Government education loans for studying abroad – Options for Indian students

Education loans for abroad studies by the Indian government are one of the best loan options for meritorious Indian students for several reasons. Let’s go through them one by one.

1. You can consider education loans for abroad studies by the Indian government if you get selected by a top college in any top country. Multiple universities and colleges in the US, the UK, Australia, France, Austria, and other countries of Europe are on that list.
2. Lower rates of interest. As compared to private banks, government education loans for studying abroad come with a lower rate of interest.
3. The rate of interest is less likely to fluctuate if you get a government education loan for studying abroad. Every rate of interest has a flexible component that is dependent on economic conditions. That component fluctuates a lot more with private banks.
4. Education loans for abroad studies by the Indian government charge a lot less in processing fees. It is another financial advantage for Indian students who are planning to do their Masters abroad.

These make it one of the most sought-after financial solutions for Indian students who want to study abroad.

In this article, we will let you know which government banks are the best for international educational loans for Indian students and how we can help you secure the best education loan for yourself.
Best Government education loans for studying abroad

Name of the scheme

Salient features

National Backward Classes Finance and Development Corporation (NBCFDC)

  • For students from backward classes who are below the poverty line and have a family income of less than ₹3.30 lakhs.
  • The maximum loan amount is ₹20 lakhs.
  • Students must have secured at least 70% of their college education.

Padho Pardesh Scheme

  • Students can apply for this scheme if they secure more than 60% in class 12.
  • The gross family income should be less than ₹4.5 lakhs.
  • Students belonging to certain minorities can avail of a 100% subsidy if they are meritorious.

Dr. Ambedkar Central Sector Scheme

  • This scheme offers 100% subsidy to meritorious students with a financially weaker background.
  • The student should score at least 60% in class 12.
  • The gross family income should be less than ₹3 lakhs.

 

Documents required for applying for a government education loan for studying abroad

1. Filled application form (online).
2. Scholarship documents.
3. Bank documents – income proof, details about running loans, etc.
4. Identification documents proving citizenship.
5. Admission letter from college/university.
6. Self-declaration letters for getting the loan sanctioned.

How to apply for a government education loan for studying abroad

You can apply for each of the government loan schemes from their unique web pages, but there is another centralized solution for it.

In the financial year (FY) 2015-16, Arun Jaitley, the finance minister proposed a digital solution through which Indian students can apply for loans in both India and abroad.

Vidya Lakshmi is the first one of its kind education loan portal that students can use to apply for 131 schemes and loans from multiple banks. This platform can be used to track loan applications as well. However, there are a few demerits with Vidya Lakshmi –

1. For studies within India, you can get a maximum loan of ₹7.5 lakhs.
2. For studying abroad, the maximum limit is ₹15 lakhs.

This is particularly challenging as studying abroad can be much more expensive than that.

Furthermore, you cannot get loan options from non-banking financial institutions (NBFCs) and private moneylenders. Even though you are just looking for an education loan for abroad studies by the Indian government, it doesn’t hurt to have multiple options.

If you don’t have many options, you can’t really choose an education loan that is best for you.

How to choose the best education loan for studying abroad

If you do not find the best government education loan for studying abroad for any reason, do not get disheartened.

Getting an education loan for abroad studies by the Indian government can be difficult as there is a lot of paperwork involved and the speed of the process.

There is another proven way that will help you secure an education loan that is best for you.

FundRight.

Here is how FundRight has been empowering students just like you by helping them secure the best loans including education loans for abroad studies by the Indian government for studying abroad.

Choose from 30+ moneylenders

In today’s world, having multiple options is necessary especially when you are looking for a government education loan for studying abroad.

It gives you an advantage when making a financial decision like picking one of the many education loans for abroad studies by the Indian government.

Select from 30+ public and private banks, NBFCs, and private moneylenders with FundRight.

Every student is different and unique and so are their financial needs. Loan amount, margin money, collateral, repayment period, etc., are some of the many factors that are unique to you. \

Hence, we made sure that you have as many options as you might need while choosing the perfect education loan for abroad studies by the Indian government.

We are also adding more options consistently to give you even more options.

No more back and forth with banks

The biggest drawback while getting a government education loan for studying abroad is dealing with their long, slow, and inefficient process. After you fill up the initial set of forms, there will be amendments and corrections as the bank continues to request more information from you.

This results in you running back and forth to the bank, submitting new documents to ‘complete’ your profile so that it will be examined by bank officials. A necessary process before the education loan for abroad studies by the Indian government is approved for you.

Not to mention, this process is dependent on how available bank employees are.

With FundRight, you have to submit your documents once.

After you create an account and submit your details, we will share the relevant information with the moneylenders to get you quotations. Our method saves a lot of time, money, and stress for Indian students who want to take a loan to study abroad.
Get loan recommendations in 48 hours
As soon as you let us know a bit about your preferences, we will forward those details to all the moneylenders in our database. They will evaluate your profile and will send you multiple education loans for abroad studies by the Indian government to choose from immediately.

Receive loan options from banks and NBFCs within two days.

The best part about our process is that you won’t even have to leave your home. Our process is entirely digital and we will send you loan options directly to your inbox.

This will put you in a position of advantage as you will be sitting on multiple offers of education loans for abroad studies by the Indian government as opposed to the bank calling the shots. As a result, you become the selector instead of the other way round.

Save money by making banks compete

FundRight is India’s first loan-bidding platform. It means, that when moneylenders (banks and NBFCs) examine your profile, they will compete to get your approval. Consequently, you will get the best deal and the best government education loan for studying abroad.

Save 2-5% on your loan interest with FundRight.

Apart from giving meritorious students who want to study abroad multiple education loans for abroad studies by the Indian government options, our aim was to save them money. By making the moneylenders compete, you can choose the option which is best for you.

This is something you cannot do while only applying for an education loan for abroad studies by the Indian government as you will have limited options or none at all.
Receive unbiased advice from experts
In the case of an education loan for abroad studies by the Indian government, the ‘experts’ will work to get the bank the best deal. In other words, they won’t have your best interests at their heart.

At FundRight we will have your profiles and loan applications evaluated by unbiased experts.

To ensure that the process is transparent, we will hide unique identifiers from your profile before sharing them with the experts. They will only look at the details they need to recommend the best government education loan for studying abroad to you.

Your choice of college will be evaluated on the latest parameters

If you don’t know this yet, bankers examine your college/university on a variety of parameters before letting you know the details about your loan. This is true even when you are getting an education loan for abroad studies by the Indian government.

Unfortunately, most traditional (government) banks huge colleges on the basis of outdated parameters. That means you will not secure the best loan.

FundRight evaluates colleges on 100+ relevant parameters while giving out a loan.

This helps us pitch your profile to our moneylenders and secure a great deal. As we have public banks in our database, we can also get you a great government education loan for studying abroad.

The importance of selecting the right college cannot be understated. This brings us to the next point.

We can also help you select the college/university that is best for you.

Just like helping you secure the best loan, we will send you college recommendations after you sign up and create a SELECT profile.
Secure the best education loan for abroad studies by the Indian government today
Secure the best education loan for studying abroad with FundRight.

Let us know your preferences and we will take care of the rest.

FAQs

1. Are government loans for studying abroad better than private loans?Answer: It is hard to say which loan is best for you as it depends on a variety of factors. Both kinds of moneylenders have their own advantages which makes them a preferred choice for different kinds of students who want to study abroad.
2. Which government education loan scheme should I go for?Answer: It depends. You need to fall in the income bracket, meet the caste requirements, and have the merit for the same. The best idea is to fill the form on Vidya Lakshmi and see which schemes you can apply to.
3. Can I apply for other scholarships along with the schemes?Answer: Yes. Make sure that you qualify for both.

India's First Loan Bidding Platform

Get online lenders to bid on your profile to get the best student loans.

Leave a Comment

Your email address will not be published.