Student Loan for International Students

For many Indian students, studying abroad isn’t just about education, it’s about chasing dreams, exploring new cultures and unlocking global opportunities. But let’s be real, the rising cost of tuition, living expenses and travel can turn this dream into an impossible challenge. Imagine securing admission to your dream university, only to realise that financial constraints are holding you back. Many students find themselves at this crossroad – while some give up, others settle for less than ideal options.

But what if money didn’t have to stand in the way? What if there was a way to bridge the gap between ambition and affordability? The good news is that more Indian students now, than ever, are making their study-abroad dreams come true. Thanks to secured and student-friendly education loans, financing their global education. These loans are designed to support their aspirations without putting undue pressure on their family. With the right financial planning and guidance, nothing can stop you from reaching great heights.

List of Banks Offering Loans for International Students

State Bank of India: SBI supports students who aspire to study abroad by providing education loans. Promising 100% financing of total cost of education, loan disbursal in 2 days and savings of at least 8 lakhs, SBI is one of the most sought after educational loans. Here are the key highlights of SBI educational loans.

Loan amount: Up to ₹1.5 Crore
Interest rates: 9.80% – 10.80%
Processing Fees: ₹10,000
Repayment Tenure: 15 years
Security: No Collateral required for loan up to ₹7.5 lakh

Government Backed Student Loans for International Students

Vidya Lakshmi Education Loan: The government of India has launched a one of a kind portal for students aspiring to study abroad, to ease the process of loan application. There are 45 banks registered with Vidya Lakshmi Portal to offer 139 schemes of student loans so that students can explore, compare and apply for educational loans easily.

Loan amount: ₹150 lakhs.
Interest rates: Starts at 8.40%
Processing Fees: Rs. 100+GST
Repayment Tenure: 10-15 years after repayment moratorium
Security: Collateral free loans.

Read more about Vidya Lakshmi Portal Education Loan.

Education Loan Scheme of the NBCFDC: Offered by National Backward Classes Finance and Development Corporation, this loan scheme aims to provide financial assistance to students from backward classes looking to study abroad. Professional, technical, and vocational education courses are covered. Candidates have to prove that they belong to a BPL (Below poverty line) family, meaning that family income should not be more than ₹3 Lakhs.

Loan amount: Up to ₹20 Lakhs.
Interest rates: 4% annually, girl students receive a special rate of 3.5% per year.
Repayment Tenure: 10 years (5 year moratorium period included)
Security: Collateral free loan

Read more about the Education Loan Scheme of the NBCFDC

Dr Ambedkar Central Sector Scheme: The Government of India provides an education loan with a 100% interest subsidy for meritorious students from minority communities. Under the Dr. Ambedkar Central Sector Scheme, eligible students can pursue M.Phil and Ph.D. programs abroad. To qualify for this government-backed loan, students must meet specific eligibility criteria. However, the scheme does not specify a fixed loan amount.

Loan amount: Maximum of ₹20 lakhs.
Interest rates: The interest subsidy is provided during the moratorium period, which is the course period plus one year. After the moratorium period, the student is responsible for paying the interest on the remaining loan amount.
Processing Fees: NIL
Repayment Tenure: After the moratorium period.
Security: Collateral free loan

Read more about Dr Ambedkar Central Sector Scheme

Eligibility Criteria for International Student Loans

A variety of education loans are available for students aspiring to study abroad, but meeting the eligibility criteria is essential for approval. Each loan, particularly government-backed schemes, has specific eligibility requirements. For instance, the Dr. Ambedkar Central Sector Scheme is exclusively for meritorious students from minority communities, while the Education Loan Scheme of the NBCFDC is designated for students from backward classes. Below are the common eligibility criteria applicants must fulfill before availing for international student loans.

The student must be an Indian citizen.
The loan applicant must be at least 18 years old; otherwise, their parents must apply for the loan on their behalf.
The candidate should have a strong academic record.
The aspirant must have secured admission to a recognised foreign university, institution, or college.

Documentation Required for International Student Loans

1) Residence Proof or ID Proof Documents

Two passport-sized photographs
Photo ID proof
Residence Proof

2) Academic Documents for Student Loan

Admission letter/Offer letter
Score reports of, ELP Test Scores of either IELTS or TOEFL, GMAT or GRE (for a postgraduate course) and ACT or SAT (for an undergraduate course)
Copy of student visa (if applicable)
Mark sheets of the 10 and 12 board examinations
Mark sheets of an undergraduate degree or diploma

3) Income Documents Required for Education Loan:

Break-up of the fee
The last three months’ salary slip
Income tax return for the last two years

4) Collateral Documents Required for Education Loan

The title deed of the property
Land registrar’s details about extracts of agricultural land
Latest property tax bills
NOC from builder for Mortgage
Official allotment letter of property
Approved building plan
Encumbrance certificates

Application Process for International Student Loans

The application procedure for each education loan differs, especially the procedure between private sector and government backed educational loan. The procedure of application differs according to the bank you are applying towards as well. The application process for each one of them is more or less the same with some deviations. Given below is the common application procedure for most of the educational loans.

Start by assessing your financial needs and cross-checking various loan options to find the one that best suits your budget and requirements.
Once you’ve identified a suitable loan, review the eligibility criteria to ensure you qualify.
Before applying for a loan, obtain admission to a recognised foreign university or institution, as this is a mandatory requirement for most lenders.
Calculate the total expenses, including tuition fees, living costs, travel, and other study-related costs, to determine the exact loan amount you need.
Many lenders require a co-signer (such as a parent or guardian) who must be willing to provide the necessary financial documents.
Prepare all the necessary documents, such as admission letters, identification proof, income proof, and collateral details (if applicable).
Visit the official website of the chosen lender and submit your loan application along with the required documents.
The lender will review your application, verify documents, and process the loan. Approval times vary based on the lender’s policies.

Note: To apply for a government education loan, the Indian government launched Vidya Lakshmi Portal. This portal is a single window for government loan schemes and scholarships for students. Also, for private sector banks educational loans, refer to their websites accordingly.

FAQs

How long is the repayment period for a student loan for study abroad?

The repayment period differs depending on the bank but the average tenure is between 10 to 15 years.

Can I receive a student loan for study abroad without a guarantor/co-borrower?

Mostly, banks require a co-borrower during the application of the loan but considerations can be made only if you fulfil some criteria. Importantly, you have to ensure that you have a good CIBIL score, this will likely increase your chances.

When is the right time to apply for a student loan for study abroad?

After confirming your requirement for the loan and securing admission to a verified institution, you can start the procedure.

Do I need to be a topper to get a student loan for studying abroad?

There are many merit-based loans available in the market but you don’t necessarily have to be a topper in order to avail a loan. Having a poor academic record might lower chances but it's not the top priority. There are many types of loans available that you can check out.

How much education loan can I avail?

That depends completely on the amount each bank or the government body offers for an educational loan, it differs with each bank.