Turning Your Study Abroad Dream into Reality
Studying abroad is a life-changing experience, but it’s also a big financial commitment. From tuition fees to living expenses, international education can cost anywhere between ₹20 lakhs to ₹80 lakhs, depending on your destination and course.
For many Indian students, the solution is an education loan for studying abroad — a reliable way to fund higher education without putting the family under financial stress.
In this guide, you’ll learn everything about how to apply for a study abroad loan, the documents required, the best banks, and tips to get approved easily.
Types of Education Loans for Studying Abroad
Before applying, it’s important to know that there are two main types of study abroad loans in India:
1. Secured Education Loan (With Collateral)
- Requires property, FD, or insurance policy as security.
- Offered by: Public sector banks like SBI, Union Bank, Bank of Baroda.
- Loan amount: Up to ₹1.5 crore depending on collateral value.
- Lower interest rates (8.5%–10%).
2. Unsecured Education Loan (Without Collateral)
- No collateral or property needed.
- Based on your academic merit and co-applicant’s financial profile.
- Offered by: Private banks and NBFCs like Axis Bank, HDFC Credila, Avanse, InCred.
- Loan amount: Up to ₹60 lakhs.
- Interest rate: 10%–13%.
Pro Tip: If you have a strong academic background and admission to a top global university, you can get a no-collateral loan easily.
Eligibility Criteria for Education Loan (2025)
To get approved for an education loan for studying abroad, you must meet the following criteria:
- Indian Citizenship
- Confirmed admission to a recognized foreign university.
- Strong academic record.
- Co-applicant (usually a parent or guardian) with stable income.
- Clear credit history (for co-applicant).
Documents Required for Study Abroad Loan
Make sure you have these documents ready before applying:
Academic Documents:
- Admission letter / I-20
- Mark sheets (10th, 12th, degree)
- Entrance exam results (IELTS, GRE, GMAT, TOEFL)
Financial Documents:
- Co-applicant’s income proof (ITR, salary slips, Form 16)
- Bank statements (last 6 months)
- Collateral papers (if applicable)
Personal Documents:
- Valid ID proof (PAN, Aadhaar)
- Passport and visa copy (if available)
- Passport-size photographs
Expenses Covered by Education Loan
A study abroad loan covers more than just tuition fees — here’s what’s included:
- Tuition and exam fees
- Hostel or accommodation rent
- Travel expenses (flight tickets)
- Laptop and study materials
- Health and travel insurance
- Living costs and other essentials
Tip: Always confirm the coverage with your bank before finalizing your loan.
Step-by-Step Process to Get an Education Loan for Studying Abroad
Step 1: Research & Compare Lenders
Compare loan offers from SBI, HDFC Credila, Axis, Avanse, InCred, and Prodigy Finance for rates, repayment flexibility, and coverage.
Step 2: Check Your Eligibility
Ensure you meet academic and income criteria. Some lenders pre-approve loans based on university ranking and course type.
Step 3: Apply Online or Offline
Visit the bank’s education loan portal or apply through financial marketplaces like Vidya Lakshmi, GyanDhan, or WeMakeScholars.
Step 4: Submit Documents
Upload or submit all required documents to initiate verification.
Step 5: Loan Sanction & Disbursement
Once approved, the loan amount is disbursed directly to your university or your account in installments.
Top Banks & Lenders for Study Abroad Loans (2025)
| Bank / NBFC | Collateral Required | Loan Limit | Interest Rate | Processing Time |
| SBI Global Ed-Vantage | Yes | ₹1.5 crore | 8.5%–10% | 10–15 days |
| Axis Bank | No | ₹75 lakhs | 10.5%–12.5% | 7–10 days |
| HDFC Credila | No | ₹60 lakhs | 10.5%–12% | 5–7 days |
| Bank of Baroda | Yes | ₹1 crore | 9%–10% | 10–12 days |
| Avanse / InCred / Auxilo | No | ₹50–75 lakhs | 11%–13% | 5–10 days |
| Prodigy Finance (for abroad) | No | $100,000+ | 11%–13% | 5–15 days |
When to Apply for a Study Abroad Loan?
Ideally, apply 3–6 months before your course starts.
You’ll need your admission letter before final sanction, but you can begin pre-approval earlier to secure funding in time.
Tips to Increase Your Loan Approval Chances
- Maintain a good academic record (above 60–70%).
- Choose a recognized foreign university.
- Add a financially strong co-applicant.
- Keep your credit score above 700.
- Ensure all documents are accurate and verified.
Conclusion
Getting an education loan for studying abroad has never been easier. With banks and NBFCs offering flexible, student-friendly terms, you can now focus on your dream university instead of financial stress.Start early, compare options and apply smartly; because your global career begins with the right financial planning.
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FAQs
1. Can I get a loan to study abroad without collateral?
Yes, many private banks and NBFCs offer unsecured loans based on academic merit and co-applicant income.
2. What is the maximum loan amount I can get?
Up to ₹1.5 crore with collateral and ₹60–75 lakhs without collateral.
3. Do I need to repay the loan while studying?
Most banks offer a moratorium period — repayment starts 6–12 months after course completion.
4. Is a co-applicant mandatory for a study abroad loan?
Yes, most lenders require a parent or guardian as co-applicant for security.
5. Can I apply for a loan before receiving admission?
You can get pre-approved, but final disbursement happens only after receiving your admission offer.
6. Which banks are best for overseas education loans?
SBI, Axis, HDFC Credila, and Bank of Baroda are among the top choices for Indian students.
7. Do education loans cover living expenses abroad?
Yes, most lenders include living costs, travel, and accommodation under the total sanctioned amount.
8. Can I get a study abroad loan without a co-signer?
Prodigy Finance offers no co-signer loans for students attending top global universities.
9. What’s the repayment tenure?
Typically 10–15 years, depending on lender and loan amount.
10. Is the interest rate fixed or floating?
Most loans have floating interest rates linked to the bank’s MCLR or repo rate.