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Education Loans for Abroad Studies in 2023

Education Loans for Abroad Studies in 2023

 One of the most important factors is funding, which acts as an important decision-maker in a student’s pursuit of higher education. Some of the prevalent resources students make use of to aid their studies are scholarships, education loans for abroad studies. This blog's main focus is on the best student loans available to students in India from banking institutions. This comes with attractive loan schemes as well as the process of taking an education loan with collateral and more. 

Best Education Loan in India for Study Abroad

Given below are some of the most popular education loan in India: 

  1. Axis Bank Education Loan

One of the most popular education loans for abroad studies is the Axis Bank Education Loan.

The two major loan schemes offered to help students achieve their study abroad dream are the ‘Prime Abroad’ and ‘Loan for Higher Study’. The 

The first one allows an unsecured loan amount of INR 40 lakhs and a loan tenure of 15 years, the second one gives the delivery of no collateral security to loans not exceeding INR 7.5 lakhs.  These loans offer door-to-door service. There is a specialized loan scheme operated by Axis Bank and it is for working professionals. Some of the important points of information have been listed in the following table. 




Starting from INR 50,000

Covered Costs

Tuition Fees, Hostel fees, Books, etc

Interest rates

Up to INR 4,00,000: 15.2% [Effective Rate Of Interest]Between INR 4,00,000 and INR 7,50,000: 14.70%

[Effective Rate Of Interest]Above 7,50,000: 13.70% [Effective Rate Of Interest]


Up to INR 4,00,000: no margin

Above INR 4,00,000: 15%

Days for Disbursal

Within 15 working days of submission of loan application complete with documents

Other Features

Pre Admission Sanction 



There are certain criteria the applicants have to fulfill so he can be eligible to receive the loan amount. Moreover, the process of loan is carried out on a case-by-case basis, and other terms and conditions of eligibility attached. 





Candidates have to be an Indian citizen.


The candidate should have a minimum of 50% marks in high school and graduation.


Must have been offered admission to a career-oriented discipline of engineering, medicine, management, etc . This is at a graduation or post-graduation level.


The applicant has to submit evidence of regular income. This is mandatory for the co-applicant, i.e, parents/sibling/guarantor. 

Other conditions

Any other loan eligibility conditions as adopted by Axis Bank




  1. The State Bank of India: SBI Global Ed-Vantage Scheme

For students who wish to study abroad, the Global Ed-Vantage education loan scheme is one of SBI’s premier student loan schemes. The students get the lowest interest rates to fund their education under this scheme. 


Education Loan Terms

SBI Global Ed-Vantage Scheme

Loan amount range 

Above INR 7.5 lakhs -up to INR 1.5 Crore

Interest Rate

10.90% (effective ROI as of 21-1-2023)

0.5% concession granted to female candidates

0.5% concession granted to students availing of  Rinn Raksha Loan Insurance Scheme

Loan Margin

Minimum 10%. Margin to be brought in on a year-on-year basis

Total Expenses covered by the education loan

Tuition Fees, Living expenses, Study aid expenses, travel expenses, library fees, etc.

Moratorium period

Average moratorium period comprises of the course duration + 6 months (can be extended to a year)

Total Loan Tenure

Up to 15 years

Processing Fees

Rs. 10,000 + Legal & Valuation Fees


  1. The Bank of Baroda: Baroda Scholar Scheme

This is one of the few government banks, which can be compared to the ones offered by SBI. The loan scheme is called the Bank of Baroda’s study abroad education scheme. The 

The Bank of Baroda is one of the few government banks, whose education loan terms can be compared to those offered by SBI. The Baroda Scholar loan scheme is Bank of Baroda’s study abroad education loan scheme. The bank has subdivided universities across the world into prime institutes and non-prime institutes, this is done on the basis of their global ranking, and according to this provides the loan deal.

Education Loan Terms

For universities in the premier list 

For universities in the non-premier list 

Available Loan Amount

Up to INR 150 lakhs

Up to INR 60 Lakhs

Interest Rate (effective ROI as of 21-1-2023)



Loan Margin


Up to INR 4 lakhs - NIL

Above INR 4 lakhs - 10%

Repayment period 

Up to 15 Years

Up to 15 Years

Moratorium Period

Course Duration + 6-12 Months

Course duration + 6-12 Months

Expenses Coverage

Tuition + All expenses related to the candidate’s course

Tuition + All expenses related to the candidate’s course

Processing Fees

1.00% of loan amount (refundable) (maximum 10,000/-)

A non-refundable lump sum amount of INR 7,500 per property as Legal and Valuation charges

1.00% of loan amount (refundable) (maximum 10,000/-)

A non-refundable lump sum amount of INR 7,500 per property as Legal and Valuation charges

Processing Time

15 Days if processed through our team

15 Days if processed through our team


  1. The Punjab National Bank: PNB Udaan Scheme

It is the best bank that gives study loans for abroad studies. The education loans are given under the PNB Udaan scheme. 

Education Loan Terms

PNB Udaan Education Loan Scheme

Loan amount range 

Need-based finance

Interest Rate


Loan Margin

Up to INR 4 lakhs - NIL

Above INR 4 lakhs - 15%

Total Loan Tenure

Up to 15 years

Total Expenses Covered

All expenses related to the course abroad

Processing Fees

1% minimum INR.10000/- (Refundable after 1st Disbursement)

Moratorium Period

Course period + 1 year


Canara Bank: IBA Model Loan Product For Higher Studies Abroad 

The bank offers abroad education loans under the IBA's model loan product for higher studies in India and Abroad scheme. The applicants who wish to pursue their undergraduate, as well as postgraduate courses abroad are selected to apply for an education loan for abroad studies which comes under this Canara Bank education loan scheme. 


IBA Model Loan Products For Higher Studies Abroad 

Canara Bank Abroad Education Loan Scheme

Maximum Loan Amount 

Need-based financing. For studies in India: INR 10 Lakhs

Canara Bank education loan ROI 


Eligible Courses 

Undergraduate (Bachelors), Postgraduate(Masters), Ph.D., PG-Diploma Courses, etc.

Loan Tenure

Up to 15 years

Moratorium period duration

Course period, plus one year

Loan Margin

For loans of up to INR 4 Lakhs: Nil

For loan amounts above INR 4 Lakhs -15%

Processing Fees



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