List of Approved Foreign Universities for Education Loan

Did you know that some education loans tend to get approved faster? Well, it is true! The university that you are going to factor in greatly when it comes to the approval process. Banks provide education loans for students accepted into approved foreign universities that are well-known and recognised by agencies like UGC, HEIs, and IAO. Therefore, many banks require students to have an admission letter from one of these recognised universities to qualify for a loan.

Which is the Approved University for Education Loans?

List of Approved Universities in the USA

There are about 985 universities in the US that provide world-class education. Most top universities have a student-to-teacher ratio of 16 to 1. On average, international students pay $50,000 per year in tuition. Because of this high cost, many students find it convenient to take out education loans, which some banks offer without requiring collateral. Here are some of the top 5 universities in the US.

University	QS World Ranking
Massachusetts Institute of Technology (MIT)	1
Harvard University	4
Stanford University	5
University of California (Berkley)	10
California Institute of Technology	15

Note: Last updated on 18/05/24

List Of Approved Universities In The UK

Can you guess how many Indians study in the UK? More than 55,000! It is the one of the most popular and expensive places in the world for studying. UK is home to over 100 top universities, and most of them are approved by Indian banks and NBFCs for student loan; however, here are the top 5:

University	QS World Ranking
University of Cambridge	2
The University of Oxford	3
Imperial College London	6
The University of Edinburgh	22
The University of Manchester	32

Note: Last updated on 18/05/24

List Of Approved Universities In Australia

Australia is another popular choice for Indian students, so banks and NBFCs have made loans for studying there easily accessible. Here are the top 5 approved universities in Australia for a student loan in India:

University	QS World Ranking
The University of Melbourne	14
University of New South Wales	19
The University of Sydney	19
Australian National University	34
Monash University	42

Note: Last updated on 18/05/24

List Of Approved Universities In Canada

Canada offers many excellent educational and research opportunities, making it a popular choice for Indian students. International students can choose from over 155 universities and colleges. Here is a list of approved Canadian universities for education loans:

University	QS World Ranking
University of Toronto	21
McGill University 410	30
The University of British Columbia	34
The University of Alberta	111
University of Waterloo	112

Note: Last updated on 18/05/24

Bank & NBFCs Offering Education Loans For Abroad Universities

Here’s a list of these top banks and NBFCs offering education loans for abroad universities:

Financial Institution	Secured Loan Interest Rate	Maximum Secured Loan Amount	Unsecured Loan Interest Rate	Maximum Unsecured Loan Amount	Processing Fees	Moratorium Period	Repayment Duration
State Bank of India (SBI)	11.15%	INR 1.5 Cr	11.15%	INR 7.50 Lakhs	INR 10,000 per application	1 year after the course is complete or six months after getting a job, whichever is earlier	15 years
Bank of Baroda	Starting at 8.15%	INR 150 Lakh	NA	NA	No processing charges up to INR 7.50 lakh1% of loan amount up to INR 10,000	Course duration + 1 year	15 years
Bank of India	11.85%	INR 150 Lakhs	NA	NA	No processing charges	Course duration + 1 year	15 years
IDFC First	8.5% to 12%	INR 1 Cr	10.50% to 12.50%	INR 50 Lakhs	1.5% of the loan amount	Course duration + 1 year	15 years
ICICI Bank	13.70% to 15.20%	INR 2 Cr	9.85% to 15.50%	INR 1 Cr	1.5% of the loan amount	Course duration + 6 months	8-12 years
Axis Bank	11% to 11.5%	INR 1 Cr	13.70% to 15.20%	INR 50 Lakhs	2% of the loan amount	Not specified	15 years
Avanse	10% to 16.5%	No maximum cap	10% to 16.5%	INR 60 to 75 Lakhs	1% to 2% of the loan amount	Course duration + 6 months	10 years
HDFC Credila	9.55% to 13.25%	No maximum cap	9.55% to 13.25%	INR 45 Lakhs	1% of the loan amount	Course duration + 1 year	14 years
InCred	11% to 18%	INR 1.5 Cr	11% to 18%	INR 60 Lakhs	No processing fees upto Rs. 7.5 Lakhs.	Course duration + 1 year	15 years

Note: These details may vary based on the loan amount, type of course, and other factors. Always check with the respective bank or NBFC for the most accurate and up-to-date information. Last updated on 18/05/24.

Read More : Education Loan for Pilot Training

Know All About Income Tax Rebate on Education Loan Under Section 80E

If you get a loan from reputable financial institutions such as a bank, an NBFC, or a charitable organisation, then you can deduct the interest paid on the education loan for 8 years under Section 80E of the Income Tax Act. The best part is that there is no maximum deduction amount.

Here are the eligibility criteria for claiming a tax deduction on the interest paid on the education loan:

The loan must be for higher education in India or overseas.
Full-time courses after completing senior secondary exams or equivalent are also eligible.

Education Loan Insurance: Major Features, Benefits, Coverage

Education loan insurance helps students and their families if something unexpected happens, like the student becoming disabled, seriously ill, or passing away. This insurance acts as a safety net, so the family doesn’t have to worry about repaying the loan under such circumstances.

This type of insurance covers the education loan taken out by the student. If a student can’t repay the loan due to disability, critical illness, or death, the insurance company will pay off the remaining loan amount.

Benefits of Education Loan Insurance

Peace of Mind: Provides comfort and relief to students and their families by easing the financial stress of education loans, especially for studying abroad.
Interest Rate Waivers: It may offer reductions in interest rates, helping borrowers save money.
Loan Repayment in Case of Injury: If the student suffers a critical injury, the insurance company may cover the entire loan amount, removing the financial burden from the student and their family.
Financial Safety Net: Ensures that the financial responsibility of the loan doesn’t fall solely on the family in case of an unfortunate event.
Focus on Studies: Allows students to concentrate on their studies and enjoy their time abroad without worrying about loan repayments.
Income Tax Benefit: Provides tax benefits under sections 80(C) and 10(10D).
Special Discounts: Offers special discounts on education loans, such as a 0.50% interest rate concession with plans like Rinn Raksha when opting for insurance.

What are the Different Repayment Options for Student Education Loans for Studying Abroad?

Here are some common repayment options for student loans for studying abroad:

Standard Repayment

Pay a fixed amount every month for about 10 years.
It is simple but might have higher monthly payments.

Extended Repayment

Spread out the loan payments over a longer time, usually up to 25 years.
This can lower your monthly payments.

Moratorium Period

Some lenders give you a grace period after graduation.
During this time, you don’t have to start making payments right away.

What Documents are Needed to Apply for a Student Education Loan for Studying Abroad?

To apply for the loan, you’ll need:

Proof of identity and address of student or co-signer (like a driver’s license, passport, or Aadhaar card).
Copy of the passport.
Two passport-size photos of the applicant or co-signer.
Academic records, including mark sheets for 10th, 12th, and graduation, as well as entrance exam results.
Proof of admission, such as an offer letter, admission letter, or ID card (if available).
Financial documents like bank statements, income tax returns, and any other relevant financial records.
Copies of collateral documents.
A demand letter from the college or university.
Form A2 signed by the applicant or co-signer.

Frequently Asked Questions

Universities of which countries are eligible for education loans?

When it comes to education loans, eligibility criteria often depend on the lender and the specific loan scheme.

Which banks offer study-abroad loans?

Many banks like State Bank of India (SBI), Bank of Baroda, Bank of India, IDFC First, ICICI Bank, Axis Bank, etc., offer study abroad loans.

Which NBFCs provide study-abroad loans?

Many NBFCs like Avanse, HDFC Credila, InCred, etc., offer study abroad loans.

Can I get a 100% loan to study abroad?

It is rare to obtain a 100% loan for studying abroad, some lenders may offer full funding for tuition fees and living expenses.

What are the eligibility criteria for a student education loan for studying abroad?

The eligibility criteria might differ depending on the financial institution; however, here is the general eligibility criteria:
1. The candidate should be an Indian National
2. Age should be up to 35 years (non-employed individuals) and up to 45 years (employed individuals)
3. Proof of admission
4. Valid educational certificates (academic record of more than 50% marks)
5. Co-applicant’s (Parent or guardian) credit history or income proof
6. Passport/i20 form/visa

What documents are needed to apply for a student education loan for studying abroad?

You will need the following documents to apply for the student loan:
1. Proof of identity and address of student or co-signer (like a driver’s license, passport, or Aadhaar card).
2. Copy of the passport.
3. Two passport-size photos of the applicant or co-signer.
4. Academic records, including mark sheets for 10th, 12th, and graduation, as well as entrance exam results.
5. Proof of admission, such as an offer letter, admission letter, or ID card (if available).
6. Financial documents like bank statements, income tax returns, and any other relevant financial records.
7. Copies of collateral documents.
8. A demand letter from the college or university.
9. Form A2 signed by the applicant or co-signer.

What are the interest rates for student education loans for studying abroad?

The interest rates vary from financial institution to financial institution:
State Bank of India (SBI) – 11.15%
Bank of Baroda – Starting at 8.15%
Bank of India – 11.85%
IDFC First – 8.5% to 12%
ICICI Bank – 13.70% to 15.20%
Axis Bank – 11% to 11.5%
Avanse – 10% to 16.5%
HDFC Credila – 9.55% to 13.25%
InCred – 11% to 18%

References:

Works Cited

“Apply Online in India for Studies Abroad (above Rs. 20 Lakhs) | SBI – Personal Banking.” Sbi.co.in, 2019, www.sbi.co.in/web/personal-banking/loans/education-loans/global-ed-vantage-scheme. Accessed 20 May 2024.

“Baroda Scholar.” Www.bankofbaroda.in, www.bankofbaroda.in/personal-banking/loans/education-loan/baroda-scholar. Accessed 20 May 2024.

“Education Loan Insurance in India- a Comprehensive Guide.” WeMakeScholars, 17 Apr. 2023, www.wemakescholars.com/education-loan/insurance#widget-2613. Accessed 20 May 2024.

“Education Loan Product Details for Abroad | HDFC Credila.” Www.hdfccredila.com, www.hdfccredila.com/abroad/education-loan-product-details.html. Accessed 20 May 2024.

“Education Loan: Apply for Student Loan Online | ICICI Bank.” Www.icicibank.com, www.icicibank.com/personal-banking/loans/education-loan. Accessed 20 May 2024.

“Education Loans for Abroad Study | InCred.” Incred.com, 2023, www.incred.com/el/. Accessed 20 May 2024.

“Here’s Everything to Know about Taking an Education Loan to Study Abroad.” Idfcfirstbank, www.idfcfirstbank.com/finfirst-blogs/education-loan/complete-guide-education-loans-for-abroad-studies. Accessed 20 May 2024.

“Non-Collateral Education Loan for Abroad Studies | Axis Bank.” Www.axisbank.com, www.axisbank.com/progress-with-us-articles/how-to-get-education-loan-for-abroad-studies-without-collateral. Accessed 20 May 2024.

“Section 80E: Education Loan Tax Benefits.” Cleartax, cleartax.in/s/tax-benefits-on-education-loan. Accessed 20 May 2024.

“Star Education Loan | Study in Abroad | Interest Rate.” BOI, bankofindia.co.in/education-loan/star-education-loan-studies-abroad. Accessed 20 May 2024.

“Study Abroad Loan FAQ | Avanse Financial Services.” Www.avanse.com, www.avanse.com/education-loan/study-loan-abroad-faq. Accessed 20 May 2024.

Sukhtankar, Namrata. “List of Approved Foreign Universities for Education Loan.” UniCreds, 29 Apr. 2024, unicreds.com/blog/list-of-approved-foreign-universities-for-education-loan/. Accessed 20 May 2024.