Studying abroad is a dream for many girl students, but the tuition and living expenses are massive. That’s where education loans step in. There are special abroad education loans for girls that give an interest rate concession by a number of banks to encourage girls’ education and equal opportunities. 

Let's see which banks give low-interest abroad education loans for girl students in this blog.

Why Interest Rate Concession for Girl Students

 Education is essential for promoting gender equality. By offering discounted loan interest rates, banks can motivate families to support their daughters' education. 

The concession on interest rates for girl students is an initiative supported by the government to encourage higher education among girls for their studies abroad.

These discounts typically provide a concession of 0.20 or 0.50 percent off the interest rate, resulting in more affordable education loans.

Financial support enables girls to access overseas employment more easily, particularly by highlighting the development of a skilled, independent, and empowered female workforce.

Interest Rate Concession for Girl Students Given by Banks

Several public banks provide concessions on interest rates on education loans for girl students for abroad education. Here is the information on every bank.

Name of the Bank 

Interest Rate Concession

State Bank of India

0.50% 

Bank of Baroda

0.20%

Canara Bank

0.50%

Union Bank of India

0.50%

Banks Offering Low Interest for Girl Students for Abroad Education

Several public banks provide concessions on interest rates on education loans for girl students for abroad education. Here is the detailed information on every bank.

State Bank of India

Loan Parameter

Details

Loan Amount

Up to 3 Cr

Interest Rate

9.15%

0.50% concession in interest rate for girl students

Repayment Duration

15 years

Moratorium Period

Course duration plus 12 months

Eligibility Criteria

Students need to get admission from an abroad university

Accepted Collaterals

Immovable property - Non-agricultural land, house, flat

Liquid Securities - Fixed Deposit, Insurance Policy, Govt Bonds

Loan Margin

Loan Limit up to 4 lakhs - NIL

Loan Limit above 4 lakhs - 5%

Repayment Policy

Simple interest is charged

Processing Fees

Up to 20 lakhs - NIL

Above Rs 20 Lakhs - 10,000 Rs + GST

Shaurya Education Loan

This scheme applies to the students whose parents or spouse are serving Defence, Central Armed Police Force, or Indian Coast Guard Personnel of all ranks.

Loan Parameter

Details

Loan Amount

Up to 1.5 Cr

Interest Rate

9.15%

0.50% concession in interest rate for girl students

Repayment Duration

15 years

Moratorium Period

Course duration plus 12 months

Eligibility Criteria

Students need to get admission from an abroad university

Accepted Collaterals

Immovable property - Non-agricultural land, house, flat

Liquid Securities - Fixed Deposit, Insurance Policy, Govt Bonds

Loan Margin

Loan Limit up to 4 lakhs - NIL

Loan Limit above 4 lakhs - 5%

Repayment Policy

Simple interest is charged

Processing Fees

Up to 20 lakhs - NIL

Above Rs 20 Lakhs - 10,000 Rs + GST

Bank of Baroda

Loan Parameter

Details

Loan Amount

Up to 1.5 Cr for Premier Institutions

Up to 60 lakhs for not specified in Premier Institutions

Interest Rate

For Premier Institutions - 8.70%

For Non-Premier Institutions - 9.20%

Note: A 0.20% concession is given for only non-premier institutes.

Repayment Duration

10 to 15 years after the completion of the moratorium period

Moratorium Period

Course duration plus 12 months

Accepted Collaterals

Immovable property - Non-agricultural land, house, flat

Liquid Securities - Fixed Deposit, Insurance Policy, Govt Bonds

Loan Margin

  • For Premier institutes -

    • Up to 4 Lakhs: NIL 

    • From 4 to 7.5 Lakhs: 15%

    • Above 7.5 Lakhs: NIL 

  • For Non-premier institutions -

    • Up to 4 Lakhs: NIL 

    • From 4 to 7.5 Lakhs: 15%

    • Above 7.5 Lakhs: 10%

Processing Fees

Up to 7.5 lakhs - NIL

Above Rs 7.5 Lakhs - 10,000 Rs + GST

Repayment Policy

Simple interest is charged

Canara Bank

Loan Parameter

Details

Loan Amount

  • Minimum - Rs 7.5 lacs

  • Maximum up to - 100% of the value of collateral

Interest Rate

8.25%

Moratorium Period

Course duration plus 12 months

Repayment Duration

10 to 15 years after the completion of the moratorium period

Accepted Collaterals

Immovable property - Non-agricultural land, house, flat

Liquid Securities - Fixed Deposit, Insurance Policy, Govt Bonds

Loan Margin

10% of the loan amount

Processing Fees

0.50% of the sanctioned amount, Max - Rs 10,000

Union Bank of India

Loan Parameter

Details

Loan Amount

Up to 1.5 Cr

Interest Rate

Starts from 8.25%

Moratorium Period

Course duration plus 12 months

Repayment Duration

15 years after the completion of the moratorium period

Accepted Collaterals

Immovable property - Non-agricultural land, house, flat

Liquid Securities - Fixed Deposit, Insurance Policy, Govt Bonds

Loan Margin

15% of the loan amount

Processing Fees

10,000 Rs + GST
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Eligibility Criteria for Education Loans for Girl Students

To get an education loan for studying abroad, students need to fulfill a few requirements. It depends on several factors, including loan amount, country of study, students' profiles, and the co-applicants' financial condition. The following are the common eligibility criteria for a student loan.

  • Both the applicant and the co-applicant should be Indian citizens.

  • Students should have a good academic history with a minimum of 60% of marks in their previous academic records.

  • The co-applicant's income and CIBIL score should meet the requirements of the lender.

  • The student should have secured admission in an abroad university.

  • The university should be a recognized university abroad.

Documents Required for Education Loans for Girl Students

Below are a few documents required for an education loan.

Basic Documents:

  • Application Form

  • Admission Confirmation

  • KYC Documents

  • Educational documents such as mark sheets and entrance exam results

  • Two recent passport-sized photographs

Financial Documents:

  • Income proof of the co-applicant

  • Six months of bank statements

  • Three months of salary slips

  • 2 years of ITR

  • Current financial obligations documents 

Property Documents:

  • Property Title Deed

  • Allotment Letter

  • Latest Property Tax or Electricity Bill

  • Approved Building Plan or Plot Layout

  • Chain Deed

Liquid Securities Documents:

  • For a Fixed Deposit as security, a principal value certificate is required

  • For the Insurance Policy as security, provide policy papers and the surrender value certificate.

  • For Government bonds as security, the bond certificate needs to be provided.

Scholarship Options for Girl Students 

Financing your education with a low-interest loan is possible, but applying for scholarships can also help reduce costs. 

Scholarships can help cover expenses that loans might not fully cover, such as living costs, travel, or study materials.

Various governments, universities, and private organizations provide scholarship opportunities specifically for female students studying abroad. 

By combining a scholarship and a low-interest loan into one simple sum, you can get on with your studies without repayment stress or high costs.

Conclusion

Low-interest education loans have made it easier for female students to pursue opportunities to study at foreign universities. Banks and governments are encouraging girls to go abroad for studies with special offers and flexible repayment plans. A scholarship and a loan together can make study abroad dreams accessible to them with ease.