NBFC, aka Non-Banking Financial Company, is a financial institution that does not hold a full banking license and is regulated by the Reserve Bank of India (RBI). The RBI authorizes them to provide student loans. An NBFC education loan is designed to help students in their education abroad.
Table of Contents:
- Key Features of NBFC Education Loans
- Top NBFCs Offering Education Loans in India
- Education Loans for Studying Abroad: Banks vs. NBFCs
- Frequently Asked Questions
Key Features of NBFC Education Loans
NBFCs offer education loans for study abroad with features that differ from banks. Key features of NBFC education loans are as follows:
| Particulars | Details |
| Loan Amount | Can range from INR 50,000 to 50 lakhs or more |
| Coverage | Tuition fees, living expenses, travel costs, and more |
| Grace Period | 6 – 12 Months |
| Interest Rates | Typically 8% – 16% |
| Collateral | Collateral as well as no collateral loans available |
| Processing Fees | 1% of the loan amount |
| Repayment Tenure | Can be up to 10-15 years |
Top NBFCs Offering Education Loans in India
Several NBFCs offer education loans in India to students planning to study abroad. These top NBFCs usually offer student loans for international students with flexible repayment options, competitive interest rates, and more. Here are some of the top NBFCs offering education loans in India:
| Bank | Interest Rate | Loan Amount |
| Avanse | 14.55% | Up to INR 1.25 Crore |
| Auxilo | BLR 15.10% | 100% Financing |
| Axis Bank | 13.70% – 15.20% | Up to INR 1 Crore |
| Bank of Baroda | Starting from 9.45% | Up to INR 1.25 Crore |
| HDFC Bank | Starting from 8.64% | Entire Cost of Education (with Collateral) |
| Prodigy Finance | Starting from 8.35% | Up to 2,20,000 USD or 100% of your expenses |
Education Loans for Studying Abroad: Banks vs. NBFCs
If you are confused about whether you should take a loan from a Bank or an NBFC, here’s a detailed table comparing both of them:
| Features | Banks | NBFCs |
| Loan Amount | Loans up to INR 2 crores | Loans up to INR 1-1.5 crores |
| Collateral | Require collateral for large loan amounts | Offers both collateral and no collateral loans |
| Interest Rates | 8 – 13% per annum | 8% – 16% per annum |
| Processing Fees | INR 10,000 – 15,000 | 1-2% of the loan amount |
| Processing Time | 20 – 30 days | 7 – 10 days |
| Repayment Terms | Longer tenure up to 15 years | Shorter tenure, up to 10-15 years |
Frequently Asked Questions
Can I get an education loan for abroad from NBFC?
Yes, you can get an education loan abroad from an NBFC. Avanse, Bank of Baroda, and Prodigy Finance are some of the top NBFCs offering education loans.
Are there any benefits of taking a study abroad loan from an NBFC?
NBFCs usually process loans faster than banks and require fewer documents. The repayment period is usually 10-15 years, giving you ample time to repay the loan.
Who is eligible for an NBFC education loan abroad?
To fulfill the abroad education loan eligibility criteria for an NBFC education loan, you must be an Indian citizen. You must provide proof of admission and have a co-signer with a stable financial background for the loan.
What documents are required for an NBFC education loan abroad?
Proof of identity, proof of address, academic record, admission letter, income proof, and bank statements are some of the documents required for an NBFC education loan abroad.
Can I get an education loan without collateral from an NBFC?
Yes, you can get an education loan without collateral from an NBFC. However, you must have a strong academic profile and a co-applicant.
What is the foreign education loan interest rate?
The foreign education loan interest rate ranges from 8% to 16%. However, the rate may vary depending on the loan amount, credit history, university, and program.
