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28th Nov 2022
Afia Azmi

All you need to know about Education Loans in India for Studying Abroad

Studying abroad is a dream come true for most of us. But it is a meticulous choice. It requires delicate and sincere planning of our choices and funds. We may ace in our academics but it requires a healthy fiscal approach. Now, with the emergence of education loans, this dream seems closer than before. Banks have become more alert to the common student’s dream of foreign education. So, these institutions now offer loans specifically for studying abroad. Some of these even offer education loan for abroad studies without collateral. The average cost of studying abroad is approximately 15-20 lakhs per year. So, education loan for international students has now become imperative for aspirants.

What are the basic requirements for an education loan for study abroad?

The minimal education loan for abroad eligibility includes the following:

  • Must be a citizen of India
  • Must be at least 18 years of age
  • Minor students must have a parent/guardian representative
  • Must have the acceptance letter from a recognised foreign university
  • Must have a stable economic status for the loan to be released
What documents will be required while applying for a student loan for study abroad?
  • Transcripts of all qualifying exams
  • Proof of acceptance of admission
  • Two passport size photographs
  • Estimation of expenses (tuition fee and accommodations)
  • Bank statement (not older than 6 months)
  • Income tax proof (not older than 2 years)
  • Proof of Collateral (if applied)
  • Residence Proof (such as Electricity Bill)
  • Identity Proof (Aadhar Card, Passport, Driver’s License, Voter Card, etc.)
Which is the best education loan in India for study abroad?

Almost all the banks of India offered the best schemes for students to study abroad. However, some of the recommended and popular banks that offer student loans for study abroad are -

Bank of Baroda

This bank has the Baroda Scholar scheme and offers a loan with a maximum amount of 20 lakhs.

Repayment Tenure: Within 10 years for a loan amount under Rs. 7.5 lakhs and within 15 years for loan amount above Rs. 7.5 lakhs.

PNB (Punjab National Bank)

Under the PNB Udaan Scheme, you can get the maximum amount of your requirement, without much hassle.

Repayment Tenure: Within 15 years of time.

State Bank of India

Students usually flock to government banks for bulk loans. And SBI’s education loan can offer a maximum amount of Rs. 30 lakhs

Repayment Tenure: Within 15 years of time.

Axis Bank

This bank is also most chosen by students for education loans due to its hassle-free process. The minimum loan amount is Rs. 50,000 and the maximum loan amount - Rs. 20 lakhs. They have special interest rates for female applicants.

Repayment Tenure: Usually 5-15 years; also depends on the 6-month reset cycle

HDFC Bank

You can avail up to Rs. 30 lakhs; there is no upper cap with certain collaterals.

Repayment Tenure: Within 15 years of time.

Can one get an education loan in India for study abroad without collateral?

It is quite often that many students with the most excellent academic background do not have stable collateral to offer to the banks for acquiring loans. However, there are some private banks and NBFCs (Non-Banking Finance Companies) that help you avail of an education loan up to Rs. 40 lakhs or more without collaterals. But their interest rates usually become higher in these cases.

Some of the banks offering education loans in India for study abroad without collateral are:

Axis Bank: The maximum loan amount is Rs. 40 lakhs. Their interest rate is between 11.25% to 13%. The loan repayment tenure for unsecured loans is 20 years.

ICICI Bank: The maximum loan amount is Rs. 40 lakhs. The interest rate starts at 10.75%. The loan repayment tenure is between 10 to 12 years for a post-graduate program.

Avanse (NBFC): The maximum loan amount is Rs. 40 lakhs. The interest rate is between 12.65% to 16%. The repayment tenure is 10 years.

InCred (NBFC): The maximum loan amount is Rs. 40 lakhs. The interest rate is between 11.75% and 16%. The repayment tenure is 10 years.

HDFC Credila: The maximum loan amount is Rs. 40 lakhs. Their interest rate starts at 12.05%. The loan repayment tenure for unsecured loans is 10 years.

Auxilo (NBFC): The maximum loan amount is Rs. 40 lakhs. The interest rate is between 12.70% to 18%. The unsecured loan repayment tenure is 10 years.

Frequently Asked Questions

How much education loan can I get?
You can avail of an education loan of a minimum of Rs. 4 lakhs to a maximum of Rs. 40 lakhs, or sometimes according to your requirement.

How to get an education loan for abroad studies?
To apply for an education loan for abroad studies, you must be a citizen of India and at least 18 years of age or have a parent/guardian representative. You must also have an acceptance letter/ admission script from a recognized foreign university.

How much student loan can I get in India?
According to RBI guidelines, the cap amount for abroad education loans in India is Rs. 40 lakhs. However, some private banks do offer nearly Rs. 75 lakhs with certain collaterals.

How much education loan can get I for studying abroad?
You can get an education loan between Rs. 4 lakhs to Rs. 40 lakhs to study abroad. However, some private banks offer more upper limit in loans, according to your requirement, with some terms and regulations.

How to get a loan for my abroad studies?
Choose an appropriate bank or NBFC which suits your criteria of the loan amount, interest rates, repayment tenure, etc. Keep your residence proof, identity proof, and academic transcripts ready. Also, keep handy any other such documents and proof.

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