Topics Covered
Student LoanEducation LoanStudy Abroad FinanceHDFC Credila
Quick Answer: Can Indian Students Get a Loan to Study Abroad?
Yes — multiple lenders offer education loans for studying abroad. SBI Global Ed-Vantage offers the lowest interest rates (8.5–10%). HDFC Credila and Avanse are faster with less collateral. Prodigy Finance is the best option for non-collateral loans up to $220,000 at leading universities. Most loans cover tuition, living, and travel.
Student Loan for Study Abroad: Complete 2025 Guide
Financing a study abroad education is possible through a well-structured education loan. Here is everything you need to know.
Types of Lenders
1. Government Banks (Cheapest)
- SBI Scholar Loan / Global Ed-Vantage: 8.5–10% p.a.
- Bank of Baroda Education Loan: 8.85–9.85% p.a.
- Central Bank of India: Similar rates
- Advantage: Lowest interest rates, recognised by universities
- Disadvantage: Slower processing, strict collateral requirements
2. Private Banks
- HDFC Bank: 9.5–12% p.a.
- Axis Bank: 10–13% p.a.
- Faster processing than government banks
3. NBFCs (Non-Banking Financial Companies)
- HDFC Credila: 9.5–12% p.a., study-abroad specialist
- Avanse Financial Services: 10–13% p.a.
- InCred: 11–14% p.a.
- Advantage: Faster, flexible, specialised in abroad education
- Disadvantage: Higher interest rates
4. International Lenders
- Prodigy Finance: For select top-ranked global programs; no collateral, repayment in destination currency
- MPower Financing: For USA/Canada; no cosigner, no collateral
- Best for: Students at top-ranked universities where local lenders don't cover the full amount
Loan Limits
| Lender | Maximum Loan |
|---|---|
| SBI Global Ed-Vantage | ₹1.5 Crore |
| HDFC Credila | ₹1 Crore (unsecured up to ₹75 L) |
| Avanse | ₹75 Lakhs |
| Prodigy Finance | Varies by program |
Collateral Requirements
- Under ₹7.5 Lakhs: No collateral required (government banks)
- ₹7.5–40 Lakhs: Third-party guarantee or collateral
- Above ₹40 Lakhs: Immovable property (flat, land) required
Documents Required
- Admission letter (unconditional offer)
- Mark sheets and degree certificates
- Proof of fee structure from university
- Income proof (parent/guardian)
- IT returns (last 2–3 years)
- Bank statements (6–12 months)
- Collateral documents (if applicable)
Tax Benefit
Interest paid on education loans is deductible under Section 80E of the Income Tax Act — 100% deduction for 8 years after repayment starts.
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Frequently Asked Questions
Can I get an education loan without collateral for studying abroad?
Yes, up to ₹7.5 Lakhs from government banks without collateral. NBFCs like HDFC Credila and Avanse offer unsecured loans up to ₹40–75 Lakhs for strong profiles (top-ranked university, good academic record). Prodigy Finance and MPower offer collateral-free loans for international students at specific universities.
Which bank gives the best education loan for study abroad?
SBI Global Ed-Vantage has the lowest interest rate (8.5–9.5%) but has stricter requirements and slower processing. HDFC Credila is the most popular NBFCspecialist for abroad education loans, offering faster processing with competitive rates. The best lender depends on your university, loan amount, and collateral availability.
