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Know the types of education loans available for foreign studies, Compare the interest rates, terms and conditions, and understand the major differences.
Updated on: 23 Oct 2023 | Reviewed By: ankit-mehra | 8.77K | 6 min read
A degree from a foreign university gives an unparalleled edge in career growth. It acts like a trampoline and provides you kickstart that very few Indian colleges can. It is no surprise that huge numbers of students aspire for higher education abroad. But overseas studies come at a high cost that is not possible to bear for all. Abroad education loans become a savior in such a situation and help students fund their studies abroad. However, understanding the education loan options and choosing the right option can be a herculean task.
Students and parents need to do their homework or get in touch with an abroad education counselor to comprehend the education loan products better. The first step towards understanding it is knowing the types of education loans for abroad studies.
In this blog, we have differentiated the types of abroad education loans on the basis of collateral and lenders.
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Criteria | Secured Education Loan from PSBs | Unsecured Education Loan from Private Banks | Unsecured Education Loan from NBFCs |
---|---|---|---|
Rate of Interest |
7.75%* p.a. onwards |
11%* p.a. onwards |
12%* p.a. onwards |
Maximum Loan |
1.5 Crore |
40 Lakhs |
50 Lakhs |
Chances of Approval |
Higher |
Low (Depends on country & college) |
Average |
Expenses covered |
70% to 100% |
90%-100% |
100% |
Interest Repayment during the moratorium period |
No |
Yes, Simple Interest |
Yes, Simple or partial interest |
Moratorium Period |
6 months after completion of course |
1 year after completion of course |
1 year after completion of course |
Co-applicant income |
Not Considered |
Extremely Important |
Extremely Important |
Repayment Period |
Longer (SBI and BOB offer up to 15 years) |
Longer (Axis Bank offers up to 15 years) |
Shorter (up to 10 years) |
Processing Time |
More (Up to 30-50 days, with GyanDhan- only 15 days) |
Average (15-20 days, with GyanDhan- only 7 days) |
Shorter (Within 10-12 days, with GyanDhan- 2 to 3 days) |
*Interest rates as of 21st May 2021
Avoid all the hurdles of abroad education financing by simply contacting GyanDhan. Enjoy the benefit from our streamlined education loan process and get an overseas education loan from the comfort of your home. We offer students free expert help in getting education loans to study abroad. Our education loan counselors understand the students’ academic and financial profiles and then tell them about the best loan options available for them. We have partnerships with top lenders in the market, including public sector banks, private banks, NBFCs, and international lenders. With GyanDhan, you can keep all your worries about your abroad education loan application aside. To know if you are eligible for an overseas education loan, check your loan eligibility now!
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