Education Loan for Abroad Studies 2026
Studying abroad is a dream for many Indian students, offering world-class education and global exposure.
However, the high cost of overseas education makes education loans one of the most popular financing options.
Banks and NBFCs in India offer student loans at different interest rates depending on the applicant’s academic profile,
co-applicant income, collateral, and chosen institution.
Why Take an Education Loan for Abroad Studies?
- Helps manage high tuition and living expenses
- Protects family savings and investments
- Income tax benefits under Section 80E
- Moratorium period during course duration
- Builds long-term credit history
Steps to Get an Education Loan
- Calculate total education cost and required loan amount
- Compare loan schemes offered by banks and NBFCs
- Check eligibility criteria
- Arrange all required documents
- Submit loan application
- Verification and loan disbursement
Education Loan Interest Rates 2026
| Bank / NBFC | Starting Interest Rate | Scheme Details |
|---|---|---|
| State Bank of India | 9.15% P.A. | Global Ed-Vantage (Female concession available) |
| Bank of Baroda | 8.70% P.A. | Baroda Scholar Scheme |
| Punjab National Bank | 8.35% P.A. | PNB Udaan (Premium institutes) |
| Union Bank of India | 9.00% P.A. | Rates depend on course & collateral |
| ICICI Bank | 9.50% P.A. | Secured & unsecured options |
| HDFC Credila | 8.95% P.A. | Profile-based floating rates |
Eligibility Criteria
- Applicant must be an Indian citizen
- Confirmed admission to a recognized foreign university
- Strong academic background
- Parents/guardians as co-applicants if student is below 18
Documents Required
| Category | Documents |
|---|---|
| Identity Proof | Passport, Aadhaar Card |
| Academic Records | 10th & 12th Mark Sheets, Offer Letter |
| Income Proof | ITR, Salary Slips, Bank Statements |
| Collateral (If Required) | Property Documents, Valuation Report |
Top Education Loan Providers in India
| Lender | Maximum Loan Amount |
|---|---|
| SBI | Up to INR 1.50 Crore |
| HDFC Credila | No upper limit |
| PNB | Up to INR 1 Crore |
| ICICI Bank | Up to INR 3 Crore |
Collateral Rules
- Loans up to INR 4 lakh – No collateral required
- Loans above INR 7.5 lakh – Property or financial assets required
- Agricultural land is usually not accepted
Final Words
Applying for an education loan early can help avoid last-minute stress.
Compare banks carefully, check eligibility, and choose a loan that best suits your academic and financial needs.
Also Read : “महादेवी वर्मा श्रमिक पुस्तक क्रय धन योजना” प्रतिवर्ष रु.7,500 का एकमुश्त वित्तीय सहायता Apply Now
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