Top 20 Education Loans in India for Studying Abroad

Avanse Education Loan

Avanse is a specialized educational finance organization whose primary focus lies in financing higher education, even international studies.

The latest scheme of Avanse for students going abroad offers loans of up to ₹1.25 crore, which can be either secured or unsecured loans. According to Avanse, eligible costs can cover course fees, travel costs, and all other costs associated with education.

Unsecured financing makes specialized lending agencies more pertinent to the students whose parents do not have adequate collateral in the form of real estate.

This loan is suitable for: Students seeking flexible education financing and evaluating secured as well as unsecured options.

Auxilo Education Loan

Auxilo Finserve is yet another education finance firm catering to students undertaking higher education in India as well as abroad.

These foreign education loans may be taken up by eligible courses and institutions based on the academic and financial credentials of the students.

Students must assess the sanctioned amount, rate of interest, repayment period, collateral requirement, processing fees, and permissible expenses before accepting any loan offer.

This loan is suitable for: Students looking beyond traditional banks for specialised education financing.

Also read: How to Apply for an Education Loan in India

PNB Udaan

PNB Udaan from Punjab National Bank is exclusively meant for the provision of finances to those students who seek higher studies abroad.

It includes the professional and technical undergraduate courses as well as postgraduate courses such as MCA, MBA and MS. The expenditure eligible under the scheme can include the cost of tuition and hostels, exams and labs, books, computers, transport and others.

PNB specifies that loans not more than ₹4 lakh do not have any margin requirement, whereas loans above ₹4 lakh have a 15 percent margin requirement. Loans not less than ₹7.50 lakh require tangible collateral security according to the scheme. The maximum term of repayment can be for 15 years, and the moratorium period is the course period plus one year.

This loan is suitable for: Students looking for a public-sector bank loan specifically structured for overseas education.

Canara Bank Education Loan

Canara Bank provides a scheme for education loans for pursuing master’s degrees overseas at specified top-ranking institutions.

At present, Canara Bank informs that loan amounts exceeding ₹7.50 lakh will be provided according to the scheme, and the maximum amount depends on the extent of collateral coverage. In case the collateral coverage is 100% or more, there is no maximum limit on loan amounts irrespective of the project costs; however, in the other case, the maximum will be ₹100 lakh.

The scheme further promises 10% margin, processing charges at minimum and no prepayment penalty.

This loan is suitable for: Students pursuing eligible master's programs at selected high-ranking overseas universities.

Union Bank of India Education Loan

The Union Bank of India provides education loans for students who want to pursue higher and professional education at recognized institutes, both domestic and international.

Their international education loan scheme covers tuition fees, accommodation costs, travel expenses, and any other related cost. They emphasize flexible repayment terms along with the tax benefit on eligible education-loan interest payments.

The Union Bank of India has special education-loan categories for premium international institutes, which include different categories of post-graduation studies as well.

This loan is suitable for: Students seeking a public-sector bank option with overseas-study financing.

Bank of India Star Education Loan

Loan facility of Bank of India includes facilities provided for students who are seeking education abroad.

It can be availed by students studying professional/technical and higher courses depending upon the course eligibility criteria of the bank.

As in case of other PSU banks, the borrower needs to focus on collateral, margin, co-borrower requirement, and list of eligible foreign institutions.

This loan is suitable for: Students looking for traditional public-sector bank financing.

“An education loan is not about just financial commitment one takes it’s about opportunity given to a student to reach his/her dream. For many students, studying abroad is a big challenge because of the costs involved. Educational Loans make that leap possible, opening doors to world-class universities, new cultures, and experiences that help to achieve his/ her life goal,” says Dr. Arathi Sudarshan, Professor and HoD, Department of Data Analytics and Mathematical Sciences, JAIN (Deemed to be University).

“It’s not only about degrees and careers; it’s about the confidence, independence, and resilience he/she gains during the journey. One should realise that education loan is not just a loan, it is an investment in that ensures talent and ambition aren’t held back by financial limits. With the right support, every student can step onto the global stage and write their own success story,” she adds.