Studying in another country is a big dream for many Indian students. But it also costs a lot of money. Tuition fees, flight tickets, books, and living expenses — all these add up. If your family cannot pay the full amount, don’t worry. You can take an education loan from a bank or NBFC (Non-Banking Financial Company).
At this time, all the children take a step forward regarding their career, some of them, their parents and the children themselves also save a lot of money for good education, some save and invest it in mutual funds and some through crypto currency so that their career and future is bright, Some complete their studies through study loan and build a better future.
This article will explain everything in a simple way — how to get an education loan, which banks are best, and what you need to apply.
What Is an Education Loan?
An education loan is money you borrow from a bank to pay for your studies. You can take it for:
- College or university fees
- Hostel and food charges
- Travel and visa costs
- Books, laptop, or study material
You pay back the loan (with interest) after your course ends — usually once you get a job.
Can I Get a Loan to Study Abroad?
Yes! Many Indian banks and NBFCs give loans to study in:
- USA
- UK
- Canada
- Australia
- Germany
- Many other countries
You must have:
- Admission in a recognized foreign university
- A co-applicant (like your parents or guardian)
- Documents like ID proof, bank statements, and mark sheets
Best Banks for Education Loans for Foreign Studies (2025)
Here are top banks and NBFCs giving study abroad loans:
| Lender | Loan Amount | Interest Rate (Approx) | Max Tenure |
|---|---|---|---|
| State Bank of India (SBI) | Up to ₹1.5 Cr | 9.0% – 11% | 15 years |
| Bank of Baroda | Up to ₹80 Lakh | 9% – 11% | 15 years |
| Punjab National Bank (PNB) | Up to ₹1 Cr | 9.2% – 11.5% | 15 years |
| HDFC Credila (NBFC) | No upper limit | 10% – 12% | 10–15 years |
| Axis Bank | Up to ₹75 Lakh | 10% – 12.5% | 15 years |
| ICICI Bank | Up to ₹1 Cr | 10% – 12% | 10–15 years |
Note: Interest rates may vary. Always check the latest rates on the bank’s official website.
Documents Needed to Apply
To apply for an education loan, you need:
Student Documents:
- Admission letter from foreign university
- 10th, 12th, and degree mark sheets
- Passport and visa
- Proof of residence
Co-applicant Documents:
- PAN card, Aadhaar card
- Income proof (salary slips, ITR)
- Bank statements (6 months)
- Property or asset papers (if giving collateral)
With or Without Collateral – What’s the Difference?
| Type | Collateral Required? | Loan Limit |
|---|---|---|
| Secured Loan | Yes (property, FD, land, etc.) | ₹20 Lakh – ₹1.5 Crore |
| Unsecured Loan | No collateral | Up to ₹7.5 Lakh (can go higher for top colleges) |
Secured loans have lower interest. Unsecured loans are faster but more expensive.
Do You Need a Co-Applicant?
Yes. Indian banks always ask for a co-applicant (usually your parent or guardian). They are responsible for repaying the loan if you cannot.
When Do You Start Repaying the Loan?
You don’t need to repay during your course. Most banks give a moratorium period, which means:
- No EMI during your course + 6–12 months after your course ends
- After that, you start paying monthly EMIs (with interest)
This gives you time to find a job and settle.
Steps to Apply for an Education Loan
- Choose your course and country
- Get admission letter from the university
- Compare banks and NBFCs
- Collect your documents
- Visit the bank or apply online
- Wait for approval (usually 7–15 days)
- Get the loan disbursed (money sent to your university or your account)
Tips Before You Take a Loan
- Choose public banks like SBI or PNB for lower interest
- Apply early (even before your visa)
- Always read the terms and check the processing fee
- Check if the loan covers your full cost of education
- Keep a good CIBIL score for your co-applicant
Summary Table
| Topic | Details |
|---|---|
| What is It? | Money from bank to pay for study abroad |
| Best Banks | SBI, PNB, Bank of Baroda, Axis, ICICI |
| Max Loan | ₹1.5 Crore (with collateral) |
| Interest Rate | 9% to 12.5% approx |
| Start EMI | After course + 6–12 months |
| Required Documents | Admission letter, ID proof, co-applicant income proof |
FAQs
Q. Can I get an education loan without collateral?
Yes, up to ₹7.5 Lakh or more for top institutes. But interest may be higher.
Q. Can students apply without a co-applicant?
No, most banks need a co-applicant in India (usually a parent).
Q. How long does it take to get an education loan?
It usually takes 7 to 15 working days after submitting all documents.
Q. Does the loan cover living and travel costs?
Yes, most loans cover tuition, living expenses, visa, flight tickets, and insurance.
Q. Can I get a loan before getting a visa?
Yes, many banks give loans after admission but before visa approval.
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