Best Banks For Abroad Education Loans in India

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    Education is seen as a means for a good future in India. Indian parents are known to invest a substantial part of their income towards the education of their children. However, in recent years, the cost of education for higher studies has seen a dramatic rise, forcing many students to shelf their plans for higher education. With the introduction of education loans, things started looking better for all such students who wished to pursue higher education abroad - but were worried about funding. 

    The increasing popularity of education loans in India has given rise to multiple lenders who come up with varied schemes for student borrowers. With so many lenders and loan schemes, it is natural to get confused on which education loan to choose for. In this blog, we will try to solve this confusion and help our readers conclude about the best banks for education loans. So, let us jump straight into the discussion. 

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    Which Bank is Best for Education Loan for Abroad?

    In India, the education loan market consists of lenders such as Public sector banks, private sector banks, Non-Banking Financial Corporations (NBFCs), and private Fintech firms. These lenders all have different loan schemes and students need to carefully compare these to select the best loan scheme. In order to decide this, students need to compare some important points related to bank education loans. These points are as follows:

    • Rate of Interest - This is an extremely important criterion when comparing education loans as it plays a huge role in your total loan repayment. Public sector banks offer education loans at an interest rate between 8.5% to 10.5% while private banks offer education loans at an interest between 10.5% to 13.5%. NBFCs typically have a higher rate of interest which is between 11% to 14.5%. As is evident from the above numbers, public banks have the lowest rate of interest that is 1% - 2.5% lower than that offered by private banks and NBFCs. 
    • Processing Fees - Lenders charge a processing fee from the borrowers when sanctioning an education loan. Public sector banks have lower processing fees than private sector banks and NBFCs. In fact, a few public banks charge no processing fees at all. Banks such as Bank of Baroda charge a refundable fee of INR 10,000 a processing fee. SBI on the other hand has a nonrefundable processing fee of INR 10,000. Among private banks, Axis Bank has a refundable processing fee of INR 10,000. NBFCs charge a processing fee between INR 40,000 and 80,000. 

     

     

    Other major points to compare while choosing the best bank for abroad education are: 

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    Which Government Bank is Better For Abroad Education Loans in India? 

    From the above discussion, it is clear that public sector banks are the best choice when it comes to education loans. But even among public banks, which one is better for an education loan? Let us take a look at this question now. 

    • Bank of Baroda Education Loans - Owing to its lowest rate of interest on education loans, Bank of Baroda is amongst the best banks when it comes to education loans in India. Baroda Scholar is the bank’s study abroad education loan scheme that has an interest rate of 8.25% for admission to institutes under the List of premier institutes. Others can get this loan at a rate of interest of 8.9%. Extra 0.50% concession is given to girl students. 
    • SBI Education Loan - For students who have secured admission to institutions that are not on the list of institutes of Bank of Baroda, SBI education loans are the best. They can take the SBI Global Edvantage education loan scheme and opt for the SBI Rinn Raksha policy. By doing this, their rate of interest for this loan will decrease by 0.5% and therefore they can get the education loan at a rate of interest of 8.8%. For girl students, this rate can further be decreased by 0.5%. 

     

    Bank of Baroda is the best bank for education loans if your institute comes under their list of institutions. For all others, SBI is the next best bank. Choose wisely and get ready to fulfill your dreams of higher education. 

     

    Check Your Education Loan Eligibility Apply Here

    For more help with education loans, get in touch with GyanDhan and get all your queries solved! We also provide free expert assistance in getting abroad education loans from top financial lenders in India

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