Studying abroad is a dream for millions of Indian students. Countries like the USA, UK, Canada, Australia, and Germany are popular choices for higher education. However, the cost of tuition, living expenses, travel, and insurance can easily go beyond ₹30–50 Lakhs. That’s where an education loan for abroad studies becomes a lifeline.
In this article, we’ll explore the best education loan for abroad studies in India 2025, compare banks and NBFCs, discuss interest rates, eligibility, documents, and government schemes. This detailed guide ensures that students and parents make well-informed financial decisions.
1. Best Education Loan for Abroad Studies in India
The best education loan for abroad studies in India 2025 is usually offered by public sector banks like SBI and Bank of Baroda, or specialized NBFCs like HDFC Credila. Key benefits include:
- Loan coverage up to ₹1.5 Crores
- Tenure up to 15 years
- Moratorium period during study + 6–12 months after employment
2. Education Loan Eligibility for Abroad Studies
Eligibility factors include:
- Applicant must be an Indian citizen aged 18–35 years
- Confirmed admission in a recognized foreign university
- Co-applicant (parent/guardian) with a stable income
- Minimum CIBIL score: 650+ preferred
3. SBI Education Loan for Abroad Studies
SBI Global Ed-Vantage Scheme is one of the most trusted options.
- Loan Amount: ₹20 Lakhs – ₹1.5 Crores
- Interest Rate: 8.50% – 10% p.a.
- Tenure: Up to 15 years
- Covers tuition, travel, books, insurance
4. HDFC Credila Education Loan for Abroad Studies
HDFC Credila specializes in customized loans for overseas education.
- Loan Amount: ₹10 Lakhs – ₹1.5 Crores
- Interest Rate: 9% – 12% p.a.
- No upper limit on expenses (depending on repayment capacity)
- Covers living expenses and forex
5. ICICI Bank Education Loan for Abroad Studies
ICICI provides flexible repayment options and higher coverage.
- Loan Amount: Up to ₹1 Crore
- Interest Rate: 9% – 11.5% p.a.
- Instant online approval for pre-qualified customers
6. Axis Bank Education Loan for Abroad Studies
Axis offers affordable EMI options for international students.
- Loan Amount: ₹50 Lakhs – ₹75 Lakhs
- Interest Rate: 9% – 12% p.a.
- Coverage includes travel, laptop, and living expenses
7. Bank of Baroda Education Loan for Abroad Studies
Bank of Baroda’s Baroda Scholar Loan is highly popular.
- Loan Amount: Up to ₹1.5 Crores
- Interest Rate: 8.65% – 10.50% p.a.
- No processing fee for select universities
8. Punjab National Bank Education Loan Abroad
PNB’s Udaan Scheme supports higher studies abroad.
- Loan Amount: ₹20 Lakhs – ₹1 Crore
- Interest Rate: 8.80% – 10.75% p.a.
- Repayment tenure up to 15 years
9. Government Education Loan for Abroad Studies in India
The Indian government offers schemes under National Backward Classes Finance & Development Corporation (NBCFDC) and other bodies. Benefits include:
- Subsidized interest rates for economically weaker sections
- Coverage of professional courses abroad
- Longer repayment tenure
10. Education Loan Without Collateral for Abroad
NBFCs and some banks provide education loan without collateral up to ₹40 Lakhs. Beyond this, collateral is usually required.
11. Education Loan Interest Rates for Abroad Studies
Average interest rates for abroad education loans in 2025:
- SBI: 8.50% – 10%
- Bank of Baroda: 8.65% – 10.50%
- HDFC Credila: 9% – 12%
- ICICI: 9% – 11.5%
- Axis Bank: 9% – 12%
12. Education Loan for USA from India
The USA is the top destination, with tuition fees ranging ₹30–60 Lakhs. Banks provide higher loan amounts for reputed universities like Harvard, MIT, Stanford.
13. Education Loan for Canada from India
Canada is popular for affordable tuition and PR opportunities. Loans cover tuition, GIC (Guaranteed Investment Certificate), and living costs.
14. Education Loan for UK from India
Loans for the UK cover tuition fees of Oxford, Cambridge, LSE, etc., along with NHS insurance and living costs.
15. Education Loan for Germany from India
Germany offers low-cost education, but loans cover blocked account deposits, travel, and living expenses.
16. Education Loan EMI Calculator India
Before applying, use an education loan EMI calculator to check affordability. Example:
- Loan: ₹30 Lakhs
- Tenure: 10 years
- Interest: 9% p.a.
- EMI: ~₹38,000
17. Compare Education Loan Offers Online
Websites like BankBazaar, Yocket Finance, UniCreds, and WeMakeScholars allow students to compare offers and apply online.
18. Best Bank for Education Loan Abroad
Based on lowest rates and higher coverage, the best banks for abroad education loans in 2025 are:
- SBI
- Bank of Baroda
- ICICI Bank
- Axis Bank
- HDFC Credila (NBFC)
Case Studies / Examples
Example 1:
Rohit, an engineering student from Pune, took an SBI education loan of ₹40 Lakhs to study MS in the USA. The moratorium period allowed him to repay comfortably after employment.
Example 2:
Ananya, aspiring for MBA in the UK, opted for HDFC Credila, which covered her tuition, travel, and accommodation without collateral.
FAQs on Education Loan for Abroad Studies
Q1. What is the maximum loan amount for abroad education?
👉 Up to ₹1.5 Crores, depending on the bank and course.
Q2. Do I need collateral for abroad education loans?
👉 Yes, for loans above ₹40 Lakhs in most banks. NBFCs may allow unsecured loans.
Q3. Is interest subsidy available for abroad education loans?
👉 Yes, under government schemes for economically weaker sections.
Q4. Can I get a loan for living expenses abroad?
👉 Yes, most banks cover living, travel, and insurance.
Q5. Which is the best bank for abroad education loans?
👉 SBI and Bank of Baroda are best for low rates; HDFC Credila is best for flexibility.
Conclusion
The best education loan for abroad studies in India 2025 depends on your destination, tuition fees, and repayment capacity. Public banks like SBI and Bank of Baroda offer lower interest rates, while NBFCs like HDFC Credila provide faster approvals and no collateral loans. Always compare offers, check EMI calculators, and understand moratorium benefits before applying.
