Which Are Different Bank Educational Loans For Studying Abroad


Here I describe mainly about the different bank loans which is available for the study at abroad and you will be getting all the details of applying for loan and you will be getting special privileges which is given by the different banks. The students will get this information really useful for their career life and they can follow these in their life, so that their education will not go into a vain.

Introduction


The students are having good talent and skills, but they are not having sufficient money and this makes them impossible to achieve their career goals. The commercial banks have increased their portfolio of educational loan and this will suite the merit students who need to maintain a sustainable career in their life.
To become eligible for a bank loan, you need to become an Indian national and must get an admission in any of bank's approved list of course or universities. The term of the loan and quantum of bank loan will be different from one bank to another bank. The maximum amount for studying at abroad is RS 20 Lakhs.
The expenses covers your tuition fees, hostel fees, examination charges, library charges, books purchase, equipments, uniforms, charges for a two wheeler etc. You can repay your amount in monthly installment, and the repayment term begins after one year of course or getting a job after six months. The term of the bank loan will be 3-8 years. Some banks does not need any margin up to RS 4 lakh and if you are taking beyond the limit then 15% margins will be charged. Go through the article on Which are different bank educational loans in India?
Up to RS 4 lakhs there will not be any collateral security and for loans which is ranging from 4 lakhs to 8 lakhs the collateral security will be in the form of third party guarantee. For the loans above 8 lakhs a collateral security which is in the form of place value of your property or co-obligation of parents will be charged. This will help the student to get the loan sactioned in a short period. Mainly the securities is in the form of bonds which is public sector or government securities, building land, LIC Policy, Gold, shares, Bank deposit which is in the name of student etc. The interest is calculated on the basis of Prime lending rate. This type of rate is applicable only for certain type of loans. When your interest rate is higher than the amount then you will have to pay one per cent to maintain in a proper way. The PLR is a rate where bank offers loan to prime borrowers.

Banks which is having different interest rates for the loans


  • Bank of Maharastra:
    The maximum amount of loan is RS 20 lakhs. Up to 4 lakhs the interest rate will be 12% and for the amounts which are above 4 lakhs will be 13%. Up to 4 lakhs, 0.50% below SBAR which means that there will 13.25% Per annum floating.

  • State Bank of India:
    The maximum amount of loan you get is RS 20 lakhs. From 4 lakhs to 7.5 lakhs, 1% above the SBAR and 14.75% floating and above 7.5 lakhs the SBAR will be 13.75%.

  • Punjab National Bank:
    The maximum amount of loan is RS 20 lakhs and up to 4 lakhs the BPLR rate is 1.50% and above 4 lakhs the BPLR Rate will be 0.75%.

  • Allahabad Bank:
    The maximum amount of loan is RS 20 lakhs and up to 4 lakhs the PLR rate will be 0.75% and above 4 lakhs the PLR rate is 1.00%.

  • Indian Bank:
    Maximum amount of loan will be RS 20 lakhs and up to RS 4 lakhs the rate will be 12.50% and above 4 lakhs the rate will be 13.00%.

  • Dena Bank:
    The maximum amount of loan will be RS 20 lakhs and up to RS 4 lakhs the rate will be 11.25% and above 4 lakhs the rate will be 14.25%.

  • Union Bank of India:
    The maximum amount of loan will be RS 15 lakhs and it will be followed by the PLR rate and above 4 lakhs the rate will be increased by 1%. The Benchmark lending rate noted by SBAR of state bank of India.


Different steps for filling an loan application


  1. First check that whether your bank has given support for your course or institute.

  2. Give a rough estimate that how much amount of loan will be needed for you and discuss this in your family so that they can afford the amount of loan.

  3. Go for various loan options which is available by different banks.

  4. Go through the list of different options and select which is the best suitable for your career life. When you are comparing please check that which is the low interest rate and how much time will you take to repay the loan.

  5. Next step is to apply for the loan which is needed to study at abroad. You must submit some important documents when applying for the loan and some of them are listed as follows
    • Your completed loan application form
    • Mark sheets of your board examination
    • Proof which gives the list of admission, scholarship and studentship
    • Two Passport size photographs
    • Bank statement for last six months
    • Assessment order of the income tax which is of 2 years
    • Record of your assets and liabilities.
    • Income proof


Mainly the bank look for repayment capacity of the student or family sponsor. They often look for the Value of the collateral security and the margin of the money which you take from the banks. When a student is taking RS 20 lakh, then he have to pay 25% of the margin money and student's family has to pay RS 5 lakhs.

Different Bank Educational loans suitable for your career at abroad


The different bank educational loans which will suite the students who is aspiring to study at abroad is stated as follows.
  • IDBI Bank Loan:
    The bank loans from IDBI bank is mainly giving good support for the students to achieve their goals. While there are many courses to choose and there are many repayment options available, the IDBI bank makes it very simple.
    For the studies at abroad the students need to select courses which are approved by recognized universities. IDBI bank also considers the post graduation courses like MCA, MBA, MS which is offered by CIMA London. Go through the article on What type of educational loan will suite study in USA?
    The maximum amount of loan for studies at abroad is RS 20lakhs. If the loan amount goes beyond RS 4 lacs limit, then you have to pay 15% margin. The expenses which is covered under this loan are fees given to school, library examination, lab fee, book purchasing, equipments purchase, building fund, computer purchase, insurance premium etc.

    Repayment Terms
    Repayment of loan begins when you complete your course , plus one year or getting a job after six months. The loan must be repayed within 5-7 years. The bench mark prime lending rate is 12.75% per annum and up to RS 4 lakh the BPLR rate is 11.75% and amount which is above RS 4lakh is 12.75%. Simple interest will be charged for moratorium period or holiday terms. The interest which is taken during the repayment period will be added to EMI. When girl students are applying, 50 basis points will be reduced and 50 points will be reduced for students who are physically challenged. For the amount which is up to RS 4 lacs there will not be any collateral security. The amount which is between RS 4 lacs and 7 lacs, there will be third party guarantee and for the amount which is above 7.5 lacs, there will be bonds which are public sector, debentures, bank deposits, LIC policy etc.


  • HDFC Bank Loan:
    HDFC bank loan gives loan to students who need to pursue their education either in India or abroad. They give financial support for your studies and you don't have to worry for your future. They are giving loans to Graduate, post graduate, engineering, medical, MBA etc.

    Features&Benefits-HDFC Bank Loan
    Students are getting loans which is up to RS 15 lacs for education in India and they are getting unlimited lending up to RS 7.5 lacs. There will not be any collateral security or third party guarantee. The loans which are above RS 7.5 lacs are having good range of areas and you will be getting a residential property. You can put a HDFC bank deposit and you can apply for gold loan etc. For studies at abroad the maximum amount of loan will be RS 20 lacs.

    Special privileges:
    You will be getting the service at your door step and the loans will be dispatched directly to the institutions as per the schedule. You will be getting the insurance life cover and you will be getting a good offer on banking products and services. You will be getting a student travel card and you can apply for pre approved credit cards.


  • Axis Bank Loan:
    Axis bank gives loans to students who need to study in India or abroad. The loan is provided to students who has got admission to good courses like medicine, engineering, management etc. The maximum amount of loan for the studies in India is 10 lacs and for the studies at abroad 20 lacs. The minimum amount of loan is 50,000. Margin will not be calculated for the loans up to 4 lacs. For the loans above 4 lacs, 5% margin will be calculated in India at 15% at abroad. The guardian or student will be treated as the co-applicant of loan. For some cases the collateral security or third party guarantee will be asked.
    An LIC policy will be given for the amount of loan you have taken and this policy will be in active status during the term of loan. The loans will be given directly or will be given in installment.


  • Bank of India educational loan:
    The students who are aspiring to study at abroad need money to achieve their goals. Bank of India helps the students to achieve this aim by giving financial support for their studies. The loans will be given to students who are doing graduation courses which are recognised by reputed universities. They also support courses like MCA, MBA, MS and courses which are offered by CIMA, London. The expenses which are covered under this loan are the fees which is payable to college, school, hostel, lab fee, library fee, examination charges, equipments charge, uniform charge, travel expenses, purchase of computers, insurance cover, expense required under study tour, project work etc.
    The maximum amount of loan for studying at abroad is RS 20 lacs and up to RS 4 lacs there will not be any margin and above 4 lacs the margin will be 15% for studies at abroad and the scholarship will be included in the margin. There will not be any security up to 4 lacs. For the amount which are between RS 4 lac and RS 7.5 lac, there will be a collateral security which is in the form of third party guarantee and the amount which are above RS 7.5 Lacs, there will be collateral security which is in the form of value or the future income of the student which can be paid in installment.
    Loan Interest rates:
    For the amounts which is up to RS 4 lacs there will be 2.60% which is below the BPLR and minimum 9.50% p.a. The amount which are between RS 4 lacs and 7.50 lacs the interest rate will be 2% below the BPLR rate and Minimum 10% p.a. For the amount which are above RS 7.5 lacs the interest rate will be 1.25% below the BPLR rate and minimum is 10.75% p.a. Go through the bookmark on Bank loans for studying at abroad. Simple interest rate will be calculated during the moratorium period and penal interest rate of 2% will be charged for amount which are above RS 4 lacs for overdue amount or period.
    Up to RS 4 lacs an amount of RS 500 must be paid and for the amount which are between RS 4 lacs and RS 7.5 lacs, an amount of RS 1000 must be paid. For the amounts between RS 7.5 lacs and up to RS 20 lacs an amount of RS 2000 must be paid as one time charges.


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