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Study Abroad Guide

All about Student Loans for Overseas Education

February 2017

You can easily achieve your dream of STUDYING ABROAD even if you have limited funds. Educational Loans can be an important part of your overall funding strategy. We at Edwise provide you the opportunity to avail of an Education Loan that covers all aspects of higher education including college fees, cost of books and accommodation.

We have a list of Nationalized & Co-Operative Banks offering loans at reasonable interest rates and we also have association with well-known nationalized Public Banks, Private Banks and Financial Institutions.

We help you with the complete procedure, starting from selecting banks, to the required documentation, eligibility criteria, interest rates and repayment period etc.

Study Abroad Programs

Listed below are several points that one should know about Study Loans

Eligible Courses Education Loan for Abroad

All recognized Courses having employment prospects

Graduation / Post Graduation / Diploma Courses / Professional Courses

Expenses Which Constitute The Student Loan:

Air fare / Travel expenses

Admission / Tuition Fees

Boarding and Lodging expenses

Books and Stationery expenses

Instruments / Equipment's etc. required to complete the course

Examination / Library / Laboratory fee or any other expense required to complete the course like study tours, project work, thesis etc.

Eligibility for Education Loan for Abroad

The applicant should be an Indian National

He should have secured admission to a professional / technical courses in Abroad

Age of the student should be between 18-35 years

Quantum of Loan:

For studies abroad the maximum limit for a loan sanction is Rs 15-20 lakhs by banks.

Above 20 lakhs loan can be sanctioned by some financial institutions and Private Banks

Security / Collateral:

Upto Rs.4 lakhs - No Security (nationalized banks)

Above Rs.4 lakhs & upto Rs. 7.5 lakhs-Collateral in the form of satisfactory third party guarantee (Blood Relative)

For loans above Rs.5 lakhs, one can deposit (Fixed Deposit / LIC) 50 % of the required loan sanction amount as collateral.

Above Rs.7.5 lakhs - Co-obligation of parents/guardian together with tangible collateral security of suitable value along with assignment of future income of the student for payment of instalments.

Partial collateral is accepted by some financial institutions and banks.

Acceptable Collateral:

Residential / Commercial property

Fixed Deposit of the total loan value with bank

NSC / LIC policies.(Surrender Value taken into consideration)

Applicant & Co- applicant

Documents should be executed both by the student and parents / guardian as joint borrower.

The applicant is the student pursuing studies abroad.

A co-applicant is parent / guardian.


Repayment period will be 5-10 years.

Interest plus principal is to be serviced every month after the first disbursement made by few financial institutions even if student has not yet travelled.

Repayment of principal to commence 6 months or 12 months after the completion of the course or immediately on getting a job whichever is earlier.

Interest repayment is freezed in the moratorium period by few banks.


15% of the loan amount is borne by the student on loans above Rs.4 Lakhs.

85% is sanctioned by the bank.

100% sanction is given by some institutions.

Who can be a co-applicant?

Any Earning member of the family such as Father/Mother/Brother/Sister/Spouse


Father in law/ Mother in law/Sister in law/Brother in law/Paternal/Maternal Uncle/Aunt.

Tax Deduction

Students and or parents who borrow directly are eligible for tax deductions as per the Income Tax Act.

What Edwise Students Studying Abroad Says.

"Edwise was very helpful in processing my loan before the desired date of visa. Personalized attention was given by the education loan department. Edwise has helped me out extensively through a reasonable and useful solution of paying for my education in the UK."

Name: Chetan Raipurkar
University: Cardiff University, UK
Course: MSc-Networking & Security
Loan Amount: Rs.7,50,000/-
Bank: Central Bank of India

"It was always my dream to study abroad however I was not financially equipped. After visiting Edwise. I was suggested to apply for education loan. Edwise not only directed me to right bank but they assisted me at every level of this procedure and I would not be where I am today if it wasn't for them."

Name: Kalpesh Kumar Patel
University: George Brown College, Canada
Course: PG-Diploma
Loan Amount: Rs.7,00,000/-
Bank: Bank of Baroda

"Studying abroad is not easy without financial support. Edwise introduced me to the right financial institution that helped me through the entire loan process. Avanse was very co-operative throughout the loan procedure and sanctioned my loan before my visa date."

Name: Rajesh Manish Singh Kumar
University: ERC Institute, Singapore
Course: Master of Business Administration
Loan Amount: Rs.15,00,000/-
Bank: Avanse Financial Services

"The loan processing was done within 15 days without any problem. To my surprise, my loan was processed before time. I am really grateful to the people who have helped me in getting this loan. Special thanks to Edwise as they were very co-operative and guided me to the right place."

Name: Jasmeet Kaur
University: Deakin University, Australia
Course: MSc-Software Engineering
Loan Amount: Rs.4,00,000/-
Bank: Bank of Baroda

"Edwise was very helpful throughout the loan process. I hope many other students like me are able to get their loans and achieve their dream careers."

Name: Sai Dheeraj
Country: Hult Business School, USA
Course: Master of Business Administration
Loan Amount: Rs.20,00,000/-
Bank: Avanse Financial Services

"Availing loan from the bank was a biggest task for me but with the advice of Edwise I was able to avail loan from the bank they introduced to me. The bank has played a major role to fulfill my dream of studying abroad. Thanks to Edwise for their guidance."

Name: Ankush Sarkar,
Country: University of Auckland, New Zealand
Course: MSc- Engineering
Loan Amount: Rs.9,00,000/-
Bank: Central Bank of India

Frequently Asked Questions (FAQs)

What are the eligibility criteria for a student education loan for studying abroad?

Student loans for overseas education have specific eligibility criteria set for their applicants. The eligibility criteria are as follows:

  • The student needs to be enrolled and accepted by a recognised institution abroad.
  • The minimum academic qualifications or standards set by the loan provider shall be fulfilled by the students. (e.g., appearing for IELTS or TOEFL)
  • In the case of an international student, a resident or citizen of the country should sign as a co-signer or guarantor. The co-signer would be the repayer of the loan.
  • There is a minimum loan amount set by the loan provider. Students can make sure that they match the criteria for the loan amount.
  • International students need to provide proof of their visa and the immigration history of their study destination.
  • The credit history of the loan repayer will be checked carefully.
  • Students need to demonstrate a complete plan for repaying the loan. This could be through their expected income, employment prospects, or repayment time.
  • Applicants need to submit other supporting documents, such as an identity proof, academic transcripts, admissions letters, and financial statements.

What documents are needed to apply for a student education loan for studying abroad?

Student loans for overseas education require the students to submit certain documents. The documents for student education loans for study abroad include: two passport-size photos, a photo ID, residence proof., academic documents of the student, an application form, an admission letter, and the last 8 months. Bank Statements of the Co-Applicant, Income Proof of the Co-Applicant, Passport, Financial Documents, Academic Transcripts, Income Tax Returns or Salary Slips, Visa and Immigration Documents, Cost of attendance, Credit report.

What is the maximum loan amount available for studying abroad?

A student education loan for study abroad has a maximum amount for its applicants. Although there is no specific limit set by the banks for abroad studies, it might depend from bank to bank. The majority of the banks offer a loan limit of up to INR 20 to INR 30 lakhs. The loan interest rate increases when the loan amount exceeds INR 20 lakh.

Do I need to maintain a specific academic record to be eligible for a student education loan for studying abroad?

A study loan to study abroad requires the applicant to necessarily maintain a specific academic record. The minimum academic record set for student education loans for study abroad requires the applicant to complete at least high school, graduation, or equivalent with 60% marks in their previous degree or qualifying examination.

What are the interest rates for student education loans for studying abroad?

Student education loans for study abroad offer interest rates for education loans for loan seekers. The student loans for overseas education differ as per the type of bank. The interest rates for student education loans for study abroad are:

  • Public banks: Public sector banks like the State Bank of India, Bank of Baroda, and Bank of India offer competitive interest rates ranging from 9% to 11%.
  • Private Banks: Banks like IDFC First Bank, ICICI Bank, and Axis Bank do offer study abroad loans ranging from 11% to 14%.
  • NBFCs (Non-Banking Financial Companies): Apart from traditional banks, NBFCs including HDFC Credila, INCred, and Avanse offer competitive interest rates for abroad studies. The interest rates on student education loans for study abroad range from 11% to 25%.
  • Also, there are international student loan lenders such as Prodigy Finance and Mpower Financing that offer interest rates starting at 13% per year, depending on the country of study, the credit profile of the borrower, and the loan amount taken.

What are the different repayment options for student education loans for studying abroad?

A student education loan for study abroad requires successful repayment of the loan taken for studying abroad. The different methods of repaying the loan include:

  • Standard repayment plan
  • Graduated repayment plan
  • Income-driven repayment plan
  • Extended repayment plan
  • Consolidation
  • Prepayment
  • Deferment and forbearance

How can I estimate the total cost of studying abroad, including living expenses?

The list of approved foreign universities for education loans charges a sufficient amount as tuition fees. Apart from this, there are other expenses like accommodation, transport, and food expenses that need to be considered. There are student education loans for study abroad available as well. Plan your expenses carefully by considering tuition fees, food, transportation, books and supplies, health insurance, and personal expenses such as shopping, dining out, grocery shopping, entertainment, etc. Also, there would be visa and immigration fees, travel expenses, and an emergency fund.

Can I make prepayments towards my student education loan for studying abroad?

An education loan for abroad allows prepayment to be made for studying abroad. Do not forget to check the long-term goals, benefits of prepayments. Also, there are other financial options available.

What are the available scholarships and grants for studying abroad?

The list of approved foreign universities for education loans has scholarships and grants for studying abroad. The different scholarships and grants include: National Overseas Scholarship, Fund for Education Abroad, Boren Scholarships, Chevening Scholarships, Erasmus Mundus Scholarships, Gilman Scholarship, Government Scholarships, GREAT Scholarships India, Inlaks Scholarship, Rhodes Scholarship, Australia Awards Scholarships, Cornell University Tata Scholarship, Fulbright Student Competition, Rotary Foundation Global Grant Scholarships, Merit-based Scholarships, and Need-Based Scholarships.

Can I combine a student education loan with scholarships and grants for studying abroad?

An education loan for abroad studies can be combined with scholarships and grants. Make sure to consider the following steps before combining an education loan abroad with scholarships and grants:

  • Make sure to apply for the maximum number of scholarships and grants.
  • Understand the loan terms and conditions.
  • If the application happens to meet the eligibility criteria for the scholarship, the loan amount can be reduced accordingly.
  • In some cases, the scholarships and grants might cover only a small portion of the cost of education. In this case, a partial student education loan can be considered.

What are the pros and cons of taking a student education loan to study abroad?

An education loan abroad has pros and cons as well. The pros and cons are as follows:


  • Easy access to education
  • Early investment in the future
  • Flexible, repyable options
  • Opportunity for growth
  • Build a credit history.


  • Accured interest
  • Limited financial burden
  • Impact on credit score

Are there any tax benefits for taking a student education loan for studying abroad?

Education loans abroad have tax benefits. The student loans for overseas education and their tax benefits include:

  • Tax deduction for interest payments: The deduction allows the borrower’s overall liability to be reduced.
  • Tax credits for education expenses: Though not directly, the credits can be beneficial to users who use the amount to cover their entire educational expenses.
  • Tax free employer assistance: Employers are offered student loan repayment assistance as a part of their employee benefits package. Being tax-free to a limit, it provides benefits to the credit score.
  • Depending on the country, there may be additional tax benefits, such as provisions for deferment of taxes on foreign loan amounts under specific circumstances or tax exemptions for scholarships and grants that are used to cover educational expenses.

Edwise Overseas Education Consultant

We at Edwise streamline and personalize the process for each student irrespective of the destination, institution, course or any level of study. Our team of experienced professionals will provide you individual attention and exceptional guidance throughout your process of application. We provide assistance related to course selections, admission, visa, bank-loan and scholarships. We also host University delegates for direct student interaction and all these services are provided free of cost. We have established since 1991 and have been maintaining strong networks with over 725 universities in 16 countries, hence giving us a unique insight into the finest educational establishments worldwide.

Start your education overseas with valuable information on everything you need to know about studying abroad from study permits, temporary resident visas and how much it costs, to finding the best suited program for you.

Do visit your nearest Edwise branch & choose your university carefully under our expert guidance and ensure that you have all your paperwork in order. Once you apply, and the wait is over, you can really begin to look forward to not only studying in a beautiful and vibrant country, but also to a life experience quite like no other.

Also read: How Do You Manage Your International Payments


Back to All "Study Abroad / Overseas Education Articles, Resources, Tips and Tricks"


For complete information of Study Abroad Programs Contact Edwise International- Overseas Education Consultants, on 1-800-200-3678 (Toll Free) / 08600911333.

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