Top Indian Banks for Education Loan to Study in Australia
If you have secured admission in any college in Australia, it is now easier to secure loans to fulfill your dream, as some of the top Indian banks are offering loans for Study in Australia.
Top Indian Banks Offering Education Loan
Even though the cost of education in Australia is not as high as that of UK and US, still studying in Australia is expensive than that in India.
With globalization, a lot has changed in the country. In comparison to yesteryears, it is much easier to avail for a loan today if you wish to study in abroad. With smoothening of laws, the Reserve Bank of India has announced various welfare schemes that opportune meritorious and deserving students avail speedy loan disbursal.
Now students can advantage from the Education loan scheme and secure admission to their dream college in Australia. Enlisted below are top Indian Banks that offer education loan to study in Australia with their interest rates:
Axis Bank –
One of the top Indian Banks, Axis Bank offers an educational loan up to Rs. 20 lacs for student’s educational purpose. The loan is offered at an interest rate of 13.75% to 15.75% per annum.
ICICI Bank –
ICICI is a public limited bank that has been offering educational loans to meritorious students who seek admission in foreign universities. Candidates whose admission are confirmed can avail an education loan of up to 20 lacs. No interest is charged up to a loan amount of 4 lacs, however, loan above 4 lacs is charged at 15% interest rate per annum.
Indian Overseas Bank –
A total of Rs. 40 lacs can be availed as an educational loan through Indian Overseas Bank. Interest is charged for an amount higher than 4 lacs at a rate of 15%.
State Bank of India –
SBI is a nationalized bank that offers various educational loan schemes for students who seek to study abroad. Aspirants can get up to Rs. 30 lacs as a loan at differing interest rates based on the amount.
Interest rates – Up to 4 lacs – 13.50%
Rs 4 lacs to Rs. 7.50 lacs – 13.75%
Above 7.50 lacs – 11.75%.
Bank of Baroda –
Students can seek up to Rs 20 lacs as loans for education in Australia.
Interest rates – Up to 4 lacs – 10%
Above 4 lacs – 12%.
Canara Bank –
Canara Bank offers an educational loan of up to Rs 20 lacs with differing interest rates:
Interest rates – Up to 4 lacs – 11%
Rs 4 lacs to Rs 7.50 lacs – 12%
Above 7.50 lacs – 11.50%
HDFC Bank –
The HDFC Bank offers a loan up to Rs. 20 lacs
Interest rates – 13.5%
The eligibility of loan, repayment terms and rates of interest is subject to differ for each bank. Candidates are advised to contact the concerned bank for availing entire details about the loans.
Other points to be noted:
Candidates who are applying for the loan will be treated as borrowers and their parents/ guardians will be treated as co-borrowers. Indian banks offer a minimum loan of up to 20 lacs for studying in Australian universities, with the loan amount and terms are subject to differ for other banks. The educational loan availed by student covers the following aspects:
The tuition fee of the college/schoolTravel Expenses
- Purchase of Stationary (Books/Uniform/etc.)
- Examination Fees
- Library Fees
- Hostel Charges
- Cost of Two-wheelers (Bike, Scooty – Optional)
Repayment of Loan –
The total repayment period falls between 3 to 8 years which is subject to differ on the bank from where you have availed the loan. Students are not required to any interest up to a margin of Rs 4 lacs beyond which it will be chargeable on 15% interest rates.
The loan amount has to be repaid back in the form of EMI installments. The first installment period will begin one year after the commencement of the course of six months after the student as a graduate has attained a job, whichever is earlier.
Do you need to keep any Collateral?
Most of the banks do not ask for any collateral up to a loan amount of Rs 4 lacs. However, for loans ranging above 4 lacs up to 7.50% require a collateral in the form of third-party guarantee.
For loans above Rs. 7.50 lacs, the banks will require the seeker to keep a collateral security of appropriate value or co-obligation of either the parent/ guardian/ third party guarantee. An assignment of student’s future income may be obtained by the bank for the payment of installment.
Loans for Vocational Courses –
The educational loan is not offered for vocational and short-term courses like soft-skills, animation, etc. but for full-time courses in Australia only. Students are advised to also apply for additional scholarships in their college which will render additional support for meeting the academic expenses.
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