How to Get an Education Loan for Studying Abroad – A Step-by-Step Guide (2025)
Studying abroad can open doors to world-class education and global career opportunities, but it often comes with high expenses. An education loan is a practical solution that helps Indian students fund tuition, travel, accommodation, and living costs in foreign countries.
This 2025 guide explains how to apply for an education loan for studying abroad, including eligibility, documents, and tips to get fast approval.
Step 1: Understand What Education Loans Cover
Most Indian banks and NBFCs offer loans that cover:
- Tuition fees
- Hostel and accommodation charges
- Travel expenses (flight tickets)
- Examination and library fees
- Cost of books, equipment, laptop
- Insurance and visa fees
Step 2: Check Eligibility Criteria
- Applicant must be an Indian citizen
- Admission should be secured in a recognized foreign institution
- Co-applicant (usually parent or guardian) is required for most loans
- Academic performance should be consistent
Step 3: Choose the Right Lender
You can get education loans from:
- Public sector banks: SBI, Bank of Baroda, Punjab National Bank
- Private banks: ICICI, Axis Bank, HDFC
- NBFCs: Avanse, InCred, Auxilo, Prodigy Finance
Step 4: Decide Between Secured and Unsecured Loan
- Secured Loan: Requires collateral (property, FD, etc.), lower interest rate (8–10%)
- Unsecured Loan: No collateral, higher interest rate (11–14%)
Step 5: Gather Required Documents
- Admission letter from the foreign university
- Mark sheets of 10th, 12th, and graduation
- Passport and visa copy
- Bank statements of last 6 months
- ITR and income proof of co-applicant
- Collateral documents (for secured loans)
Step 6: Apply for the Loan
You can apply:
- Online through the bank’s official education loan portal
- By visiting the nearest bank branch
- Through loan aggregators like Vidya Lakshmi Portal (vidyalakshmi.co.in)
Step 7: Loan Sanction and Disbursement
- Bank will verify documents and assess credit risk
- Loan sanction letter is issued
- Loan amount is disbursed in instalments directly to the university
Step 8: Repayment Terms
- Most banks offer a moratorium period (course duration + 6 to 12 months)
- Repayment begins after this period
- Loan tenure: Up to 15 years
Top Banks Offering Study Abroad Loans in 2025
- SBI Global Ed-Vantage: Up to ₹1.5 Cr, low interest, secured loan
- Bank of Baroda: Baroda Scholar Loan for international students
- HDFC Credila: Customized education loan without margin money
- ICICI Bank: Fast loan processing with flexible repayment
Tips for Faster Loan Approval
- Apply early, preferably after getting admission letter
- Maintain good credit history (co-applicant)
- Choose a reputed and recognized university abroad
- Ensure all documents are accurate and updated
Conclusion
An education loan makes studying abroad possible for many Indian students by removing financial barriers. With proper planning, documentation, and lender selection, you can secure a loan that supports your international education journey in 2025. Start early and explore all your options to make the process smooth and stress-free.