Eligibility Criteria for Study Abroad Loan of Top Nationalized Banks

Pursuing higher education abroad offers innumerable opportunities for personal and professional growth. But when it comes to the monetary aspects of studying abroad, it can be a major hurdle for many aspirants.

To ease things up, taking an education loan has become the most sought-after funding choice for many international scholars. Many financial lenders are offering these loans, among them particularly those offered by nationalized banks in India are a leading choice.

These banks not only provide strong financial support to deserving students but also give the best interest rates. But before you can benefit from these loans, it's essential to understand the education loan eligibility for both applicants and co-applicants.

This article will walk you through the necessary requirements, helping you understand the process with confidence.

Top Nationalized Banks for Overseas Education Loan

Nationalized banks in India are known for their reliable and customer-friendly education loan schemes. Here are some of the top banks offering overseas education loans:

1. State Bank of India (SBI)
2. Punjab National Bank (PNB)
3. Bank of Baroda (BoB)
4. Union Bank of India
5. Bank of India
6. Bank of Maharashtra

These banks provide a range of loan schemes to meet the diverse needs of students aspiring to study abroad. Their schemes holistically cover tuition fees, accommodation, travel expenses, and other related costs.

Eligibility Criteria for Loan Applicants

Meeting the eligibility criteria is the first step towards securing an education loan. Here are the common requirements for loan applicants:

• Admission Confirmation - Applicants must have a confirmed admission to a recognized University or Institution abroad. This is evidenced by an offer letter from the Institution.
• Academic Background - A strong academic record is essential. Banks often require a minimum percentage of marks in the qualifying exams. Usually, 60%+ in Higher Secondary or Graduation is accepted. Consistent academic performance and achievements in previous education levels can enhance the chances of loan approval.
• Course Type - The course for which the loan is sought should be job-oriented, such as professional or technical courses at graduate or post-graduate levels. Courses in fields like Engineering, Medicine, Management, and Applied Sciences are usually given priority.
• Age Criteria - Applicants should generally fall within a specific age range, often between 18 and 35 years. However, this can vary slightly from bank to bank.
• Entrance Exams and Language Proficiency - For countries where entrance exams like GRE, GMAT, or language proficiency tests like TOEFL or IELTS are mandatory, applicants need to have the requisite scores. Some banks may also consider scores from national-level entrance exams in India.
• Indian Citizenship - The applicant must be an Indian citizen with a valid Indian passport.

Eligibility Criteria for Loan Co-applicants

A co-applicant plays a decisive role in securing an education loan, as they provide a financial guarantee to the bank. For some education loans without collateral, co-applicants are required as well. Here are the standard eligibility criteria for co-applicants:

• Relationship with Applicant - Co-applicants are usually immediate family members such as parents, siblings, or spouses. In some cases, guardians may also be acceptable. The relationship should be clearly documented and verifiable.
• Income Stability - The co-applicant should have a stable and regular source of income. Banks typically require proof of income, such as Salary Slips, Income Tax Returns, or Business Income Proof.
• Banks prefer co-applicants with a steady employment history and sufficient income to cover the loan repayments if needed.
• Credit History
• A good credit score is essential. Co-applicants should have a clean credit history with no defaults. This is important as it impacts the loan approval process. The co-applicant’s credit score should be above 700. Banks often review the credit reports of co-applicants to assess their financial discipline and repayment capacity.
• Indian Citizenship
• Like the applicant, the co-applicant must also be an Indian citizen. In the case of NRIs or PIOs, additional documentation and verification processes may be required.
• Age Limit
• Some banks may have age criteria for co-applicants, often up to 65 years of age. It’s important to ensure that the co-applicant is within the permissible age range to avoid complications in the loan approval process.

These are the required information that you must know about securing an overseas education loan from a nationalized bank. By understanding and meeting the eligibility criteria for both applicants and co-applicants, you can have a streamlined loan application process.

Once these criteria are fulfilled, you are well on your way to starting your loan application with any of the leading banks like SBI, PNB, BoB, Union Bank of India, etc. Research well about their loan offerings and choose the most suitable option. SBI education loan interest rate for abroad is relatively lower than UBI. However, Union Bank of India offers more loan amounts than SBI. So, finalise your loan provider and achieve your academic dreams abroad!