Largest Public Sector Bank in India, State Bank of India is offering study abroad loans with attractive concessions and low interest rates. The applicants should have secured a seat in any Graduate, Post Graduate or Professional course. Candidate should be Indian citizen. Salient feature of SBI study abroad education loan is you need not require any security for a loan up to Rs. 4 lakh. A third party guarantee is essential for an amount of Rs. 4 – 7.5 Lakh. For a loan of more than Rs. 7.5 lakh, a collateral security for the full value of the loan is a must.

SBI shall provide a maximum loan of up to Rs. 20 lakh. No margin is required if the proposed amount of loan is less than Rs. 4 lakh. For loans more than Rs. 4 lakh, candidates have to arrange a margin of 15 percent. The expenses covered in the loan include travel, tuition fees, books, computer and also a two wheeler. The two wheeler cost should be up to Rs. 50000.

Here comes the details of interest rates and repayment formalities. SBI charges 11.75 percent interest per year for loans up to Rs. 4 lakh. If the loan exceeds that limit and below Rs. 7.5 lakh, the charges will be 13.25 percent per annum. For any amount more than that, SBI shall arrange a loan at an interest of 12.25 percent per year. Loan repayment period for SBI is 5-7 years. The EMIs start immediately after one year holiday period of the completion of the course. If the candidate crack a job in less than a year after completion of the course, holiday period for repayment will be 6 months from the date of joining in the job.

The best part of SBI’s study abroad loan is 0.5 percent concession in interest rates for all girl students. SBI is also one of a few banks that are offering foreign education loans at lower interest rates.

Bank of Baroda’s loan scheme for education abroad covers most of the expenses incurred during the study period. These expenses may be such as tuition fees, boarding and lodging, books, study tours, laptops, travel and any other requirements. The student will get a maximum loan of Rs. 20 lakh. He or she has to arrange the margin money in this case, that is 15 percent.

Applicant should be a national of India. Candidates those studying Graduation, Post Graduation, Doctorate studies, Job oriented professional courses and technical courses are eligible to apply for the loan. They should have secured a seat in any of the above course offered by reputed universities in foreign countries.

Coming to the security concerns, Bank of Baroda does not ask any security for a loan amount below Rs. 4 lakh. For a loan amount of Rs. 4 to Rs. 7 lakh, a third party guarantee along with assignment of future income is required. If the required amount is up to Rs. 15 lakh, candidate should provide 100 percent collateral security. Bank of Baroda offers abroad education loans with two kinds of interest rates. BOB charges 10 percent interest for a loan of less than Rs. 4 lakh. It can provide above that and upto a maximum of Rs. 20 lakh as loan with an increased interest rate of 12 percent per annum.

Bank of Baroda framed liberal norms for loan repayment considering the post education situation of the students. If the student crack a job with in one year after completion of the course, the repayment will start from seventh month after joining in the job. If the student failed to secure a job immediately, the Bank will consider 12 months as repayment holiday and EMIs will start from 13th month after completion of the course. Total loan amount has to be repaid with in 5 to 7 years.