Ever since the first education loan came into existence in 1995 started by SBI Bank, multiple lenders, both public and private lenders have introduced various education loan schemes to cater to students wishing to study abroad.

However, hunting for the best bank to get education loan schemes can be quite confusing since there are various banks that provide education loans, but there is no one to explain to you what all factors to check out before finalizing an education loan scheme. 

So, if you are looking for the best education loan scheme for abroad studies and don't want to make mistakes while taking an education loan, read this article till the end as we’ve listed some of the best schemes offered by different banks.

Which banks provide the best education loan schemes for abroad studies?

We understand you straight-up want to know the answer to this question, and so the answer to this is Government banks. So, we've covered in this article the education loan schemes by major Government banks. if you want to know why are government banks' education loan schemes are the best, go through this article- Government Bank Education Loan Benefits for students.

But it is important to know that Government banks mostly provide secured education loans for abroad studies where you are required to pledge collateral security to get a loan against it. 

What about students who couldn't pledge collateral? Do not worry, private lenders in India also provide unsecured education loans to such students based on eligibility criteria. Read this article to know about unsecured education loan schemes provided by private lenders- Education loan schemes for unsecured education loans.

The government bank education loan schemes offer the lowest interest rates, larger loan amounts, no-payment moratorium periods, and so on. 

Let us begin with the education loan for abroad studies scheme of SBI, which is considered to be one of the best banks for student loans.

1. The State Bank of India: SBI Global Ed-Vantage Scheme

The Global Ed-Vantage education loan scheme is one of SBI’s premier student loan schemes for students wishing to study overseas. Under this scheme, students are offered some of the lowest interest rates to fund their education. 

Education Loan Terms

SBI Global Ed-Vantage Scheme

Loan amount range

Above INR 7.5 lakhs -up to INR 1.5 Crore

Interest Rate

10.90% (effective ROI as of 21-1-2023)

0.5% concession granted to female candidates

0.5% concession granted to students availing of  Rinn Raksha Loan Insurance Scheme

Loan Margin

Minimum 10%. Margin to be brought in on a year-on-year basis

Total Expenses covered by the education loan

Tuition Fees, Living expenses, Study aid expenses, travel expenses, library fees, etc.

Moratorium period

Average moratorium period comprises of the course duration + 6 months (can be extended to a year)

Total Loan Tenure

Up to 15 years

Processing Fees

Rs. 10,000 + Legal & Valuation Fees

2. The Bank of Baroda: Baroda Scholar Scheme

The Bank of Baroda is one of the few government banks, whose education loan terms can be compared to those offered by SBI. The Baroda Scholar loan scheme is Bank of Baroda’s study abroad education loan scheme. The bank has bifurcated universities across the world into prime institutes and non-prime institutes, based on their global ranking, and accordingly provide the loan deal.

Education Loan Terms

For universities in the premier list

For universities in the non-premier list

Available Loan Amount

Up to INR 150 lakhs

Up to INR 60 Lakhs

Interest Rate (effective ROI as of 21-1-2023)

10.60%

11.25%

Loan Margin

0%

Up to INR 4 lakhs - NIL

Above INR 4 lakhs - 10%

Repayment period 

Up to 15 Years

Up to 15 Years

Moratorium Period

Course Duration + 6-12 Months

Course duration + 6-12 Months

Expenses Coverage

Tuition + All expenses related to the candidate’s course

Tuition + All expenses related to the candidate’s course

Processing Fees

1.00% of loan amount (refundable) (maximum 10,000/-)

A non-refundable lump sum amount of INR 7,500 per property as Legal and Valuation charges

1.00% of loan amount (refundable) (maximum 10,000/-)

A non-refundable lump sum amount of INR 7,500 per property as Legal and Valuation charges

Processing Time

15 Days if processed through our team

15 Days if processed through our team

3. The Punjab National Bank: PNB Udaan Scheme

Punjab National Bank abbreviated is also known as the best bank for study loans for abroad studies. The Punjab national bank offers education loans for abroad studies under the PNB Udaan scheme. 

Education loan terms

PNB Udaan Education Loan Scheme

Loan amount range

Need-based finance

Interest rate

11.75%

Loan Margin

Up to INR 4 lakhs - NIL

Above INR 4 lakhs - 15%

Total Loan Tenure

Up to 15 years

Total Expenses Covered

All expenses related to the course abroad

Processing Fees

1% minimum INR.10000/- (Refundable after 1st Disbursement)

Moratorium Period

Course period + 1 year

4. Canara Bank: IBA Model Loan Product For Higher Studies Abroad

The Canara Bank offers abroad education loans under the IBA’s model loan product for higher studies in India and Abroad scheme. Students who wish to pursue their undergraduate, as well as postgraduate courses abroad are eligible to apply for an education loan for abroad studies under this Canara Bank education loan scheme.

IBA Model Loan Product For Higher Studies Abroad

Canara Bank Abroad Education Loan Scheme

Maximum Loan Amount

Need-based financing. For studies in India: INR 10 Lakhs

Canara Bank education loan ROI

11.15%

Eligible Courses

Undergraduate (Bachelors), Postgraduate(Masters), Ph.D., PG-Diploma Courses, etc.

Loan Tenure

Up to 15 years

Moratorium period duration

Course period, plus one year

Loan Margin

For loans of up to INR 4 Lakhs: Nil

For loan amounts above INR 4 Lakhs -15%

Processing Fees

 Nil

It is natural for anyone to be confused about choosing the right lender when so many options are available in the market. The financial team of WeMakeScholars is well-equipped to help students determine which bank has the lowest interest rate on education loans, along with other important factors, thus helping them in deciding the best bank for education loans as per their needs. So, the best way to begin your education loan process would be to get in touch with our team at the earliest.