Best Education Loans in India to Study Abroad 2024 - Top Banks List

The best way of gaining international exposure, work experience, and world-class education is through pursuing a degree or course abroad. Therefore, it makes it even more essential for Indian students planning to pursue their degree in a host country to know about the best education loans in India to study abroad. This dream leads to a stream of endless opportunities that a person can gain fruitful benefits from given that they can afford to live, work, and study in a foreign country.

This Story also Contains

1. How to get a student loan in India to Study Abroad?
2. Top Education Loan Providers in India
3. Education Loan Interest Rate in India to Study Abroad
4. Cheapest Education Loan in India for Study Abroad
5. Documents Required for Education Loans in India to Study Abroad

Hence, it generates a massive demand for education loans in India to study abroad in countries such as the UK, Canada, USA, Germany, Ireland, etc as a good proportion of people might not be able to self-finance their education themselves.

Now, the main question that arises is “Which is the best education loan in India to study abroad, and how to get it?” This article will answer all your queries regarding the requirements for education loans in India to study abroad, and financial institutes through which one can apply for the cheapest education loan for studying abroad.

We will be mentioning various possible providers of education loans in India to study abroad including Banks and Non-Banking Financial Companies (NBFCs) in India that are a credible source for providing student education loans to people if they want to pursue their education in a foreign destination.

With the help of the best education loans in India to study abroad, these financial institutes provide as much assistance to aspiring students as they can while also enabling many dreams to come true by supporting them economically and facilitating a smooth transition into this new journey.

Read more: Factors to consider before taking an education loan

How to get a student loan in India to Study Abroad?

Student loans for studying abroad are provided by almost all the major banks in India, apart from this there are many private education loan providers in India. Candidates planning for an education loan to study in the UK, USA, Canada, or any other country, then you should know about the top student loan providers in India and more importantly their terms and conditions.

An applicant can choose a bank or NBFC of their choice after comparing them on several factors and filling in the required application form either online or offline to opt for the education loan as offered by the financial institute. After doing so one should submit necessary documents related to their finances, identity, academic background, property, and admission letter to get through with the application process. It can be followed by various other procedures which may vary according to the loan type, amount, and bank that a person chooses to associate with.

Requirements for Education Loans in India to Study Abroad

Some of the eligibility criteria and requirements that one needs to adhere to and keep in mind while choosing the best education loans in India to study abroad are as follows:

• The borrower must be an Indian citizen to be eligible to apply for any of the education loans mentioned above.

• An admission or acceptance letter from the university of your choice in a foreign country should be submitted at the time of loan application.

• One should thoroughly complete the entire application process at the designated Bank or Financial institute in India by filling out forms and submitting passport-size photographs, photo ID, proof of residence and income, and academic transcripts.

• The applicant must have a renewed and eligible passport before starting the application process for an education loan to study abroad.

• Some additional documents will be required at some of the loan-providing institutions like KYC, tuition fee statements, minimum grade criteria mark sheets, etc.

• In case the primary applicant for the education loan is not earning, there must be a co-applicant responsible for the application and loan sanction procedure.

Top Education Loan Providers in India

India in recent times, has become a hub for not just IT or Commerce departments but has some of the leading financial sectors in the world. These sectors consist of various financial institutions in the form of Banks and NBFCs that not only help you balance and maintain your assets but also help you in times of crisis or need. One such need is the increasingly high demand for education loans in India to study abroad.

To ease the process of fetching credible and reliable outlets for opting for education loans we have created a list of some of the most renowned and trustworthy Banks and NBFCs that will help you pursue your dreams of studying abroad but will also give you an idea as to which loan suits your needs and meets the requirements of the aspirants in the best way possible. We will be showcasing the best student loan providers in India belonging to the governmental as well as private financial institutions.

State Bank of India (SBI)

State Bank of India is one of the most sought-after choices when it comes to choosing a bank as an education loan provider in India. One can pursue their studies abroad in countries like the United States, Russia, Canada, Norway, Ireland, United Kingdom, New Zealand, Australia, etc by opting for student loans provided by SBI. However, these loans are mostly granted for degrees such as undergraduate, graduate, master's, and doctoral, which are more job and technical-oriented, and courses that are more job-oriented in the market. The SBI education loan covers tuition fees, exam or lab expenses, travel, safety deposits, and even miscellaneous expenses like books, supplements, or transportation.

Some of the other essential details regarding the education loans provided by SBI to study abroad are as follows:

• The tenure for student loans as well as Global Ed-Vantage is for 15 years and can be repaid through EMI.

• SBI also facilitates a moratorium period of around 6 months that can be enabled after the competition of your desired degree or course.

• It has an application processing fee of approx. Rs. 10,000.

• It has a margin of 15% for education loans to study abroad in case of an amount of Rs. 4 lakhs or above.

HDFC Credila

HDFC Credila offers a customized choice to students who are planning to study abroad and are looking for a favourable and extensive feature-oriented education loan option. It has a specialized range of choices for different nations depending upon the loan takers' preferred study destination like the USA, Canada, Germany, etc. Most of the loan granting process will be initiated and completed before the visa process as guaranteed by the Bank making it a favourable option in terms of the best education loan providers in India.

Some of the other essential details regarding the education loans provided by HDFC to study abroad are as follows:

• The tenure for HDFC Credila is 12 years and can be started repaying after the 1st installment.

• SBI also facilitates collaterals in the form of houses, flats, FDs, and other assets or properties.

• It has an application processing fee for an education loan of anywhere between Rs. 1000 and 1% of the loan-sanctioned amount.

• It has a margin of 15% for education loans to study abroad in case of an amount of Rs. 4 lakhs or above.

Axis Bank

Axis Bank education loan for abroad proves to be one of the best sources in terms of providing student loans in India to study abroad. It offers necessary financial support the deserving students for pursuing higher professional or technical education in India and abroad. Axis Bank is one of the few private banks that offer in-house financing to Indian students aspiring to study abroad or in India. It also provides the cheapest education loan in India for studying abroad to those students who have obtained admission to career-oriented courses like medicine, engineering, management, etc.

Some of the other essential details regarding the education loans provided by Axis Bank to study abroad are as follows:

• The tenure for the student education loan to study abroad is 15 years and there is no upper limit for the maximum amount of loan a person can take.

• It also facilitates covering the majority or even the full amount of costs of transportation, visas, books, supplies, and tuition fees.

• It has an application processing fee for an education loan that is anywhere between Rs. 1000 and 1% of the loan-sanctioned amount.

• It has a margin of 15% for education loans to study abroad in case of an amount of Rs. 4 lakhs or above.

Punjab National Bank

PNB is a government-leading financial institute known for providing education loans in India to study abroad. One can opt for PNB Udaan as a means for financing their education while going to a foreign country to pursue a degree in the field of undergraduate, graduate, master, or doctoral studies.

Some of the other essential details regarding the education loans provided by Punjab National Bank to study abroad are as follows:

• The tenure for repayment of the student education loan to study abroad is 15 years.

• It also facilitates covering the majority or even the full amount of costs of transportation, visas, books, supplies, and tuition fees.

• It has no external payment charges.

• It has a margin of 15% for education loans to study abroad in case of an amount of Rs. 4 lakhs or above.

Canara Bank

Canara Bank offers an enticing range of coverage that includes tuition fees, books, housing facilities, equipment fees, and even travel expenses as a part of their student education loan to study abroad. It offers student loans for job-oriented, technical, professional, or STEM graduation and post-graduation courses.

Some of the other essential details regarding the education loans provided by Canara Bank to study abroad are as follows:

• The tenure for repayment of the student education loan to study abroad is 15 years.

• It demands collateral security for education loans above the amount of Rs. 4 lakhs.

• It has a margin of 15% for education loans to study abroad in case of an amount of Rs. 4 lakhs or above.

• The interest rates differ as per the collateral security as per the ranges.

Avanse Financial Services

This NBFC offers a variety of different education loans in India to study abroad which range from fast-track to pre-visa to pre-admission and even availability of funds. Avanse provides student loans to Indian citizens above 18 years of age for pursuing graduation or post-graduation for job-oriented professional or technical courses offered by reputed universities outside India as well as courses and universities approved by Avanse for education financing.

Some of the other essential details regarding the education loans provided by Avanse Financial Services to study abroad are as follows:

• The tenure for repayment of the student education loan to study abroad is up to 5 years.

• It can offer a flexible option for repayment and also customize the upper limit for loans according to the customers' needs.

• There is no margin required for availing of student loans from Avanse Financial Services.

• In terms of fast-track student education loans, the amount can be sanctioned within 7 hours of applying.

TATA Capital

Tata Capital provides student 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. It is known to be one of the most renowned education loan providers in India at a reasonable interest rate.

Some of the other essential details regarding the education loans provided by TATA Capital to study abroad are as follows:

• The tenure for repayment of the student education loan to study abroad is 6 years.

• It can offer a flexible option for repayment and also customise the upper limit for loans according to the customers' needs.

• There is no margin required for availing student loans from TATA Capital.

• It has a processing fee of almost 2.75% of the loan amount sanctioned to a borrower to fund their education.

Also Read: Education loan FAQs

Education Loan Interest Rate in India to Study Abroad

The majority of aspirants in India planning to study abroad opt for Banks or Financial institutions that offer cheap education loan that covers a good proportion of their costs and expenses as a part of their education journey abroad. Here is a list of the best education loan providers in India, which provide loans for abroad education. The details of loan providers in India along with the average loan amount with their interest rates are provided below.

Cheapest Education Loan in India for Study Abroad

In the face of growing costs in terms of tuition fees, living expenses, and other miscellaneous expenditures it becomes necessary for students planning to pursue their studies in a foreign country must apply for some of the cheapest education loan options in India to study abroad.

Now choosing an affordable loan option can be a tricky business however, if one considers several factors before opting a long-term financial borrowing it can end up fulfilling your various and mandate requirements from the loan. Some of the factors that a borrower should consider before applying for a reasonable education loan in India to study abroad are as follows:

• One must consider giving their first preference to a government-owned financial institution when choosing a provider for your education loan to study abroad.

• The majority of public banks or institutions offer a subsidized and cheap rate of interest for education loans which is way affordable if compared to the private banking sector in India.

• The borrower must also keep in mind the tax benefits that a particular bank would provide you in case you chooses to opt for the education loan given by their institution.

• The EMI installment procedure also becomes a considerable option while choosing the Bank or NBFCs for study abroad loan sanction and the criteria for same.

• An applicant must also be aware of the processing fee charges when choosing an education loan as most of the banks apply it as a mandated charge before initiating the entire loan granting process, hence making it an essential factor to consider in terms of affordability.

• Some of the most popular banks that offer the cheapest education loans in India to study abroad are the State Bank of India, Bank of Baroda, Union Bank of India, Punjab National Bank, Canara Bank, etc.

Also Read: Steps to Take Education Loan

Documents Required for Education Loans in India to Study Abroad

There are a few important factors as well as documentation that one needs to adhere to while applying for education loans in India to study abroad. As the application procedure can be a little laborious and time-consuming an applicant must have the rightful knowledge of the kind of documents they will need to provide from their end to the official loan-providing financial body. Hence, we have curated a list of the essential transcripts and documents that are required for the same:

• Academic transcripts of the applicant

• Proof of income or financial assets

• KYC documents

• Bank statements

• Collateral documents

• Birth certificate

• Copy of passport

• Identity proofs (such as Aadhar card, PAN card, Voter card, Driving license, etc.)

• Proof of residence

• Photographs of the applicant

• Acceptance letter from the designated foreign university