Top 20 Education Loans in India for Studying Abroad

An international education can help you get admission into world-renowned universities and international exposure. But the fees related to the education, tuition, traveling, books, and all other needs required for the same can add up and prove to be quite expensive. For students in India, education loans have become necessary to plan their higher studies abroad.

There are a variety of choices in the Indian education loan market through public sector banks, private banks, education finance companies, and foreign institutions. The selection depends not only on the interest rate but also on the university, course, country, amount of the loan needed, collateral, tenure, co-signee, and eligibility for an unsecured loan.

The various facilities offered by the different banks include SBI's Global Ed-Vantage, for instance, which currently offers overseas education loan amounts exceeding ₹7.5 lakh but not exceeding ₹3 crore, as well as loan without any collateral facility up to ₹50 lakh for some premier institutions.

In the same way, ICICI Bank has international education loan schemes worth up to ₹3 crore, along with distinct interest rates on secured and unsecured foreign education loans.

Students must keep in mind that there is no particular education loan that would fit all individuals. An education loan that offers a reduced interest rate does not mean that it is the right choice, especially when such a loan demands huge collateral.

Here is a look at 20 prominent education-loan options that students in India can consider when planning to study abroad.

SBI Global Ed-Vantage

Global Ed-Vantage Scheme of State Bank of India is one of the renowned loan schemes which are tailored to cater to the needs of Indian students studying full-time programs in universities abroad.

The present scheme offers loans more than ₹7.50 lakh and up to ₹3 crore. Collateral-free loans are also possible in certain select institutions for students up to ₹50 lakh. SBI also allows EMIs repayment for up to 15 years.

The loan amount can be used to pay for tuition fee, hostel fee, exam and lab fee, traveling cost, books, equipment, computer, project cost, thesis fee, and some other cost associated with the completion of the course. SBI says that repayment will start six months after completion of the course through its education loan.

This loan is suitable for: Students targeting recognized universities in major study destinations and requiring a relatively large loan. 

"Students aspiring to study abroad often find themselves at a crossroads, feeling excited about receiving international exposure and facing a critical question: “How will I finance it?”

The rising cost of international education, combined with incremental costs of accommodation, travel, insurance, etc., creates a difficult financial barrier, particularly for students from middle- and lower-income families. Many deserving students have to opt out of international education despite getting an offer, due to financial constraints," says Dr. Sweta Sinha, Assistant Professor (OB & HRM), IMI Kolkata.

"Education loans play a crucial role in bridging this gap. The education loan helps the students beyond just financing the tuition fees; they also enable students to access global opportunities and invest in long-term human capital. It also reduces dependence on family savings, allowing students to become self-dependent. However, international education financing requires responsible borrowing. Students should evaluate the total cost of education, interest burden, repayment obligations and realistic future earning potential before taking a loan. The right question is not, “How much loan am I eligible for?” but “How much can I responsibly borrow and repay?” A well-planned education loan can become a strong enabler of international educational mobility and sustainable career development," she adds.