Top Education Loan Providers in India for Foreign Education
Students' choice of courses and the institution they attend have a big impact on how much money they can get for their overseas education. The best way to pay for studying abroad is to take out an education loan.
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Various programs are offered by Indian banks based on the chosen institution and duration of study. Most student loan programs offer a range of choices for repayment, empowering students to manage their finances wisely.
Top Education Loan Providers in India 2025
Given below are the top education loan providers in India aiding students wishing to pursue their education abroad.
Axis Bank
Category | Details |
Interest Rate | 9.58% p.a. to 12.75% p.a. |
Maximum Loan Amount | Rs.20 lakh |
Maximum Tenure | 15 years |
Processing Fees | 2.00% of the loan plus GST |
Bank of Baroda
Category | Details |
Interest Rate | 7.60% p.a. to 13.20% p.a |
Maximum Loan Amount | Rs.80 lakh |
Maximum Tenure | 15 years |
Processing Fees |
|
Canara Bank
Category | Details |
Interest Rate | 8.10% p.a. to 11.50% p.a. |
Maximum Loan Amount | As per eligibility |
Maximum Tenure | 15 years |
Processing Fees | Minor processing fees or Nil |
Federal Bank
Category | Details |
Interest Rate | 11.75% p.a. to 15% p.a. |
Maximum Loan Amount | Rs.20 lakh |
Maximum Tenure | 15 years |
Processing Fees | Nil |
HDFC Bank
Category | Details |
Interest Rate | 10.50% p.a. onwards |
Maximum Loan Amount | Rs.30 lakh |
Maximum Tenure | 15 years including moratorium period |
Processing Fees | Up to loan amount Rs.7.5 lakh - Nil Above Rs. 7.5 lakh- 1% |
State Bank of India (SBI)
Category | Details |
Interest Rate | 7.55% p.a. to 10.65% |
Maximum Loan Amount | Rs.1.5 crore |
Maximum Tenure | 15 years |
Processing Fees | Loans up to Rs.7.5 lakh- Nil |
Under its educational loan program, SBI offers a wide range of courses, including technical, professional, graduation, post-graduate, and diploma programs like MBA, MCA, MS, etc.
Punjab National Bank
Category | Details |
Interest Rate | 4.00% p.a. to 12.35% p.a. |
Maximum Loan Amount | As per requirement as repayment capacity |
Maximum Tenure | 15 years |
Processing Fees | Nil for studies in India 1% of loan amount for studies abroad (Max: Rs. 10,000) |
The following is the list of courses covered by Punjab National Bank:
- Graduation: Technical courses or professional courses offered by renowned universities.
- Post graduation: MCA, MS, MBA, etc.
- Courses conducted by the CPA in the USA, CIMA - London, etc.
- Competent regulatory agencies outside offer degree or diploma programs in fields including aviation, shipping, and pilot training for the goal of finding work in or outside of India.
Features of Education Loans
- Any individual aged between 18 and 35 years can avail themselves of an education loan to pursue studies at any approved university abroad.
- In addition to management courses, these loans are available to students pursuing graduate and postgraduate degrees in engineering, medicine, the arts, architecture, pure science, hotel management, and other professions.
- The expenses covered under an education loan include tuition fees, exam fees, lab and library fees, caution deposit, travel, books and equipment, projects and study tours.
- Borrowers have to bring in a margin of 5% to 15% for loans taken for foreign studies.
- The first principal payment is due at the beginning of the loan term, and borrowers are required to pay interest during the moratorium period.
- Postdated checks made out to the bank or monthly installments through the Electronic Clearing Service (ECS) are two options for repaying education loans.
- Generally, banks sanction education loans with a tenure of up to seven years, inclusive of the moratorium period.
- A co-applicant must be selected for education loans taken for full-time courses. Co-applicants can include siblings, spouse, parents or other family members.
- Banks will sanction a maximum of Rs. 20 lakhs with the moratorium period and up to a maximum of Rs. 10 lakhs for loans without a moratorium period.
- Certain banks offer school loans up to Rs. 4 lakhs without requiring security. Others provide uncollateralized educational loans up to Rs. 7.5 lakh. However, loans beyond Rs. 7.5 lakhs require a significant amount of collateral.
- The Central Government has also introduced an interest rate subsidy scheme for repayments made during the moratorium period for the benefit of the weaker section of society.
Other Student Loan Providers in India for Foreign Education
Given below is a list of few other Student Loan Providers in India to study abroad:
- Indian Bank
- Andhra Bank
- Punjab & Sind Bank
- DCB Bank
- Abhyudaya Co-Operative Bank Ltd
- Karur Vysya Bank
- Cosmos Bank
- Lakshmi Vilas Bank
- Oriental Bank of Commerce
- Tamilnad Mercantile Bank
- Vijaya Bank
- United Bank of India
- State Bank of Hyderabad
FAQs on Education Loan India for Studying Abroad
- What is the procedure to avail an education loan from SBI?
In order to avail an education loan from SBI, you must visit the nearest bank branch or apply from the official online portal.
- Does SBI charge any processing fee on its foreign education loan?
Yes, the State Bank of India (SBI) charges a processing fee of Rs.10,000 for every application.
- How long does it take for Axis Bank to decide on the education loan application?
If all relevant details have been submitted, Axis Bank may take up to 15 working days to decide on the education loan application.
- Will Axis Bank allow me to change the interest rate from a fixed rate to a floating rate?
Yes, Axis Bank gives you the option to change the interest rate from a fixed rate to a floating rate.
- Is it worth getting a loan to study abroad?
Yes, taking out an education loan can be a good idea to study abroad. This is because it allows you to deduct interest from your taxes for up to eight years while you're studying at a foreign university. saving money in accordance with Income Tax Act Section 80E.
- What is the maximum amount of education loan in India for study abroad?
There is no cap on the amount of school loans that Indian lenders can issue for students who wish to study overseas; instead, it is up to the lenders to provide need-based assistance to cover the full cost. For premium institutes and non-resident Indians (NRIs), the maximum loan amount permitted is Rs. 30 lakh and Rs. 20 lakh, respectively.
- Which bank offers the lowest interest rates on study loans for studying abroad?
The Central Bank of India has the lowest interest rates on education loans for studying overseas when compared to other Indian student loan providers. In addition to offering concession rates for female candidates, the interest rate on school loans is 6.85%.
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