How to Get an Education Loan for Abroad Studies: The Complete Guide by Edwest Global
Studying abroad is a transformative journey that opens doors to global opportunities, world-class education, and a multicultural experience. However, the financial investment required can be significant. An education loan for abroad studies is the most effective way to bridge this gap, making your international academic dreams a reality.
What is an Education Loan for Foreign Studies?
An education loan for foreign studies is a specialized financial product designed to fund higher education at recognized international universities. These loans cover a wide range of expenses, including:
- Tuition fees
- Living expenses
- Travel costs
- Health insurance
- Books and academic supplies
- Accommodation and commuting
Whether you’re pursuing undergraduate, postgraduate, or professional courses, a study loan for abroad ensures uninterrupted academic progress by covering all essential costs.
Benefits of Availing an Education Loan for Abroad Studies
- Meet Rising Costs: Top global universities often have high tuition and living expenses. Education loans provide the necessary financial support.
- Flexible & Customized Financing: Lenders offer tailored loan schemes based on your course, university, and country.
- Specialized Schemes: From visa application fees to travel, specialized loans cover all aspects of your study abroad journey.
- Tax Benefits: Interest paid on education loans is tax-deductible under Section 80E of the Income Tax Act.
- Moratorium Period: Most lenders offer a grace period after course completion, allowing you to start repayment once you secure a job.
Eligibility Criteria for Education Loan for Abroad Studies
To apply for an overseas education loan, you must generally meet the following requirements:
- Indian citizenship
- Age: 16–50 years (varies by lender)
- Confirmed admission to a recognized foreign university
- Good academic record
- Co-applicant: Parent, guardian, or close relative with a stable income
- Collateral: Required for higher loan amounts (for secured loans)
- Financial documents: Income proof, bank statements, ITRs, etc.
Required Documents:
| Document Type | Examples |
| Identity Proof | Passport, PAN Card, Voter ID, Driving License |
| Academic Credentials | 10th/12th mark sheets, graduation certificates, admission letter, test scores (IELTS, TOEFL, GRE, GMAT, SAT) |
| Financial Documents | ITRs (3 years), salary slips (3 months), Form 16 (2 years), bank statements (6 months), business proof, balance sheet |
| Collateral Documents | Property papers, FD certificates, insurance policies (if applicable) |
Step-by-Step Process to Apply for an Education Loan
- Research Costs: Calculate tuition, living, travel, and other expenses for your chosen destination.
- Choose Loan Type & Amount: Decide between collateral and non-collateral loans based on your needs.
- Application: Fill out the online or offline application form on the lender’s website or branch.
- Document Submission: Upload or submit all required documents.
- Verification: The lender reviews your application and documents.
- Sanction & Disbursement: Upon approval, the loan amount is disbursed directly to your account or the university.
Types of Education Loans for Abroad Studies
1. Collateral (Secured) Loans
- Definition: Requires pledging an asset (property, FD, insurance, etc.) as security.
- Loan Amount: Up to ₹1.5 crores or more, depending on collateral value.
- Interest Rates: Lower than unsecured loans (starting from 8.15% in 2025).
- Repayment Tenure: Up to 15 years, with a moratorium during studies plus 6–12 months post-completion.
- Who Should Apply: Students seeking high loan amounts for expensive courses or top universities.
Acceptable Collateral:
- Residential/commercial property
- Non-agricultural land
- Fixed deposits
- Life insurance policies with surrender value
- Government bonds (in select cases)
2. Non-Collateral (Unsecured) Loans
- Definition: No asset required as security.
- Loan Amount: Up to ₹1 crore for premier institutions; typically ₹40–50 lakhs for others.
- Interest Rates: Slightly higher (9–14%).
- Repayment Tenure: Up to 15 years, with moratorium.
- Who Should Apply: Students with strong academic profiles, confirmed admission to reputed universities, and a co-applicant with a good credit history.
Top Education Loan Providers for Abroad Studies (2025)
| Bank/NBFC | Max Loan Amount | Collateral-Free Limit | Interest Rate (Approx.) | Repayment Tenure | Key Features |
| State Bank of India | ₹1.5 crores | ₹50 lakhs (premier) | 8.15%–10.65% | Up to 15 years | Global Ed-Vantage, wide coverage, tax benefit |
| ICICI Bank | ₹3 crores | ₹1 crore | Repo + 3.75% onwards | Up to 15 years | Fast processing, flexible collateral options |
| Axis Bank | No upper limit | ₹40 lakhs | 9%–14% | Up to 15 years | 100% digital, quick disbursal |
| Credila Financial | ₹1 crore+ | ₹1 crore | 9.75% (secured) | Up to 15 years | 100% cost coverage, global reach |
| Avanse Financial | Customizable | ₹40–50 lakhs | 10%–14% | Up to 15 years | Fast-track, pre-visa, pre-admission loans |
| Bank of Baroda | ₹80 lakhs | ₹7.5 lakhs | 8.5%–12% | Up to 15 years | Baroda Scholar, no security up to ₹4 lakhs |
| Union Bank of India | Need-based | ₹7.5 lakhs | 8.5%–12% | Up to 15 years | Student-friendly, flexible terms |
Frequently Asked Questions
- What is the interest rate for education loans for abroad studies?
Interest rates typically range from 8.15% to 14% per annum, depending on the lender, loan type, and applicant profile.
2. Are there tax benefits on education loans?
Yes, interest paid is fully tax-deductible under Section 80E of the Income Tax Act for up to 8 years.
3. Can I get a loan before securing admission?
Some lenders offer pre-admission or pre-visa loans, but final disbursement requires an admission letter.
4. What is the maximum loan amount available?
Loan amounts range from ₹10 lakhs to ₹1.5 crores or more, based on the course, country, and collateral.
5. What are the eligibility requirements for government education loans?
Indian citizenship, confirmed admission to an accredited overseas university, good academic record, and a co-applicant with a steady income are standard requirements.
Why Choose Edwest Global for Your Study Abroad Loan?
At Edwest Global, we guide you through every step of the education loan process, from selecting the right lender to preparing your documents and maximizing your chances of approval. Our expert counselors ensure you get the best loan terms for your dream destination—be it the UK, USA, Canada, Australia, Germany, or beyond.
Contact Edwest Global today to start your study abroad journey with confidence!
