Best Education Loan Providers in India to Study Abroad

Do you know about the top education loan providers in India for studying abroad? Government and private sector banks and some NBFCs are education loan providers in India. Eligible students can apply to get a study loan with the required documents to finance their higher studies in India or abroad.

If you are thinking of moving abroad for higher studies, then you must be looking to arrange funds. Financing is one of the most challenging and important stages of planning to study abroad. Fortunately, numerous education loan providers in India offer competitive interest rates, flexible repayment terms, and attractive features to help students achieve their dream of overseas education.

Leading banks (SBI and ICICI Bank) and NBFCs offer education loans to study abroad with various terms and conditions. The best education loan in India should cover all your higher education expenses, including tuition, living costs, and miscellaneous fees. Additionally, a low interest rate will help you save money in the long run.

Here, we will discuss both private and government education loan providers in India.  So, you can select the most suitable education loan offered by top education loan providers and find the best option for your needs.

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Top 10 Education Loan Providers in India

Here is the list of 10 best education loan providers in India. These lenders offer up to INR 2 crore to finance your dream of studying abroad. Check the list. 

1. State Bank of India (SBI)
2. Credila Financial Services
3. Axis Bank
4. Punjab National Bank (PNB)
5. Bank of Baroda
6. ICICI Bank
7. Federal Bank
8. Union Bank of India
9. IDBI Bank
10. Avanse Education Loan

State Bank of India

SBI offers education loans to pursue postgraduate degrees in nations like Italy, Russia, the United States, the United Kingdom, Finland, Austria, Norway, Poland, Denmark, Germany, Ireland, Spain, New Zealand, Canada, Singapore, etc.. The SBI education loan for abroad studies covers expenses like tuition fees, book costs, exam fees, lab and other fees related to studies. However, the ammount of loan, interest rate and other benefits depend on your profile. 

SBI offers a moratorium period or repayment holiday of 6 months after the course completion. The borrower has to submit the college admission letter, completed loan application form, course costs, co-applicant details and other KYC documents to the bank.

Highlights of SBI Education Loan for Abroad

• Up to INR 1.50 crore in loans, with a minimum loan amount of Rs. 7.50 lakhs
• Favourable interest rate
• Quick online application process
• Loan sanction before I-20/Visa
• Repayment through EMI up to 15 years
• Tax benefit: Under 80(E)
• The application processing fee is Rs 10,000

Required Documents for SBI Education Loan

Credila Financial Services

Credila is one of the well-known NBFCs to offer customised education loans. Credila offers tailor-made education loan solutions with unique features and benefits. This helps students to be financially equipped to pursue their education at their dream university in India or abroad. Credila covers up to 100% financing of tuition and cost of living. It also offers multi-city co-borrower(s) and collateral acceptance. 

Things Covered Under Credila Financial Services Education Loan

Credila Financial Services covers up to 100% of expenses such as exam fees, living and other costs. 

Highlights of Credila Financial Services Study Loan for Abroad

• You can customise your loan amount based on your needs and eligibility.
• The loan applicant should be an Indian citizen.
• The rate of interest for Credila Financial Services student loans is 9.75% P.A. onwards (*Secured Loans). 
• The repayment tenure is upto 15 years for both secured and unsecured loans
• Credila Financial Services' secured loans include collateral from residential houses/flats, commercial properties, and non-agricultural land. You need to submit the latest registered sale deed, property tax receipt and approved building plan(if applicable) or occupation certificate.

List of Documents Required for Credila Financial Services

Here is the checklist of all the documents that you need to have at the time of the education loan application:

Also Read:

Axis Bank

Students can seek education loans for abroad studies for technical, professional courses, or career-oriented courses. Axis Bank provides student loans with no maximum amount, starting at INR 50,000, and covering up to 100% of the whole cost of study (including course fees, cost of books, living & travelling expenses), depending on the requirements and qualifications of the individual. The whole process of getting an education loan with Axis Bank is hassle-free. 

Highlights of Axis Bank Education Loan for Abroad

• No margin on education loans up to Rs  4,00,000
• 15% margin on education loans up to Rs 4,00,000 for abroad studies
• The education loan which you will take can be disbursed within two days after getting sanctioned
• One can also pay the older instalments which are paid towards the course, refinanced once the loan is approved

A parent or legal guardian must co-apply for student loans and, if necessary, provide a third-party guarantee or collateral security. Axis Bank may also take into account a LIC policy for 100% of the loan amount, however, it would depend on the circumstances.

Axis Bank Education Loan Eligibility 

• Indian citizenship holder
• Minimum 50% marks in HSC and graduation
• Students should be enrolled in career-oriented programs at the graduate or post-graduate level
• Should have been admitted from a recognised institute via an entrance exam/merit-based selection process after completing HSC
• The parent/guardian should have a regular income source

Punjab National Bank

PNB Udaan is a special education loan scheme for Indian students with great academic records who are planning to study abroad. The loan is available for students who have been admission for graduate or post-graduate courses, varying from diplomas, job-oriented professional or technical courses, CIMA/CPA courses etc. The PNB loan covers university fees, travel expenses, exam fees, lab fees, library fees, book/equipment fees and other related expenses. The applicant for the loan should be an Indian citizen and should have obtained admission to a higher education program in a recognised international college/university through an entrance test or merit-based selection. He/she should also have cleared HSC.

Highlights

• Fees reimbursement paid within 6 months might be taken into consideration on the individual merits of the case
• Margin: Up to Rs 4 lakh - None, Above Rs 4 lakh - 15%
• Maximum up to 15 years of repayment
• There are no payment charges

Eligibility

• Resident of India
• Should those who have received an admission letter or enrolled on a higher education program in recognised institutions outside India via an entrance exam/merit-based selection process after HSC.

Also Read: Education Loan Calculator

Bank of Baroda

For MBA, MCA, MS, and other recognised courses that promote employment generation, a Baroda Scholar Loan is offered. Students who are heading abroad for professional or technical study have the option to apply for an education loan under the Baroda Scholar Loan programme. The student must be admitted into the designated institute and programme in order to qualify for the Bank of Baroda Education Loan in India. The loan limit for specified institutes is Rs 80 lakhs and for non-specified institutes is Rs 60 lakhs. 

Highlights of Bank of Baroda education loan for abroad

• Processing fees: 1% (Maximum Rs. 10,000) for loans above Rs. 7.5 lakhs
• For up to Rs 7.50 lakh there are no processing fees
• No margin on loans up to Rs. 4 lakhs
• Free debit card
• There will be no charges for documentation
• No security up to Rs 7.50 lakh

Repayment Tenure: Loans taken up to Rs. 7.5 lakhs can be repaid within 10 years, and loans above Rs. 7.5 lakhs can be repaid within 15 years 

Borrowers can get a holiday or moratorium period of six months to one year after getting employment. Security is not required for loans below the amount of Rs. 4 lakhs. A third-party guarantee is required for loans between Rs. 4 lakhs and Rs. 7.5 lakhs and tangible collateral security are required for loans above Rs. 7.5 lakhs. 

Eligibility

• Should be an Indian citizen
• Should have obtained admission to professional/technical programs outside India via an entrance exam/merit-based selection procedure

ICICI Bank

The ICICI Bank education loan covers university fees, travel costs, exam fees, lab fees, library fees, book/equipment fees and other related expenses. Under the ICICI Bank education loan, students can borrow up to INR 3 crore for studying abroad and up to INR 1 crore for studying in India. Interest rate​ starts from Repo Rate + 3.75% onwards.

ICICI Education loan has to be taken with a co-borrower, and 100% collateral security is required for loans above Rs. 7.5 lakhs. 

Highlights of ICICI Bank Education Loan for Abroad

• Maximum Loan Amount: 3 Crores for Abroad studies. 
• Repayment Tenure: The repayment period is maximum of 15 years
• Security: Not required for loans below Rs. 4 lakhs. For loan amounts above Rs. 4 lakhs, tangible collateral security is required
• Interest rate: Repo Rate + 3.75% onwards

IDBI Bank

The IDBI education loan covers university fees, travel, exam fee, lab fee, library fee, the cost of computers, book/equipment fees and other related expenses. IDBI Bank sanctions loan amount according to the requirement of the borrower, with no security on loans below Rs. 4 lakhs.  

Highlights of IDBI Bank for Overseas Education Loan

• Flexible tenure and loan enhancement facility
• Attractive interest rate
• Maximum loan amount: Up to Rs. 30 lakhs 
• Repayment tenure: Maximum of 15 years after the completion of the moratorium period
• Interest rate: Upto 7.5 lakhs – 9%, Above 7.5 lakhs – 9.5%, 0.5% concession for female student
• A third-party guarantee is required for loans between Rs. 4 lakhs and Rs. 7.5 lakhs. An education loan has to be taken along with a co-borrower. 100% collateral security is required for loans more than Rs. 7.5 lakhs

Avanse Financial Services

Avanse Financial Services offers Avanse Education Loan to students who want to study in India or abroad. There are different types of student loans under this such as pre-visa disbursement loans, fast-track loans, pre-admission loans, and certificates of availability of funds. Borrowers must submit their KYC documents, course fees, collateral documents, income documents, etc. to borrow an Avanse education loan. This loan covers expenses like tuition fees, travel costs, living expenses, books /equipment fees and other related expenses.There are some conditions which you need to follow.

Highlights

• The loan will get sanctioned within 72 hours
• Students can choose between secured and unsecured loan option.
• The formula to calculate Avanse Education loan interest rate is Avanse Base Rate + Spread ( Base Rate is 14.55% on 1 Dec 2024)
• The repayment option is flexible
• Loan tenure up to 15 years
• The maximum loan limit can be customized according to the borrower’s requirements. 

Federal Bank

Federal Bank provides loans that are available for higher education, but not for vocational training or skill development study programmes, in both India and abroad. Meritorious students are given the chance to further their education with the help of the bank thanks to the Special Vidya Loan.

Highlights

• Security is not required. up to 4 lakh rupees.
• There is not much documentation needed.
• No payback is required during the moratorium period, and affordable EMIs are available for repayment.
• Speedy loan approval 
• Loan amount upto 20 Lakhs to study abroad

Required Documents

Check: Top Private Student Loans without Cosigner

Union Bank of India

The Union Bank of India education loan provides financial support to students holding excellent academic qualifications in order to pursue technical/higher/professional education in India or abroad. It should be noted that it is mandatory for the parent (s) of the applicant to apply as a co-applicant. If the student is married, his/her spouse/parent (s) or in-laws can act as co-applicant (s). If the applicant does not have parents (not alive) his/her guardian or close relative can act as co-applicant.

Also, it is necessary for the co-applicant to be an Indian citizen. Courses covered include PhD courses, Graduation/post-graduation degree courses, CIMA, London, CPA, USA (and other similar institutes) conducted certified degree courses. Please note that overseas Diploma courses won't be covered.

Eligibility

• Applicant must hold Indian nationality
• Applicant should have been accepted in an Indian institution or abroad for technical/higher/professional education by clearing the relevant exam and selection procedure
• No maximum or minimum age criteria have been set for this

 Highlights

•  No minimum loan amount has been fixed for the loan that can be approved under the education loan scheme.
• Only after considering the account margins norms will the need-based finance meet the expenses.
• Expenses covered include hostel charges, tuition fees, examination/library/lab costs, the insurance premium for the student borrower, caution deposit/building fund or refundable deposit, books/equipment/uniforms purchase, computer/laptop costs, travel charges, admission acceptance fee, other expenses.
•  Students will have to repay the loan amount within 15 years (after the course and moratorium period).

Required Documents

Best Bank For Education Loan

Usually, any government bank is considered the best bank for education loan, as the interest rate is lower than private banks. However, if your credit report is impressive, then you may get special or customised ROI. Other than this, the government tied up with government banks to offer study loans to meritorious students. You can check with banks to get the benefits.

We have covered every possible query of a student who wants to apply for a student loan. If you have any queries or want to ask anything related to this, feel free to connect with us. Also, you can mention your query in the comment box below. Also, you can Apply for education loan through Shiksha Study Abroad.