Education Loan
Who Can Apply for an Education Loan?
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Student Profile
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Why a Loan Makes Sense
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Best Loan Type
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What Does an Education Loan Include?
Education loans for studying abroad typically cover tuition fees, accommodation, food, travel expenses, health insurance, books, laptops, visa fees, examination fees, and caution deposits. Coverage may vary depending on the lender — public banks often have stricter guidelines, while NBFCs and international lenders offer more flexible expense options.
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Expense Category
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Specific Items Covered
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Public Banks
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NBFCs
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Intl. Lenders
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Different Types of Education Loans for Studying Abroad
In India, there are two main types of education loans for studying abroad. Secured loans require collateral, such as property or fixed deposits, and generally offer lower interest rates. Unsecured loans, on the other hand, do not require any collateral and are approved based on the student’s academic profile and the co-applicant’s income. While secured loans are suitable for larger amounts, unsecured loans provide faster processing and eliminate the risk of pledging assets.
Secured Education Loan
Requires property, FD, or securities as collateral.
- Interest rate: 8.5% – 16.5% p.a. (Lowest)
- Loan amount: Up to ₹1.5 Crore+
- Approval time: 3 – 5 weeks
Unsecured Education Loan
No collateral needed — based on profile
- Interest rate: 8.5% – 18% p.a.
- Loan amount: Up to ₹75 lakh
- Approval time: 7 – 15 working days
Compare Top Education Loan Providers in India
India’s top education loan providers for studying abroad include public sector banks such as SBI, BOB, and Canara Bank; private banks like HDFC, ICICI, and Axis; NBFCs including HDFC Credila, Avanse, InCred, and Auxilo; and international lenders such as Prodigy Finance and MPower. Each type of lender caters to different student profiles, and selecting the wrong one can result in higher interest costs or even application rejection.
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Lender
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Type
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Interest Rate
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Max Loan
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Collateral
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Speed
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Best For
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Avanse Financial
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InCred Finance
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7–15 days
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7–14 days
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poonawala financial
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NBFC
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9.9% – 16%
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1 Cr
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Flexible
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1–2 wks
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Fastest Approvals
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Eligibility Requirements for Study Abroad Education Loans
To be eligible for an education loan for studying abroad in India, you must be an Indian citizen aged 18–35, have a confirmed admission letter from a recognized foreign university, a co-applicant with a stable income, and a CIBIL score above 700. Secured loans also require mortgageable collateral, and most lenders prefer students with academic performance of 60% or higher.
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Eligibility Factor
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Standard Requirement
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Why It Matters
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How To Strengthen It
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Highlight strong trajectory even if borderline
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Documents Needed for Study Abroad Education Loans
Properly organizing all required documents before applying is the quickest way to speed up your education loan approval. Incomplete or missing documents are the main reasons for delays and application rejections.
A. Student Documents
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Document
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Details / Specifications
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Conditional or unconditional — from the admitted institution
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B. Co-Applicant Documents
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Document
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For Salaried Co-Applicant
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For Self-Employed / Business Owner
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Last 6–12 months of primary salary account
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Last 12 months of primary business account
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C. Collateral Documents — For Secured Loans Only
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Document
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Purpose
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Property valuation by bank-empanelled government-registered valuer
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Frequently Asked Question
An education loan for studying abroad is a financial solution provided by banks, NBFCs, or international lenders to help Indian students fund their higher education overseas. It typically covers tuition fees, living expenses, travel, and insurance, with repayment done through EMIs after the course, often including a moratorium period of 6–12 months.
Indian students aged 18–35 with confirmed admission to a recognized foreign university can apply. Eligibility typically requires a co-applicant with stable income, a CIBIL score above 700, and academic performance of 60% or higher. Secured loans from public banks may also require mortgageable collateral.
Yes, certain NBFCs like HDFC Credila, Avanse, InCred, and Auxilo provide collateral-free education loans up to ₹75 lakh. Additionally, international lenders such as Prodigy Finance and MPower fund students at top global universities without requiring collateral or an Indian co-applicant.
Interest rates for education loans vary from 8.5% to 14% per annum. Public sector banks typically offer 8.5%–10% for secured loans, private banks charge 10%–12%, and NBFCs provide 11%–14% for unsecured loans. Your exact rate depends on factors like collateral, university ranking, co-applicant income, and CIBIL score.
Secured loans from public banks like SBI can provide up to ₹1.5 crore, while NBFCs such as HDFC Credila and Avanse offer up to ₹75 lakh without collateral. International lenders like Prodigy Finance fund up to USD 2.2 lakh. The exact loan amount depends on your total cost of attendance and the type of lender.
Repayment typically begins 6–12 months after completing your course, known as the moratorium period. During this time, only simple interest accrues, and no EMIs are required. After the moratorium, full EMIs covering principal and interest start, usually over a tenure of 10–15 years.
Under Section 80E of the Income Tax Act, the full interest paid on an education loan is deductible from your taxable income, with no upper limit. This deduction can be claimed for up to 8 consecutive assessment years starting from the year you begin repayment.
NBFCs typically approve loans within 7–15 working days, private banks take 1–3 weeks, and public sector banks require 3–6 weeks for secured loans due to property valuation. It’s recommended to apply as soon as you receive your admission offer to meet university payment deadlines.
For secured loans, SBI Global Ed-Vantage offers the lowest interest rates and loans up to ₹1.5 crore. For collateral-free unsecured loans, HDFC Credila and Avanse are preferred. Prodigy Finance is ideal for students at top global universities without an Indian co-applicant. The best option depends on your financial profile and requirements.
You will typically need the student’s mark sheets, admission letter, university fee structure, passport, Aadhaar, and PAN. For the co-applicant, salary slips or ITR, bank statements, and ID proof are required. Additionally, secured loans require property title deeds and a valuation report.
The KC International is a trusted education loan advisor with partnerships across 15+ banks and NBFCs. We provide free consultation, compare multiple lenders, review your documents before submission, and coordinate directly with lenders to ensure faster approvals and minimize the risk of rejection due to documentation errors.