Education loans are a saviour for students who want to complete their education or pursue higher studies but who do not have enough financial support to do so. Financial lenders in India provide education loans for studies in India as well as overseas. Since the number of people studying abroad has been steadily increasing, the number of banks providing education loan for abroad studies has been increasing. If you are looking for some help on education loan for abroad studies, then you are at the right place!
Although a number of scholarships and other financial aid options exist for study abroad aspirants, not all students become eligible for them. As a result, education loans are seen as one of the important parts of the study abroad plan of a student. Education loans for studying abroad are provided by almost all the major banks in India. We present below names of some of the Top Education Loan Providers in India for study abroad aspirants.
Top Education Loan Providers in India to Study Abroad
| Name of Bank | Loan Amount | Rate of Interest per Annum |
| State Bank of India | Studies in India – Maximum Rs. 10 lakhs Studies Abroad – Maximum Rs. 20 lakhs |
10.25% (Upto Rs 7.5 lakhs)
10.50% (Above Rs 7.5 lakhs) |
| Allahabad Bank | 50 lakhs | Upto 4 lakhs- 11.45%
Upto 7.5 lakhs- 11.45% Above 7.5 lakhs- 10.95% |
| Axis Bank | 20 lakhs and beyond depending on requirement | Upto 4 lakhs- 15.2%
Upto 7.5 lakhs- 14.7% Above 7.5 lakhs- 13.7% |
| HDFC | Upto 10 lakhs | Max-15.25%
Min- 9.50% Avg-12.41% |
| Credila | No limit. Depends on requirement | 12.10%+ floating rate(depends on the risks points of the applicant) |
| Punjab National Bank (PNB) | 20 lakhs | Upto 7.5 lakhs- 11.25%
Above 7.5 lakhs- 11.85% for education at premier foreign universities- 9.85% |
| IDBI Bank | Depends on requirement | Upto 10 lakhs-10.45%
Above 10 lakhs-11.45% |
| Indian Overseas Bank (IOB) | Upto 40 lakhs | Upto 4 lakhs- 11.50%
Upto 7.5 lakhs- 12.00% Above 7.5 lakhs- 12.25% |
| State Bank of Mysore | Upto 40 lakhs | Upto 4 lakhs- 12.20%
Upto 7.5 lakhs- 12.20% Above 7.5 lakhs- 11.20% Above 10 lakhs- 11.70% |
| Avanse Financial Services | No limit. Depends on requirement | 11.5%+ floating rate(depends on the risks points of the applicant) |
| Syndicate Bank | 20 lakhs | Upto 4 lakhs- 11.00%
Upto 7.5 lakhs- 11.25% Above 7.5 lakhs- 12.25% |
| Canara Bank | 20 lakhs. Depends on requirement | Upto 4 lakhs- 11.15%
Upto 7.5 lakhs- 11.65% Above 7.5 lakhs- 11.15% |
Government of India
In consultation with Reserve Bank of India (RBI) and Indian Bankers’ Association (IBA), the Government of India has framed a Comprehensive Educational Loan Scheme. The new scheme covers all type of courses, including professional courses in schools and colleges in India and abroad.
The salient features of the scheme related to study abroad are:
- The scheme envisages loans up to Rs. 15 lacs for studies abroad.
- For loans up to Rs. 4 lacs, no collateral or margin is required and the interest rate is not to exceed the Prime Lending Rates (PLR). For loans above Rs. 4 lacs, the interest rate will not exceed PLR plus 1 per cent.
- The loans are to be repaid over a period of 5 to 7 years with provision of grace period of one year after completion of studies.
State Bank of India
The State Bank of India offers the SBI Student Loan Scheme for Indian nationals to pursue their education abroad. The education loan for studying abroad is provided for job oriented professional, technical Graduation Degree courses, or Post Graduation Degree and Diploma courses like MCA, MBA, MS, etc offered by renowned colleges/universities. The State Bank of India provides four types of education loan to prospective students, namely,
- Scholar Loan
- Global Ed-Vantage
- Student Loan
- Skill Loan
Documents required to take education loan from SBI
- Proof of Identity
- Proof of Residence/ Address
- Valid Passport
- Academic Records
- Proof of admission
- Statement of cost of study
- Two passport-size photographs
Allahabad Bank
Some other Top Education Loan Providers in India to study abroad on similar terms as that of Allahabad Bank Education Loan are:
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The Allahabad Bank offers education loans to Indian nationals who secure admission to professional or technical courses in recognized institutions abroad through the entrance test or merit-based selection process after completion of HSC (10 plus 2 or equivalent). The study abroad courses eligible for the Allahabad Bank Education Loan are:
- Graduation: For Job oriented professional or technical courses offered by reputed universities
- Post Graduation: MCA, MBA, MS etc
- Courses conducted by CIMA London, CPA in USA etc
- Regular Degree or Diploma courses like Aeronautical, pilot training, shipping etc, the Institute duly recognized by the competent university, State Body, Local Aviation, or Shipping Authority. The quantum of the loan provided is need-based subject to repaying capacity of the parents or students with a ceiling of Rs. 20 Lacs.
Axis Bank
| Axis Bank
The features of the Axis Bank Education Loan for Education are:
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Axis Bank’s Education Loan aims to provide financial support to deserving students for pursuing higher professional or technical education in India and abroad. The education loan is provided to students who have obtained admission to career-oriented courses e.g. medicine, engineering, management etc., either at the graduate or post-graduate level.
For students aspiring to study abroad, axis bank education loan is an option for funding. Axis bank is one of the few private banks that offer in-house financing to Indian students aspiring to study abroad or in India.
The education from Axis bank will be provided to those students who have obtained admission to career-oriented courses like medicine, engineering, management etc., either at the graduate or post-graduate level. Below is the criteria students need to fulfil to be eligible for Axis bank education loan-
- Secured at least 50% marks during Higher Secondary School and Graduation, if applicable
- Secured admission to a graduate or postgraduate course in India or abroad through an entrance test or merit-based selection process
Punjab National Bank (PNB)
The PNB offers the PNB Saraswati scheme for providing education loan to meritorious students to pursue higher professional and technical education in India and abroad.
The major aspects of the PNB education loan scheme are:
- Courses approved:
Quantum of Finance: up to 20 lacs- Graduation: For job oriented professional or technical courses offered by reputed universities.
- Post graduation: MCA, MBA, MS, etc.
- Courses conducted by CIMA – London, the CPA in the USA etc.
- Degree or Diploma courses like Aeronautical, pilot training, shipping etc. provided these are recognized by competent regulatory bodies abroad for the purpose of employment in India or abroad.
- Repayment period: up to 10 years for loans of Rs. 7.50 lacs or below and up to 15 years for loan above Rs. 7.50 Lacs
- The margin of 15% for loan above Rs. 4 Lacs
How to get education loan from PNB.
The Punjab National Bank provides various schemes to issue education loan to students who want to go abroad for higher studies. The educational loan to study abroad by the PNB is called PNB Saraswati. The bank provides education loan for upto Rs. 20 lakh for studies abroad.
Courses covered for PNB education loan
The Punjab National Bank provides student loan for the below given courses:
- Job oriented professional courses offered by reputed universities
- Job oriented technical courses offered by reputed universities
- Post graduation courses such as MBA, MCA and MS
- Courses conducted by CIMA- London and CPA in USA
- Diploma and degree courses such as pilot training, shipping, aeronautical etc. provided by recognised regulatory bodies abroad. The diploma courses other than these will not get an education loan from PNB.
Eligibility to take education loan from PNB
The eligibility criteria for education loan from PNB are:
- The candidate must be an Indian citizen
- The candidate must have obtained admission in a reputed university/ institute abroad
Application checklist for education loan from PNB
- Completed application form
- Passport size photograph
- Proof of address
a) Passport
b) Driving license
c) Voters ID card
d) Electricity bill
e) Telephone bill
- Proof of age
- Academic transcripts and certificates of the latest degree
- Prospectus of the university/college the applicant is going to join which explains the tuition fee, examination fee and hostel fee
- Information about the assets and liabilities of the parents or guarantor
- Copy of passport and visa
Expenses considered for the education loan from PNB
- Fee payable to the university/ college
- Examination fee
- Travel expenses from the home country to the host country
- Caution deposit
- Purchase of books etc.
Security needed to take education loan from PNB
There is no security needed to take education loan for upto Rs. 4 lakh. However, the guardian or parent must be the co-borrower. The candidates taking loan between Rs. 4 lakh and Rs. 7.5 lakh must provide collateral security in the form of suitable third party guarantee. For the loans above 7.5 lakh, the candidate must provide tangible collateral security suitable value acceptable to bank along with the assignment of future income of the student for payment of installments.
Interest rate for education loan by PNBAmount of Loan Repayable in less than 3 yrs Repayable in 3 yrs & above Upto Rs 4 lakh BR+3.00% (13.25%) BR+2.50%+TP (13.25%) Between Rs 4 lakh and Rs 7.50 lakh BR+4% (14.25%) BR+3.50%+TP (14.25%) Above Rs 7.50 lakh BR+2.00% (12.25%) BR+2.00%* (12.25%) Loan repayment
Sudents who are taking the loan upto Rs. 7.5 lakh will get 10 years repayment period. The repayment period of the education loan above that is 15 years. The moratorium period to start repaying the loan is six month to one year after completing the course or getting a job (whichever is first).
Expenses Covered under Education Loan by IDBI Bank:
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IDBI Bank
IDBI Bank offers education loan to deserving and meritorious students for pursuing higher education in India and abroad. The facility is also being offered to the meritorious students who have secured admission through Management Quota.
The quantum of finance is a maximum of Rs. 20 lacs for studying abroad. The repayment period is from 10 to 15 years. Find below the IDBI Bank education loan Rate of Interest table.
| Loan amount | Rate of Interest |
| Loans qualifying as Priority Sector Lending(PSL) : Up to Rs. 20 lacs for studies Abroad |
BR+1% (currently 11.25%)
(Floating) |
| Loan amounts not qualifying as Priority Sector Lending(PSL) : Above Rs. 20 lacs for studies abroad |
BR+2% (currently 12.25%)
(Floating) |
HSBC India
Given below is a list of few other Education Loan Providers in India to study abroad.
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HSBC, in affiliation with Global Student Loan Corporation, offers education loan to students who are seeking to attain a world-class education at a college or university in the USA. HSBC India Student Education Loan Programme enables students to borrow funds to cover the cost of education – tuition, fees, room charges, boarding, books, and other education-related expenses.
Some of the special features of the HSBC education loan to study abroad offered are that up to Rs. 1 crore is given against residential property and the tenure is up to 15 years.
Indian Overseas Bank (IOB)
The IOB provides education loans to Indian nationals who have secured admission to professional or technical courses abroad. The loan is offered only for Graduation and Post Graduation Courses offered by reputed universities. The quantum of loan available is up to Rs. 40 lacs for studies abroad. The repayment period is for a maximum period of 5 – 7 years excluding holiday period of six months after getting the job or 12 months after completion of the course, whichever is earlier.
State Bank of Mysore
The State Bank of Mysore’s Gnanamitra Educational Loan scheme provides loans to students to cover tuition and other fees, maintenance costs, or books and equipment and cost of passage for studies abroad etc., for pursuing studies at recognised school, college or institution. The courses eligible for the loan are diploma, graduate, post-graduate courses in the faculties of Engineering, Technology, Architecture, Medicine, Dental Science, Agricultural Science, Veterinary Science and Computer Certificate courses of reputed institutes accredited to the department of electronics or affiliated to the university. The maximum amount of loan given is Rs. 20 lacs.
Syndicate Bank
The Syndicate Bank’s comprehensive Education Loan Scheme, SyndVidya, provides need based finance to cover expenses related to education such as fees payable to college, hostel, examination, library, laboratory fees, caution deposit, building fund, or refundable deposit up to 10% of tuition fee, cost of books, equipments, travel expenses for studies abroad etc. Only capitation fees, donation or external coaching fee are not covered. The loan scheme has a maximum limit of Rs.20 lacs for overseas courses. The repayment period is five to seven years. The study abroad courses eligible for the SyndVidya scheme are:
- Graduation: for job oriented professional or technical courses offered by reputed universities
- Post-graduation: MCA, MBA, MS etc
- Courses conducted by CIMA-London, CPA in USA etc
Canara Bank
The Canara Bank offers education loans to study abroad for job oriented, technical or professional graduation and post-graduation courses. The quantum of finance is up to Rs. 20 lacs and the repayment period is up to 10 or 15 years depending on the loan amount.
