Banks and Financial Institutions for Overseas Education Loan

As opportunities for education and employment are growing across the globe, students aspiring to study abroad are increasing day by day. Universities abroad offer multitudes of program choices thus promising high flying career options.
Although sky is the limit for academic and career options, we definitely have a limit for expenditure. Studying abroad can be very expensive as the entire tuition fee and stay cost has to be arranged by us. This is where foreign education loan comes as a saviour.
It is very crucial to select the right bank or financial institution for overseas education loans. But, in order to select the appropriate one, it is important to know about the type of loans.

There are 2 types of Overseas Education Loans available:

 

1.    Secured Loan

2.    Unsecured Loan

Secured Loan:

Secured loan means, a loan taken based on your assets like Immovable property, Fixed Deposits in Banks, LIC Policies, Government Bonds, Shares etc. Nationalised Banks, Private banks and NBFCs provide secured loans. The quantum of finance sanctioned by the bank for Education Loan is 1.50 Crores. A loan on secured credit promises lower interest rates, flexible repayment terms and a choice of different interest plans. Though only 75% of the amount will be sanctioned against the valuation of the property. The loan sanctioning process takes a tad longer than Unsecured Loan process. It generally takes more than a month.

Unsecured Loan:

For students who lack in showing the assets or collaterals essential to obtain a secured loan can go for Unsecured Overseas Education Loans. Nationalised Banks, Private banks and NBFCs provide unsecured loans as well. Nationalised banks provide up to 7.5 lakhs whereas the NBFCs and selected private banks offer up to 45 lakhs loans. As there is no property or assets involved in unsecured loan process, the whole time of valuation is saved. Thus, the entire process for Unsecured Loan becomes very easy and smooth. Only 7-10 days are required to sanction an unsecured loan.
It is your responsibility to know the full spectrum of education loan services to identify the best options for yourselves.
Go through the different types of financial institutions and the benefits you can avail by approaching them to choose the best bank for overseas education loan that suites your needs.

Nationalised Banks:

These banks offer loans on a lower rate of interest as compared to private banks. A thorough verification of the documents is done by the banks before sanctioning the loan. But the benefits are huge if loan is taken through Nationalised Banks.
•    Low Rate of Interest
•    Benefits in Income Tax
•    Special Concession If Your University Comes Under the Bank’s Premium List
•    Girl Benefits of 0.50% reduction
•    Nationalised Bank gives 100% funding if university comes under the Premium Listing (Only Bank of Baroda presently)
•    No EMI Until Graduation 

• Private Banks:

If you have admission at the premium institutes or universities abroad, then you can approach these private banks for overseas education loan. They also waive off the criteria of declaring any immovable property. The benefits of taking education loan through Private Banks are:

• Loan Without Collateral Security (For Master’s)
• Benefits in Income Tax
• No EMI Until Graduation

There are so many best banks for overseas education loan which will suit your requirements depending upon your university selection.

• NBFCs (Non-Banking Financial Companies):

This is the best option to avail 100% loan, without security. NBFCs are considered to be the finest way of taking an Education Loan for study abroad. The benefits of NBFCs are:

• Upto 40-45 Lakhs of Non-Collateral Loan
• 100% of Education Loan
• On Basis of GRE Score Loan Is Sanctioned
• Pre-Admission Loan
• Pre-Visa Disbursal
• Only Small Touch Payments, No EMI Until Graduation
• Top Up Loans Are Available
• Benefits in Income Tax 

So, it is not really that tough to manage finances for overseas education. To avail complete assistance for overseas education loan process you can visit any of the best overseas education consultants.

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