Which Bank Offers the Best Education Loan for Abroad Studies?

How important is it for you to choose a product best suited to your needs? How important is finding the perfect product for you instead of picking a random one in the market? Now, think about your education loan. Do you think choosing the right loan scheme to finance your education abroad is important? You must think carefully about it, right? 

Education holds the greatest significance in our lives. Students like you have vivid dreams of studying abroad and building successful careers for yourselves. Education loans act as a spark to fuel by funding your course and expenses. But with many loan schemes in banks out there, it is natural to feel confused about which bank is best for an education loan abroad. And that’s okay. Let us now get clarity about the same. 

In this article, we shall know:

• Top Education Loan Providers in India
• Which banks have abroad education loan schemes
• Details of Education loans
• Best bank for an education loan

What are Abroad Education Loan Schemes?

Banks have specific products or loan packages that are designed to suit the needs of students flying abroad to study. They are called “Schemes” or “Loan Schemes”. These loan schemes include the loan amount, rate of interest, repayment details, and other information the student requires when considering an education loan for abroad studies. In this article, we will explore the loan schemes that public banks have to offer and their particulars.

Public banks have loan schemes, and they have their own names for the schemes. While private banks and NBFCs do not have any schemes, they have “Loan Products” which have details about the loan amount depending on various factors like university ranking, academics of the applicant, profile of the co-applicant, and the financial co-applicant, and the type of course the student chooses to pursue.

 

Top Education Loan Providers in India: Public Banks

Public banks in India are some of the most credible and easily accessible. These institutions not only serve the interests of the public but also offer a variety of student loans designed for individuals willing to study internationally.  In this section of the article, we are going to take a look at some of the best education loans in India provided by public banks:

Some well-known public banks are:

• State Bank Of India 
• Punjab National Bank
• Bank of Baroda 
• Canara Bank
• Union Bank of India
• Indian Overseas Bank

Let us take a look at their loan schemes now, beginning with SBI.

SBI Abroad Education Loan Schemes

For students who dream of studying further in foreign universities, SBI has made it easier for them by providing loan schemes that are designed to cater to their needs. While talking about education loans, there are specially designed schemes like SBI Global Ed-vantage to support all your needs. Among the positive features of such plans are the interest rates that are given to female students, or the option to get a higher loan, which is usually attached to certain criteria and requirements. In this part of the report, we will present the details of two of SBI’s most popular abroad education loan products: The SBI Education Loan Scheme and the SBI Global Ed-vantage Scheme.

Students planning for overseas education should check out the various SBI study abroad loan schemes:

• SBI Student Loan
  
• SBI Global Ed-Vantage Scheme
  
• SBI Skill Education Loan
  
• SBI Scholar Scheme
  
• Shaurya Education Loan Scheme
  
• The takeover of the Education Loan Scheme

An Overview of the Complete SBI Education Loan Schemes

*Interest rate is floating according to changes in the repo rate.

Bank Of Baroda Abroad Education Loan Schemes

Baroda Scholar is the foreign education loan scheme that the Bank of Baroda offers. It is given for MBA, MCA, MS, and other approved courses that create jobs and employment. Bank of Baroda has a list of premier and non-premier institutions, which is standard for them to decide loan amounts, interest rates, and margins. You should read our Bank of Baroda Education loan to know more about their abroad education loan product.

Who doesn’t like products that come with a lot of pros? Everyone does. Baroda Scholar is a loan product that has some awesome features, like:

• No loan margin up to 4 lakhs.
• The decent rate of interest starts from 9.7%.
• No processing fees up to 7.5 lakhs 
• No documentation charges at all

Let us look in detail:

LOAN PARAMETERS	DETAILS
Maximum loan amount	For premier institutes: 1.5 crores For non-premier institutions: 60 lakhs
Interest Rates	For premier institutes: Abroad and for Canada- starts from 9.7% For non-premier institutions:   Abroad: Up to 7.5 lakhs - starts from 10.90%                Above 7.5 lakhs - starts from 9.95% For Canada: Up to 7.5 lakhs - starts from 10.90%                       Above 7.5 lakhs - starts from 11.45% *Fixed interest rates are 1- 2% higher than floating interest rates. * 0.2% concession for female students for non-premier institutes only.
Loan margin	There is no margin up to 4 lakhs rupees for both premier and non-premier institutions. For premier institutes: Above 4 lakhs to 7.5 lakh rupees: 15% Above 7.5 lakhs: No margin. For non-premier institutes: Above 4 lakhs to 7.5 lakhs: 15% Above 7.5 lakhs: 10%
Moratorium period	Course duration + 1-year
Processing fee	Up to 7.5 lakhs with no processing fee More than 7.5 lakhs, which is 1% of the loan amount (Approximately 10,000 rupees). This amount will be refunded if the student chooses a premier university.
Legal and valuation charges	8,500 rupees (Non-refundable)

*Interest rate is floating according to changes in the repo rate.

Repayment Period

• The moratorium period is the course duration + 10 or 15 years.
• For loans up to 7.5 Lakhs: Moratorium period + Maximum 120 instalments
• For loans above 7.5 Lakhs: Moratorium period + Maximum 180 instalments
  

Collateral details:

• Up to 7.5 Lakhs: No Collateral or third-party guarantee will be obtained; however, the co-obligation of parents is required.
• Above 7.5 Lakhs to 80 Lakhs: Tangible collateral security equals 100% of the loan amount, along with the assignment of future income.
• Above 80 lakhs: Total security coverage should be 1.25 times the loan amount, and assignment of future income.

Punjab National Bank Education Loan Abroad

Punjab National Bank is another public bank that offers abroad education loans under the scheme “PNB Udaan”. They give your dreams aeroplane wings to fly abroad and study, and get the freedom you always wanted in life. The loan details of PNB Udaan are quite interesting. Take a look at the information below.

Parameters	PNB Udaan Education Loan Scheme details
Loan amount range	Need-based financing
Interest rate (Floating)	For premier institutes + 100% collateral security: 9.25% Any university + 100% collateral security: 10.25% for males/ 9.75% for females. Loan up to 7.5 lakhs: 11% for males/10.5% for females. Loan above 7.5 lakhs: 11% for males/ 10.5% for females.
Loan Margin	Up to 4 lakhs- NIL Above 4 lakh - 15%
Collateral	Up to 7.5 lakhs - no collateral security needed Above 7.5 lakhs- acceptable collateral needs to be pledged to the bank.
Total Loan Tenure	Up to 15 years
Total Expenses Covered	All expenses related to the course abroad
Processing Fees	1% of the tuition fee, which is a minimum of rupees 10,000/- (Refundable after first disbursement)
Moratorium Period	Course period + 1 year

*Interest rate is floating according to changes in the repo rate.

Understandably, all the above-mentioned details are TMI- too much information. Remember to go through all of it slowly and see if any one of them catches your attention to proceed further. And like always, WeMakeScholars is here to help you. Talk to our expert financial officer for more clarity.

Canara Bank Education Loan Abroad

For students who wish to pursue a master’s degree in foreign countries, Canara Bank has a ‘Canara Education Loan Scheme for Pursuing Master's Degree’, which is a unique loan scheme offered to students to meet their financial requirements. The loan scheme offers coverage that includes tuition fees, travel expenses, living expenses, and many more to reduce the strain of financial burden on students to enable them to concentrate on their studies. 

Let us look into its details:

Loan Parameters	Details
Loan amount	Minimum amount- 7.5 lakhs Maximum amount- Depends on the collateral
Collateral coverage and loan amount	100% and above- Minimum 7.5 lakhs/ Maximum- No cap Less than 100%- 1 crore
Effective Interest Rate	10.25% to 11.5%
Loan margin	10%
Processing charges	Depends on collateral value. If the collateral value is, 100% and above- 0.5% of the loan amount, a maximum of 10,000 rupees. Less than 100%- 0.5% of the loan amount, a maximum of 20,000 rupees.
Repayment Tenure	Maximum of 15 years, excluding the moratorium period (course period plus one year). For skill development loans, 3 to 7 years, depending upon the loan amount.
Expenses covered	100% finance on Tuition fees Travel expenses Living expenses Medical Insurance premium for students, if applicable.

*Interest rate is floating according to changes in the repo rate.

Union Bank of India Education Loan Abroad

Union Bank of India has a special loan scheme known as Union Education Premier Abroad for Students who are looking for an education loan with student-friendly policies. Union Bank offers several flexible terms, such as reasonable interest rates and lenient terms compared to other public banks. Regardless of the required loan amount of money, whether small or large, the fact that the scheme allows for variation in many of its parameters, including zero margins for fully secured loans, makes it possible to meet many different needs. 

Loan parameters	Details
Loan amount	Minimum: 7.50 Lakhs Maximum: 1.5 crores
Loan margin	Up to 4 lakhs: No margin Above 4 lakhs to Rs . 40 lakh: 15% Above 40 lakhs to 1.5 crores: 0% (Only if 100% collateral security is provided.)
Interest Rate	Without collateral, up to 40 lakhs- starts from 9.5% Up to 1.5 crores: With 50% to less than 100% collateral value- starting from 9.25% With 100% collateral value- starting 9%
Repayment tenure	15 years after the moratorium period
Moratorium period	Course period + 1 year

Indian Overseas Bank Education Loan for Abroad

Abroad education loans are the guiding light for our education journey. With the same intentions, Indian Overseas Bank introduced an abroad loan education scheme called "Vidyajyothi". Although it is not exclusively an abroad education loan scheme, the loan product contains foreign education loan details. This scheme also provides loans for students who are trained to become pilots. We shall take a look at it now:

Loan parameters	Details
Loan amount	Minimum Loan Amount: Above Rs. 7.50 Lakhs Maximum Loan Amount:  Inland: Rs. 30 Lakhs Foreign: Rs. 40 Lakhs
Rate of interest	11%
Loan margin	Studies in India: 5% Studies Abroad: 15%
Moratorium period	Course period + 1 year.

CONCESSIONS ON INTEREST RATES FOR  INDIAN OVERSEAS BANK:

• Girl Student-0.50%
• For Interest Paid During Moratorium-1%

STUDY ABROAD

• Institutes Ranked Up To 100-1.5%
• Institutes Ranked 101 To 200-1%

Note: The interest rates of the above-mentioned banks can vary based on various factors, including the repo rate, the creditworthiness of the borrower, and the lender. To know the exact interest rate you can get on an education loan, get in touch with us so that one of our expert financial officers can connect with you to analyse your profile and let you know the information.

Private Banks Offering Education Loans

Private banks in India play a major role in providing education loans to students aspiring to pursue higher studies in India or abroad. Unlike public sector banks, private banks often offer faster processing, customised repayment options, and higher loan amounts, making them an attractive choice for students who require flexible financial solutions.

These banks generally cover tuition fees, living expenses, travel costs, and other study-related expenses, ensuring students can focus on their education without financial worries.

What are The Top Private Banks Offering Education Loans

Many private banks are offering education loans to students. The top education loan providers in the Private sector Banks that are offering education loans to students are :

• ICICI
• IDFC
• AXIS
• HDFC

ICICI Bank Education Loans

ICICI Bank offers flexible and comprehensive education loan schemes designed to support students pursuing higher studies in India or abroad. With high loan amounts, quick digital processing, and minimal documentation, these loans cover a wide range of expenses, including tuition fees, living costs, travel, and study materials. 

The bank also provides attractive repayment options with moratorium benefits, making it easier for students and parents to manage finances while focusing on education.

Here are the other details of the ICICI Education Loan for abroad studies:

The ICICI has a set of categories, such as Premium Select YES/NO & others, based on which the bank offers an education loan. The top 97 universities fall under the premium select Yes category and are eligible to get a higher loan amount.

This categorization is done based on certain factors such as the ranking of the University, employment opportunities, etc. This is done to assess the future earning potential of the student and to reduce the risk associated with lending money.

Axis Bank Education Loans

Education loans today are not offered as a one-size-fits-all product. Banks like Axis Bank and others provide different variants of education loans tailored to the student’s needs, course type, and study destination. These variants include options for studying in India or abroad, loans with or without collateral, special schemes for premier institutions, funding based on income or entrance exam scores, and even career development loans for working professionals. 

By offering multiple loan variants, banks ensure that students from diverse backgrounds and academic goals can access the right financial support for their education journey.

Like other private banks, AXIS Bank also has categories based on which the loan amount is issued. The bank has categorised the education loan product into Prime A, B, D, and E. The loan amount, interest rates, and the loan terms flexibility will also be based on these categories.

Click here: Complete Axis Bank Education Loans

IDFC Bank Education Loans

IDFC FIRST Bank offers education loans designed to support students pursuing higher studies in India and abroad with flexible financing and easy repayment options. With loan amounts up to ₹1.5 crore, collateral-free funding up to ₹75 lakh, and financing of up to 100% of study expenses, the bank ensures students can focus on academics without financial stress. 

Competitive interest rates, a repayment tenure of up to 15 years, and a moratorium during the course period make these loans highly student-friendly.

IDFC has a special fixed rate for its education loan products; unlike other private banks, which offer education loans at a floating rate of interest.IDFC offers education loans at a fixed rate of interest. Students have the option to choose between the floating and fixed rates of interest.

HDFC Bank Education Loans

Top NBFCs Offering Education Loans

Primarily, there are four top NBFCs that are offering education loans; these are Avanse, Auxilo, Incred, and Credila. Here, we will give you an overview of the loan parameters of all these financial institutions:

Best Bank for an Education Loan

Students often are confused about this question of which is the best bank for an education loan. The answer to this question is based on various factors, such as the lowest interest rates, the higher loan amount, the flexible repayment terms, etc.

A comparison overview of the top education loan providers among the public banks, private banks, and NBFCs is given below, so that students can compare and choose the best bank.

Now, here comes the question: which is the best bank for an education loan? Below are some pro tips from experts on choosing the best education loan.

Expert Tips:

• Students are recommended to choose public banks if they are looking for lower interest rates.
  
• Collateral education loans are the best option for lower interest rates.
• If students are looking for higher loan amounts, then private banks and NBFCs are the better choice.
• Public banks always have stringent loan eligibility conditions, while private banks and NBFCs are flexible with loan eligibility terms.
• Repayment terms are also to be considered to reduce the post-loan stress.
• It is recommended to thoroughly read the repayment terms and conditions of the lender before signing the loan agreement.
• Always seek expert advice to choose the better loan option.

Conclusion

The best lender for an education loan is not the same for every student—it depends on individual priorities and circumstances. When comparing options, students should look at interest rates, repayment tenure, loan amount eligibility, collateral requirements, processing speed, and flexibility during the moratorium period. It is also important to check for hidden charges, prepayment conditions, and the extent of expenses covered, such as tuition, travel, or living costs.