Best Indian Banks Providing Education Loans for Abroad Studies

You are delighted to know that your dream of studying abroad has come true. You have got the admission you had worked so hard for. Also, you have decided to opt for an education loan to study abroad to finance your studies abroad. The only thing that has been confusing you is which bank you should choose. There are a lot of options for an education loan for studying abroad, with banks providing competitive interest rates and attractive schemes. You want to choose the best possible option, but you aren't aware of all the banks and the schemes offered.

To help you make an informed decision, here is a list of top Indian banks offering an education loan for abroad studies, the schemes available, and their respective interest rates, loan amount, and processing fee.

Top Indian Banks Offering an Education Loan

Students who want to study abroad need to find the right lender because abroad education expenses create significant financial challenges.

Multiple Indian banks provide education loans, which enable students to finance their international education through funding tuition expenses and living costs and travel expenses, and necessary fees. 

These loans provide students with attractive interest rates and adaptable repayment terms. 

The following section gives information about leading Indian banks that offer education loans for international students.

State Bank of India

Bank of Baroda

Union Bank of India

Indian Bank

Canara Bank

Punjab National Bank

Kotak Mahindra Bank

ICICI Bank

Axis Bank

IDFC Bank

NBFCs

Documents Required for an Abroad Education Loan

Education loan documents for students:

• Duly filled and signed the loan application form with affixed photographs

• Two colored passport-size photographs 

• Passport

• Identity proof 

• Residence proof 

• Academic Records

• Proof of admission

Education loan documents for co-applicant/ financial co-applicant/ Guarantor:

• Two colored passport-size photographs 

• Identity proof 

• Residence proof 

Income Proof for a salaried co-applicant/ Guarantor:

• Salary Slip of the last 3 months or Salary Certificate 

• Copy of Form 16 and the Last 2 years’ IT returns acknowledged by the IT Dept

• The last 6 months of the bank account statement of their salary account

Income Proof for Self-employed Co-applicant/ Guarantor:

• Business proof (If applicable)

• Last 2 years IT returns, acknowledged by the IT Dept 

• TDS Certificate (Form 16A, if applicable) 

• Certificate of qualification (for professionals like C.A./ Doctor, etc.)

• The last 6 months of the bank account statement

Collateral Documents required for Secured loan:

1.  Property Title Deed

2.  Registered Sale Agreement/ Gift Deed/ Will

3.  Original receipt of the registration for the above agreement

4.  Allotment letter by the Municipal Corporation

5. Copy of building plan or plot layout approved by the municipality.

6. The latest electricity bill and property tax bill have the same address

7. No objection certificates for the mortgage from the society/builder

8. A 30-year link document or a previous chain of sale deed establishing title or EC is required.

9. A "conversion document" will be required for the agricultural land if that area has been converted into a residential area.

Step-by-Step Process for an Abroad Education Loan

For Secured Loans:

Applying for a secured education loan involves several stages. Below is a detailed breakdown of the process: 

Initial Research and Application:

• Go to the website of a public sector bank —SBI, Bank of Baroda, or Union Bank of India, or you can also contact WemakeSchoalrs as we are partnered with 14+ banks and financial institutions operating in India.

• You can then fill out their online education loan application form on their platform.

Document Collection and Submission:

Start by gathering all necessary documents, including your admission letter and ID proof, address proof, and property-related papers, before you can submit them to the nearest bank branch for verification.

Collateral Evaluation:

The bank selects authorized lawyers and valuers to conduct property inspections, which produce legal opinions and valuation reports for bank submission.

Loan Processing and Verification:

The bank's education loan department examines your financial situation and eligibility status after document verification before starting the approval process.

Loan Sanction:

The bank grants a loan sanction letter to students after completing all verification steps. You must go to the branch to authenticate the sanction documents and all accompanying paperwork.

For Unsecured Loans:

There are several key steps that you have to take to apply for an unsecured education loan. Unsecured loans are a preferred choice for students who might not have assets to pledge, as they don’t need collateral.

Initial Research and Application:

There are different banks and financial institutions that give unsecured education loans, so you have to do some research first. You can also use WeMakeScholars to go through your loan and compare options with you on what is the best loan to take, interest rates, and repayment terms. Contact our financial officers to see which providers have the lowest rates, repayment terms, processing fees, as well as conditions.

Document Collection and Submission:

Prepare and submit the necessary documents for the loan application

Loan Processing and Verification:

The documents submitted by the applicant, academic details, and financial profile of the co-applicant will be verified by the bank. Verification may be telephonic or home visits.

Loan Sanction:

After successful verification, the bank will approve the loan and issue a sanction letter

Disbursement of Funds:

After the loan agreement is signed, funds are disbursed to the university or to the student's account at the university’s direction.

Why apply through WeMakeScholars?

Most applicants chose WeMakeScholars because of their trust in our ability to make procedures transparent. Every minute detail is explained to students by our financial officers from the beginning. Our main goal is to give a clear picture of any education loan scheme for our students.

You get an additional 0.5% discount on the rate of interest when you process your unsecured education loans via WeMakeScholars. Our financial officers will also negotiate the loan terms on your behalf. Many of our students have received their unsecured education loans at reduced interest rates. 

Conclusion

Selecting an appropriate bank for an education loan plays a crucial role in achieving a trouble-free study abroad experience. You should evaluate interest rates together with loan limits and repayment terms to select the most suitable option. Public banks provide better interest rates, but private banks and NBFCs deliver quicker loan approval times. Select the financial solution that matches your budget to achieve your dream of studying abroad.