Education Loan for Studying Abroad in 2024

Education Loan for Studying Abroad in 2024

18 mins read3.8L Views 89 Comments
Raj Vimal
Study Abroad Expert
Updated on Jul 2, 2024 11:00 IST

So you want to know about education loan for abroad studies? Student loans are the most popular way to finance the dream of higher studies but many students are not aware about the procedures to apply for education loans offered by top banks and NBFCs. Well, we have covered every detail related to it.

Education Loan to Study Abroad

Education Loan for Abroad Studies: Studying abroad can be a life-changing decision, however, this doesn’t come easy. For most students, the idea of studying abroad comes with the promise of a new life experience in an unfamiliar country. For students from low-income families, however, this goal can be out of reach. Those who want to pursue higher studies abroad, but find it difficult to arrange for funds, now have the option to make arrangements for funding their education.

In this article, we will cover every detail related to the best education loan in India for studying abroad. Be it the process to apply for a loan, eligibility, or documents required for it, we will cover various other aspects related to student loans like Indian banks giving student loans or the role of a guarantor. We will cover every aspect for all those who are looking for an education loan to study abroad.

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Advantages of Education Loan For Abroad Studies

There may be times when the family's income and resources are insufficient to cover the cost of the student's education. In such cases, banks or other financial organisations must be approached for a student loan (NBFC). You can utilise a student loan to pay for all or part of your education expenses. A student who takes out a study abroad education loan is guaranteed to be able to complete their degree programme without encountering any financial issues.

Loans are frequently seen as bad debt. This expression implies that you are borrowing money for something whose value will diminish over time. An education loan is unique from other forms of loans since it is an investment in the borrower. Through this, you will eventually make far more money than you borrowed.

Also Read: Education Loan Calculator 2024

Eligibility Criteria for Education Loan in India

The first and foremost thing is to check whether you are eligible to apply for an education loan or not. Provided below are the education loan eligibility in India and general conditions that are usually followed by any bank in the process of granting an education loan. Kindly note that individual banks could have their eligibility guidelines which would have to be adhered to when applying to that particular bank. 

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  • The candidate must be an Indian national.
  • If the applicant is under 18 years old, then his or her parents will have to take out the study loan for abroad studies.
  • The candidate must have a strong academic record.
  • The candidate must have been accepted to a reputable overseas university, institution, or college.
  • Since banks favour courses that are job-oriented, the applicant's chosen course must be technical or professional in nature.
  • Underwriting norms are the standards set out by loan providers to guarantee that only safe and secure loans are made available. They are also important as they are used to determine whether or not to provide a person with a study loan for overseas study, as well as how much money the firm is prepared to loan and at what interest rate.

Check: Step by Step Guide to Education Loans

Quick links to Study Loan for Abroad Guides for The Top Study Abroad Destinations:

Education Loan for studying in the USA

Education Loan for studying in Canada

Education Loan for studying in the UK

Education Loan for studying in France

Education Loan for studying in Sweden

Education Loan for studying in the Netherlands

Education Loan for studying in Ireland

Education Loan for studying in Singapore

Education Loan for studying in Germany

Education Loan for studying in Australia

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Documents Required for Education Loan to Study Abroad

Before applying for an education loan, the applicant must be completely aware of the documents required to apply for a study loan abroad. The following documents are required to apply for an education loan for abroad studies:

  •  Filled bank application form to get a study loan for abroad studies.
  •  Photographs: Passport-size photographs of the applicant and the co-applicant.
  •  Photo ID: Photo ID of the applicant and the co-applicant. It can be a PAN card, driving license, Voter ID card, Aadhar Card, or Passport.
  •  Residence proof: Resident proof of the applicant and the co-applicant
  •  Academic documents:
    • Mark sheet and certificates of the applicant
    • Mark sheet (Score Report) of GRE, GMAT, TOEFL, IELTS, etc. whichever is applicable (The total academic standing and professional experience, in addition to the GRE score, are important considerations when applying for a loan.)
  • Admission proof: Admission letter shared by the university or college.
  • Bank statements: Last six months' bank statements of the co-applicant 
  • Income proof: Income proof of the co-applicant (A foreign education loan can be obtained depending on a number of variables, including the financial situation, location, and assets of your co-applicant).
  • In the case of collateral (immovable property), it can be flat, home, or non-agriculture land the following documents are required:
    • Property title deed
    • Building approved plan
    • NOC for a mortgage from a builder or society

In case you're finding it difficult to apply for education loans, you may also apply for a loan through Shiksha.

Document Type



Date of Birth

Birth Certificate, Passport, Voter card with DOB, College Passing Certificate, PAN Card, Driving license, Aadhaar Card

Residence Proof (if owned)

Electricity Bill, Municipal Tax Receipt, Share Certificate, or Title Deed (with Flat No.)

Residence Proof (for a rented property)

Registered Rent agreement (with utility bill), Landline phone bill, Post Paid Mobile Bill, Bank statement., Passport, Driving License, Voter ID, and Aadhaar card


Aadhaar card

PAN Card

Copy of PAN / Form 60 if PAN is not available


Signature verification from the bank, Passport, Driving License, and PAN Card (all IDs should match with your current signature)

Relationship proof

Passport, Pan, Aadhaar card, Marriage certificate, Birth certificate, Legal heir certificate, Ration card, or any other acceptable documents

Academic documents

10th,12th, UG or PG mark sheets, degree or provisional degree certificate, and applicable entrance test scores

Registration certificates for Professionals (CA, Doctor)

Income proof - Salaried

Documents to establish 3 years of work experience where ever applicable and available

Latest  3 salary slips, Bank Statement of last 3 months, Form 16,


2 years ITR with the statement of income, Income certificate from Tehsil/collector's office

Office Address


Form 16/ Salary slip/ Letter from HR/ Snapshot of site/Identity card

Admission proof

Invite/admission letter from University/college and Fee structure


Technical Documentation For Study Loan Abroad

Apart from the above-mentioned documents, aspirants also need to have some other technical documents to avail of a student loan.

  • Title deed (all the pages to be attached)
  • Copy of approved layout plan and permissions case specific
  • Revenue document (Khata / Patta)
  • Non-Encumbrance certificate
  • Possession Certificate (In case the flat is taken from a builder)
  • Latest Property tax receipt
  • Copy of Prior sale deeds
  • Conversion certificate
  • Urban clearance certificate (Case-specific)

Check: Student Loan Vs Self-Finance

Legal documentation

In addition to the standard and technical documents, aspirants also need to have a list of legal documents for getting an education loan.

  • Sale /gift/partition deed in favour of customer – Minimum 13 years
  • Khata Certificate and extract in the name of the current owner
  • Encumbrance certificate – Minimum 13 years reflecting all sale transactions
  • Latest Property tax receipt

NOTE: These requirements can vary as per the banks’ regulations.

Interest Rates of Banks for Student Loan for Abroad Studies

The interest rates of different prominent banks in India for study-abroad education loans are given below:

Bank Education Loan Interest Rate
HDFC Credila Education Loan 13.80% (approx)
ICICI 9.40% to 14.00%
SBI 11.15%

Axis Bank

13.70% to 15.20%

Punjab National Bank

9.40% to 12.10%
Bank of Baroda (Baroda Scholar) 9.70% to 12.20%
Indian Bank 8.80% to 11.40%
Union Bank of India 10.90% p.a. to 12.55% p.a

How to Apply for an Education Loan?

From loan application to approval and disbursement, the entire loan process is time-consuming, so it is always advisable to apply for a loan a little early. Follow these steps for applying for a student loan:

  • Check whether the course in which you are going to study is recognized by the banks or not.
  • Figure out how much loan amount you require and how much you are going to arrange on your own.
  • Compare the student loan provided by different banks for studying abroad and go for the one that caters best to your needs.
  • After finalizing the bank and the loan amount, fill out the loan application form and approach your bank.
  • As soon as your loan is approved, the bank will issue a loan document that includes various elements of the loan.
  • After signing the loan document, the bank will disburse the amount in instalments or as asked by the university.

Know more about Education Loans

Apply for Education Loan through Shiksha

Shiksha has partnered with India’s topmost and trusted loan providers who will assist you in getting an education loan. Find out more!

Top Education Loans Providers in India for Studying Abroad

There are multiple banks and NBFCs that provide overseas education loans to eligible students. Here are some popular banks where students can apply for study loan. 


HDFC Bank is one of the largest private banks offering education loans abroad. The maximum loan amount offered by the bank is up to INR 20 lakhs. To avoid the last-minute rush, the bank offers study loans abroad even before the student has secured admission to the university.


The bank offers Education loan upto Rs 1 crore for international courses and the interest rate starts at 9.50% per annum. Fresh property, FD, and cross collateralisation with existing mortgage loans are accepted as exceptional collateral. The education loan at ICICI without collateral limit is Rs 20 lakhs for UG courses and Rs 40 lakhs for PG courses.

State Bank of India

SBI offers a maximum amount of INR 30 lakhs as an education loan for studying abroad with a loan margin of 15%. The Interest rate charged on the loan amount is up to 2% on the current base rate of SBI. Further, the loan repayment tenure can be 1 year to 15 years.

Axis Bank

Axis bank offers study loans abroad at competitive interest rates. A margin of 15% has to be arranged by the borrower if the loan amount exceeds INR 4 lakhs. The bank offers a maximum of INR 20 lakhs and covers different costs like tuition, accommodation, and books.

Punjab National Bank

PNB Udaan is the education loan scheme offered by the Punjab National Bank to students going to study abroad. The bank offers foreign education loans for students going to pursue graduate, post-graduate, job-oriented professional, and technical courses. The borrower needs to show a loan margin of 15% for the loan amount of above INR 4 lakhs. Also, the bank offers the base rate as the interest rate on loans taken for pursuing an education at the top 200 universities across the world.

Check: Collateral for Education Loan

Student Loan For Abroad Studies from NBFCs (Non-banking financial companies)

Apart from the nationalized banks, student loans can also be availed from non-banking financial companies/institutions (NBFCs). Non-banking institutions offer complete tuition fees to students. Borrowers need to provide collateral as security to the banks as the loan amount is generally more than INR 7.5 Lacs. Students looking for education loans for abroad studies can now have the option to secure a loan from NBFCs. Some of the NBFCs options are:

  • Credila: Credila is part of the renowned HDFC bank and provides loans to Indian students wishing to study abroad. The loans are given at a competitive floating rate of interest and can be repaid within 10 years.
  • Avanse: Part of the DHFL group, it is considered one of the most popular non-banking financial institutions in India. Student loans from Avanse cover tuition fees up to 100% and other expenses. Apart from this, the interest rates are floating and the processing fee can go up to 1 to 2 percent of the loan amount.    
  • International Student Loan Program (ISLP): This programme is specially designed for international students who want to study in the US. Through this programme, students can borrow an amount of as little as $1500 and can extend the repayment period up to 25 years. The loan disbursed under this program covers tuition fees and other expenses.
  • Global Student Loan Corporation (GSLC): The GSLC offers loans to international students to pursue their higher studies in the US without the requirement of any co-signer.

Contact India’s leading education loan providers through Shiksha Study Abroad

Crowd Funded Companies as Loan Providers

Some companies have a focus on funding for students. These businesses exclusively offer loans to students attending particular institutions in order to maintain security. They provide loans in the local currency of the nation for the students who will be attending school. The borrowed money must be returned in the same currency.

Some of the Loan Schemes Offered by Indian Banks for Studying Abroad

  • SBI Student Loan Scheme: This scheme can be availed by Indian students who have secured admission to any institute in India or abroad. A maximum of INR 20 lacs can be availed at a nominal interest rate and it has to be repaid within 15 years. Also, if the loan amount is more than INR 7.5 Lacs, then borrowers need to furnish collateral as security. The repayment starts after one year of completion of the course. 
  • SBI Global ED-VANTAGE Scheme: This loan can be availed by Indian students who wish to pursue a full-time course abroad. Students can avail of a loan of up to INR 1.5 crore and have to repay it within 15 years. The borrowers need to provide collateral to secure this loan and will have to start repayment after 6 months of completion of the course.
  • HDFC Bank Education Loan for Foreign Education: This loan scheme can be availed by Indian students who wish to pursue studies abroad. The maximum amount available in this scheme is INR 20 lacs at a nominal rate of interest. Also, it offers tax benefits to the borrower and it can be sanctioned before admission as well.
  • Oriental Bank of Commerce Education Loan for Study in India and Abroad: This loan scheme is offered to students who wish to pursue their higher studies in India or abroad. If the student wishes to pursue his studies in the US, then the amount of the loan will depend on the fee structure of the institute they have applied to. The highlight of this scheme is that it does not charge a prepayment penalty from the borrowers and also gives insurance coverage as well. The margin for the loan amount exceeding INR 4 Lacs is 15% on the loans taken for studying abroad. 

Things to Remember While Taking an Education Loan for Abroad Studies


  • Moratorium period: This is the time during which the borrower need not make any repayment to the bank. This period varies from bank to bank and could last up to some time after completion of the course.
  • Loan Margin: Usually, banks do not provide the complete amount i.e. 100 percent of the money needed to fund the education. The majority of the public sector banks issue 90% of the total amount, the remaining 10% has to be arranged by the aspirant himself.  
  • Effect of Exchange Rate: Always calculate the amount which you will be receiving at the time of disbursement, as any change in the exchange rate can affect the amount you will be receiving.

UGC's Educational Loan Scheme

The University Grants Commission has come up with an education loan portal called 'Vidya Lakshami' which has been developed under the guidance of the Department of Higher Education (Ministry of Human Resource Development), Department of Financial Services, (Ministry of Finance) and the Indian Banks Association (IBA). Loans up to Rs 15 lakh can be provided to students for studying overseas. Up to Rs 4 lakh, there's no need for collateral or margin. Also, the interest rate cannot go beyond the Prime Lending Rates (PLR). As far as loans above Rs 4 lakh is concerned, the rate of interest cannot exceed PLP plus 1%. The period of repayment remains between 5-7 years. After the studies are completed, a grace period of one year can be provided.

Related Articles

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Step-by-Step Guide to Education Loans

Collateral Rules for Student Loan for Abroad Studies

Banks offer student loan for abroad studies but they need to pledge some collateral against the loan. Collateral submitted by students acts as a security measure for lenders. These rules typically involve pledging assets like property (land, house), fixed deposits, or life insurance policies with a surrender value.

What is Collateral?

Any property whether movable or immovable, which can be offered to a bank as a security for a loan is collateral. Most Indian banks demand collateral as security to reduce the risk involved in paying off the credit. Learn everything about collateral here.

Which type of instruments are accepted as collateral?

Any type of liquid assets like bonds, FD, shares or any immovable property like a house, any commercial property, or just land can be classified as collateral. One important point to keep in mind is that agricultural land is not accepted as collateral. Even shares, bonds, bank deposits, mutual fund units, gold, debentures, bank deposits, life insurance policy, and government securities, are also accepted as collateral.

How can I get an education loan to study abroad without collateral?

Education loan has come as a big relief to those who want to pursue quality education but face a big challenge while arranging the funds. Now students can avail of a loan of up to INR 4 lacs without collateral. For loans, up to INR 7.5 lacs, parents or guardians are made joint borrowers and a third party guarantee is obtained. For a loan exceeding INR 7.5 lacs property or any other asset is required as collateral.

How much can you borrow against collateral?

  • If you want to take the loan with your immovable property as collateral, in that case, the bank’s representative will verify your property and prepare a report on whether it can be mortgaged or not.
  • Also, the bank’s representative will evaluate your property. Based on this report, the loan amount will be approved.

What is the responsibility of a guarantor in an Education loan?

Becoming a guarantor for a loan is a huge responsibility as the guarantor will have a legal obligation to pay in case the borrower defaults on his payment. If the loan amount exceeds INR 4 lacs, then the bank may ask for a guarantee from a third party. If the borrower is not able to repay the loan amount irrespective of the circumstances, in that case, the guarantor holds the liability to repay the complete amount to the banks.

Read the agreement carefully

This is one of the most important aspects to look after while taking a loan. We always suggest you go through the terms and conditions of the loan carefully and then move ahead with it. This is one factor we stress, as you should always be clear with all the conditions mentioned in the loan agreement. If you have any doubts regarding anything then always consult the experts apart from the bank representative.

Education Loans for Studying Abroad - FAQs

Q. What is the maximum loan amount you can get for studying abroad?

A. As such, there is no limit set by the banks for offering education loans to students wanting to study abroad. It depends from bank to bank. The majority of the banks offer loans of up to INR 20-30 lakhs. Also, if the loan amount is more than INR 20 lakhs then the interest rate also increases.

Q. For which type of courses, do banks offer education loan for abroad studies?

A. Generally, banks and NBFCs prefer to give loans for undergraduate and postgraduate courses. Also, the majority of banks prefer to give education loans abroad for pursuing job oriented and professional courses.

Q. Which is the best bank to receive an education loan for studying abroad?

A. Usually government banks are considered to be the best for borrowing overseas education loans but if your credit report is good then you can try private banks also. Popular banks providing education loans to students wanting to study abroad include HDFC, State Bank of India (SBI), Axis Bank, ICICI Bank, Punjab National Bank and the Bank of Baroda to name a few. 

How to get student loan for abroad studies?

A. The process of getting an education loan for abroad studies is not much complex. Here is the roadmap to borrow student loan

  • Figure out the exact amount you want.
  • Research and compare different student loan schemes
  • Reach out bank with your requirements.
  • Fill up the application form and submit along with related documents.
  • Wait for 2 to 4 weeks and bank will complete verification process.
  • After verification, bank will disburse money.

Q. Can I get an education loan without any collateral?

A. Students can avail of a loan of up to INR 4 lacs without collateral. For loans, up to INR 7.5 lacs, parents or guardians are made joint borrowers and a third party guarantee is obtained. For a loan exceeding INR 7.5 lacs property or any other asset is required as collateral.

Q. Can I get the total cost of studying abroad as an education loan?

A. Private banks and private lenders like Non-Banking Finance Companies (NBFCs) do cover the full cost of studying abroad. However, public banks may ask the students to cover 10-15% of the cost through self-financing the rest would be taken care of with the education loan. 

About the Author
Written by
Raj Vimal
Study Abroad Expert

Raj Vimal has experience of 7+ years in SEO Content Writing, which includes 5+ years in the Ed-Tech industry. He has written articles about studying abroad, especially in the USA, UK, and other English-speaking coun... Read Full Bio

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a month ago

Hi, I approched the bank for my educational loan, and they said my sisters educational loan was paid by OTS method . so that was showing in my parents CIBIL. The bank manager said I can't able to get a loan. if anyone know the possibilities to get an educational loan please tell me.

Reply to Priya

Hello sign up for free Shiksha counselling at Shiksha Abroad Counselling


Raj VimalStudy Abroad Expert

a month ago

Hi Priya, CIBIL retains an individual's financial history for seven years only. After that, negative information disappears from your credit report. For detailed solutions connect with our counsellor team and Apply Education Loan through Shiksha


Harsh Mehta

a year ago

Does the australian university / embasy accept the 30 Lacs unsecured loan?

Reply to Harsh Mehta


Anumika Bahukhandi

10 months ago

Hello Harsh. We request you to contact the specific Australian university that you're targeting to get an insight into the same. Feel free to ask any further questions.

what is the maximum age that a student can get loan. I mean 47 years women who is employee can get the education loan or not

Reply to rama devi balakrishna


Piyush Kohli

a year ago

Hi Rama, as such there is no age limit for applying for a student loan, however, banks due consider various other factors while giving the education loan.

Sanjeet Kumar

a year ago

I'm a BBA MARKETING STUDENT and i need sum information about student loan my percentage of 10th 78% 12th 69% and college BBA MARKETING 74% WITH 3 Backlog but its clear and i apply for loan and its approve or not my father is work fci government job annual salary is 4,09,000

Reply to Sanjeet Kumar


Piyush Kohli

a year ago

Hi Sanjeet, please connect with any major bank along with your details, they'll let you know whether you'll be getting the loan or not.



a year ago

If i have a backlog in one subject and i couldn't clear it in reattempt will i get admission in uk universities?

Reply to Shahnoor


Piyush Kohli

a year ago

Hi Shahnoor, please check how many backlogs are accepted by the university and then move ahead with the application process. Also, refer to the below URL and learn more about UK universities accepting backlogs: