Introduction
Studying abroad is a dream for many Indian students, but it often comes with high expenses. Tuition fees, travel, accommodation, and living costs can add up quickly. The good news is that several Indian banks and NBFCs offer education loans for abroad studies with competitive interest rates and flexible repayment options.
If you are searching for the best education loan for abroad, this guide will help you compare top lenders, interest rates, loan features, and eligibility criteria.
Key Features of an Ideal Education Loan
Before we look at the best options, here are the features you should look for in an abroad education loan:
- High loan amount (up to ₹1.5 crore)
- Low interest rate (starts around 9% per annum)
- Long repayment tenure (up to 15 years)
- Moratorium period (up to 1 year after course completion)
- 100% financing including tuition, living, travel, insurance, etc.
- Tax benefits under Section 80E of Income Tax Act
Best Banks Offering Education Loans for Abroad in 2025
1. State Bank of India (SBI Global Ed-Vantage)
- Loan Amount: Up to ₹1.5 crore
- Interest Rate: 10.50% p.a. (concession for girls: 0.50%)
- Processing Fee: ₹10,000
- Repayment Tenure: Up to 15 years
- Moratorium: Course duration + 6 months
Best for: Low-interest long-term loans for reputed foreign universities
2. HDFC Credila
- Loan Amount: Up to ₹50 lakh or more (customized)
- Interest Rate: Starts from 10.25% (floating)
- Collateral: Optional, based on profile
- Repayment Tenure: Up to 15 years
- Special Feature: Pre-visa disbursement, EMI calculator, flexible repayment
Best for: Quick disbursal and customized loan structure
3. Axis Bank Education Loan for Abroad
- Loan Amount: Up to ₹75 lakh
- Interest Rate: Starts from 13% p.a.
- Processing Fee: 1% of loan amount
- Repayment Tenure: Up to 15 years
- Coverage: Tuition, travel, living expenses
Best for: Mid-budget courses and fast approvals
4. Punjab National Bank (PNB Udaan)
- Loan Amount: Up to ₹1 crore
- Interest Rate: Starts from 10.75%
- Collateral: Required above ₹7.5 lakh
- Repayment: Up to 15 years
- Moratorium: Course period + 1 year
Best for: Government-backed, reliable loan schemes
5. Avanse Financial Services (NBFC)
- Loan Amount: ₹1 lakh – ₹1 crore
- Interest Rate: 11% – 13.5%
- Repayment Tenure: Up to 10 years
- Collateral: Optional
- Extra: Fast processing, funding for vocational and professional courses
Best for: Non-traditional courses and no-collateral loans
Eligibility Criteria for Abroad Education Loans
Most banks and NBFCs ask for the following:
- Indian nationality
- Admission letter from a recognized foreign university
- Co-applicant (parent/guardian with income proof)
- Good academic record
- Collateral (for high loan amounts)
Documents Required
- Admission letter
- Academic records (mark sheets, certificates)
- Passport and visa copy
- Income proof of co-applicant
- Property documents (if collateral required)
- KYC documents
Tips to Choose the Best Education Loan
- Compare interest rates and processing fees from multiple lenders
- Check moratorium period — longer means less stress during study
- Look for pre-visa disbursal facility (important for visa interview)
- Prefer lenders with tax benefits and long repayment tenure
- Avoid hidden charges — read terms carefully
Conclusion
Choosing the best education loan for abroad depends on your course, university, and financial background. SBI and PNB offer the most affordable interest rates, while HDFC Credila and Avanse provide more flexible terms and quick processing.
Always compare at least 3–4 lenders before making a decision. Also, use online EMI calculators to plan your monthly payments in advance.
With proper research and planning, your dream of studying abroad can come true without financial stress.