Education Loan for Study abroad-Whom to approach
Updated on Apr 24, 2015 - 3:39 p.m. IST by Bedasree Das
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Education Loan for Study abroad - With universities abroad launching attractive professional opportunities, more and more Indian students are geared up for the experience in a new country. As the numbers are surging everyday, the demand for financial aids is also picking up. While grants are the perfect choice, huge competition deters many students from it. In that case, education loans are the best way to fund your studies abroad. But the question is, whom to approach for an education loan?


The Indian government has framed a comprehensive education loan scheme to ensure that every deserving student is provided with financial aid to pursue higher education abroad.

The scheme, formulated in consultation with RBI and Indian Bankers' Association, allows banks to provide loans to study abroad upto 15 lakhs in the least. However, the lending banks have discretion in fixing the maximum loan amount, provided the maximum is at least 15 lakhs.


For students going abroad, there are a number of formalities and requirements which need to be adhered to. 


Due to an influx on information, students get confused regarding whom to approach for an education loan to study abroad.

To simplify your problem, Careers360 brings you a list of banks and agencies, whom you can approach for an education loan to study abroad:


State Bank of India:

India’s largest bank, the State bank of India, under its SBI Student loan scheme provides education loan to students who wish to pursue education outside India.

According to its website, SBI provides loansforJob oriented professional/ technical Graduation Degree courses/ Post Graduation Degree and Diploma courses like MCA, MBA, MS, etc offered by reputed universities abroad.

Courses conducted by CIMA (Chartered Institute of Management Accountants) - London, CPA (Certified Public Accountant) in USA are also covered under the SBI Student loan scheme.

You can expect to get a maximum loan of Rs.30 lakhs to study abroad. Since, studying abroad is a costly business, more often than not students demand loans much higher than SBI’s no-margin limit.

It is SBI’s policy to charge a margin of 15% for loans exceeding Rs.4 lakhs.

Also, students who approach for an education loan of more than Rs.4 lakhs for studies abroad are required to make a deposit of Rs5000, which is adjusted against the margin money or the interest payable on the loan.

However, if you do not avail the loan within a period of 4 months of sanction of the loan, the amount will be forfeited by the bank.


Below is the interest rates for SBI Student loan scheme:

Loan Amount Rate of Interest*
For loans upto Rs.4 lacs3.50% above Base Rate, currently 13.50% p.a.
Above Rs.4 lacs and upto Rs.7.50 lacs3.75% above Base Rate, currently 13.75% p.a.
Above Rs.7.50 lacs1.75% above Base Rate, currently 11.75% p.a.

There is an added benefit of 0.50% concession in interest for girl students.

X factor: An interesting feature of this scheme is that there is provision for second or Top-up loan within the limit of the maximum loan amount.


CLICK HERE to download the application form for SBI


Get the list of terms and conditions here!


HDFC Credila:

A subsidiary of HDFC, Credila is the only lender in India, which is exclusively focused on education loans. A specialized lender of education loans Credila offers loans to:

  1. Indian students going overseas
  2. Indian students already in the USA

Credila processes loans starting from Rs. 1,00,000 which can go upto or exceed Rs.20,00,000.

Credila covers the following costs:

  1. Tuition fees as determined by the college/university
  2. Up to 100% of other expenses, including living and hostel expenses, examination fees, library/laboratory fees; purchase of books / equipments/instruments/uniforms; passage money for studies abroad; purchase of computers / laptops considered necessary for completion of the course.
  3. Travel fare restricted to one economy class return ticket between India and the country of study, if applicable.

X factor: Credila says that it can issue the sanction letter for a student wishing to study abroad even before he/she applies to the institute.



CLICK HERE to download the application form for Credila

Credila requires the applicant to contribute supporting documents alongwith the application form.

CLICK HERE to get the list of supporting documents


AXIS Bank:  

Axis Bank’s Education Loan is provided to students who get admission to career-oriented courses like medicine, engineering, management etc., either at graduate or post-graduate level in institutes outside India.

Axis Bank says it can provide education loan upto Rs. 20 lakhs for pursuing studies abroad which would cover tuition fees, hostel charges (if any), cost of books, etc.

For loans above Rs 4 lakhs, there is a 15% margin for higher studies overseas.

In addition, applicants are required to open an LIC policy in favour of Axis Bank for a sum equal to at least 100% of the education loan amount.

The following documents are required along with your loan application:

  Purpose                  Salaried            Others
Proof of identityPassport or Voter's ID card or driving license or PAN card or government department ID cardPassport or Voter's ID card or driving license or PAN card
Proof of incomeLatest salary slip showing all deductions or Form 16 along with recent salary certificateIT returns for the last 2 years and computation of income for the last 2 years certified by a CA
Proof of residenceBank account statement or latest electricity bill or latest mobile or telephone bill or latest credit card statement or existing house lease agreementBank account statement or latest electricity bill or latest mobile or telephone bill or latest credit card statement or existing house lease agreement
Bank statement or Pass Book where salary or income is creditedLast 6 monthsLast 6 months
Guarantor formOptionalOptional
Other DocumentsCopy of admission letter of the Institute along with Fees schedule, mark sheets / pass certificates of S.S.C, H.S.C , Degree coursesCopy of admission letter of the Institute along with Fees schedule, mark sheets / pass certificates of S.S.C, H.S.C , Degree courses

The interest rates are as follows:

TypeAmountBase rate + mark up
Education LoanLoans greater than Rs. 4 lacs and upto Rs. 7.5 lacBase rate + 8.00%
Loans greater than 7.5 lacsBase rate + 6.00%
Education Loan for Girl ChildLoans greater than Rs. 4 lacs and upto Rs. 7.5 lacsBase rate + 7.50%
Loans greater than 7.5 lacs Base rate + 5.50%

The current base rate is 10.25%

X factor: There is no processing fee involved.In addition, the applicant does not have to pay prepayment charges and is not hassled to submit No Due Certificates or Solvency Certificate.

You can apply for the Axis Bank education loan here!

Besides, applicants are also required to sign an agreement with the bank.

CLICK HERE to download Axis Bank Loan Agreement


Punjab National Bank:  

The Punjab National Bank provides education loan under the Saraswati Education Loan scheme.

According to PNB officials, the scheme provides financial assistance to meritorious Indian students for pursuing higher professional and technical education abroad.

Maximum amount of loan provided is Rs. 20 Lakhs. For loans upto Rs.7.50 lakhs, the repayment period is 10 years while for loans above Rs.7.50 lakhs the period is 15 years.

Also for study abroad, an upfront fee of 1% with a minimum of Rs. 10,000 is payable. (refundable on availability of the loan amount)

PNB provides loans for:

  1. Graduation: For job oriented professional/technical courses offered by reputed universities.
  2. Post graduation: MCA, MBA, MS, etc.
  3. Courses conducted by CIMA- London, CPA in USA etc.
  4. Degree/Diploma courses like aeronautical, pilot training, shipping etc.

Expenses considered for Loan: Tuition fees, Examination , Library , Laboratory fee, Purchase of academic requirements; caution money, Travel expenses for study abroad.

Interest rates:

VidyalakshyapurtiBase Rate System
Repayable in less than 03 yrsRepayable in 03 yrs & above
Loan over Rs.4 lakhs to upto 7.50 LacsBR+4.00%BR+3.50%+ TP
Loan over Rs. 7.50 lakhsBR+3.50%BR+3.00%+ TP


X factor: Under the Sarvottam Shiksha scheme, interest rates for applicants who already have an account with PNB is less. Below are the rates:

Sarvottam Shiksha** (For Existing A/cs only)Base Rate System
Repayable in less than 03 yrsRepayable in 03 yrs & above
Loan over Rs.4LakhsBR+3.00%BR+2.50%+TP


HSBC Premier:

HSBC Premier Overseas Program helps you to plan your education abroad through educational associates. However, the assistance program is limited to only family members of Premier customers.

HSBC Premier offers services for education overseas in the following ways:

  1. The bank assists in setting up an HSBC Premier bank account overseas along with credit and debit cards prior to departure.
  2. HSBC provides access to education fairs and pre-departure briefings hosted by our educational associates.
  3. You can view your HSBC accounts online using the Global View service available on HSBC Premier Internet Banking.

If you wish to obtain an education loan from HSBC premier, you are required to maintain a Total Relationship Balance (TRB) of Rs 2,500,000 (Rupees Twenty Five lakhs only) quarterly.

Candidates also have to join HSBC Premier to apply.

Global Student Loan Corporation (GSLC):

The Global Student Loan Corporation(GSLC) is an agency, which offers student loans for international students that do not require a US citizen or permanent resident to co-sign the loan.

GSLC provides financial aid through partnerships with lending institutions around the world and specialized loan servicers. GSLC generally works with financial institutions located in the student’s home country to provide financing for the student’s education.


Expenses considered for loan: GSLC arranges financing for students to cover the complete cost of education which includes-  tuition fees, books, approved housing, transportation, computer, and other approved education expenses.

Besides , GSLC also helps students to determine the total cost of attending their school.


X factor: GSLC says it has set no restriction in the total amount. The maximum loan amount is the cost of education less any other financial aid. Also, as mentioned above it does not require a US citizen or permanent resident to co-sign the loan.



International Student loan program:

The International Student loan program helps a student fund his/her education abroad. It has been providing international loans to students from India since 1998.You can apply for a loan up to the total cost of your education minus any other financial aid. International student loans are available year round through this programme. It can, however, be availed only for pursuing education in the USA.

However, applicants are required to have a US cosigner as Indian students do not have a credit history in the country.

Expenses covered: Tuition, room and board, books and supplies, travel and transportation, health insurance and living expenses.

The application process starts by doing a loan comparison, which finds the best suitable loan scheme for you. Once you've completed your loan application, you will get initial approval within weeks.


X factor: Applicants can compare their loans through the compare student loan option. This option allows you to select he loan that is best for you.

CLICK HERE to compare your loan options and apply!


Avanse Financial services:

Avanse is an education finance company which provides Indian students education loan to study abroad.

Avanse provides a minimum loan of  Rs. 1,00,000.00 but it does not have  limit on the maximum amount. The maximum amount is structured to meet your necessary needs and cost of education.

Expenses covered: Following are the expenses covered by Avanse

  1. 100% Tuition Fee as determined by the institute or university
  2. Living expenses, including purchase of books, computers and other expenses essential to complete the course (up to 75% of total living cost though not exceeding 20% of the total tuition fee)
  3. Caution Deposit / Building Fund / Refundable Deposit supported by Institution Bills / Receipts though not exceeding 10% of the total tuition fee.
  4. Travel expenses / passage money upto 75000/- for students travelling abroad.

The interest rate charged by Avanse is based on Avanse Base Lending Rate benchmarked by Avanse, which is 11.5%, currently.

Hence, the interest rate is equal to ABLR+Spread, where spread is determined individually and is based on analysis of the credit and course profiling.

The minimum repayment period is 12 months which can go upto 120 months. Avanse charges a processing fee between 1-2% of the loan amount and is calculated on a case-to-case basis.


X factor: Avanse does not charge any margin for students going to study abroad. Also, as mentioned it does not have any limit to the maximum loan abount to be disbursed.

To apply for an education loan from Avanse



Also read!

Education USA: How studying in USA gives you an edge

Top Universities in USA

US Admission- Know all about admission process

Stay tuned to for more news and feature related to Study abroad education loans.



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