Taking out loans for education abroad is a great way to secure a higher education abroad. Many students who want to study abroad prefer to take out an education loan rather than finance their own studies because it lessens their financial burden.
There are many benefits to taking out an education loan, so it makes complete financial sense to do so. One of the primary advantages of obtaining an education loan is the tax benefits that are available to both the primary borrower and any co-applicants.
Given the rapidly increasing cost of education, taking out an education loan is a great way to invest with guaranteed returns and great benefits. There are a few things to think about when taking out a foreign education loan. The interest rate is one of these variables. A low interest rate can help you save a lot of money on tuition and have a hassle-free study abroad experience.
Let’s talk about some of the top banks that provide loans for overseas education as well as the consequences of low interest rates in this article.
Effects of Lower Interest Rates on Education Loans
For borrowers, lower interest rates are good news. Let’s talk about how this will affect things first.
- Low interest rates will result in a significant reduction in the loan repayment amount.
- Lowers the EMI price.
- Expands the borrower’s purchasing power.
Leading Indian Banks Offering Lowest Interest Rates on Overseas Education Loans
Numerous financial institutions in India offer loans for higher education abroad. Below is a list of some of these top institutions that offer abroad education loan at lowest interest rates.
- Bank Saraswat
One of India’s top urban cooperative banks, Saraswat Bank provides some of the best loan options for studying abroad. An applicant who has been accepted into a graduate or post-graduate programme offered by a college, institute, or university that has been approved by the IBA may be eligible to receive an education loan of up to 1.5 crores INR under the Saraswati Education Loan Scheme. The maximum loan repayment period is 12 years, excluding the moratorium period.
This bank not only has the lowest interest rates for student loans taken out overseas, but it also gives all female students and Divyang a concession of 0.50%.
Interest Rate: 9.75%
- State Bank of India
The State Bank of India (SBI), a prominent nationalised bank and financial giant in India, offers low-interest loans for overseas education. The applicant may be eligible for a loan amount of up to 1.5 crores INR under the SBI Global Ed-Vantage education loan scheme, which is only available to international students. There is a maximum 15-year loan repayment period, excluding the moratorium period.
SBI also provides a 0.50% concession towards Rinn Raksha Insurance or any other current life policy assigned in the Bank’s favor, in light of the low interest rate. Furthermore, students who identify as female receive an extra 0.50% concession.
Interest Rate: 10.90%
As was previously mentioned, you can get in touch with an overseas education loan consultant if you want to get the best interest rate possible from any of these top banks for loans to study abroad.
Expert advisors on foreign education loans can help you choose the most cost-effective and appropriate funding source for your studies overseas.