by students for suitable higher education programs.

For foreign students, the key criteria will be eligibility of the chosen institution, financeability of the costs, need for collateral, and the repayment period post-graduation.

This loan is suitable for: Students seeking private-sector banking options for higher education.

Tata Capital Education Loan

Tata Capital is a non-banking financial services provider which provides education loans to borrowers.

When students opt for Tata Capital, they must consider the cost of the loan based on the rate of interest, processing fee, and other charges. It might depend on the course being done by the student, his college, co-applicant, and finances.

This loan is suitable for: Students comparing NBFC-based education financing with bank loans.

Prodigy Finance

Prodigy Finance differs from other education loan services in India in that it is a global student loan service targeting qualified students who have gained admission into participating institutions or courses.

It is especially useful for Indian students where the chosen university and the course fall under the eligible scope of Prodigy Finance.

Availability and loan conditions depend on the course and institution and the individual applying for the loan. Thus, students need to verify if they qualify for a particular university and course.

This loan is suitable for: Students admitted to eligible participating international universities and programs.

MPOWER Financing

Another international lender for students could be MPOWER Financing. Its business model is unlike traditional Indian education loans offered by banks; hence, it is important to look at the eligibility criteria, universities, loan amount, interest rate, and repayment terms in addition to any other requirements per the specific country. This lender may help Indian students compare international options with Indian lenders.

This loan is suitable for: Eligible international students seeking alternatives to conventional collateral-backed loans.

Education is one of the few forms of investment that can dramatically impact one's life. An education loan provides this opportunity for financially challenged students who are not only ambitious but also qualified. It moves the dream of gaining an education from 'affordable privilege' to 'merit and determination'. The education loan opens the world of information, opportunities, and qualifications for a person who does not have access to them otherwise. This type of support allows individuals to change their mind set from the uncertainty phase to confidence and from the aspiration of going to university to reliance on their strength. As a result, the society as a whole will benefit from educated and skilled people, who, subsequently, would improve the community and become powerful tools of economic advancement, innovation, and social progress,” says Dr. Sudhanshu Dogra, HOD, Department of Automobile &Thermal Engineering, School of Mechanical Engineering, Lovely Professional University, Jalandhar, Punjab.

Disclaimer: Loan amounts, interest rates, fees, eligible institutions, collateral requirements and other terms are subject to change and individual lender approval. Students should verify the latest terms directly with the respective lender before applying.

Conclusion

The selection of an appropriate education loan is an integral step to be taken while preparing for education abroad. Although these 20 available loans have varied amounts, repayment periods, collateral, and eligibility criteria, none of them will suit all candidates. The applicants can compare interest rate, processing charge, margin, collateral, repayment period, eligible institutions and costs incurred in order to make the best choice. It is necessary for the students to find out the current loan policies of the concerned bank because these may vary. Comparison can help ensure that you get the needed amount of money in such a way that repayment will not be difficult.