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30

30

Years of Trust

₹2 Billion+

₹2 Billion+

Loan Amount Disbursed

30

30

Trusted Partners

200,000+

200,000+

students placed abroad!

Education Loan for Abroad: News/ Updates

Did you know as per the new Union Budget TCS (Tax Collection at Source) for foreign remittances or transfers has increased from 5 to 20 per cent? For students and parents, this news means that TCS on self-funding is going to be at least 10 times more expensive than taking an education loan for abroad studies!

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How Do We Make Financing Simple?

  • Check eligibility with our loan expert

    Check eligibility with our loan expert

  • Find the right bank for your education loan

    Find the right bank for your education loan

  • Apply to 3-4 banks for rate comparison

    Apply to 3-4 banks for rate comparison

  • Submit documents & we’ll take it from here!

    Submit documents & we’ll take it from here!

  • Talk to your loan counsellor for updates

    Talk to your loan counsellor for updates

  • Get approval within 12-24 days

    Get approval within 12-24 days

  • Enjoy a hassle-free disbursement process

    Enjoy a hassle-free disbursement process

Profile Final step

Our Partners

Auxilo
Avanse
HDFC Credila
Prodigy
IDFC
Axis
MPower
Nomad

Established in 2014, MPOWER Financing has been on a mission to dismantle the financial obstacles obstructing international education. Operating out of Washington, DC, the company specializes in providing education loans tailored for higher studies in the United States and Canada. With a decade-long commitment to the study abroad sector, MPOWER Financing has honed its expertise.

Distinguishing itself with a fully digital loan application process, MPOWER offers unparalleled convenience to its users. The company boasts a robust network of over 400 educational institutions for which it can offer financial support. Notably, MPOWER stands as the exclusive partner in our consortium that maintains a steadfast interest rate, irrespective of prevailing conditions, offering an additional advantage to borrowers.

Important Aspects Detail
Loan Amount Up to 100,000 USD
Interest Rate* 12% - 14%
Interest Rate Type Floating
Minimum Income Not Required
Repayment Simple Interest during the course & during 6 Month grace period, EMI afterwards
Processing Fees Up to 5%, added to loan amount
Other Charges No Charges
Margin Money 0
Loan Tenure Up to 15 years
Processing Time Up to 7 days
Prepayment Penalty No Penalty

*The Final Rate of Interest may vary based on the student’s profile.

Founded in 2007, Prodigy Finance stands as a UK-based financial institution that has redefined the landscape of education loans while upholding an unwavering commitment to exceptional service standards. The ethos underpinning Prodigy Finance is grounded in the belief that financial constraints should never obstruct the pursuit of education. Over the course of the past 16 years, Prodigy Finance has diligently aided students in realizing their academic aspirations. Leveraging an individual's academic profile, they facilitate study abroad education loans devoid of the need for collateral or a co-applicant.

Important Aspects Detail
Loan Amount Up to 100,000 USD
Interest Rate* 12% - 14%
Interest Rate Type Floating
Minimum Income Not Required
Repayment Simple Interest during the course & during 6 Month grace period, EMI afterwards
Processing Fees Up to 5%, added to loan amount
Other Charges No Charges
Margin Money 0
Loan Tenure Up to 15 years
Processing Time Up to 7 days
Prepayment Penalty No Penalty

*The Final Rate of Interest may vary based on the student’s profile.

Established in 1977 primarily for housing loans, HDFC Credila transitioned into a specialised NBFC (Non-Banking Financial Company) for education loans in 2006, subsequently becoming the oldest NBFC in India to cater to educational financing. Key highlights of HDFC Credila include:

  • Comprehensive Coverage: HDFC Credila's education loans extend support to over 1,000 educational institutions spanning 35+ countries.
  • Collateral Flexibility: Borrowers can utilize properties mortgaged with HDFC Bank as collateral for securing Credila education loans.
  • High Loan Limits: HDFC Credila offers substantial unsecured education loan amounts to eligible applicants.
  • Semi-Collateral Options: HDFC Credila provides the option for semi-collateralized education loans, easing the burden on borrowers.
  • Professional Education Financing: Additionally, HDFC Credila extends its financial assistance to working professionals pursuing executive MBA programs.
Country Maximum loan amount by HDFC Credila
Australia STEM courses: INR 20 - 30 Lakhs
Non-STEM courses: INR 25 Lakhs
Canada STEM courses: INR 30 - 40 Lakhs
Non-STEM courses: INR 20 - 25 Lakhs
Germany STEM courses: INR 20 - 30 Lakhs
Non-STEM courses: INR 25 Lakhs
Ireland STEM courses: INR 20 - 30 Lakhs
Non-STEM courses: INR 25 Lakhs
New Zealand STEM courses: INR 20 - 30 Lakhs
Non-STEM courses: INR 25 Lakhs
UK STEM courses: INR 20 - 30 Lakhs
Non-STEM courses: INR 25 Lakhs
US STEM courses: INR 60-75 Lakhs*
Non-STEM courses: INR 40 Lakhs

*The Final Rate of Interest may vary based on the student’s profile.

Avanse Financial Services operates as a Non-banking Financial Company (NBFC) dedicated to facilitating educational aspirations. Their portfolio comprises education loans tailored for students embarking on higher studies, whether in India or overseas. The company distinguishes itself through the provision of personalized loan solutions, designed to accommodate a diverse spectrum of courses and universities. Their primary objective revolves around streamlining and simplifying the loan application process, ensuring it unfolds seamlessly and without complications.

For students pursuing education abroad, Avanse Financial Services extends comprehensive coverage, encompassing more than 2,000 universities and colleges, as well as an expansive selection of over 27,000 pre-approved courses spanning across 50+ countries. They offer a versatile array of financial solutions, including pre-visa disbursement loans, pre-admission loans, bridge loans, fast-track loans, and score-based advantages. These offerings are meticulously crafted to eliminate financial obstacles, allowing applicants to focus on their educational journey and propel their careers to new heights without financial constraints.

Important Aspects Description
Loan Amount Up to INR 75 Lakh
Interest Rate* 12.5 - 13.5%
Processing time 7-25 days
Margin money nil
Moratorium period Course duration + 1-year
Repayment tenure 15 years

*The Final Rate of Interest may vary based on the student’s profile.

InCred is a fast-growing NBFC that, since its establishment in 2017, has sanctioned 500 million USD worth of education loans. InCred education loans cover 25+ countries and 600+ courses. Generally, InCred loans are better suited for students with work experience in their field of study.

Features In-cred
Maximum loan amount INR 20 - 80 Lakhs
Interest Rate* 11.65% - 13.5%
Moratorium period Course duration + 1 year
Repayment during the moratorium period Simple Interest/ Partial Simple Interest
Processing fee 0.5% - 1% of the loan amount + GST
Loan tenure 12 - 15 years
Minimum co-applicant income (negotiable for secured education loans) INR 20,000 - 40,000
Credit life insurance premium 1.25% - 1.5% of the loan amount

*The Final Interest rate may vary based on the student’s profile.

Established in 2017, Auxilo Finserve Pvt. Ltd. is an NBFC. Auxilo assesses students based on more than 15 parameters and offers customised education loan options for countries like the US, UK, Canada, Australia, France, Germany, New Zealand, and Ireland. Auxilo offers customised loan options based on the requirements. They also provide various benefits such as pre-approved loans, flexible repayment options, and doorstep service.

Features Auxilo
Loan amount Up to INR 65 Lakh
Rate of interest 11.25 - 14%
Processing fee 0.5 - 2%
Repayment tenure 10-12 years
Repayment during course Partial/simple interest/EMI

*The Final Interest rate may vary based on the student’s profile.

Founded in 1993, Axis Bank stands as a prominent player in the private sector banking arena, boasting an extensive network of 5,625 branches spanning the various states and Union Territories of India. Axis Bank's education loans serve as a gateway to higher education, commencing from a base amount of INR 50,000. These loans cater to eligible applicants, with or without the need for collateral security, offering attractive interest rates.

Key highlights of Axis Bank's education loans include:

  • Institution Support: Axis Bank's education loans facilitate students in pursuing their studies at institutions listed by the bank.
  • Professional Development: Working professionals can access education loans with generous limits of up to INR 40 Lakhs.
  • Stable Interest Rates: Axis Bank's education loans demonstrate minimal interest rate fluctuations compared to many other lenders like HDFC Credila. This stability is attributed to the use of internal benchmark lending rates, such as the Marginal Cost of Funds Lending Rate (MCLR), which ensures consistency in the effective interest rate.
  • Collateral Flexibility: Loans with no predetermined cap are available, provided that the collateral's value meets the required criteria.
  • Government Support: Beneficiaries can take advantage of the Central Sector Interest Subsidy Scheme when availing of education loans.
Type of Loans Maximum loan amount by HDFC Credila
Secured Education Loan 75 Lakhs*
Unsecured Education Loan INR 50 Lakhs for Prime A-listed institutions
INR 40 Lakhs for Prime B-listed institutions.

*The Final Rate of Interest may vary based on the student’s profile.

Established in 1994, ICICI Bank has emerged as a prominent player in India's private-sector banking sphere. Recognizing the formidable financial challenges associated with pursuing higher education, particularly in light of the escalating costs, ICICI Bank is committed to ensuring that financial constraints do not impede your educational aspirations.

Through a strategic partnership, ICICI Bank has joined forces with a dedicated platform to provide invaluable financial support to aspiring students embarking on their journey of higher education abroad. ICICI Bank empathizes with your career ambitions and stands ready to offer essential student loans, facilitating your path to higher education. The process of securing an Education Loan through ICICI Bank is designed to be straightforward and hassle-free.

To cater to diverse educational needs, ICICI Bank has categorized premier educational institutions into different tiers, denoted as A1, A2, A3, and A4. Their offerings include collateral-free loans with generous limits of up to Rs.50 lakh, opportunities for tax savings on interest payments under section 80(E), flexible tenure and repayment alternatives, and competitive interest rates.

Important Aspects Detail
Loan Amount A1 - 50 Lakhs INR
A2 - 40 Lakhs INR
A3 - 15 Lakhs INR
A4 - On an immediate EMI basis
Interest Rate* A1 - 10.85%
A2 - 11.70%
A3 - 12.25%
A4 - 12.50%
Interest Rate Type Floating Interest Rates
Minimum Income (Co-Applicant) 50,000 INR (without obligations)
Repayment Need to pay S.I. only during course + 6 months grace period
Processing Fees 0.5% - 1% of the loan amount + GST
Other Charges Nil
Margin Money A1 - 0
A2 - 5%
A3 - 15%
A4 - 15%
Loan Tenure Up to 10 years
Processing Time 5 - 7 days after document submission
Prepayment Penalty No Penalty
Tax Benefit Yes

*The Final Rate of Interest may vary based on the student’s profile.

Established in 2015, IDFC Bank has been dedicated to overcoming financial barriers hindering various economic endeavours. IDFC Bank has also made significant strides in the education financing sector. Understanding the importance of education in shaping the future, the bank offers tailored student study loans to facilitate higher education aspirations.

IDFC Bank, apart in this domain, is its flexible and student-friendly loan terms. The bank recognises students and their families' unique challenges in funding education and strives to ease this burden through competitive interest rates, convenient repayment options, and transparent loan terms.

The application process for IDFC Bank's student study loans is streamlined and user-friendly, reflecting the bank's commitment to embracing digital solutions.

Important Aspects Detail
Amount 1Lakhs to 2Crores INR
Interest Rate* 8% - 15%
Interest Rate Type Floating
Eligibility 18+ Indian National (Includes NRI)
Processing Fees Up to 1.5%* of the Loan Amount or as per any special scheme run by the bank
Stamping Charges As per actual
Cancellation charges 1%* of the loan amount + interest accrued from date of disbursal till receipt of cancellation request
Cancellation request to be received within 30 days or 1st EMI presentation date, post which cancellation will be treated as foreclosure
Loan Tenure Up to 15 years

*The Final Rate of Interest may vary based on the student’s profile.

Founded in 1919 as a limited company, Union Bank of India (UBI) underwent nationalization in 1969. UBI has since been dedicated to delivering a diverse array of banking and financial services, encompassing personal banking, corporate banking, international banking, and educational financing for pursuits within India and overseas. A significant milestone occurred in 2020 when Union Bank of India merged with Andhra Bank and Corporation Bank, solidifying its position as the fifth-largest public sector bank in India.

Union Bank of India extends a variety of loan options, spanning both secured and unsecured categories. Additionally, UBI categorizes courses and universities, aligning its loan offerings accordingly to provide tailored support for aspiring students.

Important Aspects Details
Loan Secured loan - Up to INR 1.5 cr (This amount can be increased depending on the student’s profile)
Unsecured loan - INR 40 Lakh
UBI Education Loan Interest Rate* Secured loans - 10-10.5%
Unsecured loans - 9.8%
Processing Fee INR 5000 (Refundable if disbursement within 3 months of sanction)
Margin Money Secured loans - 10% (Listed universities)
Secured loans - 15% (Non - listed universities)
Unsecured loans - 15%
Moratorium Period Course duration + 12 months
Repayment tenure 15 years

*The Final Rate of Interest may vary based on the student’s profile.

Established in 1955, the State Bank of India (SBI) commands a preeminent position as India's largest public sector bank, boasting the highest assets, deposits, branch network, customer base, and workforce in the industry. SBI extends its support to eligible students aspiring to further their education, whether within the bounds of India or on international shores.

One noteworthy offering is the Global Ed-Vantage education loan scheme, tailored to provide secured education financing for Indian students with ambitions to pursue higher education abroad. This initiative empowers students to secure substantial loans, with funding potential reaching up to INR 1.5 Crores to facilitate their overseas education endeavours. To avail themselves of this opportunity, students are required to provide collateral valued at no less than 90% of the total loan amount as security.

Important Aspects Description
Loan Amount INR 7.5 Lakh - INR 1.5 Cr
Interest Rate* 11.15% (Floating) (0.5% concession for female applicants)
Processing fees INR 10,000 + GST (Non-refundable)
Margin money INR 7.5 Lakh-INR 20 Lakh - 15%
INR 20 Lakh - 10%
Property evaluation charges Approximately INR 7,500
(Note - property evaluation charges are subject to change, they may vary depending on one’s location and property)
Moratorium period Course duration + 6 months
Repayment tenure 15 years

*The Final Rate of Interest may vary based on the student’s profile.

How We Help You Get an
Education Loan for Abroad Studies?

Minimum Interest Rates

Minimum Interest Rates

We explore, compare and negotiate loan options from NBFCs to public and private banks to make sure you get the best interest rate.

Approvals Before Deadlines

Approvals Before Deadlines

More than anything, our loan experts care about your college deadlines! And ensure that your education loan is sanctioned well in advance!

Easy Documentation

Easy Documentation

Our experts take care of the entire documentation & application process and will keep you posted with everything.

Get Pre-Approvals

Get Pre-Approvals

With us, you can get pre-approvals on your education loan for abroad studies based on your standardised test scores (for the US).

Non-Collateral Options

Non-Collateral Options

We are partners with prestigious NBFCs and private banks that take care of that too! Collateral or Non-Collateral, you are studying abroad!

Hassle-Free Handling

Hassle-Free Handling

Our experts will connect you directly to the banks and will be right by you throughout the entire process. 

🎉 zero service charges

Explore all 7 services we offer at Zero Charges Whatsoever!

Student Loan

Student Loan

  • Loan options from NBFCs, public & private banks
  • Faster and timely loan disbursement
International Bank Account

International Bank Account

  • Open an account before the move
  • Pay for your tuition, rent & other expenses
FOREX

FOREX

  • Blocked Account/ GIC for Canada
  • Forex Travel Card
Insurance

Insurance

  • Cashless treatment in hospitals around the world
  • Personal Accident Cover (PA) of up to 30,000$
SIM CARDS

SIM CARDS

  • Prepaid/ Postpaid SIM cards with free incoming calls
  • Easy recharge and billing options
Accommodation

Accommodation

  • Long-term & short-term PBSA options
  • With flexible check-in/ out dates
Travel

Travel

  • Get better fares by Pre-holding your flights
  • Get prompt responses & alternative flight options

Education Loan for Abroad Studies: FAQs

Your education loan can cover both full and part of the total costs, you can choose the loan that best fits your needs. The loan amount you are eligible to receive also depends on a lot of factors like your academic history, your parent/co-applicant’s credit history, the university you’re applying to, etc.

But in general, the expenses that an education loan for abroad studies covers are discussed below:

  1. Tuition Fee
  2. Rent
  3. Living Expenses
  4. Insurance
  5. Examination, library, and laboratory fees, if any
  6. Cost of books, uniform, equipment, etc.
  7. Travel expenses/airfare

Yes, as per Section 80E of the Income Tax Act of India, the applicant can claim tax deductions for a total period of 7 consecutive years or till the interest amount of your education loan is completely paid off.

All scheduled Indian banks and gazetted financial institutions are eligible to offer tax deductions to the applicant who has taken a loan for themself, spouse, children, or a student for whom the individual is a legal guardian.

Ideally, you should start your research for the right education loan way before you start your college application. Check with your shortlisted loan providers for their eligibility requirements and loan terms. By the time you start your college application process, you should have already selected a financial institution with which you’ve discussed terms. Since your loan cannot be disbursed before receiving a Confirmation of Enrollment (CoE) letter from the university, make sure to be ready with other aspects of your loan application.

The asset pledged against your loan is called Collateral. It can be a house, shop, fixed deposit, etc. Generally, you don’t need collateral for a loan amount of 7.5 lakhs for government banks and up to 60 lakhs for private banks, but beyond that, every financial institution has a different set of terms for collateral.

  1. What is the process of applying for an education loan?

    For starters, you must duly fill out your loan application form, followed by a personal discussion with your loan provider/lender. In the next step, the applicant must provide all the supporting documents required by the bank in order to be eligible for a loan. The bank now takes the time to verify and check all aspects of your loan application, after which it decides to either approve or deny the loan. Based on that decision, the loan amount is disbursed.

  2. What is a Moratorium?

    Your bank or NBFC offers you sometime after the completion of your course post, which you are required to start paying towards your outstanding loan. This duration is known as the moratorium period. The standard moratorium period stretches from 6 months to a year.

    It is always advised to learn well in advance about the flexibility of the moratorium period that your loan offers. Along with the charges for extension of moratorium due to unprecedented circumstances such as unavailability of jobs or a global pandemic for example.

  3. What is margin money?

    The percentage of the total cost that the borrower contributes but the loan doesn’t cover is called margin money. Foreign education loans can cover both full or part of your education's total cost. Likewise, your margin money depends on the type of loan you go for and the loan that best fits your needs.

  4. What are the documents required for an education loan for abroad studies?

    Every financial institution has its own set of requirements for sanctioning education loans. Although there are standard requirements that most banks/NBFCs will ask for before sanctioning education loans, these are:

    • Academic documents of the student
    • Income proof of co-applicant
    • Proof of residence
    • KYC documents (Passport, PAN card, etc.)
    • Parent/Co-applicant’s income proof
    • Passport size photograph
    • Scores of entrance tests
    • Proof of admission/confirmation of enrollment
    • Collateral documents (if applicable)
  5. What if you can pay the loan well before your term?

    There’s certainly no sense in dragging to accumulate interest if you can pay the loan before your term ends. So, it is important to check the prepayment terms of your education loan for abroad, especially if you are taking a foreign education loan from a government bank. Most private banking institutions allow for the closure of education loans after 6 months of disbursement without any penalty/charges.

  6. Can you apply for an education loan for abroad studies even before admission is confirmed?

    Yes, you can get your education loan pre-approved by banks/NBFCs even before admission confirmation. It is always advised to do so since universities generally give you a smaller window between confirmation and the deadline for fee payment. A pre-approved education loan also acts as a strong proof of funds that works in favour of your student application.

  7. What are the terms of repayment of an education loan for abroad studies?

    You can pay your education loan for abroad studies in simple and flexible Equated Monthly Instalments or EMIs throughout the loan tenure.

  8. Do you have a question we missed? ⚡

    Thanks for making it to the end of this page. We’re bummed to see you are still seeking answers! Please reach us and have an expert call you back to answer your foreign education-related questions.


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