Best Education Loan in India to Study Abroad
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This guide blog is helpful in finding the best education loans in India to finance your dream of studying abroad at world-class universities. It covers the types of student loans in India, features to consider, eligibility criteria, and required documents to get a study loan.
Are you interested to know about the best education loan in India to finance your higher studies abroad? It is a tough task to analyze which bank is offering the most suitable student loan for studying outside India. Education loan is the best tool to allow students to borrow money to pay for their higher education in India or abroad. Many students struggle to find the best education loan which covers their needs.
Studying at top universities in the world under experienced professors and world-class infrastructure can be a life-changing experience. It can be so expensive. Students can borrow a study loan from banks and NBFCs to cover the cost of tuition fees, accommodation, travel, and other expenses related to pursuing a course of study. In this guide, we will help you find the best education loan in India for studying abroad.
Read More: Education Loan Interest Rates
- Best Education Loan in India 2025
- Types of Student Loans for Studying Abroad
- Education Loan Providers in India
- Eligibility Criteria for Best Education Loan
- List of Documents Required for Student Loan in India
- How to Apply for the Best Education Loan in India?
- Best Education Loan in India FAQs
Best Education Loan in India 2025
Low-interest rates, student-friendly rules, more moratorium periods for student loans and easy repayment options are the key points to finding the best education loan in India. At the time of study loan application, most students in India prefer government student loans over those offered by private institutions due to lower interest rates and better repayment terms. It is always advisable to start planning your education loan early. For that, you should know when to start thinking about finances to study abroad.
Here we have mentioned a table to help you understand the current rate of interest of Indian Banks.
| Best Education Loans in India 2025 |
Rate of Interest |
|---|---|
| 6.70% onwards |
|
| Canara Bank Study Loan |
7.30% to 9.30% |
| Punjab National Bank Student Loan |
7.15% onwards |
| 7.15% onwards |
|
| 10.50% onwards |
|
| 13.70% to 15.20% |
|
| Kotak Mahindra Bank Study Loan |
Up to 16.00% |
|
Types of Student Loans for Studying Abroad
Students in India can choose from various education loans to finance their studies abroad or in India. It can be taken from banks, financial institutions, and other lending agencies to support your dream to study abroad. Before you proceed to apply for student loans in India, here are certain things to know before applying for an education loan to study abroad.
Education Loan Types
There are two main types of education loans in India. Here are basic differences
| Feature | Secured Study Loan | Unsecured Student Loan |
|---|---|---|
| Collateral Requirement | Yes, collateral like property or FDs is needed | No collateral required |
| Interest Rates | Lower interest rates | Higher interest rates |
| Loan Amount | Generally, higher loan amounts are allowed | Usually, smaller loan amounts compared to secured loans |
| Risk to Bank | Lower risk due to collateral | Higher risk due to no collateral |
| Loan Approval Speed | May take a longer verification process | Usually faster |
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Advantages of the Best Study Loans
Here are some important features of the best student loan in India that you should know. These factors will help you to do a quick analysis of study loans and choose the best education loan in India to study abroad.
- Loan Amount- The maximum loan amount offered by the Banks and private institutions varies depending on courses, university and study duration. Analyze and choose the correct study loan for yourself.
- Interest Rates- The most important factor in deciding the best study loan in India. Students prefer the study loan with lower interest rates. Note that, banks offer lower ROI loans to students with good academic records and female students. Here we have mentioned a table to help you understand the current rate of interest of Indian Banks.
- Processing Fees- Loan processing fees are the charges to cover the administrative cost for the education loan process. It varies from bank to bank.
- Repayment Rules- Student loan with a longer tenure allows for lower EMIs but increases the overall cost of a loan. You can use the study loan calculator available online to do an analysis.
- Moratorium Period- A longer moratorium period allows you to delay repayment until after your studies. Public sector banks usually offer a moratorium period and a grace period or EMI holiday for student loans.
- Pre-visa and Post-visa Disbursement- It is an important factor in deciding the best education loan in India for you. Some banks offer pre-visa disbursement to pay the tuition fees, travel arrangements and other expenses. On the other hand, some financial institutions offer post-Visa disbursement to manage the cost of living during studying abroad. Understand your need and then apply for a student loan to study abroad.
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Education Loan Providers in India
It is essential that you know about the top education loan providers in India to students for studying abroad. This will help you to compare public Vs private student loan providers and choose the ideal one for you. Below, we have mentioned an overview of the types of education loan providers in India.
Public Sector Banks
Here we have mentioned the list of public sector banks that offer student loans for studying abroad. The table will help you to get an overview of the rate of interest and maximum loan amount offered by these banks.
| Bank |
Rate of Interest (approx.) |
Maximum Loan Amount (approx.) |
|---|---|---|
| State Bank of India (SBI) |
9.50% - 12.50% |
Up to 1.5 Crore |
| Bank of Baroda (BoB) |
9.25% - 11.75% |
Up to 75 Lakhs |
| Indian Overseas Bank |
9.75% - 12.75% |
Up to 20 Lakhs |
| Punjab National Bank (PNB) |
9.95% - 12.95% |
Up to 75 Lakhs |
| Bank of Maharashtra |
10.00% - 13.00% |
Up to 20 Lakhs |
Source: Official Website
Private Sector Banks
Check the details about the education loans offered by private banks in India to study abroad.
| Bank |
Rate of Interest (approx.) |
Maximum Loan Amount to Study Abroad |
|---|---|---|
| ICICI Bank |
Repo Rate+3.75% |
Upto 2 Crore |
| Axis Bank |
13.70% to 15.20% |
Upto 75.00 Lakhs |
| Kotak Mahindra Bank |
Up to 16.00% |
Upto 20.00 Lakhs |
| HDFC Bank |
|
Upto 45.00 Lakhs |
Source: Official Website
NBFCs
Check out the details about study loans offered by Non-Banking Financial Companies (NBFCs) to study abroad
| NBFCs |
Rate of Interest (approx.) |
Maximum Loan Amount to Study Abroad |
|---|---|---|
| HDFC Credila |
12.35% Onwards |
No upper Limit |
| Avanse Education Loan |
14.25% Onwards |
No Upper Limit |
| Auxilo Education Loan |
12.70% Onwards |
Up to 1 Crore |
Source: Official Website
Eligibility Criteria for Best Education Loan
The eligibility criteria for student loans vary from bank to bank. However, we have mentioned some generic eligibility criteria for student loans in India.
- Profile of students, such as age, academic background, and nationality.
- Course reputation or university selection.
- Profile of Co-applicant such as financial stability and creditworthiness of the co-applicant (usually a parent or guardian).
List of Documents Required for Student Loan in India
Here is the list of required documents for student loans that students need to keep it handy at the time of application.
- Valid ID card approved by the government, such as PAN/ Passport/ Driver’s License/ Voter ID card
- Proof of Residence/ Address (either): Recent copy of utility bill
- Income Proof of applicant or co-applicant
- Valid Indian Passport
- Academic Records
- Entrance Exam Results such as GMAT, GRE, TOEFL, and IELTS.
- Proof of admission, including the offer letter or admission letter from the university
- Statement of cost of study/ Schedule of expenses
- 2 passport-size photographs
How to Apply for the Best Education Loan in India?
After completing the eligibility and selecting the best education loan in India, candidates can apply for the student loan with the required documents. Below, we have mentioned the step-by-step process to apply for a study loan. Note that these steps are generic, and your application process may be different from this.
- Visit the official website of your lender
- Fill up the basic details asked there.
- Upload the documents required for the application.
- After verification, your application will get approval.
Once you will complete the application process, the amount will be credited to your account.
This is all about the best education in India. We have covered all the required information about the topic related to the query of a student who is going to study abroad. The details about the study loan offered by the loan providers can get updated in a timely. It is advisable to select the study loan according to your needs.
Best Education Loan in India FAQs
The value of collateral for an education loan can vary depending on several criteria. Here are some factors that lenders may consider when determining the value of collateral:
- Type of Collateral: Collateral can take many different forms, including residential real estate, non-agricultural land, fixed deposits, commercial real estate, or other valuable assets.
- Loan Amount: The loan amount requested could have an impact on the collateral's value. The loan-to-value ratio, which compares the loan amount to the value of the collateral, is a factor that lenders frequently take into account.
- Repayment Capacity: The repayment ability and creditworthiness of the borrower are key factors in evaluating the value of collateral. In order to determine whether a borrower will be able to repay the loan, lenders consider things including their income, employment history, and credit history.
Keep in mind that a variety of criteria, such as the type of collateral, loan amount, collateral evaluation, repayment capacity, and lender policies, influence the value of collateral for an education loan.
The best bank for education loans in India for studying abroad is often the State Bank of India (SBI). It's a public sector bank which offers student loans with attractive ROI. Other than this, Punjab National Bank, Bank of Baroda, HDFC Bank, and ICICI Bank are some reputed banks which offer education loans.
Under its Global Ed Vantage scheme, you can avail up to INR 1.5 crore. Also, with flexible repayment up to 15 years. Comparing terms and rates based on your specific needs is advised.
Statement of Purpose
Letter of Recommendation
Student Visa Application
Admission Essay Writing
Student Curriculum Vitae
Applicants with good academic scores and a family income of less than INR 8 Lacs per year are eligible to apply for government education loan schemes. Additionally, admission to a recognised institution, age limit, and Indian citizenship are crucial eligibility factors.