When planning to study abroad, students often focus on things like the application process, university deadlines, and visa procedures. However, the biggest concern for most students is finding the funds for their higher education. They explore various financial institutions and compare options based on interest rates, moratorium periods, and loan tenures.
Two banks often stand out for Indian students seeking education loans that is Axis Bank and Punjab National Bank Abroad education loan. Why? This article will compare education loans from these banks to help you decide which one is the best option for financing your studies abroad.
Key Details of Axis Bank Education Loan
- Income Requirement
The loan amount depends on the income of the sponsors.
- Quantum of Finance
Student Loan (SL): Up to ₹1.5 crore (no limit, depending on credit profile).
Unsecured Loan (UL): From ₹ 7.5 lakhs to up to ₹ 75 lakhs.
- Funding & Margin
Unsecured Loan: Up to 100% funding.
Secured Loan: Up to ₹1.5 crore and above, with 85% funding and a 15% margin.
- Interest Rate
Unsecured And Secured Loan: 10.5% – 11.25%
- Study Level & Courses
Secured loans are available for all course levels.
No loans for undergraduate diplomas or certificates.
- Tenure
Up to 15 years
- Disbursement
Tuition Fees: Sent directly to the university.
Living Expenses: For on-campus accommodation, sent to the university account; for private accommodation, 3-6 months of living expenses are loaded on a Forex card or sent to the landlord’s account, depending on visa norms. Pre-visa and post-visa disbursement as per country norms.
- Acceptable Property for Loan
No loans on open plots or on two properties.
65% of the property’s market value is considered for loan sanction.
- Security Margin
85% of the market value.
90% against fixed deposits (FDR).
- Bank Charges
No charges for valuation and search report.
Processing Fee: 0.5% – 0.75% of the loan sanction amount (LSA) plus 18% GST.
- Sponsors
Parents, grandparents, or immediate family.
- Offer Letter Requirement
Loans can be processed based on conditional or unconditional offer letters.
For the USA, the I-20 is not required.
- Simple Interest
Mandatory to pay simple interest once the loan is disbursed.
- Moratorium Period
Course duration plus one year.
- Stamp Duty for Mortgage
Equity Mortgage: 0.3% of the loan amount.
Notice of Intimation: 0.5% of the loan amount (maximum ₹15,000).
- Turnaround Time (TAT)
20-25 days for both secured and unsecured loans.
- Facing Balance Requirement
Must show a balance in the form of fixed deposits, savings, or current account certificates.
Key Details of Punjab National Bank Education Loan (PNB) Udaan
Now let us list down the details of the PNB Education Loan for abroad studies, also known as PNB Udaan,
- Income Requirement
Accepts all income groups.
For secured loans (SL), only property is considered.
- Quantum of Finance
Secured Loans: Up to ₹1.5 crore.
- Funding & Margin
Up to ₹1.5 crore with 85% funding and 15% margin.
- Interest Rate
Secured Loan: 10.50%
0.5% concession for girl students.
1% concession if interest is paid during the moratorium period.
For the top 50 world universities the interest rate is 9.25%.
- Study Level & Courses
Secured loans are available for all course levels including pathway, foundation, and integrated courses.
- Tenure
Up to 15 years.
- Disbursement
Tuition Fees: Sent directly to the university account.
Living Expenses: For on-campus accommodation, sent to the university account; for private accommodation, 3-6 months of living expenses are loaded on a Forex card or sent to the landlord’s account, depending on visa norms.
Pre-visa and post-visa disbursement as per country norms.
- Acceptable Property for Loan
Loans are available on residential flats, houses, shops, commercial properties, fixed deposits, and LIC policies.
No loans on open plots.
- Security Margin
100% of the realizable value of the property is sanctioned for the loan.
- Bank Charges
Valuation Report (VR) and Search Report (SR) charges apply.
Processing Fee (PF): ₹10,000 + GST (refundable after disbursement).
- Sponsors
Parents, grandparents, immediate family, family friends.
- Offer Letter Requirement
Loans can be processed based on conditional or unconditional offer letters.
For the USA, the I-20 is not required.
- Simple Interest
Paying simple interest during the study period is optional.
- Moratorium Period
Course duration plus 12 months.
- Stamp Duty for Mortgage
Equity Mortgage: 0.3% of the loan amount.
Notice of Intimation: 0.5% of the loan amount (maximum ₹15,000).
- Turnaround Time (TAT)
10-15 days
- Facing Balance Requirement
Must show a balance in the form of fixed deposits, savings, or current account certificates.
In summary, these are the key details about the education loans provided by both Axis Bank and Punjab National Bank. If you want to explore more about education loan without collateral or with collateral, it is a good idea to consult with a trusted financial advisor in your area. They can provide you with personalized guidance and help you make the best decision for funding your studies abroad.
