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Thinking of going abroad for studies but dreading university tuition fees, cost of living, flight tickets? An education loan allows Indian students to access funds for foreign higher education without paying everything upfront. Still, one lender’s “best” loan won’t suit every Indian student studying abroad.
Here’s a comprehensive comparison of popular education-loan options for Indian students. Factors we examined include the maximum loan amount, eligibility criteria, interest rates, loan benefits and more.
Top Education Loans for Abroad Studies in India
| Lender | Indicative Loan Amount | Key Features |
|---|---|---|
| SBI Global Ed-Vantage | Up to ₹3 crore | Collateral and select collateral-free options; overseas-focused scheme |
| Bank of Baroda Baroda Scholar | Up to ₹1.50 crore | Premier-institution funding; course + 1-year moratorium |
| ICICI Bank Education Loan | Up to ₹3 crore | Digital processing, pre-admission sanction, selected unsecured options |
| HDFC Credila | No upper limit with collateral; unsecured up to ₹75 lakh | Flexible overseas education financing |
1. SBI Global Ed-Vantage Scheme
SBI offers this education loan for Indian students taking up full-time higher education abroad. As per their website, lending rates for loans above ₹7.50 lakh extend up to ₹3 crore with collateral. Eligible students can also access loans without collateral up to ₹50 lakh at select institutions.
SBI lists an additional 0.50% interest waiver for girl students atop the existing Global Ed-Vantage rates requiring collateral.
Good for: Students applying for a large loan amount, especially those who can provide collateral.
2. Bank of Baroda Baroda Scholar
Bank of Baroda offers two loan options under Baroda Scholar: up to ₹1.50 crore for “Approved List of Premier Institutions” and ₹60 lakh for universities and colleges not on the list.
Awarded funds can be used for tuition/hostel fees, examination fees, study material, computer/laptop (if required) and other equipment.
Typically, students receive a repayment holiday equivalent to the course duration plus one year.
Good for: Students who have gained admission into qualifying professional or technical courses/institutions.
3. ICICI Bank Education Loan
ICICI Bank offers education loans worth up to ₹3 crore for students wishing to study abroad. They allow students to apply and receive sanction before admission digitally.
Published eligibility criteria include: being an Indian citizen/students with OCI card, studying at a recognized foreign university and having completed class 12 or diploma with any stream (subject to bank’s discretion).
ICICI Bank offers loans without collateral for approved institutes on their premier list. Keep in mind that loan amounts differ based on course, institution and student profile.
Good for: Students who prioritize applying online or require sanction before admission.
4. HDFC Credila Foreign Education Loan
HDFC Credila claims students can get loans covering “full tuition fees and cost of education” by pledging collateral. They offer loans up to ₹75 lakh without collateral, subject to eligibility and underwriting.
The published loan tenure is 7 to 14 years, including the moratorium period.
Good for: Students desiring flexible loan options. You may also want to explore dedicated education lenders like HDFC Credila if your bank doesn’t have a tailored loan programme for foreign students.
Who Can Apply for an Abroad Education Loan?
While eligibility conditions differ across lenders, student applicants usually have the following:
- Indian citizenship
- Acceptance letter/admit card from a recognised foreign university
- Sufficient academic background to attend university
- A parent or eligible guardian to act as co-applicant
- Healthy credit score and repayment capacity
- Collateral to secure the loan (if necessary)
Some lenders place additional importance on the educational institution, course of study, study destination, academic credentials and potential to repay the loan when approving your loan.
What Expenses Can the Loan Cover?
Depending on the lender, loan product and final sanction, you can use an education loan for studies abroad to pay for:
- Tuition fees
- Hostel fees/accommodation
- Examination fees
- Books and study material
- Equipment
- Laptop/computer
- Flight/train tickets
- Insurance
- Miscellaneous education expenses.
How to Apply for an Abroad Education Loan
- Know which university and course you want to pursue.
- Confirm that your school, college or university is on the lender’s list of approved institutions.
- Compare interest rates, lender margins, collateral and processing fees.
- Gather documents related to your admission, academics, identity, income and assets.
- Fill out the online application or visit a lender branch/loan portal.
- Wait for lenders to verify your credit and documents.
- Receive the loan sanction letter.
- Fulfil any conditions before disbursement.
Is There a Last Date to Apply?
India doesn’t have a centralised deadline for applying to education loans. However, students must apply for an education loan before the university’s fee deadline, acquire a student visa (if necessary) and consider the lender’s loan processing time.
To be safe, start the loan application process several months before your university’s first tuition fee deadline.
What Should You Compare Before Choosing?
Every lender has different loan products suited to unique needs. When choosing an education loan for abroad studies, compare the loan amount, interest rate, repayment tenure, processing fees and more.
Remember: interest rates and loan eligibility are subject to change. Always confirm current rates and conditions with your lender beforehand.
Lastly, an education loan is a debt you will likely repay for years to come. Make sure you compare the total cost of the loan – not just the amount sanctioned – before accepting the loan.
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