Most Indian students have a vision of studying abroad as they grow up. Whether it’s the industry-integrated curriculum offered by the top universities, the dream of attending the ideal university, or the need to have a successful career, this allure attracts numerous aspirants around the globe every year to leading study destinations.

What does the study abroad vision demand? A passion to achieve your goals, an excellent academic background, and enough finances to pay for the cost of education. With the increase in inflation in today’s economy, every student can’t finance their education without the support of financial aid.

In this situation, study-abroad loans emerge as an excellent funding source, with leading banks offering both secured and unsecured loans. However, while applying for a loan, a factor that plays a prominent role is the interest rates that need to be under the bar for seamless repayment. Today’s focus will be on enlisting financial institutions offering the lowest interest rates for education loans abroad. 

Top Banks Offering Lowest Interest Rates for Overseas Education

When considering the low interest rate of a particular bank, it is also essential to consider other factors such as quantum of finance, loan tenure, and more. Find below the overview of top banks with the lowest interest rates and other required features.

• State Bank of India (SBI)

Rate of Interest:  Starts at 11.15% for Secured Loans.

Among various options, the State Bank of India is the most popular choice among students looking for a study abroad loan and offers up to 1.5 crore in secured loans. The primary reasons include competitive interest rates and flexible repayment terms. Furthermore, it does not mandate the need to serve interest rates during the moratorium period. 

SBI education loans abroad offer 0.50% concessions for Girl Child and Rin Raksha Insurance, making it a preferable option for aspirants studying abroad. Additionally, the bank operates an extensive network and maintains its reputation as an accessible and credible partner to help facilitate the lending process.  

• Punjab National Bank (PNB)

Rate of Interest:  For Listed Universities starts at 9.25% and for Non-Listed Universities starts at 10.5%

For students interested in funding their education through a study abroad loan, the Punjab National Bank would be an extraordinary advantage. The student loan interest rates offered by PNB are all favorable, with a quantum of finance of up to 1.5 crores for secured loans. For example, the student can make payments flexibly and obtain a low interest rate while not serving the interest rate during the moratorium period. 

The bank offers low-interest rates on secured loans, with a 0.50% concession for Children and a 1% concession if the interest rate is served during the moratorium period. In addition, if your chosen university is among the top 50 global universities, you get an additional reduction in the overall interest rate.

• Bank of Baroda (BOB)

Rate of Interest: For Listed Universities starts at 9.70% and for Non-Listed Universities starts at 10.20%.

One of the largest and most popular financial institutions, Bank of Baroda, is known for its Study Abroad Loan options, mainly because of the financial aspect, interest rate, and a high quantum of finance of up to 1.5 crores. BOB considers education significance and exposure familiarity and, therefore, provides loan support facilities to students and an exemption from the interest rate during the moratorium period.

If your chosen university is on the list of premier universities of BOB, you get an even lower interest rate compared to the basic. Furthermore, it also offers a special concession of .50% for Girl Child. As it is with competitive interest rates, Bank of Baroda study abroad loans are the ones that take away the financial responsibility of the tuition fees, the living costs, and the other expenses that are related to education by offering 100% funding.

• Union Bank of India (UBI)

Rate of Interest: Offer Secured Loans for 9.25% and Unsecured loans for 9.75%.

Union Bank of India’s loan offerings with low interest rates and flexible terms can ease the burden of international students who face financial difficulties during their studies abroad. The bank appreciates the need for students to receive support for their academic endeavors while making the whole process affordable and accessible. 

UBI offers secured and unsecured loans with distinct interest rates based on its listed and non-listed universities. If your targeted universities are on their list, you get even lower interest rates. However, for non-listed universities, there is an interest concession of 1% during the moratorium period, making UBI stand out among other financial lenders.

• ICICI Bank

Rate of Interest: Offers a Secured and Unsecured loan between 10.65% – 12.75%

ICICI Bank is considered one of the first options for students, especially those seeking study abroad loans, because of its unique financial services. It offers a secured loan of up to 2 crore and unsecured loans of up to 1 crore. Besides the individuals targeting the system who intend to proceed to higher education overseas, ICICI Bank’s study abroad loan plans offer outstanding deals, including low-interest rates, flexible payment plans, and an easy application process. 

However, there is an obligation to pay interest rates during the moratorium period. Whether it’s secured or unsecured loans, ICICI Bank offers 100% funding and is an excellent option for those looking for education loans without having an asset. Also, compared to their private banks, the interest rates offered by this bank are comparatively low.

In conclusion, students and their families should not take a study loan lightly, as an education loan is a major financial decision. As good fortunes will have it, several banks provide highly competitive rates and favourable loan terms that aid this pursuit of the rest. By considering the loan offers of many banks, we have chosen five that are exceptional in providing low-cost loans for education abroad. 

When choosing the right bank for your study abroad loan, focus on some aspects, such as whether you are getting an added concession in the total interest rate or whether your chosen university is on the financial institution’s prime list. In that way, you can secure an added advantage during your educational journey.

If you are looking for options other than public or private banks, you can opt for NBFCs as well, such as HDFC Credila, Auxilo, Incred, Tata Capital or Avanse education loans for abroad studies. If the details offered in the article feel overwhelming, you can reach out to a global education consultant for guidelines on study abroad loans.