The onset of the pandemic has disrupted many students' plans to study abroad. Restriction on travel by countries had forced students to reassess their decision to seek higher education abroad.

Despite all this, as per MEA (Ministry of External Affairs), over 2.5 lakh Indian students went abroad in 2020. And as of February 2021, over 70K students have moved overseas for study purposes.

However, there is a gender disparity when compared to the number of male students to that of the number of female students going abroad for studies. Even the ratio of male students applying for education loans through WeMakeScholars is more than that of female students. 

Acknowledging the disparity, the public-sector banks have introduced a 0.50% interest rate reduction for female students, allowing them to get an education loan at a cheaper rate of interest. Aside from that, the education loan scheme offered to a female student is almost the same as it is for a male student. It is just that a female candidate gets an additional 0.50% concession on the interest rate. 

We've compiled the list of top banks offering education loans to female students in this article- Top Indian banks offering an education loan for studying abroad.

Types of Education loan:

Must Read- The Education Loan Procedure in India: Secured Loans and Unsecured loans

An overview of different Lenders:

1. Govt banks/ Public banks - If you have collateral, going with public banks is preferred since you can obtain an additional 0.50 percent discount if you are a female candidate.

• • Amount- You may be eligible for a loan of up to 1.5 crores, depending on the value of your collateral and your loan requirements.
  • Interest rates- Female students have an interest rate starting from 7.65%.
  • Processing fee- You will be charged a processing fee of INR 10,000 plus GST, as well as around INR 10,000 for legal and valuation of the collateral.
  • Repayment Period- You get your course duration+ 6 to 12 months as a payment-free moratorium period. Simple interest will be charged throughout your moratorium period, but you could pay it once your repayment period starts. The loan can be repaid over a period of up to 15 years.

2. Private banks- Private banks in India also do collateral education loans. However, students prefer taking non-collateral education loans from these private lenders. Private banks have a list of universities only for which they approve non-collateral education loans.

• • Amount- You may be eligible for a non-collateral education loan of up to 40 lakhs depending upon your university.
  • Interest rates- The rate of interest ranges between 10-14%.
  • Processing fee-The processing fee is 1% of the loan amount +GST and for some private banks, it is 15k +GST.
  • Repayment Period- The moratorium period is your course duration+ 6 months. Private banks do not offer a payment-free moratorium. You must pay full or partial interest and have 10 to 15 years to return the loan.

3. NBFCs- NBFCs are Non-Banking Financial companies and there are 4 NBFCs in India that provide non-collateral education loans or partially secured loans to students. Their offers are subject to the choice of your preferred country.

• • Amount- 60 lacs for the US, 45 lacs for the UK, 35 lacs for Canada, 20 lacs for Germany, 20 lacs for Australia, and can also go up to 30 lacs for top universities in other countries. 
  • Interest rates- ROI varies with country, for the US- 11% to 12%, Canada- 12% to 13%, others- 12% to 13.5%
  • Processing fee- The processing fee can be 0.95% to 1.5% of the loan amount.
  • Repayment Period- The moratorium period is the course period + 1 year and you will get up to 10 years to repay the loan amount. NBFCs also don't provide a payment-free moratorium period.

Why you should apply for your education loan through WeMakeScholars? 

1. The faster loan processing time with public banks- If applied via WeMakeScholars, the time taken for the education loan to get sanctioned at public banks is just 15 to 20 working days, as opposed to the normal 2-3 months.
2. Get immediate 0.5% concession in NBFCs- The NBFCs, unlike public-sector banks, do not have any concession on an interest rate of education loans for girls. Since WeMakeScholars is associated directly with the head office of these lenders, you get at least a 0.5% reduced interest rate on education loans, as a result, you get the best rate in the market.
3. Partially secured education loan- If you don't qualify for a non-collateral education loan, you may be able to receive a partially secured loan by pledging collateral. The value of this security can be less than the loan amount you're looking for. This is a little-known technique that can considerably improve your chances of securing a loan.

You may not be able to determine whether or not you are eligible for a partly secured loan from NBFCs on your own. Plus, NBFC loan terms are mostly flexible, so if you don't know how to negotiate, you may miss out on a better bargain. So, when you apply through WeMakeScholars, all of this is handled by our financial officials on your behalf. They will talk with the lender and get you the best deal possible. 

If you have any other questions regarding an abroad education loan or any other related topic, feel free to request a call back from the WeMakeScholars support team for clarifications. We are very active online and would love to answer your comments. 

Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 10+ public/Pvt banks/ NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it’s free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, New Zealand, France among others.