The cost of studying abroad — tuition, living expenses, travel, and health insurance — can seem overwhelming. But education loans for study abroad from India have never been more accessible. In 2026, multiple nationalised banks, private banks, and NBFCs (Non-Banking Financial Companies) offer competitive study abroad loans with flexible repayment and tax benefits.
This guide covers every option — from SBI’s government-backed loans to collateral-free NBFC loans — with the real numbers you need to make an informed decision.
How Much Can You Borrow for Study Abroad?
|
Lender Type |
Loan Amount |
Collateral Required? |
Interest Rate (2026 est.) |
Repayment |
|
SBI (State Bank of India) |
Up to ₹1.5 crore |
Above ₹7.5 lakh |
10.5–11.15% p.a. |
Up to 15 years |
|
Bank of Baroda |
Up to ₹1.5 crore |
Above ₹7.5 lakh |
10.5–11.5% p.a. |
Up to 15 years |
|
Union Bank of India |
Up to ₹1 crore |
Above ₹7.5 lakh |
10.5–11.0% p.a. |
Up to 15 years |
|
HDFC Credila (NBFC) |
Up to ₹1 crore |
Not mandatory |
12–13% p.a. |
Up to 15 years |
|
Avanse Financial Services |
Up to ₹75 lakh |
Not mandatory |
12–14% p.a. |
Up to 12 years |
|
InCred Education Loans |
Up to ₹75 lakh |
Not mandatory |
12–14.5% p.a. |
Up to 12 years |
|
Prodigy Finance (International) |
Up to USD 220,000 |
No collateral |
Based on SOFR + margin |
Up to 20 years |
SBI Education Loan for Study Abroad — Most Popular Choice
SBI’s Scholar Student Loan scheme and Global Ed-Vantage Student Loan scheme are the most widely used education loan products for Indian students studying abroad. Key features:
- Loan amount: Up to ₹1.5 crore for premier institutions abroad (Harvard, MIT, Oxford, etc.); up to ₹75 lakh for other institutions
- Moratorium period: Course duration + 6 months before repayment begins (or 1 year after getting a job, whichever is earlier)
- Tax benefit: Interest paid is 100% deductible under Section 80E of Income Tax Act — no upper limit
- Collateral: Not required for loans up to ₹7.5 lakh; required (property, FD, LIC) for higher amounts
- Expenses covered: Tuition, accommodation, travel, insurance, study materials, laptop
Collateral-Free Education Loans — Who Qualifies?
Several NBFCs offer education loans without collateral — this is a major advantage for families who do not own property or do not want to pledge their assets. HDFC Credila, Avanse, and InCred are the three largest NBFC lenders in this space.
Who typically qualifies for collateral-free loans:
- Students with admission to top-ranked universities (QS top 200)
- Students in high-employability programmes (engineering, data science, MBA, medicine)
- Students with a strong academic record (70%+ throughout)
- Students whose parents have a stable income above ₹6–8 lakh per annum
Prodigy Finance is unique — it lends based on your future earning potential as a graduate, not your family’s current assets. It is specifically designed for international students at top 150 global universities and does not require any Indian collateral.
Education Loan Documents Checklist
|
Document |
Details |
|
KYC of student and co-applicant |
Aadhaar, PAN, passport |
|
Admission letter |
From the foreign university (official letterhead with fee structure) |
|
Academic records |
10th, 12th, graduation marksheets and certificates |
|
Income proof of co-applicant |
Last 3 years ITR, salary slips (last 3 months), Form 16 |
|
Bank statements |
Last 12 months — co-applicant’s account |
|
Collateral documents (if applicable) |
Property papers, valuation report, title deed |
|
Fee structure document |
From university — year-wise breakdown |
|
Cost of living estimate |
From university or official government source |
|
Scholarship letter (if any) |
Reduces loan requirement — strengthens application |
Tax Benefit on Education Loan — Section 80E
One of the most overlooked advantages of taking an education loan (vs using family savings) is the Section 80E tax deduction. The interest portion of your education loan EMI is 100% tax-deductible with no upper cap — for a period of 8 years from the year repayment begins. If your co-applicant (parent) is in the 30% tax bracket, this deduction creates significant real savings over the loan repayment period
EdMaster helps students understand and maximize these tax benefits while planning their study abroad financing strategy.
Frequently asked questions
SBI's Global Ed-Vantage scheme and Bank of Baroda's Baroda Scholar scheme are the most popular government bank options, offering up to ₹1.5 crore at 10.5–11.5% with Section 80E tax benefits. For collateral-free loans, HDFC Credila and Avanse are the leading private options. The best bank depends on your loan amount, collateral availability, and university ranking. EdMaster's financial aid team in Vadodara helps students compare and apply to the right lender.
Yes. HDFC Credila, Avanse, InCred, and Prodigy Finance all offer study abroad education loans without collateral for students admitted to top-ranked international universities. Approval typically requires strong academics (70%+), high-employability programme, and co-applicant income above ₹6 lakh per annum.
Yes. Education loans for study abroad from India cover tuition fees, accommodation, travel (to and from India once per year), health insurance, study materials, and laptop purchases. Some lenders also cover examination fees and visa costs. The total loan amount is based on the total cost of the programme as documented by the university's official fee structure.
Yes. EdMaster provides education loan assistance as part of our study abroad services from our Vadodara office. We help students compare lenders, prepare loan documentation, and connect with bank representatives for faster processing. Call +91 72269 33337 to speak with our financial aid team.
