Three kinds of lender
- Public-sector banks such as SBI, Bank of Baroda or Canara Bank: the cheapest money if you have collateral and time.
- Private banks such as Axis or ICICI: faster, usually still secured for Europe.
- NBFCs such as HDFC Credila, Avanse or Auxilo: more expensive, but flexible and quick to issue a sanction letter.
The timing trap
Most Lithuanian universities issue the document you need for the residence permit only after you pay the first year. If your loan is sanctioned in August and the university's payment deadline is in July, you lose the place. Apply for the loan as soon as you have the offer letter, or pay the first year yourself and use the loan from year two.
How to compare offers
- effective annual rate, not the headline rate;
- processing fee and margin money;
- moratorium length;
- whether living costs are covered and how they are released.
Interest is deductible under Section 80E, and fees paid from a loan carry no TCS. Full details: education loan.