Education Loans for Study Abroad

India is ranked third amongst countries whose students are pursuing their education abroad. Studying abroad comes with concerns about the cost of Living, Studying, and traveling. An Abroad education loan helps students who want to gain an education from one of the best universities in the world. We will cover various aspects related to student loans. Numerous banks offer different education loan schemes. We will suggest the best education loan for abroad studies that suits your profile.

Why take Education Loan for Abroad.

According to the growing trend of studying abroad, there are various countries for pursuing higher education. The cost of studying abroad can go up to 15-25 lakhs rupees per year. The cost of studying abroad can depend upon the country, the courses, duration, and living in the country. 

Banks are offering educational loans to students to pursue their dream. The study abroad market is increasing by 12% every year. Students struggling with financial burdens can rely on banks to provide them with easy loans for study abroad. Numerous banks offer different education loan schemes based on the need of the student and their capabilities to afford that loan.

Eligibility criteria to apply for the education loan

While applying for student loans, applicants must check whether they are eligible to apply.

·       Applicant age should be 18+ else parents have to take the loan.

·       The applicant should be a citizen of India.

·       Applicants submit confirmation from the college/university before applying for the loan.

·       The applicant must have good academics.

·       The financial stability of the co-applicants is most important for the approval of the loans to study abroad.

Documents required for applying for Education Loan for Study Abroad

  • Identity-Related Documents (From Both Applicant & Co-applicant)

  • Financial Documents (From the Co-Applicant)

KYC Document

  • PAN Card

  • Driving License

  • Aadhar Card

Address Proof

  • Aadhar Card

  • Valid water/electricity/ LPG Bill

  • Voter’s ID card

  • Current House Lease Agreement

  • Valid Passport

Academic Record Documents (From Applicant)

  • 10th Result

  • 12th Result

  • Proof of Admission

  • Under Graduate Result Semester Wise (If required)

  • Entrance Exam Result – Abroad institutes (GRE, GMAT, TOEFL, etc.)

  • Entrance Exam Result- Domestic institutes (CAT, CET, GMAT, CMAT, JEE, NEET, GRE, etc.)

  • Top Education Loan Providers in India to Study Abroad

    Name of Bank   

    Loan Amount

    Rate of Interest per Annum

    State Bank of India

    20 L

    Up to 7.5 L- 11.01%

    Above 7.5 L- 10.75%

    Allahabad Bank

    50 L

    Up to 4 L- 11.45%

    Up to 7.5 L- 11.45%

    Above 7.5 L- 10.95%

    Axis Bank

    20 L and beyond depending on requirement

    Up to 4 L- 16.50%

    Up to 7.5 L- 17.50%

    Above 7.5 L- 15.50%


    Up to 10 L


    Min- 9.50%



    No limit. Depends on requirement

    12.10%+ floating rate(depends on the risks points of the applicant)

    Punjab National Bank (PNB)

    20 L

    Up to 7.5 L- 11.25%

    Above 7.5 L- 11.85%

    for education at premier foreign universities- 9.85%

    IDBI Bank

    Depends on requirement

    Up to 10 L-10.45%

    Above 10 L-11.45%

    Indian Overseas Bank (IOB)

    Up to  40 L

    Up to 4 L- 11.50%

    Up to 7.5 L- 12.00%

    Above 7.5 L- 12.25%

    State Bank of Mysore

    Up to 40 L

    Up to 4 L- 12.20%

    Up to 7.5 L- 12.20%

    Above 7.5 L- 11.20%

    Above 10 L- 11.70%

    Avanse Financial Services

    No limit. Depends on requirement

    11.5%+ floating rate(depends on the risks points of the applicant)

    Syndicate Bank

    20 L

    Up to 4 L- 11.00%

    Up to 7.5 L- 11.25%

    Above 7.5 L- 12.25%

    Canara Bank

    20 L  Depends on requirement

    Up to 4 L- 11.15%

    Up to 7.5 L- 11.65%

    Above 7.5 L – 11.15

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What is Collateral?

A movable or immovable property can be offered to the banks as security to receive a loan is called collateral. Collateral makes sure that if you end up not paying for the student loan, the bank holds the right to seize the property. Most Indian banks require collateral for the education loan.


Which is accepted as Collateral?

There are different types of instruments that are accepted as collateral. They include:

  • Bonds
  • FD
  • Shares
  • Mutual Fund Units
  • Gold
  • Life Insurance Policy
  • Debentures
  • Bank Deposits
  • House
  • Commercial Property
  • Normal Land
  • Agricultural lands are not accepted as collateral

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

Education loan has come to those who want to pursue quality education but can’t afford it. Now students can avail of a loan of up to 4 lakhs without collateral. For loans, up to 7.5 lakhs, parents or guardians are made joint borrowers and a third party as a guarantor.

When should I start repaying the loan?

The student repays the loan amount in EMIs (Equated Monthly Installment) after the course gets over. Banks usually ask the student to repay the loan within six months to 1 year after completing the course.

Applying for loans to study abroad and choosing the right university is difficult for the students. Global Acme Visa experts help you in making better decisions. We will provide the best guidance and support and help you reach your goal.

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