Hey everyone,
I’m planning to go abroad for higher studies and was wondering can I take an education loan from an Indian bank for studying overseas? What are the requirements, and how tough is the process?
1 Like
Yes, you can definitely take an education loan in India to study abroad. In fact, many students do it every year — and most public and private sector banks, as well as NBFCs, offer education loans for overseas education.
Here’s how it works:
- Eligibility: You must have an admission letter from a recognized foreign university. The loan is usually in your name, with a parent or guardian as the co-applicant.
- Loan amount: Banks offer up to ₹20–40 lakh without collateral in some cases (especially NBFCs), but for higher amounts, you’ll likely need to offer collateral like property, FDs, etc.
- What it covers: Tuition fees, living expenses, travel, books, laptop, insurance — most education-related costs are covered.
- Interest rates: Usually range from 9% to 13%. Public banks like SBI often offer lower rates, especially under government schemes.
- Repayment: You get a moratorium period (course duration + 6–12 months). After that, EMI starts. Some banks ask for interest payments during study years, while others offer full repayment holiday.
- Insurance: For abroad loans, most lenders make education loan insurance mandatory for safety — it’s usually added to the loan amount itself.