How to Get Education Loan for Abroad Studies in India?

The day that admission letter lands in your inbox, the world suddenly feels bigger, and your dreams closer. You read it again, just to be sure. Then reality sets in: how on earth am I going to pay for this?

It’s a question almost every Indian student faces when planning to study overseas. The cost isn’t small, tuition, travel, accommodation, insurance, it all adds up faster than you expect. But that’s exactly why an education loan for study abroad exists. It’s not just a bank formality; it’s the quiet enabler of thousands of success stories every single year.

Why an Education Loan Isn’t Just About Money?

Think about it , you’re not just funding a course; you’re investing in the version of yourself you want to become.

Studying abroad means exposure, confidence, and independence. But for most families, shelling out ₹20–60 lakhs (sometimes more) isn’t easy. That’s where a well-planned education loan steps in education loan for study abroad.

What makes these loans so useful is how flexible they are, they don’t just cover tuition, but also your living expenses, insurance, flight tickets, and even your laptop if your course needs one. Most banks also give you time after graduation before repayment starts. That breathing space can mean everything when you’re setting up life in a new country.

Two Ways to Get That Loan: With or Without Collateral

When you approach a lender, they’ll ask if you want a secured or unsecured loan.

• A secured loan means you (or your family) back it with property, fixed deposits, or insurance. You get a lower interest rate and a longer time to repay.
• An unsecured loan doesn’t require collateral , perfect if you can’t or don’t want to pledge assets. The rate may be a bit higher, but approvals are often quicker.

It’s not about which is better , it’s about what fits your situation. Many students today prefer starting with an unsecured option, and once they settle abroad, they refinance for better rates later.

Where to Apply? The Most Trusted Options

SBI Overseas Education Loan

If there’s one bank that’s almost part of every Indian family story, it’s SBI. Under its Global Ed-Vantage Scheme, the SBI education loan lets you borrow up to ₹1.5 crore. The repayment window stretches up to 15 years , plenty of time to find your financial footing.

What most students appreciate is the comfort of working with a public sector bank and the relatively simple documentation process.

BOB Overseas Education Loan

The Bank of Baroda (BOB) is another name you’ll hear often. Through its Baroda Scholar Loan Scheme, the Bank of Baroda overseas education loan offers up to ₹80 lakhs. It covers tuition, travel, and living expenses for recognized universities abroad.

It’s especially popular with students heading to countries like the UK, US, and Canada , and for good reason: repayment flexibility and quick turnaround.

HDFC Credila Overseas Education Loan

If you like things fast and personalized, HDFC Credila is your match. The HDFC Credila overseas education loan is tailored for students who need a full-scope solution. It can even be pre-approved before you get admission. There’s no upper limit on how much you can borrow, and it often covers 100% of your expenses.

That means you can focus on preparing for your visa interview instead of worrying about your bank balance.

How Does the Application Journey Really Feels?

Here’s what most students go through , and what actually helps:

1. Compare before committing. Don’t just pick the first lender your friend used. Compare interest rates, processing fees, and how long each bank takes to approve.
2. Check your eligibility. Most banks ask for proof of admission from a recognized foreign university and a co-applicant with a steady income.
3. Get your documents ready. This includes mark sheets, KYC document requirement , admission letter, and income proofs. If you’re offering collateral, collect property papers early.
4. Apply, online or in person. It usually takes 10–20 working days for initial approval.
5. Disbursement. Once the loan is sanctioned, the funds go directly to your university’s account as per their payment schedule.

A small but important tip? Start early. At least two months before your visa interview. Paperwork delays are more common than you think.

Before You Sign-in, Take a Step Back and Check These

• Interest rate: Even a 0.5% difference makes a big impact over the years.
• Loan margin: Some banks fund 90–95%, while others ask you to pay a small part.
• Moratorium flexibility: Understand when repayment starts and how interest is calculated during that time.
• Currency impact: If you’re heading to the US or UK, remember exchange rate swings can affect your repayment amount.

Ask these questions now , not after you’ve taken the loan.

Why Do EduLoans Feel Different?

If you’ve ever tried talking to five banks in one week, you’ll understand how stressful the process can get. Each one has its own form, its own checklist, and its own fine print.

That’s where EduLoans makes life easier. We’ve already done the homework , comparing lenders, interest rates, and approval speeds. We partner with trusted names like SBI, BOB, and HDFC Credila, as well as other private NBFCs.

Our job is simple: find the loan that fits you. The right amount, the right rate, and zero confusion. No service fee, no hidden cost , just honest guidance that saves you time and sleepless nights.

Conclusion

Studying abroad is one of those life-changing chapters , the kind that deserves a good start, not a financial headache. Whether it’s a course in London, Toronto, or Melbourne, the right loan gives you the freedom to focus on learning instead of worrying.

Need help financing your higher education? Apply with EduLoans and explore flexible, transparent study abroad education loan options designed for your journey , not just your paperwork.