Leading Nationalised Banks in India for Overseas Education Loans

The high cost of overseas education can become a barrier for a study abroad aspirant. But one of the effective solutions to overcome this barrier is taking an education loan to fund your education. There are many providers of education loans, namely Nationalised Banks, Private Banks, NBFCs, and International Lenders. Since the options are so many, one should not blindly approach any random loan providers. It is important to carefully compare the loan options to make an informed decision.

So, to ease your task, this article is specially curated to minimize your risk while taking an overseas education loan. Let us discuss leading nationalized banks in India for overseas education loans.

Benefits of Taking Overseas Education Loans from a Nationalised Bank

Among the plethora of benefits, some of the top benefits of taking an education loan from nationalized banks are

• Low rate of interest
• Tax and financial benefits
• A wide range of expenses covered
• Easy repayment options
• Several education loan interest subsidy schemes
• Builds credit history and improves CIBIL Scores

As you are now aware of the benefits, let’s discuss the leading nationalized banks in India that can provide you with these benefits.

Leading Nationalised Banks in India

1. State Bank of India

State Bank of India popularly known as SBI is one of the most trusted banks in India. It provides secured overseas education loans up to Rs. 1.5 Crores.

Important Factors of SBI

• Income Group - Average income group is acceptable
• Quantum of Finance – Secured Loan up to ₹ 1.5 cr. The limit can exceed if the project cost is more than ₹ 1.5 cr.
• Loan Margin – With each loan disbursement the loan margin is 10%
• Rate of Interest - 10.90%
• Loan Tenure - 15 years
• Processing Time - 20 - 25 working days
• Processing Fees - ₹ 10000 + GST
• Serving simple interest - Serving simple interest is optional
• Moratorium Period - Course duration + 6 months

2. Union Bank of India

Union Bank of India commonly referred to as UBI. It is one of the largest government-owned banks in India that provides secured and unsecured overseas education loans to students.

Important Factors of UBI

• Income Group - All income groups are acceptable

• Quantum of Finance –

a) Secured education loans above ₹ 7.50 lakhs and up to ₹ 1.5 cr

b) Unsecured education loans for 159 top-ranked universities enlisted by the bank are up to 40 lakhs

• Loan Margin - With each loan disbursement the loan margin is 15%
• Rate of Interest – 9.55 to 11.05%
• Tenure - 15 years
• Processing Time - 7 working days
• Processing Fees - ₹ 5000 (Refundable after disbursement)
• Serving simple interest - Serving simple interest is optional during the course and moratorium period
• Moratorium Period - Course duration + 12 months

Now that you are aware of the two best banks for overseas education loans. You should decide which bank will be the most suitable option for you.

Carefully consider the loan amount, type of loan, rate of interest, margin money, and other different loan factors before approaching the bank for loan application and processing.

Since taking an education loan is a financial debt for considerable years, you can seek expert guidance for this. There are several education loan advisors that provide loan assistance for students. You can visit one such advisor and get assistance on how to get an education loan for studying abroad.