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, HDFC, 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. By carefully researching and comparing different study loan options, you can select the most suitable education loan offered by top education loan providers and find the best option for your needs.

Read More

• Education Loan Interest Rates
• How to Repay Student Loans Faster?

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 for financing your study abroad dream. Check the list. 

1. State Bank of India (SBI)
2. HDFC Bank
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. Canara Bank

State Bank of India

SBI offers education loans for abroad studies 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. that are job-oriented for professional and technical graduates. These courses include but are not limited to, MBA, MCA, MS, diploma programmes at reputable colleges, etc. The SBI education loan for abroad studies pays for tuition, books and equipment costs, exam fees, lab and library fees, caution deposits, travel costs, and more.

Highlights of SBI Education Loan for Abroad

• Up to Rs. 1.50 crore in loans, with a minimum loan amount of Rs. 7.50 lacs
• Favourable interest rate
• Online application process that is quick
• Loan sanction prior to i20/Visa
• Repayment through EMI up to 15 years
• Tax benefit: Under 80(E)
• The application processing fee is Rs 10,000

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.

Required Documents

Class 10th, 12th, Graduation mark sheets (if applicable), entrance exam result	Admission Offer Letter
Course Expenses Schedule	Scholarship letter copies (If you have)
Gap certificate (if applicable)	Passport-size picture of student/parent/co-borrower
Co-applicants asset-liability statement	Last 6 months' bank account statement of parent/guardian/guarantor
Latest salary slip and Form 16 (for salaried people)	PAN Card
Aadhaar Card Number	Passport

HDFC Credila

HDFC Credila offers education loans with preferential interest rates for reputed universities. Thousands of students who are studying outside India have obtained funds from HDFC Credila. The admissions and educational systems in India and other nations are familiar to HDFC Credila. HDFC Credila offers specialised solutions with features and high service standards. In contrast to banks, which normally charge a fixed rate for a certain group of students, HDFC Credila offers a range of rates based on the institution, the co-borrower, the collateral security provided, and the student's academic record. Customized student loans are available through HDFC Credila.

Things Covered Under HDFC Credila Education Loan

Upto 100% of expenses such as exam fees, living and hostel charges, purchase of equipment/books/uniforms, travel costs, library/lab charges, and purchase of laptops or computers. Please note that only one economy class return ticket between India and the study destination is covered. 

Highlights of HDFC Education loan for Abroad

• The minimum loan amount stands at Rs 1,00,000 and no upper limit has been set by HDFC Credila on the loan. 
• The floating rate of interest linked to HDFC Credila's Benchmark Lending Rate (CBLR) will be the rate of interest.
• At present, HDFC Credila's CBLR is 12.80% per annum.
• The re-payment for loan interest will begin immediately after the disbursement of the 1st installment of the loan.
• The maximum loan repayment tenure is of 12 years.
• Collaterals accepted include residential houses/flats, commercial properties, non-agricultural land, a fixed deposit assigned in favour of HDFC Credila and HDFC second charge property.

Eligibility

• Indian nationality holder to wishes to pursue higher education overseas
• Co-applicant should also be an Indian citizen
• Co-borrower bank account should exist in any Indian bank with cheque-writing facilities
• College admission offer letter should exist

List of Documents Required for Education Loan

Here is the check list of all the documents that you need to have at the time of Education loan application:

• Complete the application form for student loan
• Photo ID proof (Adhar, Driving license or etc)
• Academic documents
• Bank statement of co-applicant
• Passport size photograph
• Admission offer letter from the university
• Collateral documents

Also Read:

Vidyalakshmi Education Loan	Education Loan Vs. Self Funding to Study Abroad
Education Loan EMI Calculator	Public v/s Private Education Loan Providers

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 re-financed 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
• Student should be enrolled in career-oriented programs at the graduate or post-graduate level
• Should have been admitted from a recognised institute via entrance exam/merit-based selection process after completing HSC
• Parent/guardian should have a regular income source

Required Documents

Income Statements	Last 6 months' bank statement/passbook
Offer Letter's copy with fee schedule	Mark sheets of SSC/HSC/ degree courses/national level entrance exams
Proof of Age	Proof of Address
Photo ID	Passport-size pictures of applicant and co-applicants
Guarantor form (not mandatory)

Punjab National Bank

PNB Udaan is a special education loan scheme for Indian students with great academic records planning to study abroad. The loan is available for students who have got 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 lac - 15%
• Maximum upto 15 years of repayment
• There are no payment charges

Eligibility

• Resident of India
• Should have got admission to 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 Baroda Scholar 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 entrance exam/merit-based selection procedure

Required Documents

Applicant and Co-Applicant's KYC	Academic Documents
Admission Proof	Entrance Exam Result (if required)
Statement of Tuition Fees	Co-Applicant's proof of income (if salaried)
Last 6 month's bank account statement	Property document (if applicable)

Check: Things to know before applying for foreign education loan

Canara Bank

The Canara Bank education loan covers university fees, travel costs, exam fees, lab fees, library fees, book/equipment fees and other related expenses. Education loan has to be taken with a co-borrower and 100% collateral security is required for loans above Rs. 7.5 lakhs. Courses eligible for this loan are Master's degree under STEM (Science, Technical, Engineering and Management) courses.

Highlights of Canara Bank education loan for abroad

• Maximum loan amount: Need-based finance
• Loan margin: 15% for loans taken above Rs. 4 lakhs 
• Repayment tenure: The repayment period is of maximum 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: Collateral Security 100% and above – 9.4%, Collateral Security 75% to 100% - 9.65%, Collateral Security less than 75% - 9.9%

Also Read:

• Everything You Need to Know About Education Loan
• Collateral for Education Loan: Everything You Need to Know
• Know the A to Z of Study Abroad Loans: All Terms and Their Definitions

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
• Maximum loan limit can be customized according to the borrower’s requirement 

Check: Private Trusts offering Scholarships and Loans for studying abroad

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

Identity Proof	Proof of Adress
Admission Letter	Academic Qualification Mark Sheets
Proof of Fees Structure

Check: Top Private Student Loans without Cosigner

Union Bank of India 

The Union Bank of India provides education 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 be holding 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

Application form and credit information	KYC documents
Income Proof (for salaried)	Last 6 months bank statement
Property documents	Additional 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 customized 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.