Processing Fee for Education Loan to Study Abroad: A Game Changer
Posted: Jun 07, 2020
Processing fees are charged by the banks or financial institutions to cover the operational or processing costs incurred during the education loan to the study abroad process. The amount may vary across different banks and types of education loans for study abroad vs in India for non-degree courses. Generally, banks do not charge a processing fee or refund it, there are many financial institutions that may charge some minimum non-refundable charges. Therefore, it is very important to take note of the processing fees charged by lenders for education loans whether you consider banks in India or international lenders. For instance, international lenders like Prodigy Finance and MPower Finance generally charge 2.5% to 5% of the total education loan as processing fees. This fee, if translated in indian rupees can significantly make your education loan costly. This blog post will discuss a few details that will help you highlight how processing fees can increase your loan cost in Indian. Take a Look!
Processing Fee for Education loan for Study Abroad
Processing fees of government banks like Bank of India, Bank of Baroda, and State Bank of India for education loan in India is generally INR 10,000 (fixed) + Other charges applicable to extra services while in NBFCs & Private Banks, the applicants may be charged 0.9% to 2% of the entire education loan amount. These figures may appear to be slightly on the higher side when compared to the processing fees charged by government banks, they can significantly impact your education loan for study abroad cost, especially for higher amounts. The maximum education loan for study abroad amount that can be availed in India is INR 1.5 Cr. which is lent by SBI, one of the most prominent government banks in India. Therefore, if a student borrows the highest amount of loan from SBI, they may need not worry about the processing fee. But for NBFCs and private banks that lend unsecured education loans amounting to INR 50 Lakhs for education loans for study abroad, students may be concerned about paying significantly more processing fees for lesser loan amounts.
Processing Fee for International Lenders
Generally, international lenders do not charge any upfront processing fee but there are some that may take a toll. Although nothing is upfront but the percentage is high, when compared to INR, and hence these banks may end up charging higher amounts which significantly increases the loan amounts. For instance, if a bank provides a loan of USD 1,00,000 with a processing fee of 5 percent, it may ultimately cost you USD 5000 or INR 3,50,000, which is significantly higher than the processing fee charged by any Indian lenders. To get the best processing fees for an education loanfor study abroad requires extensive knowledge. This is where Eduloans can guide you. We ensure that we help you get the best loan with minimum extra charges with the best options suited as per your requirements. We have a team of professional counselors who study your case and come up with all the best options that can suit your education aspirations. So, hurry up and connect with us through our website or call us directly and we will be happy to assist you.
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