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.
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Read More: Education Loan Interest Rates
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.
- Secured Study Loan- Banks ask for collateral at the time of offering secured student loans in India. It can be anything such as a fixed deposit, property, etc. Usually, banks offer secured study loans with lower interest rates compared to unsecured loans
- Unsecured Student Loan- As you can understand by name, banks offer such loans without any collateral. This results in higher interest rates compared to secured loans.
Features 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 study loan offered by the loan providers can get updated timely. It is advisable that select the study loan according to your need.
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.
MIT is not costly for Indian students. Applicants can study BTech program at affordable tuition fees as compared to other BTech colleges in the USA. The MIT BTech fees is around INR 50 L to INR 52 L.
As per an unofficial source, the University of Illinois Chicago ranked at #80 among national universities which is better than the NIU ranking at #273 position. The UIC is also exceeding in terms of graduation rates and easier selection than NIU. However, the tuition cost is more affordable at Northern Illinois University as compared to UIC. Students can get more clarity from the comparison table given below:
Particulars | University of Illinois Chicago | Northern Illinois University |
|---|---|---|
US News National Rankings 2024 | #80 | #273 |
Acceptance Rate | 79% | 70% |
Graduation Rate | 40% | 33% |
Tuition Cost | UG: INR 22L-INR 49L PG: INR 13L-INR 37L | UG: INR 10L-INR 16.5L PG: INR 8L-INR 45L |
Student-faculty ratio | 17:1 | 14:1 |
The University of Niagara Falls is located in the historic downtown core of Niagara Falls, Ontario. It is a private university that offers UG and PG courses. Some of the reasons to study at this university are:
- Student-centered approach: The dedicated faculty at UNF supports students through their academic journey, help them prioritize their success, and guides towards a meaningful career
- State-of-the-art campus: The campus of UNF features incredible spaces for study and collaboration. There are student spaces at the university for studying and learning. Additionally, students can take part in the student clubs and associations and events hosted on-campus
- Awards and scholarships: This university assists students through a variety of entrance awards and academic scholarships
- Location: While studying at UNF, students have the chance to live and study in Canada's #1 tourist destination
ICM Canada offers UTP Stage I and Stage II programs. The UTP Stage II program is equivalent to the first-year university program at the University of Manitoba. When students complete the ICM Stage II program, they will be eligible to get transferred to the second year of the degree at the University of Manitoba. UTP Stage I a foundation or pre-university studies programme that acts as a bridge between secondary school and university studies.
Study areas of the UTP Stage II programs are:
- Agriculture and Food Sciences
- Engineering
- Business
- Environment, Earth, and Resources
- Science
- Recreation Management and Community Development
Cambrian College in Canada is largely recognised as a prestigious institution, making it an attractive option for overseas students. The college provides a wide choice of programmes, and its accreditation guarantees respect to academic standards. Prospective students should carefully assess Cambrian College's suitability in terms of individual programme offers, campus facilities, location, and foreign student support services. The total cost of education, including tuition and living expenses, should also be considered, as well as any available financial help or scholarships. For the most up-to-date and accurate information, check Cambrian College's official website, contact international student services, and speak with current or former international students for firsthand experiences.
GRE is a popular standardised test for getting admission in MS program in the world. However, there are many universities in the USA that offer admission to MS courses without GRE scores. There is fixed minimum or maximum GRE score for admission. However, even if your GRE score is below the average for a particular program, you may still be considered for admission if you have strong qualifications in other areas. It is adviseble to check university website for the exact information.
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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.