NBFC Education Loan for Abroad Studies

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Best NBFCs for abroad education loans 

HDFC Credila, Avanse, Auxilo, and InCred are the best NBFCs for education loans in India. Below is a comparison of the best NBFC education loans without collateral:

*Repayment during studies for all the NBFCs mentioned above is simple interest or partial simple interest

Features of education loans from NBFCs

Abroad education loans from NBFC are financial aid designed for students who wish to study abroad. These loans are usually unsecured loans and cover tuition fees, living expenses, travel expenses, and other study-related expenses. NBFCs offering abroad education loans typically have specific eligibility criteria, including academic performance, course selection, and the reputation of the foreign institution.

The interest rates, repayment terms, and loan amounts offered may vary across NBFCs. They take into consideration several factors before approving the loan. These factors are:

1. The applicants' academic details (10th, 12th, graduation degree and certificate, test scores, etc.)
2. The co-applicant’s income profile with proof (Income tax returns, salary slips, CIBIL score, etc.)
3. Target country and course for higher education.

Eligibility criteria of abroad education loans from NBFCs

To be eligible for education loan from an NBFC, a student must meet the following criteria:

1. The student must be an Indian citizen
2. The student must be between the ages of 18 and 35 years
3. The student must have a good academic record
4. The student must have secured admission to a recognized university or college abroad
5. The student must have a co-applicant who has a steady source of income and a good credit score
6. The student must have scored decent scored in pre-requisite exams such as IELTS, TOEFL, and GRE.
    

Documents required for abroad education loans from NBFCs

The documentation required for NBFC education loans without collateral varies depending on the lender. However, some common documents that are usually required include

Applicant's documents

1. Proof of admission to a recognized university or college abroad
2. KYC documents of the student: PAN/ Passport/ Driver’s License/ Voter ID card or government-issued identification document.
3. Education loan application form.
4. Passport
5. Past academic record.
   1. 10th standard mark sheet
   2. 12th standard mark sheet
   3. Undergraduate result (semester-wise)
6. Entrance exam results (e.g. GMAT, GRE, TOEFL, etc.)
7. Proof of admission: admission letter (A conditional admission letter is also applicable).
8. Statement of expenses.
9. 2 passport-size photographs.
    

Co-applicant documents

1. KYC documents: PAN/ Passport/ Driver’s license/ Voter ID card or government-issued identification document.
2. Bank account statement of the co-borrower/guarantor, for the last 6 months (in case of takeover of education loan).
3. If any previous loan is from other banks/ lenders, then the loan A/C statement of 1 year.

Income proof for salaried co-applicant/guarantor

1. Salary slips for the last 3 months.
2. Copy of Form 16 of the last 2 years or copy.
3. Bank account statement for the last 6 months (Salary account).
4. Brief statement of assets & liabilities of parent/ guardian/ other co-borrower.

Income proof for self-employed co-applicant/guarantor

1. Business address proof.
2. Last 2 years IT returns ( If IT Payee).
3. TDS certificate (Form 16A, if applicable).
4. Certificate of qualification (for C.A./ doctor and other professionals).
5. Brief statement of assets & liabilities of parent/ guardian/ other co-borrower
6. Bank account statement for the last 6 months.

Advantages of abroad education loan from NBFC

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Disadvantages of abroad education loan from NBFCs

 

NBFC education loans offer an alternative financing option for students pursuing higher education. These loans cater to the needs of individuals who may not qualify for traditional bank loans or government-sponsored educational funding. While exploring education loan options, it is essential to consider the terms and conditions associated with NBFC loans.

This includes being aware of additional charges such as processing fees, prepayment charges, and penalty fees. Properly understanding and comparing these factors will empower borrowers to make informed decisions and choose the loan that best suits their needs.

Read more about:

• Study abroad scholarships for Indian students
• Abroad education loan without parental income
• Documents required for education loan
• Expenses covered under education loan
• Abroad  education loan by the Indian government
• Abroad education loan without collateral
• Abroad education loan with collateral

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Education Loan from NBFCs via GyanDhan

When considering education loans from NBFCs, GyanDhan offers a seamless and transparent process, making the entire loan application and disbursement journey hassle-free. The expert education loan counsellors at GyanDhan compare the loan products of different lenders to identify the most suitable loan option for your needs. This involves comparing the interest rates, loan amounts, repayment terms, processing fees, and other features of different lenders.

Not only this, we stand by our promise to offer you the most competitive education loan in the market. We bring the best deal possible for you. If you find a better offer, we'll cover the difference in interest rates for the ENTIRE duration of your education loan. Best of all? We do not charge any kind of fees or commissions from the applicants at all.

Frequently asked questions