Overseas Education Loan with Low Interest

Introduction

Planning to study abroad but worried about the cost? You’re not alone. Every year, thousands of Indian students dream of studying in the USA, UK, Canada, or Australia — but tuition and living costs can be very high.

The good news is that many Indian banks and NBFCs now offer overseas education loans with low interest rates, making it easier to turn your dream into reality.

In this blog, we’ll explain the best low-interest education loan options available in India for abroad studies in 2025, along with tips to choose the right lender.

What is an Overseas Education Loan?

An overseas education loan is a student loan that helps Indian students pay for higher education in foreign universities. It usually covers:

• Tuition fees
• Living expenses
• Travel & visa costs
• Books and study materials
• Health insurance
• Laptop or equipment (if needed)

Key Features of a Good Education Loan

Before choosing a lender, here are the important things to check:

• Low interest rate (fixed or floating)
• Long repayment period (up to 15 years)
• Moratorium period (repayment starts after course + grace period)
• Quick approval process
• Option for collateral or no-collateral loans
• Covers top global universities

Best Overseas Education Loan Providers with Low Interest [2025]

1. State Bank of India (SBI Global Ed-Vantage)

• Interest Rate: 9.00% – 10.25% (floating)
• Loan Amount: Up to ₹1.5 crore
• Collateral required for higher amounts
• Moratorium: Course period + 6 months
• Covers USA, UK, Canada, Australia, and more
• Tax benefit under Section 80E

Trusted public bank with lowest interest among govt lenders
sbi.co.in

2. Bank of Baroda (Baroda Scholar Loan)

• Interest Rate: 8.75% – 10.20%
• Up to ₹1 crore loan
• No processing fees for select universities
• Margin money waived for top institutions
• Covers full cost including travel and equipment

Best for students going to top-tier institutions
bankofbaroda.in

3. HDFC Credila

• Interest Rate: 9.55% – 12.00%
• Custom loan options based on profile
• Covers full cost with easy EMI options
• Pre-visa disbursement possible
• Loan can be availed without margin money

Great for students going to US/Canada
credila.com

4. Axis Bank Education Loan

• Interest Rate: 9.00% – 11.50%
• Loan Amount: Up to ₹75 lakhs
• Quick online application process
• Flexible repayment of up to 15 years
• Covers all major countries and universities

Private bank with fast disbursal and flexible terms
axisbank.com

5. ICICI Bank Education Loan

• Interest Rate: 9.50% – 11.75%
• Up to ₹1 crore for premier institutes
• Pre-approved loan offers
• Doorstep document collection

Ideal for tech & management students
icicibank.com

Documents Required for Loan Application

• Valid passport & admission letter
• Academic records (10th to latest degree)
• Income proof of co-applicant (parent/sponsor)
• Property documents (for secured loans)
• KYC documents (PAN, Aadhaar)
• Visa documents (if already issued)

Tips to Get the Lowest Interest Rate

• Maintain good academic records
• Choose a reputed or top-ranking university
• Add a strong co-applicant with high income
• Prefer secured loans (with collateral)
• Compare interest rates across 4–5 banks
• Apply early to avoid last-minute pressure

Conclusion

Studying abroad no longer has to be a financial burden. With many banks and NBFCs offering overseas education loans with low interest, Indian students can now access world-class education without high upfront costs.

Compare all the options carefully and choose the one that fits your course, country, and repayment ability. With the right loan, your global education dream is just a step away.