Foreign education is more than just a qualification – it represents a chance for unparalleled academic achievement and an international career. It is no wonder then, that thousands of Indian students are choosing to go abroad for higher education. Many of those students fulfill their dreams by availing themselves of an overseas education loan. Every lender offers various abroad education loan schemes for aspirants, with each having varied processing times and requirements. But which lender should one choose for quicker processing and lenient profile requirements? Well, one might want to consider a non-banking financial company (NBFC). These lenders are an alternative to other lenders that may have stricter requirements.
The major difference between NBFCs and banks is that banks rely on customer deposits to finance loans, whereas NBFCs can approach investors and other lenders to raise the funds needed. Although NBFCs are also regulated by the Reserve Bank of India (RBI), they have more flexible schemes for their client.
Since NBFCs offer loans with collateral alongside non-collateral education loans to study abroad, they can be a great option to consider. In this article, we will delve into the best NBFCs to approach for an overseas education loan.
3 Leading NBFCs for Education Loans to Study Abroad
1. Credila
Formerly known as HDFC Credila, this NBFC is known as one of India’s topmost overseas education loan providers. It is for offering reliable and timely loans with up to 100% funding margins, varied collateral and non-collateral options, and tax benefits. Let us delve into the details about Credila below.
- Maximum Loan Amount: The maximum loan amount for secured loans is dependent on the collateral value. Unsecured loans can range from INR 35 lakhs to INR 75 lakhs, depending on the study destination
- **Interest Rate: **For secured education loans, the rate of interest (ROI) starts at 10.25%. For unsecured education loans, the ROI starts at 11.50%
- Eligible Levels of Study: Secured loans are available for both Master’s and Bachelor’s courses. However, unsecured loans are available only for Master’s courses
- Funding Margin: Up to 100% funding available for both loan types
- Moratorium Period: Course duration + 12 months
- Loan Repayment Tenure: Up to 12 years, including the duration of the course
- Processing Time: Takes between 7 to 10 working days, depending on the loan type and documentation requirements
- Processing Fees: Between 1 and 1.25% of the loan amount + GST
2. InCred
InCred prioritizes a simple and accessible overseas education loan process for all its clients. It only offers unsecured education loans. InCred is known for its straightforward documentation process, comprehensive support services, and frequent approvals. Let’s explore some prudent information about it below.
- Maximum Loan Amount: The maximum amount for unsecured loans ranges from INR 25 to INR 80 lakhs across different study destinations.
- Interest Rate: Starts from 11.50% per year for unsecured loans
- Eligible Levels of Study: Students can apply for only Master’s level courses
- Funding Margin: Up to 100% funding for unsecured education loans
- Moratorium Period: Duration of the course + 12 months
- Loan Repayment Tenure: Up to 15 years, including the course duration
- Processing Time: Generally takes around 8- 10 working days
- Processing Fees: Around 1-1.25% of the loan amount + GST
3. Tata Capital
Owned by one of the most recognizable brands in India, Tata Capital is known for its reliability and quick loan processing time. It is also regarded among the top NBFCs for its attractive minimum income criteria. More details about Tata Capital are given below.
- Maximum Loan Amount: Up to INR 2 crore for secured loans and between INR 30 lakhs and INR 85 lakhs for unsecured loans, depending on the study destination and University category
- Interest Rate: Starts at 10.25% for secured loans and 11.25% for unsecured loans
- Eligible Levels of Study: Both secured and unsecured loans are available for Master’s and Bachelor’s-level courses
- Funding Margin: Up to 100% funding for both types of loans
- Moratorium Period: Course duration + 12 months
- Loan Repayment Tenure: Up to 13 years, including the course duration
- Processing Time: 3-10 business days after the application is submitted
- Processing Fees: 1% of the loan amount + GST
From a simplified education loan process to quick disbursement timings, NBFCs are a convenient option for students wanting to study abroad. For more information on the schemes offered by these lenders, students can reach out to expert overseas education loan consultants. Their team provides hands-on assistance with the loan application process for a smoother experience.
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