Santa Monica has a close tie ups with banks who readily offer loans to students who plan to Study Abroad. For International students, there are numerous options offered by Indian banks, foreign banks and non-co-signer loans. Generally, it is noticed that if students get admission offers from top Universities, the loan may be sanctioned without the requirement of a co-signer based in the country where the University is established. In other situations, the financial institutions and banks require a home country based co-signer or a co-signer residing in the country where you intend to go. Finance Sources for higher education in India is Bank Loans, Education Trusts & Endowments & Fellowships. The main Sources in other countries for studies are University Funding, Scholarships and then Loans from Banks
A comprehensive educational loan scheme was framed with the consultation of Government of India with reserve bank of India and Indian bankers association. This scheme can avail a loan of up to 7.5 lakhs in India and up to 15 lakhs for abroad studies. These figures are not stable in nature for banks. State bank of India is availing an upper limit of 20 lakhs and in recent days. Indian banks have upgraded its maximum limit to 15 lakhs for education in India and 25 lakhs for abroad studies. All the details given below will change time to time and students are advised to get right information from the banks concerned.
ELIGIBILITY
The eligibility criteria of the bank to obtain an educational loan from any bank of India:-
- The student who is seeking for educational loan should be Indian national
- The student should have secured admission to professional/ technical courses through entrance test /selection program
- The student should have secured admission to foreign university/institution
DOCUMENTS
You need to keep the following documents in place before applying for an educational loan:
- Mark sheets of the last qualifying examination for school and graduate studies in India.
- Proof of admission to the course.
- Scheduling of expenses to the course.
- Copies of letter confirming the scholarship.
- Copies of foreign exchange permit, if applicable.
- Two passport size photographs.
- Bank statement for the last six months of the borrower.
- Income tax assessment order not more than two years.
- Brief statements of assets and liabilities of the borrower.
- If you are not an existing bank customer you would need to establish your identity and give proof of residence.
If the course cost is up to 4 lakhs, nil for both studies in India and abroad. If the course cost is above 4 lakhs, 5% for inland studies and 15% for studies abroad.
SECURITY
Banks have the following security/collateral security requirements for granting loans to students. However, the requirements differ from bank to bank.
Loan up to INR 4 lakhs. No collateral security.
Loan above INR 4 lakhs and up to INR 7.5 lakhs. Security in the form of Satisfactory third party guarantee.
Loan above INR 7.5 lakhs.
- Collateral security of suitable
- Co-obligation of parents/guardians/third Party along with assignment of future Income of the student for payment of Installments.
RATE OF INTEREST
The rate of interest is 10.75 % up to INR 4 lakhs and it does not exceed the Prime Lending Rates (PLR). For a loan above INR 4 lakhs, the interest rate is 11.75 % and it will not exceed PLR plus 1 percent. However, the rate of interest is subject to changes as per the specifications of RBI or the concerned bank.
REPAYMENT HOLIDAY
Loans are repayable in 5 to 7 years. Repayment of both principal and interest will start after one year after completion of the course or six months after getting employment, whichever is earlier. Interest will be charged on simple basis during the period of study / moratorium period. At the commencement of repayment, the accrued interest is added to the principal amount and Equated Monthly Installments (EMIs) fixed on total outstanding amount. After commencement of repayment, the benefit of simple interest would be discontinued.
PROCESSING FEE
Most of the Indian banks do not charge any processing fee or upfront charges. The State Bank of India accepts a deposit of INR 5000 for education loan for studies abroad, which is adjusted in the margin money.
CREDIT DELIVERY
You can avail the loan from the branch nearest to the place of your permanent domicile.
DISBURSEMENT
while applying the loan, in the case of normal course your future income prospect will be taken into account. If required the means of your parent or guardian can also be taken into account to evaluate re-payment capability.
The loan is sanctioned as per delegation of powers preferably by the branch nearest to the place of domicile. No application for educational loan received is rejected without the concurrence of the next higher authority.
The loan is disbursed in stages as per the requirement/demand directly to the institutions/vendors of books/equipments/ instruments to the extent possible.
FOLLOW UP
The bank from which you have availed the loan can contact the college/university authorities to send your progress reports, at regular intervals.
CAPABILITY CERTIFICATE
If you are going abroad to study, some of the foreign universities require you to submit a certificate from your bankers about the sponsor's solvency/financial capability with a view to ensure that your sponsors are capable of meeting the expenses till completion of studies. Accordingly branches can also issue the capability certificate. For this financial and other supporting documents may be obtained from you, if required.
Finally, you need to hit on the right bank with the right educational loan scheme to suit your needs. Parameters to weigh the alternatives are many; as in, whether the bank provides loan for the course you are opting for and if yes, then up to what extent, the margin and security requirements, the rate of interest, proximity of bank to your residence, et al. The discretion is yours after a through analysis.
(Courtesy: Indian Bank website)
Companies who provide student loans.
Andhra Bank
Need based finance subject to repaying capacity of the parents/ students with a maximum of Rs.10 lacs. The scheme will apply to deserving/ meritorious students who wish to pursue studies abroad. Students can take loan for Graduation and post graduation – For job oriented profession/ technical courses offered by reputed universities.
Allahabad Bank
Need based finance subject to repaying capacity of the parents / students with following ceilings:
Studies in India: Maximum Rs 10.00 lacs
Studies abroad: Maximum Rs. 20.00 lacs.
Repayment Holiday / Moratorium is Course Period + 1 year or 6 months after getting job, whichever is earlier. Loan to be repaid within a maximum period of 7 years after commencement of repayment.
Axis Bank
Axis Bank's Study Power aims to provide financial support to deserving students for pursuing higher professional or technical education in India and abroad. The loan would be provided to students who have obtained admission to career-oriented courses eg, medicine, engineering, management etc., either at the graduate or post-graduate level.
Bank of Baroda
Whether you are planning school education (nursery to standard XII) of your child, pursuing a graduate or post-graduate degree, the Bank of Baroda Education Loans, can help finance your ambitions and goals.
Bank Of India
The Star Educational Loan Scheme aims at providing financial support from the bank to deserving/ meritorious students for pursuing higher education in India and abroad. The main emphasis is that every meritorious student is provided with an opportunity to pursue education with the financial support on affordable terms and conditions.
Bank of Maharashtra
Rate of Interest for Loans up to Rs. 4.00 lac (BPLR – 2.00%) Loans above Rs. 4.00 lac (BPLR - 1.25%) Student can apply education loan in online mode through website. This Facility is presently available only in selected 75 branches
Canara Bank
Financial assistance to needy and meritorious Indian students for pursuing studies from High School onwards including graduation, technical and professional courses. Loans are also provided for Study Abroad for job oriented courses at degree level and advanced studies in all areas for post-graduation. For payment of fees to school/college and for purchase of books, hostel fees, examination fees, etc.
Central Bank of India
For payment of Hostel fee caution deposit, refundable deposit, admission, examination, library, laboratory, cost of books, equipments, uniforms, computer (Hypothecated). One-way air passage in case of studies abroad. Reimbursement of admission fee books airfare etc., if already incurred, within 1 month for studies in India / 6 weeks for abroad. Repayment to commence 12 months after completion of studies or 6 months after securing jobs whichever is earlier. Maximum period 5 to 7 years. Repayment on EMI basis.
Centurion Bank of Punjab
For payment of Hostel fee caution deposit, refundable deposit, admission, examination, library, laboratory, cost of books, equipments, uniforms, computer (Hypothecated). One-way air passage in case of studies abroad. Reimbursement of admission fee books airfare etc., if already incurred, within 1 month for studies in India / 6 weeks for abroad. Repayment to commence 12 months after completion of studies or 6 months after securing jobs whichever is earlier. Maximum period 5 to 7 years. Repayment on EMI basis.
CityUnion Bank
The Educational Loan Scheme aims to provide financial support to deserving/meritorious students for pursuing higher education in India and abroad. The Scheme also aims to provide financial assistance to the needy poor to undertake basic education. Need based finance subject to the repayment capacity of parents/guardian subject to :
a) Max. upto Rs.10 Lakhs for studies in India.
b) Max. upto Rs.20.00 Lakhs for studies abroad.
Credila Financial Services
Credila is a Subsidiary of HDFC Ltd. Credila is the only lender which is exclusively focused on Education Loans and it provides loan at a competitive rate of interest12.50% p.a.
Dena Bank
Ensure a bright future for your children. Provide them with the best of higher education in India or abroad. Avail Dena Vidya Laxmi Educational Loan. (log on to www.vidyalaxmieducationloan.com)
Development Credit Bank
Educational Loans for providing financial support to deserving/ meritorious students for pursuing higher education in India and abroad.
Post graduation courses from recognized universities
Professional courses from reputed institutes
Courses conducted by IIM, IIT, IISc, XLRI, NIFT, etc.
Courses conducted by CIMA – London, CPA – USA, etc.,
Courses in Universities which take admissions through TOEFL,GMAT,GRE,SAT exams
Only one course at a time will be financed
HDFC Bank
Credila is a subsidiary of HDFC bank. It is exclusively focused on education loan.
HSBC
HSBC India Student Education Loan Program can help ease students' financial concerns as they embark on one of the biggest decisions in their life – attending the college / university of their dreams. The program enables you to borrow funds to cover the cost of education – tuition, fees, room charges, boarding, books, and other education-related expenses.
IDBI Bank
Education loans from IDBI Bank aim at providing financial support to deserving/ meritorious students for pursuing higher education in India and abroad. With an array of courses to choose from and easy repayment options, IDBI Bank makes sure you get complete financial backing.
Karnataka Bank
Vidyanidhi Education loan scheme ref: website of Karnataka Bank
Oriental Bank of Commerce
Air fare for joining the course abroad, Boarding & lodging expenses of hostel/boarding houses, where charges are standardized and paid to the Management of the Boarding House. Any other expenses required to complete the course like study tours, project work, thesis etc. Indian nationals not above 45 years of age those who secured admission in a recognized course of an approved university (AICTE approved institutions) OR institutes recognized by a statutory body.
Punjab & Sind Bank
The educational loan scheme outlined below aims at providing financial support from the banking system to deserving and / meritorious students for pursuing higher education in India and abroad. The main emphasis is that every meritorious student though poor is provided with an opportunity to peruse education with the financial support from the banking system with affordable terms and conditions. No deserving student is denied an opportunity to peruse higher education for want of financial support.
Punjab National Bank
The Scheme aims at providing financial assistance to deserving / meritorious students pursuing higher education in India or abroad. viz., Graduation courses – B.A., B.Com., B.Sc., etc., Post-Graduation courses, Masters & Ph.D; Professional courses, Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc., Computer Certificate courses of reputed Institutes accredited to Department of Electronics or institutes affiliated to University; Courses like ICWA, C.A., CFA, etc., courses conducted by IIM, IIT, IISc, XLRI, NIFT, etc., Regular Diploma/Degree courses conducted by Colleges/Universities approved by UGC/Govt./AICTE/AIBMS/ICMR, Regular Degree / Diploma courses like Aeronautical, Pilot training, Shippling etc. approved by DGCA/ etc., Courses offered by National Institutes and other reputed Private Institutes.
State Bank of Bikaner & Jaipur
To extend financial assistance to all eligible / deserving / meritorious students for pursuing higher education in India & Abroad. Need based finance subject to repaying capacity of the parents / students :-
Studies in India - Maximum Rs.10.00 lacs
Studies abroad - Maximum Rs.20.00 lacs
State Bank of India (SBI)
SBI Student Loan Scheme
Loan Amount Rate of Interest
Loans upto Rs. 4.00 Lacs 0.50% below SBAR i.e. 11.25% p.a.
Loans above Rs. 4.00 Lacs and upto Rs. 7.50 Lacs 1.00% above SBAR i.e. 12.75% p.a.
Loans above Rs. 7.50 Lacs At SBAR i.e. 11.75% p.a.
State Bank of Mysore
To enable students with academic brilliance to meet tuition and other fees / maintenance costs / books and equipment and cost of passage for studies abroad etc., for pursuing studies at recognized school / college / institution. Diploma / Graduate / Post-graduate courses in the faculties of Engineering, Technology, Architecture, Medicine, Dental Science, Agricultural Science, Veterinary Science and Computer Certificate courses of reputed institutes accredited to department of electronics or affiliated to university
State Bank of Travancore
To meet the tuition and other fees\Examination\Library\Laboratory fee, cost of books\purchase of Computers\equipments\instruments\uniforms and the cost of passage for studies abroad. Caution Deposit, Building Fund, Refundable deposit subject to 10% of the Tuition Fee. Any other expenses required to complete the course like study, tours, project work, thesis etc. also be financed.
Syndicate Bank
SyndicateBank's involvement in education dates back to the decades prior to the Nationalization of Banks. The Bank was also the first to set up a string of Rural Training Institutes aimed at empowering the young India in rural areas through entrepreneurial education and training. Tamil Nadu Mercantile Bank Ltd This is scheme of choice for parents who wish to educate their children in professional courses in India / Abroad and help them get graduation / post graduation in any field of choice of the student. The cost of the education can be borne by the loan from our bank.
Vijaya Bank
Student should be an Indian National and should have secured admission to the relevant Professional/ Technical courses in India or Abroad through Entrance Test/ Merit Based Selection process. However there is no age restriction for the applicant.
All information given above is subject to change. Candidates are advised to keep themselves updated on the above information including loan requirement, interest rates etc., through the respective official websites or concerned personnel in the institution or Santa Monica's expert Counselor.