Studying abroad is an aspiration for many students, but the high cost often becomes a major hurdle. Compared to regular courses in India, programs offered by prestigious international universities tend to be significantly more expensive, making financial support essential for students. One of the best ways to fund study abroad course costs is through education loans. While banks and NBFCs provide loans to students for study abroad, their interest rates are often high. Government-backed education loans, on the other hand, offer sufficient loan amounts at affordable interest rates. If you are interested in learning more about the government study abroad loan programs in detail, then keep on reading below.
Government Education Loan Programmes for Study Abroad
The government of India and the state governments provide education loans to students for studying higher education courses outside India. These education loans are offered to them at a discounted interest rate and much easier eligibility criteria than banks. Below we have mentioned the popular government education loans for students to study abroad.
Study Abroad Loan by NSFDC
The National Scheduled Castes Finance and Development Corporation (NSFDC) by the Ministry of Social Justice and Empowerment, Govt. of India offers study abroad education loans to students. The maximum loan amount offered to students under this scheme is ₹40 lakhs or 90% of the course fees whichever is less. The loans are facilitated through State Channelising Agencies (SCAs) on behalf of the NSFDC and they also collect the EMIs of the education loan. The interest rate of this government education loan for study abroad is
in the education loan interest rates.
Key Points to Remember
- The loan repayment period is 10 years for loans up to ₹10 lakhs and 12 years for loans more than ₹10 lakhs.
- NSFDC study abroad education loan interest rate is 7%.
- The maximum loan amount is ₹40 lakhs or 90% of the course fees (whichever is lower).
- The loan is offered for full-time professional or technical courses.
Gujarat Government Education Loan for Studying Abroad
The Gujarat Government is offering study abroad education loans to students belonging to the Socially and Economically Backward Classes (SEBC) and the Economically Backward Classes (EBC). Students must have a valid acceptance letter from a foreign university to apply for this educational loan. This study abroad loan by the Gujarat government has an interest rate of 4% only. The maximum loan amount offered to students is ₹15 lakhs. For loans above ₹7.5 lakhs, you need to provide an asset as collateral.
Key Points to Remember
- The maximum loan amount under the Gujarat government education loan scheme for studying abroad is ₹15 lakhs.
- Only a 4% interest rate is charged to students for the education loan.
- EBC and SEBC category students can apply for this study abroad loan.
Study Abroad Loan by NBCFDC
The National Backward Classes Finance and Development Corporation (NBCFDC) is offering a study-abroad loan scheme for the members of the backward classes in India. Also, the applicant’s annual family income must be equal to or lower than ₹3 lakhs. The loan will be provided to students who have confirmed admission to professional/technical/vocational courses in India or abroad. Students studying in professional/technical courses can get 85% of the course expenditure up to ₹20 lakhs as an education loan. For vocational courses, 90% of the expenses are covered by the study abroad loan by NBCFDC. The interest rate for boys is 4% per annum while for female candidates it is 3.5% per annum.
Key Points to Remember
- The maximum loan amount is ₹20 lakhs.
- Male students need to pay 4% interest for the loan and female candidates need to pay just 3.5% interest.
- Students get 10 years to repay the study abroad loan.
- The moratorium period is 5 years.
Study Abroad Education Loans by Government Banks
There are nationalised banks in India under the government of India which offer study abroad loans to students. Below we have provided details about a few such banks offering secured and unsecured education loans for study abroad students.
SBI Global Ed-Vantage
The State Bank of India is a government bank in India which offers a study abroad education loan programme called the SBI Global Ed-Vantage. Under this scheme, students can apply for up to ₹3 crore as an education loan for study abroad. A collateral is needed for the loan application of ₹3 crore but if you do not have any collateral then you can apply for ₹50 lakhs loan. The interest rate is 9.90% and for female candidates, there is a rebate of 0.5% in the interest rate.
Key Points to Remember
- The maximum loan amount offered to students is ₹3 crore for study abroad.
- The interest rate of the SBI Global Ed-Vantage loan scheme is 9.90%.
- Girl children can claim a 0.5% rebate in the loan interest rate.
- There is a processing fee of ₹10,000 per application.
Also Read: SBI Education Loan for Abroad – Expenses Covered, Interest Rate & Application Process
Baroda Scholar Education Loan for Abroad Studies
The Bank of Baroda offers an education loan for students who want to pursue higher education in colleges/universities abroad. The bank offers up to ₹1.5 crores for students studying in selected few premier institutes and up to ₹60 lakhs loan to students in regular recognised institutes outside India. There is no need for collateral for loans up to ₹7.5 lakhs. The interest rate for this study abroad loan is up to Baroda Repo Linked Lending Rate (BRLLR)+2.55%. You can take 10-15 years after the moratorium period ends to pay back the Baroda Scholar Education Loan for abroad studies.
Key Points to Remember
- You can get up to ₹1.5 crore study abroad education loan from the Bank of Baroda.
- The moratorium period is of course duration plus one year.
- The interest rate for the study abroad loan is BRLLR+2.55%.
- You can repay the loan in 10 to 15 years.
Also Read: Bank of Baroda Education Loan – Key Information, Features and Benefits
Cent Vidyarthi Scheme
There is a study-abroad loan scheme by the Central Bank of India called the Cent Vidyarthi Scheme. Students can apply for an education loan of up to ₹2 crore and the interest rate is REPO rate/RBLR + Spread. The loan repayment period is 15 years after the moratorium period ends. Students must get admission to a foreign college/university through a merit list or an entrance examination to become eligible for admission.
Key Points to Remember
- A maximum of ₹2 crore is offered to students as a loan for study abroad.
- The moratorium period is of course duration and one year.
- You will have 15 years to repay the education loan.
- No collateral is needed for loans up to ₹7.5 lakhs.
Also Read: Cent Vidyarthi Scheme by the Central Bank of India
Study Abroad Loans by Private Banks or NBFCs
If you do not meet the criteria for government education loans for students to study abroad then you can try applying for loans provided by the private banks or NBFCs. Below we have provided details of a few prominent private banks and NBFCs that offer education loans.
| Private Bank/NBFC Name | Study Abroad Loan Amount |
| IDFC FIRST Bank | ₹75 lakhs |
| Avanse Financial Services | ₹2 crores |
| Prodigy Finance | As per requirement |
| ICICI Bank | ₹2 crores |
| Axis Bank | As per requirement |
Also Read: Study Abroad Education Loan Procedure
FAQs :
Q. What is a government education loan for studying abroad?
A government education loan is a financial assistance program offered by the state or central governments to help students cover the cost of studying at a foreign university or college. These loans usually come with lower interest rates and favourable repayment terms.
Q. Who is eligible to apply for a government education loan to study abroad?
Applicants must be Indian citizens and have secured admission to a recognized foreign university through merit or an entrance exam. Certain government schemes require candidates to belong to a backward category.
Q. What expenses are covered under government education loans for study abroad?
Education loans for study abroad by the government usually cover tuition fees, accommodation, travel expenses, exam fees, study materials, living expenses, etc.
Q. What is the interest rate for a government education loan for studying abroad?
Government education loans typically have lower interest rates compared to private lenders. The interest rates may vary based on the scheme, for example, the study abroad loan by NSFDC has an interest rate of 7% for male candidates and 6.5% for female candidates.
Q. How can I apply for a government education loan for studying abroad?
Students can apply through government websites or the State Channelising Agencies (SCAs) for a study abroad loan. They are required to submit necessary documents like admission letters, proof of financial need, and academic records to apply for the education loan.
Q. Do I need collateral to apply for a government education loan?
Yes, collateral is needed for some study abroad loans where the loan amount exceeds ₹7.5 lakhs. You can use your bank FD, jewellery, house, etc as an asset for collateral.