Education Loans for Abroad Studies in 2023

Funding is an important decision-maker in a student’s pursuit of higher education. In this respect, scholarships, education loans for abroad studies or any other forms of financial aid are the prevalent resources students make use of to fund their studies. In this blog, we will focus on loans to study abroad available to students in India from banking institutions. This includes attractive loan schemes as well as the process of taking an education loan without collateral and much more.

Best Education Loan in India for Study Abroad

The following are the most popular education loan in India:

Axis Bank Education Loan

In our list of education loans for abroad studies, the Axis Bank Education Loan is one of the most popular options among all major banks. In particular, it offers two major loan schemes to help individuals achieve their study abroad dream, namely, the ‘Prime Abroad’ and ‘Loan for Higher Study’. While the former permits an unsecured loan amount of INR 40 lacs and a loan tenure of 15 years, the latter offers the provision of no collateral security for loans not exceeding INR 7.5 lacs. Both have door-to-door service. Axis Bank also operates a specified loan scheme for working professionals. A few vital points of information have been listed in the following table. 

Criteria	Particulars
Amount	Starting from INR 50,000
Covered Costs	Tuition Fees, Hostel fees, Books, etc
Interest rates	Up to INR 4,00,000: 15.2% [Effective Rate Of Interest]Between INR 4,00,000 and INR 7,50,000: 14.70% [Effective Rate Of Interest]Above 7,50,000: 13.70% [Effective Rate Of Interest]
Margin	Up to INR 4,00,000: no margin Above INR 4,00,000: 15%
Days for Disbursal	Within 15 working days of submission of loan application complete with documents
Other Features	Pre Admission Sanction

Eligibility

In order to receive the loan amount, applicants need to fulfil certain conditions of eligibility. Furthermore, as the process of loan is undertaken on a case-by-case basis, there may be other terms and conditions of eligibility attached.

Criteria	Particulars
Nationality	Must be a citizen of India
Grades	Must possess a minimum of 50% marks in high school and graduation
Admission	Must have been offered of admission to a career-oriented disciplines of engineering, medicine, management, etc at graduation or post-graduation level
Income	Evidence of regular income is mandatory for the co-applicant, i.e, parents/sibling/guarantor.
Other conditions	Any other loan eligibility conditions as adopted by Axis Bank

Documents Required

To prove your eligibility for the loan approval, you need to submit originals and copies of important documents related to your prior education, intended course and university, and offer of admission. Only with sufficient verification and due process can the release of funds be made.

• Transcripts/mark sheets/passing certificates of class Xth, class XIIth and bachelor’s degree [if applicable]
• Copy of the official letter of admission from the Institute along with fees schedule
• KYC documents
• Bank Statement/Pass Book of the last 6 months
• Optional–Guarantor Form

Note: More documents may be required at the first disbursal of funds. 

State Bank of India Global Ed-Vantage Scheme

One of the most trusted banks in India, the State Bank of India offers its Global Ed-Vantage scheme to help students in higher education in countries of USA, UK, Europe, Canada, Australia, New Zealand, Singapore, Japan and Hong Kong. More details are below.

Criteria	Particulars
Courses	Bachelor’s/ Master’s/Doctorate courses in any discipline
Destinations Applicable	USA, UK, Europe, Canada, Australia, New Zealand, Singapore, Japan and Hong Kong
Amount	Starting from INR 20 lacs to INR 1.5 cr
Repayment Period	Up to 15 years [Period of repayment will start exactly after 6 months of the completion of the course]
Covered Costs	Tuition Fees, Hostel fees, Examination fees, library fee, laboratory fee, travel expenses, books and stationery
Processing Fee	INR 10,000 per application
Interest rates	Fixed: 10.15% [Effective rate of interest]*
Margin	Scholarship/assistantship will be included in the margin; Margin is to be brought in on a year-to-year basis as and when pro-rata-based disbursements are made.
Other Features	Section 80 [E] tax benefit, Sanction of the loan prior to i20/visa

*0.50% concession is applicable for students availing the SBI Rinn Raksha or any other similar existing life policy assigned in favour of the Bank. Girl students are allowed a further concession of 0.50% concession.

Documents Required

Here are the essential documents required for an Education Loan which need to be submitted at the time of application. The bank may ask you to submit additional documents depending on the specifics of the application.

• Proof of Identity/Address and Passport
• Transcripts/mark sheets/passing certificates of class Xth, class XIIth and bachelor’s degree [if applicable].
• GRE/TOEFL/IELTS scores if required for the course.
• Official letter of admission from the institution of study. A conditional offer of admission may also be submitted.
• A statement listing the estimated cost of study or schedule of expenses.
• Proof of income of co-applicant/guarantor.

Also Read: Education Loan for MBA

Punjab National Bank’s Udaan

The Udaan scheme of Punjab National is one of the highly appreciated education loans for abroad studies which provide financial support not only for degree courses but also for professional and skill-oriented courses like an education loan for MBA and so forth.

Criteria	Particulars
Courses	Bachelor’s degrees in professional/technical offered by recognised universities Master’s degrees such as Master of Science [MS], MCA, MBA, etc Professional courses like CIMA London, CPA Course etc Degree/Diploma courses in the practical fields of aeronautical, pilot training, shipping etc. only if these are recognized by competent regulatory bodies abroad for the purpose of employment abroad. Other courses may also be considered.
Universities	You can find the list of universities here
Eligibility	Must be a citizen of India Must possess an offer of admission in a higher education degree program in recognised universities through either entrance test or merit-based.
Amount	Starting from INR 20 lacs to INR 1.5 cr
Repayment Period	Up to 15 years
Covered Costs	Tuition Fees, Hostel fees, Examination fees, library fee, laboratory fee, travel expenses, a premium of life insurance, caution deposit, books/stationery/other equipment, any other expense, etc
Interest rates	RLLR + 2.00 %
Margin	Up to INR 4 lac: no margin More than INR 4 lacs: 15% Scholarship/assistantship will be included in the margin; Margin to be brought in on a year-to-year basis as and when pro-rata-based disbursements are made.
Security	Up to 7.5 lacs: Parent(s)/guardian be appointed as joint borrower(s). Tangible security and /or 3rd party guarantee is not required. More than INR 7.5 lacs: Parent(s)/guardian is appointed as joint borrower(s). A suitable value of tangible collateral security acceptable to the bank.

Top Education Loan for Abroad Studies from NBFCs (Non-Banking Financial Companies)

HDFC Credila

Recognising the need for financial assistance, HDFC Bank launched HDFC Credila with special arrangements and benefits for overseas education applicants. Furthermore, as a considerable number of students prefer to study in specific countries such as the USA, UK and Europe and other major destinations it offers a specific scheme tailored to the needs of such individuals. The documents required are similar to that needed by other prevalent education loans for abroad studies. 

Criteria	Particulars
Eligibility	Borrower and co-applicants must be citizens of India Must possess an offer of admission to a higher the education degree program in recognised universities
Amount	Starting from INR 1 lac
Repayment Period	Up to 12 years
Covered Costs	Tuition Fees, Hostel fees, Examination fees, library fee, laboratory fee, travelling expenses, books/stationery/other equipment, travel fare [one economy class return ticket between India and the chosen country of study, any other expense, etc
Interest rates	HDFC Credila’s CBLR + Spread)% per annum
Collateral	Residential House, Residential Flat, Fixed Deposit assigned in favour of HDFC Credila or Non-agricultural land
Other Features	Disbursal of the loan will be in Indian rupees.

Documents Required

At the time of application, you will be required to submit the following documents:

Application Form	Download it here
Photos	2 Passport Photos of both Applicant & Co-applicant
Photo ID	Permanent Account Number (PAN) Card/Passport/Driving License/Aadhaar Card/Voter’s ID Card
Residence Proof	Passport/Driving License/Aadhaar Card/Voter’s ID Card
Academic Documents	Transcripts/mark sheets/passing certificates of class Xth, class XIIth and bachelor’s degree [if applicable];  CAT/GRE/TOEFL/IELTS scores if required for the course; Official letter of admission from the institution of study; Scholarship Documents
Financial Documents	Previous 8 months’ bank statements and income proof of co-applicant/guarantor

Avanse

Avanse is also one of the top education loan providers after HDFC Credila. They can provide you with an education loan for your higher studies in India and abroad. Before you apply, check out the eligibility criteria to avail of your education loan.

Eligibility

Students can apply if they:

• Are Indian citizens who are 18 or older
• Have a confirmed admission before the final disbursal
• Have a co-borrower who earns in India

They Co-borrowers also need to meet the following criteria:

• Must be an Indian citizen and should be a parent, legal guardian, sibling or other blood relative
• Must have a bank account in India that allows them to sign cheques
• Must be the primary debtor

Documents Required

• 2 color-passport-sized photograph
• Photo ID
• Residence Proof
• Date of Birth Proof
• Academic Documents
• Proof of Admission
• Fee Structure
• Income Proof
• Collateral Documents
• 8-month Bank Statements
• Relationship Proof

Also Read: Types of Education Loan for Indian Students

Top Education Loan Providers for Abroad Studies in India 2023

The following is a list of education loan providers for Indian banks along with their respective interest rates:

Bank Name	Interest Rate (% p.a.)
Bank of Baroda	6.75
Union Bank of India	6.80
Central Bank of India	6.85
Bank of India	6.85
State Bank of India	6.85
Punjab National Bank	6.90
IDBI Bank	6.90
Canara Bank	6.90

Education Loan for Abroad Studies by Indian Government

The following are the top education loan schemes offered by the Indian government:

Dr. Ambedkar Central Sector Scheme

Under this scheme interest subsidies are provided on education loan for overseas studies to students who belong to economically weaker section and other backward classes (OBCs). It is available for meritorious students who have secured an admission in approved courses under Masters, M.Phil. or PhD degrees abroad.

Eligibility:

The following are the eligibility criteria to apply for this scheme:

• The candidate should belong to either OBC or EWS category
• For OBC category, their total family income should not be more than INR 8 Lakh per annum
• For EWS category, their total family income should not be more than INR 5 Lakh per annum

Central Sector Interest Subsidy

This scheme is offered by the Ministry of Human Resources Development and Department of Higher Education that offers subsidy on education loan interest to the students who belong to the economically weaker section (EWS), pursuing professional/technical courses in Abroad and in India.

Eligibility:

The following are the eligibility criteria to apply for this scheme:

• The candidate must have secured an admission in an India/Foreign university
• Their total family income should not be more than INR 4.50 Lakh per annum

Padho Pardesh Scheme

This scheme aims to offer 100% interest subsidy on the education loan of meritorious students who belong to Economically Weaker Section (EWS) to enhance their employability.

The candidate should belong to notified minority community of India. According to section 2(c) of the National Commission for Minorities Act, 1992, these communities are Muslims, Christians, Sikhs, Buddhists and Parsis.

Eligibility:

The following are the eligibility criteria to apply for this scheme:

• The candidate must have secured an admission in approved courses under Masters, M.Phil. or PhD degrees abroad
• The candidate should belong the above-mentioned communities
• The candidate should have taken a loan from from a bank scheduled under Educational Loan Scheme of the Indian Bank Association
• Their total family income should not be more than INR 6 Lakh per annum

Also Read: Education Loan Tax Benefits

SBI Education Loan for Abroad

The following are the top loans by SBI for abroad studies:

Name	Loan Amount	Interest rate
SBI Student Loan Scheme	up to Rs 7.5 Lakh	10.90%
SBI Skill Loan Scheme	up to Rs. 1.50 Lakh	10.40%
SBI Global Ed-Vantage Scheme	above 7.5 Lakh up tp 1.5 Cr	10.90%
SHAURYA Education Loan	up to 7.5 Lakh	10.90%

More loan-cum-Scholarship Opportunities [BONUS]

Apart from the above schemes, you can also explore the following scholarships and education loans for abroad studies.

• Dhirubhai Ambani Scholarship
• Inlaks Scholarships
• Canara Bank Scholarship
• Commonwealth Scholarship
• HDFC Scholarship
• GRE Scholarships
• Syndicate Bank Education Loan
• Vijaya Bank Education Loan
• ICICI Education Loan
• IDBI Education Loan
• Bank of Baroda Education Loan
• Allahabad Bank Education Loan
• PNB Education Loan
• Canara Bank Education Loan
• HDFC Education Loan
• LIC Scholarship

Education loans for abroad studies are an important means of fulfilling the various financial obligations that arise from it. Needless to say, having expert guidance goes a long way. Reach out to our experts and counsellors at Leverage Edu and we’ll help you throughout your application journey, from finding a suitable course and university to sorting out scholarships as well as submitting your application within the deadline to ensure that you get successfully shortlisted.