Top 5 Education Loan Schemes in India for Studying Abroad (2025)

Embarking on an international academic journey is a dream for many Indian students. The allure of globally recognized universities, diverse cultural experiences, and expanded career opportunities makes studying abroad a compelling prospect. However, the substantial costs associated with overseas education often present a significant hurdle. This is where education loans become indispensable, bridging the financial gap and enabling aspiring scholars to pursue their academic ambitions. This article delves into the top five education loan schemes in India for studying abroad in 2025, providing a comprehensive overview of their features, eligibility criteria, application processes, and other crucial details.

Understanding the Landscape of Education Loans for Overseas Studies

Before diving into specific loan schemes, it’s crucial to understand the broader context of education loans for studying abroad. These loans are specifically designed to finance the various expenses associated with international education, including tuition fees, accommodation costs, travel expenses, living expenses, and other related charges. Lenders, which can be banks (both public and private), non-banking financial companies (NBFCs), and specialized financial institutions, assess the applicant’s profile based on several factors, such as academic merit, the chosen course and university, the co-applicant’s financial standing, and the overall loan repayment capacity. Understanding these factors will help students better prepare their loan applications and increase their chances of approval.

1. State Bank of India (SBI) Education Loan for Studying Abroad

The State Bank of India (SBI) offers a popular education loan scheme for students aspiring to study abroad. This scheme is known for its relatively low interest rates and flexible repayment options, making it a preferred choice for many Indian students. SBI categorizes its education loan scheme into different tiers based on the loan amount and the chosen institution. For premier institutions, the loan amount can be higher, and the interest rates may be more competitive.

Key Features of SBI Education Loan for Studying Abroad:

Loan Amount: SBI offers substantial loan amounts, catering to a wide range of study abroad programs. The maximum loan amount can vary based on the institution and the course.
Interest Rates: SBI generally offers competitive interest rates, which are subject to change based on market conditions and the borrower’s profile. Concessional interest rates may be available for female students and certain categories of borrowers.
Repayment Period: The repayment period for SBI education loans is typically long, allowing students ample time to repay the loan after completing their studies. Moratorium periods are also available, providing a grace period before the repayment commences.
Security: SBI may require collateral for larger loan amounts. Acceptable forms of collateral include immovable property, fixed deposits, and other assets.
Expenses Covered: SBI education loans cover a wide range of expenses, including tuition fees, living expenses, travel costs, visa fees, and other related charges.

Eligibility Criteria for SBI Education Loan:

The applicant must be an Indian national.
The applicant must have secured admission to a recognized foreign university.
The applicant must have a good academic record.
A co-applicant is typically required.

Application Process for SBI Education Loan:

Applicants can apply for SBI education loans online or offline.
The application process involves submitting a detailed application form along with relevant documents, such as academic transcripts, admission letters, financial statements, and KYC documents.

2. Punjab National Bank (PNB) Education Loan for Studying Abroad

Punjab National Bank (PNB) is another prominent public sector bank that offers education loans for students pursuing studies abroad. PNB’s education loan scheme is designed to provide financial assistance to students across various disciplines and study destinations. The bank offers different loan products based on the loan amount and the specific requirements of the students.

Key Features of PNB Education Loan for Studying Abroad:

Loan Amount: PNB offers competitive loan amounts for studying abroad, catering to different levels of education and courses.
Interest Rates: PNB’s interest rates are generally competitive and are linked to the bank’s base rate. Concessions may be available for certain categories of students.
Repayment Period: The repayment period for PNB education loans is typically flexible, allowing students to repay the loan over a reasonable period after completing their studies.
Security: PNB may require collateral for larger loan amounts. The type of collateral required depends on the loan amount and the borrower’s profile.
Expenses Covered: PNB education loans cover a comprehensive range of expenses, including tuition fees, accommodation costs, travel expenses, visa fees, and other related costs.

Eligibility Criteria for PNB Education Loan:

The applicant must be an Indian citizen.
The applicant must have obtained admission to a recognized foreign university.
The applicant must have a satisfactory academic record.
A co-applicant is usually required.

Application Process for PNB Education Loan:

Applicants can apply for PNB education loans through the bank’s branches or online.
The application process involves submitting a complete application form along with supporting documents, such as academic transcripts, admission letters, financial documents, and KYC proofs.

3. Bank of Baroda (BOB) Education Loan for Studying Abroad

Bank of Baroda (BOB) offers education loans for students who wish to pursue higher education abroad. BOB’s education loan scheme is designed to cater to the diverse needs of students and covers a wide range of courses and study destinations. The bank offers different loan products with varying features and benefits.

Key Features of BOB Education Loan for Studying Abroad:

Loan Amount: BOB provides substantial loan amounts for studying abroad, catering to different levels of education and courses.
Interest Rates: BOB offers competitive interest rates on its education loans, which are subject to change based on market conditions and the borrower’s profile.
Repayment Period: The repayment period for BOB education loans is typically long, giving students ample time to repay the loan after completing their studies.
Security: BOB may require collateral for larger loan amounts. The type of collateral required depends on the loan amount and the borrower’s profile.
Expenses Covered: BOB education loans cover a wide range of expenses, including tuition fees, living expenses, travel costs, visa fees, and other related charges.

Eligibility Criteria for BOB Education Loan:

The applicant must be an Indian national.
The applicant must have secured admission to a recognized foreign university.
The applicant must have a good academic record.
A co-applicant is generally required.

Application Process for BOB Education Loan:

Applicants can apply for BOB education loans through the bank’s branches or online.
The application process involves submitting a complete application form along with supporting documents, such as academic transcripts, admission letters, financial documents, and KYC proofs.

4. HDFC Credila Education Loan for Studying Abroad

HDFC Credila is a leading private sector NBFC specializing in education loans. They offer tailored loan solutions for students aspiring to study abroad, with a focus on quick processing and personalized service. HDFC Credila is known for its expertise in the education loan sector and its understanding of the specific requirements of students pursuing international education.

Key Features of HDFC Credila Education Loan for Studying Abroad:

Loan Amount: HDFC Credila offers competitive loan amounts for studying abroad, catering to a wide range of courses and study destinations.
Interest Rates: HDFC Credila offers competitive interest rates, which are subject to change based on market conditions and the borrower’s profile. They often have specialized rates for certain courses or universities.
Repayment Period: HDFC Credila offers flexible repayment options, allowing students to repay the loan over a reasonable period after completing their studies.
Security: HDFC Credila may require collateral for larger loan amounts. They are often more flexible with the type of collateral they accept compared to public sector banks.
Expenses Covered: HDFC Credila education loans cover a comprehensive range of expenses, including tuition fees, living expenses, travel costs, visa fees, and other related costs.

Eligibility Criteria for HDFC Credila Education Loan:

The applicant must be an Indian citizen.
The applicant must have secured admission to a recognized foreign university.
The applicant must have a satisfactory academic record.
A co-applicant is usually required.

Application Process for HDFC Credila Education Loan:

Applicants can apply for HDFC Credila education loans online or through their branches.
The application process involves submitting a complete application form along with supporting documents, such as academic transcripts, admission letters, financial documents, and KYC proofs. Their online portal is generally streamlined and user-friendly.

5. ICICI Bank Education Loan for Studying Abroad

ICICI Bank is a leading private sector bank that offers education loans for students pursuing studies abroad. ICICI Bank’s education loan scheme is designed to provide financial assistance to students across various disciplines and study destinations. The bank offers different loan products with varying features and benefits.

Key Features of ICICI Bank Education Loan for Studying Abroad:

Loan Amount: ICICI Bank offers substantial loan amounts for studying abroad, catering to different levels of education and courses.
Interest Rates: ICICI Bank offers competitive interest rates on its education loans, which are subject to change based on market conditions and the borrower’s profile.