Because higher education abroad is costly for students, particularly those from India, they only have the choice of asking for educational loans to fund their studies. Universities in foreign countries charge an Indian student on average INR 20-35 lakhs for a year of education. Those who are unable to pay this lump payment in full must apply for loans. For acquiring an educational loan, you have the following options:

Public Banks

In terms of collateral, they normally provide students with educational loans that are 90% to 100% secured. Another benefit of using a nationalized bank is that it offers cheaper interest rates, fewer processing fees, and no additional interest rate costs. Application processing may take longer than expected, and follow-up may be delayed as a result. 

Private Banks

The process of securing a loan is faster than that of India's nationalized banks. Improved follow-ups, as well as a dedicated relationship manager, are offered. In terms of processing expenses and interest rates, private banks are more expensive, and they frequently provide unsecured school loans. As a requirement of getting an unsecured loan, the applicant or student does not have to mortgage or provide an asset or security. Private banks, such as Axis Bank and ICICI Bank, for example, provide unsecured loans to students admitted into foreign colleges for further studies.

NBFC or Non-Bank Financial Companies

The NBFC is the third option for students seeking educational loans to study abroad. This includes HDFC Bank Credila education loan, Auxilo, and other companies that provide loans to students depending on the final approval from the colleges or universities. This simply facilitates the release of tuition fees, as well as direct sanctions from the financial institution in charge of handling, and it reflects in the bank account. Therefore, students who intend to apply for an educational loan to study abroad should explore this alternative as well.