Student Loan for Abroad Studies: Education Loan Assistance for Indian Students
Last reviewed: October 2026
Need a student loan for abroad studies, with or without collateral? We work out how much you really need, compare banks, NBFCs and international lenders, prepare your documents and follow up until the money reaches your university. Education loan for abroad studies in India, explained and handled.
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₹500+ Cr
in education loans facilitated
98%
approval rate on loan applications we submit to lenders
50+
banks, NBFCs and international lenders in our network
Figures as of July 2026. Vidysea is not a lender. The lender makes the final decision. Your first consultation is free.
At a glance
- Vidysea is not a lender. The lender decides on approval, amount, rate and terms. Your first consultation is free.
- We compare banks, NBFCs and international lenders, with or without collateral, and shortlist the two or three that suit your profile.
- Your number: total cost of study, minus confirmed scholarships, minus family contribution, equals the amount to borrow.
- Education payments funded by a loan from an approved lender attract no TCS. Interest on an eligible loan may be deductible under Section 80E (now Section 129 of the Income-tax Act, 2025) if you use the old tax regime. Check with a tax professional.
- We give you a document checklist for each lender, for the student, the co-applicant and any collateral.
How much do you need to borrow?
The first step in how to get an education loan for abroad studies is knowing your number. Start with the amount you're short, not the maximum education loan for abroad studies a lender might offer.
Total cost of study − confirmed scholarships − family contribution = the amount you need to borrow
Total cost includes tuition, rent, living costs, travel, health insurance, visa fees and deposits for the whole course, not just the first year. Two master's programmes can have similar fees but very different totals once you add a second year or a more expensive city, so we work it out for each programme you're considering, with a small buffer for exchange-rate changes.
Use our education loan EMI calculator (free sign-up) to see what your monthly repayment would be. It also works as an education loan for abroad studies calculator, so you can try different loan amounts before you apply.
Which loan suits you? With or without collateral
The best education loan for abroad studies is the one that fits your situation. There are three main types:
- Secured loan (with collateral): you pledge property, a fixed deposit or another approved asset. You can usually borrow more, at a lower rate, with repayment periods of up to 15 years at many lenders, and cover a larger share of your total cost. Expect more paperwork and a property valuation.
- Education loan for abroad studies without collateral: banks and NBFCs lend without security if you have a strong admission and a co-applicant, usually a parent, with steady income and a good credit history. If you're wondering how to get an education loan for abroad studies without collateral, these three factors matter most.
- International lenders (no co-signer): MPOWER Financing lends to students at eligible universities in the USA and Canada, and Prodigy Finance lends for eligible courses in many countries, without an Indian co-applicant or collateral. Rates and repayment are usually in foreign currency.
Different lenders judge the same student differently, so one rejection doesn't mean you have no options. Interest on an eligible loan may also qualify for a tax deduction under Section 80E (now Section 129 of the Income-tax Act, 2025) if you use the old tax regime. Which route is best depends on how much you need, your co-applicant's income and whether you have an asset to pledge. Many students combine routes, such as a smaller unsecured loan plus family savings. Combine your loan with scholarship assistance for study abroad to borrow less.
Compare lenders: banks, NBFCs and international lenders
Lender-name searches such as "SBI student loan for abroad" or "Bank of Baroda student loan for abroad" are common, but the best bank for education loan for abroad studies depends on your profile: how much you need, whether you can offer collateral, your university and course, and how quickly you need the money. Here's how the main lender types compare:
| Lender type | Examples | Who it suits | Collateral | Notes |
|---|---|---|---|---|
| Public sector banks | SBI, Bank of Baroda, Punjab National Bank, Union Bank of India | Students who can offer collateral and want a lower rate | Usually needed for larger amounts | Often the lowest rates, but processing can take longer. |
| Private banks | ICICI Bank, Axis Bank, IDFC First Bank | Students who want faster processing and flexible options | Needed for larger amounts; some unsecured loans | Rates are often a little higher than public banks. |
| NBFCs | Credila (formerly HDFC Credila), Avanse, Auxilo, InCred, Tata Capital, Poonawalla Fincorp | Students without collateral, or with courses and universities that banks won't fund | Often not needed | Usually faster and more flexible, at higher rates. |
| International lenders | MPOWER Financing, Prodigy Finance | Students with no Indian co-applicant or collateral | Not needed | Only for eligible universities and courses; repaid in foreign currency. |
Banks often ask for collateral above a set amount, while NBFCs may lend more without it if your university and course are on their approved list. International lenders look mainly at your university, course and expected earnings rather than your family's income. That's why the same student can receive very different offers. We don't send your file to every lender. We shortlist the two or three that suit your profile, course and timeline, then compare their written offers side by side, line by line. Rates, amounts and terms change often, so we only compare current offers made to you, never last year's rate lists.
Education loan for abroad studies by Indian government schemes
There's no single government lender for study abroad, but several schemes help:
- Vidya Lakshmi education loan portal: a government single-window portal where you fill in one common application form and apply to several banks at once. Each bank decides on loans for study abroad under its own rules.
- Dr. Ambedkar interest subsidy: pays the interest during the moratorium on loans for master's and PhD study abroad, for eligible OBC and EBC students within an income limit.
- SC/ST students: the National Overseas Scholarship and the scheme for ST students fund overseas study directly, which can reduce or replace a loan.
- Minority students: the National Minorities Development and Finance Corporation offers low-interest education loans for study abroad.
Scheme rules change, so we check the current details for you.
Documents required for education loan for abroad studies
Eligibility criteria for an education loan: you'll usually need to be an Indian citizen with an admission offer from a recognised university, a co-applicant (usually a parent) for Indian lenders, and a course the lender funds. Lenders also look at your academic record, the amount and, for secured loans, the value of your collateral.
What documents are required:
- Student: admission letter, fee structure, mark sheets and degree certificates, test scores, passport, PAN, Aadhaar and photographs.
- Co-applicant: PAN, Aadhaar, address proof, last six months' bank statements, and income proof: salary slips and Form 16, or ITRs for the self-employed. Lenders may also check existing loans and credit history.
- Collateral, if any: property papers, title deed, valuation report and approved building plan, or fixed deposit details.
We give you a checklist for each lender, so you send the right documents the first time, which saves days of back-and-forth with the lender.
How to get a student loan for abroad studies: from application to payout
- 1Map your gap: we work out your course, total cost, scholarships, family contribution and timeline, so you know exactly what to borrow.
- 2Match the lenders: we shortlist the two or three banks, NBFCs or international lenders that suit your profile, course and timeline.
- 3Prepare your file: we build a document checklist for each lender, with every detail checked for consistency before it goes out.
- 4Apply and follow up: we submit your application, track it and help you answer each lender's questions quickly, accurately and on time.
- 5Compare offers: we line up rate, fees, margin money, moratorium, tenure and conditions in one table, so you choose with the full picture and no surprises later.
- 6Plan the payout: we time disbursement to your fee deadlines, scholarship results and visa, so the money reaches your university on time and your visa documents are ready.
Lenders compete for your application, which can improve the terms you're offered. One dedicated counsellor handles your file from start to finish, and you can track its progress in real time, so you always know where things stand.
Read how long does education loan approval take and how Vidysea loan assistance works.
Compare the full cost, not just the interest rate
The education loan for abroad studies interest rate is only part of what you pay. Two offers with similar rates can cost very different amounts once you add processing fees, margin money, insurance, legal and valuation charges, and prepayment rules. Check whether the rate is fixed or floating, and how the moratorium works: during your studies you may not pay full EMIs, but interest keeps adding up unless you pay it as you go. Ask each lender for its full schedule of charges and a sample repayment plan, then compare the total you'd repay over the life of the loan. A slightly higher rate with lower fees can sometimes cost less overall. Rates change often, so compare current written offers, not advertised rates.
Why loans get delayed, and is it good to take an education loan?
Most delays have simple causes:
- Low co-applicant income: the lender may doubt the loan can be repaid.
- Credit issues: missed payments or high existing debts on the co-applicant's record.
- Documents that don't match: different names or dates across documents trigger extra checks.
- Collateral problems: unclear property titles slow secured loans down.
- Course outside lender policy: some lenders don't fund certain courses or universities.
- Applying too late: leaving too little time before your fee deadline.
An education loan is a good choice when it funds a course that improves your career prospects and the repayment fits your likely income. We help you check both before you borrow.
Plan the rest together
- Scholarships: win a scholarship and borrow less, which cuts your total interest and EMIs. Our team helps you find scholarships alongside your loan.
- Sending money abroad: fee payments funded by an education loan from an approved lender attract no TCS (tax collected at source); see the RBI's Liberalised Remittance Scheme FAQ. Read our education remittance and TCS guide.
- Visa: check whether your loan sanction letter counts as student visa proof of funds for your country. Lenders can issue sanction letters in the format most visa offices expect.
Student stories
"Vidysea helped me secure a $65,000 international student loan through MPOWER Financing, with no co-signer needed. Their team simplified the entire application and even connected me with visa support resources. Thanks to their guidance, I am now pursuing my dream programme in NYC."
Yug Patel
MS in Data Science, New York University, USA · US$65,000 via MPOWER Financing
"With Vidysea's education loan for abroad assistance, I secured a CAD 90,000 loan covering tuition and living expenses through Credila. Their experts negotiated flexible repayment terms and guided me through every document. Truly a stress-free experience."
Harsh Deep Singh
MBA, University of British Columbia, Canada · CAD 90,000 via Credila
Every student's route is different, so we match the lender to your university, course and family situation.
See what your course might cost: cost of studying in USA · cost of studying in UK · cost of studying in Canada · cost of studying in Australia
Student loan for abroad studies: FAQs
How do I get a student loan for abroad studies?
Get your admission offer, work out your funding gap and choose a co-applicant. Then compare lenders, prepare your documents and apply to the two or three that suit your profile. After approval, compare the offers, sign the one you choose and plan disbursement around your fee deadlines. We handle each step with you.
Can I get an education loan for abroad studies without collateral?
Yes. Banks and NBFCs offer education loans for abroad studies without collateral, usually based on your admission, course, university and your co-applicant's income and credit history. International lenders such as MPOWER and Prodigy Finance lend without collateral or an Indian co-applicant for eligible courses. Unsecured amounts are usually lower than secured ones.
What documents are required for an education loan for abroad studies?
You'll need your admission letter, fee structure, mark sheets, test scores, passport, PAN and Aadhaar. Your co-applicant needs PAN, Aadhaar, bank statements and income proof such as salary slips or ITRs. For a secured loan, add property papers or fixed deposit details. Each lender has its own list.
What is the education loan for abroad studies interest rate?
Rates depend on the lender, loan type, collateral, course, university and your co-applicant's credit history. Secured loans from public sector banks usually carry the lowest rates; unsecured loans from NBFCs and international lenders usually cost more. Rates change often, so compare current written offers rather than advertised rates.
What is the maximum education loan for abroad studies?
There's no single limit. It depends on the lender, your total course cost, your co-applicant's income and any collateral. Some banks lend ₹1 crore or more for study abroad against collateral, while unsecured limits are lower. Borrow what you need, not the maximum on offer.
Is it good to take an education loan for abroad studies?
It can be, if the course improves your career prospects and the repayment fits your likely salary. Work out your total repayment, not just the EMI, and compare it with expected earnings in your field and country. A loan also spreads the cost, so your family doesn't have to pay everything upfront.
Can I use Vidya Lakshmi for a loan to study abroad?
Yes. The Vidya Lakshmi portal lets you apply to several banks with one common form, including for study abroad. Each bank decides under its own rules, and the PM-Vidyalaxmi scheme's special benefits apply only to eligible Indian institutions, not to universities abroad.
Is there a tax benefit under Section 80E?
Yes, if you use the old tax regime. The interest you pay on an eligible education loan can be deducted from taxable income for up to eight years, under Section 80E of the old Act (now Section 129 of the Income-tax Act, 2025). Only the person repaying the loan can claim it. Check with a tax professional.
Is there an education loan for abroad studies by the Indian government?
There's no single government lender, but schemes help. The Vidya Lakshmi portal connects you to many banks, the Dr. Ambedkar scheme pays moratorium interest for eligible OBC and EBC students, and NMDFC offers low-interest loans to minority students. SC and ST students can also apply for National Overseas Scholarships.
How long does approval take?
It depends on the lender and your file. Some complete applications for unsecured or international loans get a decision within a few working days, while secured loans take longer because of property checks. Applying early, with complete and consistent documents, is the best way to avoid delays before your fee deadline.
Can the loan cover living costs?
Often, yes. Many lenders cover rent, living costs, travel, health insurance and equipment as well as tuition, up to the approved amount. Each lender decides what it will fund, so we check this carefully for every offer before you sign.
Does Vidysea guarantee approval?
No. The lender makes the final decision on approval, amount, rate and terms. We improve your chances by matching you to suitable lenders and preparing a complete, consistent file, but no one can honestly promise a loan, so be wary of anyone who does.
Find out how much you need to borrow
Tell us where you're studying and how much you still need. We'll show you the lenders that suit your profile and timeline, and stay with you until your loan is paid out.
Talk to a loan expertVidysea is not a lender. Eligibility, approval, rate, amount, collateral, fees, repayment and disbursement are decided by the lender. Vidysea cannot guarantee approval, a specific rate or a decision time. For users under 18, data is used only with a parent or guardian's consent.
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