Learn how to get an education loan in India for USA, UK, Canada, or Australia. Eligibility, documents, interest rates, EMI, and smart tips.
Dreaming of studying abroad? You are not alone. Every year, thousands of Indian students fly to the USA, UK, Canada, and Australia. But here is the big question. How do you pay for it? An educational loan can make your dream come true. This guide will show you how to get one in India.
Why you may need an education loan
Studying abroad is expensive. Tuition fees can cost lakhs of rupees. Then add living expenses, travel, books, and health insurance. Many families cannot pay the full cost from savings. That is where an education loan helps. You borrow money now and repay it after you start earning.
How much education loan can you get
The loan amount depends on your country, university, and course. Here is a simple range students often see:
- USA: Rs. 20 lakh to Rs. 1.5 crore
- UK: Rs. 20 lakh to Rs. 1 crore
- Canada: Rs. 15 lakh to Rs. 80 lakh
- Australia: Rs. 20 lakh to Rs. 1 crore
Some private lenders and NBFCs can offer higher amounts. Always confirm the total cost of attendance with your university.
Education loan eligibility in India
Banks check a few key points before approving your student loan.
Academic background
Most lenders prefer a steady academic record. Many banks ask for 50% or above in your last exam.
Confirmed admission
You need an offer letter from a recognized university. Better-ranked universities often improve approval chances.
Age and course type
Most applicants are between 18 and 35. The course should be job-oriented and recognized.
Co-applicant
A parent or guardian is usually required as a co-applicant. Their income and credit history matters.
Collateral (for higher loans)
For bigger loan amounts, banks may ask for collateral. This can be property or fixed deposits, based on the lender.
Documents required for an education loan
Keep these ready before you apply:
- Passport (and PAN/Aadhaar if asked)
- University admission letter
- Mark sheets of previous exams
- Income proof of co-applicant (salary slips, ITR, Form 16)
- Bank statements (last 6 months)
- Collateral documents (if applicable)
- Passport-size photos
- Visa copy (if available at the time of disbursal)
If your documents are complete, processing is faster.
Top banks and lenders for study abroad loans
You can apply through public banks, private banks, or NBFCs. Compare interest rates, processing fees, and repayment terms.
Public sector banks
- State Bank of India (SBI): high loan limits for abroad, competitive interest rates
- Bank of Baroda: good schemes for overseas education
- Punjab National Bank: flexible repayment options
Private banks
- ICICI Bank: faster processing for many profiles
- Axis Bank: special programs for select universities
NBFCs (education loan specialists)
- HDFC Credila: popular for study abroad funding
- Avanse: flexible loan sizes and products
- InCred: quick processing for many cases
- Auxilo: multiple collateral options
Step by step process to apply
Follow this simple flow:
- Get your admission letter.
- Estimate your full cost (tuition + living + travel + insurance).
- Compare lenders for interest rate, fees, and EMI.
- Prepare documents and co-applicant details.
- Submit the loan application.
- Bank verification and credit checks.
- Receive the sanction letter.
- Sign the agreement and complete collateral formalities if needed.
- Disbursal to the university (and sometimes to your account for allowed expenses).
Many applications take 2 to 4 weeks. Start early so your visa timeline is not affected.
Interest rates, EMI, and repayment
Education loan interest rates in India often range from 8% to 14%. Public banks usually have lower rates. Private lenders may be faster but can be higher.
Repayment terms to know
- Moratorium period: during the course and a short grace period after it
- EMI starts after the moratorium ends (rules vary by lender)
- Tenure can be 5 to 15 years
- EMI depends on loan amount, rate, and tenure
Tax benefit
Under Section 80E, you can claim a tax deduction on the interest paid. This benefit can be available for up to 8 years.
Tips to get your education loan approved faster
- Apply early, ideally right after you get admission
- Keep your academic records and documents clean and complete
- Choose a reputed university and a practical course
- Pick a strong co-applicant with stable income proof
- Maintain a good credit score for the co-applicant
- Compare multiple offers instead of accepting the first one
Common mistakes to avoid
- Ignoring the processing fee and other charges
- Not checking the fine print on interest type and late fees
- Applying too late and rushing the visa timeline
- Choosing only based on interest rate and missing hidden costs
- Not keeping a backup lender option
Final thoughts
Getting an educational loan in India is achievable with the right planning. Choose the lender that fits your profile and university. Prepare documents early and submit your application on time.
Studying in the USA, UK, Canada, or Australia can change your career. An education loan can help you reach that goal.
Disclaimer
Interest rates, eligibility, and loan terms change over time. Always confirm the latest details on the lender’s official website or branch before you apply.
Discover more from Majhi Naukri | माझी नोकरी 2025
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