Government Bank Loan for Higher Studies top Countries

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Government Bank Loan for Higher Studies Top Countries

So, one of the most frequently asked questions is, Which loan is best for studying abroad? and Which bank is best for higher education loans? So here is the answer to these questions. There is no doubt that government bank loans are one of the best sources of funding for higher education.

Prior to seeking financial assistance from any other institution, most prospective borrowers first seek out a government bank, which is the best bank loan for higher studies. India’s government bank loans are the most preferred form of Study Abroad Education Loans for a number of reasons. In addition to explaining all of those reasons, this article provides a list of countries that are considered eligible for government loans.

Advantages of borrowing from a government bank for higher education

Borrowers benefit greatly from government bank loans. Nationalized banks offer education loans with favourable repayment policies, which is one of the main advantages. Government bank loans are beneficial for higher education for a number of reasons, including:

    • Low-Interest Rate Study Abroad Loan :

      The interest rates on education loans may vary from one bank to another in India. Most students choose public banks/government banks in order to take advantage of the lower interest rates they offer. As far as the market is concerned, these rates are among the most affordable. If you are considering an education loan to study abroad, it is advisable to apply to the Government banks, as their interest rates fall between 7.65% and 9%, which are considered to be the most competitive in India.
      The interest rates on Government bank education loans are determined by the MCLR (Marginal Cost of Funds Based Lending Rate). This is the benchmark value for the Government banks to determine their interest rates on any kind of loan, whether it is an education loan, a personal loan, a car loan, a home loan, etc.

    • Budget-friendly processing fees :

      Taking out an education loan through a government bank has a number of benefits, including lower processing fees. NBFCs and private banks provide education loans without collateral, and their processing fees are approximately 1% of the total amount of the education loan. According to common knowledge, Government banks charge a fixed processing fee of INR 10,000 for secured education loans due to their nature of funding. Depending on the bank, it may also be refundable. EduCred provides you with this major benefit when processing your education loan.

    • Study Abroad Education Loan Subsidy 2022 :

      A major attraction of Government bank student loans is the subsidy programs offered by the nationalized banks to ease the burden of education loans. These schemes usually apply to the interest rates of education loans provided by Government banks. In order to assist students from economically weaker sections of society, government banks have introduced multiple programs in which students can receive a subsidy from the government on their education loan interest. There are a few subsidy programs for education loans, including:
               a. CSIS (Central Sector Interest Subsidy Scheme)
               b. Education Loan Interest Subsidy Scheme of the Padho Pardesh Government
               c. Dr. Ambedkar Central Scheme of Education Loan Interest Subsidies

    • Overseas Education Loan Portal Vidyalakshmi:

      For students seeking education loans in India to pursue their dream of higher education, the Government of India established the Vidyalakshmi education loan portal under the Pradhan Mantri Vidyalakshmi Yojana. By using the portal, students can apply and track their education loans, making the entire process of applying for Government student loans easier.
      The Vidyalakshmi portal allows students to check the education loan programs offered by all the Government banks in India. The portal was developed in collaboration with the Ministry of Finance (Department of Financial Services), the Ministry of IBA (Indian Banks Association) and Higher Education (Department of Higher Education). Introducing the Vidyalakshmi education loan portal made applying for government student loans easier for students with limited access to prominent government banks.
      You can learn more about the education loan process by connecting with our team at EduCred as our finance team will be able to assist you.

    • A student-friendly repayment plan for Study Abroad education loans :

      Student-friendly repayment terms are one of the irresistible benefits of processing through Government banks. Education loan repayment terms are among the most flexible in all government banks. Furthermore, government bank education loans feature a moratorium on payments. Before the repayment tenure begins, there is a moratorium period.

      Students are not expected to begin the repayment of their education loans until the end of their course, plus six months after they have completed the course. Students will have sufficient time to find employment or arrange funds to repay their debts under this provision. Only government-sponsored education loans are eligible for this benefit. After completing their course, students are permitted to begin repayment of the interest on their education loans based on the simple interest concept. The Government banks in India also grant students a loan tenure of up to 15 years.

      Eligibility criteria for flexible Study Abroad education loans

      Hope your other question is answered by now Which bank has the lowest interest rate on education loans abroad? Applicants for Overseas education loans must meet certain requirements in order to qualify for an education loan. Unsecured loans have much stricter eligibility criteria than secured loans, especially with respect to co-applicants. A Co-applicant in an NBFC can only be an individual with a firm and stable income profile, whereas in a Government Bank, a Co-applicant can be a retired individual, an individual involved in agriculture, etc. In addition to these, there are also certain eligibility criteria for flexible education loans.

      As a co-applicant, government banks permit third parties to be named.
      Many students face obstacles in the process of obtaining a government bank education loan, despite all the benefits of such a loan. It is at times like these when organizations such as EduCred come in handy. You can reach out to our financial officer at EduCred for assistance with all aspects of the education loan process.

 

A list of countries that are eligible for a government loan for overseas education

Government banks, in contrast to their private counterparts, have not set any ceiling on the amount of overseas education loans that students may be eligible to receive based on the country of their higher education. In order to be able to proceed with your abroad education loan application with the utmost ease, you should be aware of the list of countries that are eligible for an abroad education loan from government banks.

  1. USA/Canada:

There are a number of students who choose to study abroad in the United States, and it is also one of the top countries where you can receive a government loan for higher education. Borrowing a collateral-based education loan has the advantage of allowing the borrower to borrow a maximum amount from a government lender.

It is important to note that the value of your collateral plays a significant role in the final education loan that you are eligible to receive. For students who wish to study in the USA, a maximum amount of INR 1.5 crores is available.

It should be noted that these numbers are estimates and that the actual amount will depend on the value of the asset that you are pledging. Canada is the dream destination for students willing to immigrate after their studies. We do Study Overseas Consultations too for you to choose from the best options. So you are few keystrokes away from knowing which bank is best for education loan for Canada?

In the case of applicants seeking to study in the United States, a secured education loan will cover the I-20 amount, and for candidates seeking to study in Canada, the GIC amount.
EduCred can provide you with an unbiased opinion of the funding options that suit your profile if you are still unsure.

  1. Australia:
    One important point should be kept in mind by all students who intend to borrow an education loan to study in Australia. As you review the previous articles listed here, you will notice that we have always highlighted the benefits of taking out education loans from government banks. In spite of the fact that students have the option of contacting NBFCs for education loans, government bank education loans are often the only option when it comes to being able to obtain a visa for studying in Australia without experiencing any hassles.
    Students who take out secured education loans from nationalized banks such as the SBI and other public sector institutions are favored by the Australian embassy.

The reason for this is that government banks have a proven track record of being financially secure and reliable, as opposed to non-bank financial companies (NBFCs). A student wishing to study in Australia must provide assurance that they have no major financial obligations.
EduCred can provide you with an unbiased opinion of the funding options that suit your profile if you are still unsure.

  1. New Zealand:
    In New Zealand, government banks provide secured bank loans for educational purposes. New Zealand is nothing less popular and a question is always asked by our students is how much maximum loan can I get for abroad studies? For those who wish to study in New Zealand, government banks set a maximum loan amount based on a variety of factors. Student living expenses:
    • For students studying in New Zealand, the average living expense is NZD 15000 for the full course duration, or NZD 500 per month. sum of NZD 1250, During the course. In New Zealand, bank loans for education cover these living expenses.
    • Fees for tuition for students studying in New Zealand: Taking an abroad education loan from a government bank will cover the tuition fees stated in the college admission.

It is also important to note that although government banks grant third-party collateral-based education loans in New Zealand, the embassy does not promote this as a funding source. Therefore, it is advised that you avoid borrowing third-party education loans in order to study in New Zealand.
For any remaining doubts about funding options for your higher studies abroad, you should contact the EduCred team to obtain unbiased advice on which option is best suited to your profile.

  1. The United Kingdom
    To finance your higher education in the UK, a secured education loan is the best option.

 

In order to fund your higher education abroad, collateral-based education loans obtained from reputable government banks are always a better option.

The reasons for this are as follows.

      • When compared with unsecured education loans, secured loans are always more affordable.
      • Interest rates on secured loans are far too low.
      • The processing fees are relatively low.
      • Your application for a student visa is less likely to be rejected.

EduCred can provide you with an unbiased recommendation on the best funding option for your higher education abroad if you are still unsure which option is best for you.