Studying abroad is a dream for many students in India. You get to learn new things, experience a different culture, and build a career with global opportunities. But one big challenge stands in the way – money.
An international degree comes with a high price tag. From tuition fees to living expenses, the cost can be overwhelming for most families. That’s where an overseas studies loan comes in. It helps you cover the cost of education and allows you to pay it back later, once you complete your studies and start earning.
However, with numerous lenders offering student loans in India, choosing the right one can be challenging. To make an informed decision, it’s important to compare what each lender offers and understand the documents required for an Education Loan for abroad studies, such as admission proof, academic records, and financial statements. This guide will walk you through the top Education Loan providers in India and help you find the option that best fits your needs.
Which Banks and NBFCs Offer the Best Overseas Education Loans?
Here are some of the most trusted lenders that offer loans to study abroad:
1. State Bank of India (SBI)
SBI is one of the most popular banks for Education Loans. They offer loans of up to ₹1.5 crore for top universities worldwide. You can apply even before getting your visa. The interest rates are affordable, and you get up to 15 years to repay.
2. ICICI Bank
ICICI Bank provides up to ₹3 crore for overseas education. The loan covers tuition fees, travel costs, and even laptop purchases. You will need a co-borrower, and collateral is required for large amounts.
3. Bank of Baroda
Their ‘Baroda Scholar’ scheme is great for students going abroad for an MBA, MS, or other professional courses. You can get up to ₹80 lakh with low interest rates and easy repayment options.
4. Axis Bank
Axis Bank gives loans starting from ₹50,000 with flexible terms. You can even pay back older education expenses once the loan is approved. The loan covers everything, fees, travel, books, and more.
5. Punjab National Bank (PNB)
PNB offers a scheme called ‘PNB Udaan’, specifically designed for students planning to study abroad. It supports graduate, post-graduate, and even diploma courses. The loan covers almost all education-related costs.
6. IDBI Bank
IDBI Bank offers loans with a maximum limit of ₹30 lakh. The interest rates are attractive, and female students receive an additional discount. Loans below ₹4 lakh don’t require security.
7. Credila (An HDFC Ltd. Company)
Credila is a private NBFC that only deals with Education Loans. It customises the loan based on your course, university, and academic background. You can also receive up to 100% coverage of your costs.
8. Avanse Financial Services
Avanse is a fast-growing NBFC that promises to sanction loans within 72 hours. They also offer pre-visa disbursement loans and flexible repayment plans.
9. Federal Bank
This bank offers loans of up to ₹20 lakh with minimal paperwork. You don’t need to repay anything until your moratorium period ends, and EMIs are designed to be light.
10. Union Bank of India
Union Bank offers loans for technical, professional, and even PhD programs. Co-applicants must be Indian citizens, and the loan covers a wide range of expenses, including travel, books, and insurance.
What Do You Need to Apply for a Loan?
To get your overseas studies loan approved faster, you’ll need to submit certain documents. Here’s a simple checklist of the documents required for an Education Loan for abroad studies:
- Admission Letter from the foreign university
- Mark Sheets of Class 10, 12, and graduation (if applicable)
- Entrance Test Scores (like IELTS, TOEFL, GRE, GMAT if required)
- Fee Structure provided by the university
- Valid Passport
- Address and Identity Proof (Aadhaar card, PAN card, passport)
- Bank Statements of the parent or co-applicant (last 6 months)
- Income Proof (salary slips, ITRs for salaried or self-employed co-applicant)
- Property Documents if the loan requires collateral
Tip: Always keep both physical and scanned copies of your documents ready. It makes the process smoother, especially for online applications.
Final Thoughts
Choosing the right Education Loan provider can make a big difference in your study journey. Don’t just go with the first lender you find. Compare interest rates, repayment terms, and the amount they are willing to lend. Also, consider how quickly they process applications, especially if your college deadline is approaching.
If you’re feeling stuck or unsure, a platform like Spoctree can help you compare multiple Education Loan providers in one place. You can check interest rates, use a loan calculator, and even get expert support, all under one roof.
The right loan can turn your study-abroad dream into a real plan. So, take the first step and explore your options today.
