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.

Syndicate Bank provides education loans to pursue various courses in abroad. Any student of Indian nationality is eligible for the loan. Applicant should be a major or represented by a guardian in case of minor. Syndicate Bank gives loan for all institutes overseas which are duly recognised by concerned authorities. The loan shall cover finance for tuition fee, boarding, books and travel as well. But the bank does not accept assistance towards capitation fees and any coaching. The maximum loan amount Syndicate Bank offers for overseas education is Rs. 20 lakh. Applicants have to make arrangements for a margin of 15 percent which means that they have to put in that much amount themselves. Syndicate Bank charges interest on study abroad loans based on Prime Lending Rates. For an amount of up to Rs. 7.5 lakh, the interest will be PLR minus 2 percent. For loans more than that amount, Syndicate Bank charges PLR minus 2.5 percent as interest. Bank’s present PLR is 12 percent and subject to change based on the policies of the Bank.

Syndicate Bank asks for collateral security if the loan amount is above Rs. 7.5 lakh. This security also includes 25 percent margin covering the loan amount and assignment of future income of the candidate for payment of loan installments is needed. With regard to repayment method and period, Syndicate Bank follow the rules most similar to other banks. You have to repay the entire loan amount in 5 to 7 years. The repayment shall start one year after completion of the course or six months after securing a job, and as usual, which ever earlier will be considered.

Most important aspect of getting approval for study abroad loan is securing a confirmed admission from a recognised college. Students must approach the Banks with proof of seat confirmation and should have all the important documentation with you for a smooth approval process. Wish you all the success.