Pursuing higher education abroad is a dream for many Indian students, but the financial burden can often seem overwhelming. Tuition fees, living expenses, and travel costs add up quickly, making study abroad loans an essential tool to bridge the gap. Many banks and financial institutions in India offer education loans, so ultimately the slowest process and stressful part is deciding who will be your lender. You will want to ensure that you pick a lender that is able to give you a great experience overall; one where it is a smooth and easy processing your loans, competitive interest rates, repayment options that work for you , a supportive environment, etc.
Several lenders offer education loans for studying abroad in 2025. According to most recent valuations, the State Bank of India (SBI), Credila Financial Services, Axis Bank, Punjab National Bank (PNB) and Bank of Baroda are leading the way. These lenders stood out for their education loan products that were very specific for students aiming to study abroad, their loan processing times, review times, support and overall satisfaction among students studying abroad. They each offer a different mix of collateral-free and secured loans, competitive interest rates, loan repayment options, deadlines and have various policy guidelines which seem to be increasingly favourable to students going abroad (ie. better rates, longer terms, etc.).
This blog will summarize the Top 5 Education Loan Providers in India for Study Abroad in 2025, and break down their respective features and benefits, eligibility, and terms of loans – to ensure you were well informed to help fund your education abroad dreams.
Top 5 Education Loan Providers
Students considering studying abroad have many options for educational loans offered by various providers with different features. The State Bank of India (SBI) has made our list of options due to offering the highest loan amounts with flexible repayment options and fast processing online, even in this chapter there will be discussions about working together with your educational loan provider. Credila Financial Services is a Non-Banking Finance Company (NBFC), which can give you customized loans with terms, such as 100% funding for tuition and living expenses, making them a desirable option for these students seeking loans that cover the full cost.
Axis Bank has very fast processing, and can have your loan deposited two days after getting sanctioned and can refinance any amount already paid on tuition fees or other payments. Punjab National Bank (PNB Udaan) can give students loans with partial or no collateral, flexible repayment terms, or a location to study depending on the academic performance of the student in either of those three dispute scenarios.
Bank of Baroda (Baroda Scholar Loan) provided structured repayments with moratorium period once study abroad is finished when student after a specified criteria of employment, and have low processing fees, collateral requirements etc. The lending institutions mentioned above are examples of the combined options available to students to have high loan amounts, quick approvals and flexible terms of repayment to make study abroad affordable.
1. SBI Education Loan for Abroad:
SBI is one of the largest banks in India, and it is also one of the most trustworthy because it offers education loans for students who want to study further abroad. The loans provide the funds necessary for tuition fees, living expenses and all other expenses related to education for postgraduate courses and professional courses applied in countries such as the USA, UK, Canada, Germany, Australia, Singapore etc.
Main features:
- Includes tuition fees, book fees, lab fees, library fees and other course fees.
- 6-month moratorium period after your course is finished before loan repayment.
- Online application process and quick loan sanctioning from SBI.
- Repayment period of 15 years by way of EMIs.
- Tax benefits of interest paid on loan under Section 80(E).
- Processing fee Rs. 10,000.
Loan amounts and Rates of interest:
- Loan amounts available of Rs. 7.5 lakh to Rs. 1.5 crore.
- Interest competitive pricing differs based on borrower profile, as well as, lender policies.
- Loan sanction can happen before receiving I-20 or visa.
Eligibility criteria:
- Must be a Citizen of India.
- Must have confirmation of admission from a recognized university or college abroad.
- Must provide co-applicants details (parent/guardian) and provide KYC documents.
Pros:
- Large loan amounts to support expensive international courses.
- Tax benefits on interest paid.
- Quick processing and able for sanction before visa issuance.
Cons:
- Processing fee is relatively high (Rs. 10,000).
- Loan approval depends heavily on co-applicant’s financial profile.
2. Credila Financial Services Education Loan
Credila is a reputed NBFC in India that focuses on educating loans tailored to students who want to pursue higher education in India or abroad. Credila is predominant in the space by offering flexible loan structures providing funding that includes tuition fees, living expenses and other study-related costs.
Key Benefits
- Provides up to 100% of tuition fees and living expense
- Co-borrower options for multiple cities and collateral acceptance
- Repayment tenure up to 15 years for both secured and unsecured loans
- Secured loans can accept collateral in the form of residential/commercial property or non-agricultural land
Loan Amounts and Interest Rates
- Interest rate: 9.75% P.A. onwards for secured loans (rate varies for unsecured loans)
- Loan amount is based on the student’s need and eligibility
- Covers for tuition fees, examination fees, hostel fees, lab/library fees, travel, books, computer, and other necessary expense
Eligibility Criteria
- Must be an Indian citizen
- Must have confirmed admission in a recognised course of study in India or abroad
- Must have a co-applicant (parent/guardian), and either be salaried or self-employed
Pros
- Flexible loan structure that accommodates funding for 100% of expenses
- Can accept collateral from several sources if necessary
- Loan amounts are based on individuals financial need
Cons
- Unsecured loans are offered at a slightly higher interest rate than public sector banks
- Application for secured loan may require more documentation to verify the collateral
3. Axis Bank Education Loan for Abroad:
Axis Bank offers student loans to students undergoing technical, professional, and career-based programs abroad. They offer flexible financing solutions to meet your needs, covering tuition fees as well as living expenses, travel, and other education-related expenses.
Key Features:
- Loan amounts start from Rs. 50,000 with no maximum limit, subject to eligibility.
- Provides financing of up to 100% of total study costs such as tuition, books, travel, and living costs.
- The application and disbursement processes are quick and easy.
- A co-applicant (parent or legal guardian) is required, and in some cases, a third party guarantee or collateral may be required.
Loan Amounts and Interest Rates:
- No prescribed maximum; customized according to student needs and lender requirements.
- There is no margin up to Rs. 4 lakhs, and a 15% margin (above Rs. 4 lakhs) for abroad studies.
- Loans are disbursed quickly and can be disbursed within 2 days after the loan amount has been sanctioned.
Eligibility Criteria:
- Indian citizen.
- A minimum of 50% marks and HSC- graduation.
- Student must be enrolled in a maximum of 3 colleges in a career-oriented program at graduate or post-graduate level, based on entrance exam results or merit-based selection.
- Parent / guardian must demonstrate that they have a reliable stream of income.
Pros:
- Flexible loan amounts and 100% up to study costs.
- Quick disbursement.
- No margin for smaller loans (up to Rs. 4 lakhs).
Cons:
- Co-applicant is mandatory.
- Collateral or third-party guarantee may be required for higher loan amounts.
4. PNB Udaan Education Loan:
PNB has launched PNB Udaan, a specific education loan to students and professionals with strong academic performance who want to study abroad. PNB Udaan is for students doing professional, technical, or career-oriented courses, including diplomas, CIMA/CPA courses, etc.
Highlights of PNB Udaan include:
- Funding available for tuition, travel, examination, lab, library, books, and equipment.
- Targeted primarily to students demonstrating substantial academic achievement.
- There is no processing fee for most of their educational loans.
- Lenders can offer a repayment term of 15 years.
Loan Amount and Interest Rates:
- No margin, up to Rs. 4 lakhs; 15% margin on amounts above Rs. 4 lakhs.
- Repayment of fees on full justification to be determined on case by case basis.
- Moratorium period will be determined based on terms laid out in loan agreement
Eligibility:
- Indian citizen
- Must have admission to a recognised international graduate or post-graduate course via entrance/merit basis selection
- Must have cleared HSC or equivalent
Pros:
- Specifically designed for meritorious students.
- Wide range of education costs financed
- Maximum flexibility in repayment up to 15 years
Cons:
- Loan eligibility strongly influenced by academic performance
- For higher loan amounts, co-appllicant or guaranteeing party will be required
5. Bank of Baroda (Baroda Scholar Loan):
Bank of Baroda offers the Baroda Scholar Loan, which is designed for students studying professional or technical courses abroad such as an MBA, MCA, MS and other courses generating employability.
Key Features:
- Tuition fees, living expenses, travel and other study-related expenses.
- Flexibility on loans up to Rs. 80 lakhs for specified institutes and up to Rs. 60 lakhs for non-specified institutes.
- Processing fees on loans exceeding Rs. 7.5 lakhs is 1% (max Rs. 10,000) . No fees on loans under Rs. 7.5 lakhs.
- Moratorium period of 6 months to 1 year from the date of employment.
- No security for loans up to Rs. 4 Lakhs, third-party guarantee for loans of Rs. 4 Lakhs – Rs. 7.5 Lakhs, and tangible security for loans exceeding Rs. 7.5 Lakhs.
Loan Amounts and Interest Rates:
- Loan amounts are flexible and depend on the institute and course study.
- Interest rates depend on the profile of the borrower, co-applicant, and security.
Eligibility Criteria:
- Borrower must be an Indian citizen.
- Student must be admitted to a Foreign Professional/Technical course via an entrance exam or merit-based selection.
Pros:
- High loan limits for professional courses.
- Flexible repayment tenure (10 – 15 years).
- Moratorium period allows some transition time.
- Processing and documentation fees are nominal only.
Cons:
- Collateral required for higher loan amounts.
- Interest rates may vary based on the loan profile and security offered.
Comparison of Top 5 Education Loan Providers in India for Study Abroad
Here’s a comparative table of the top 5 education loan providers for study abroad in 2025:
| Bank / NBFC | Maximum Loan Amount | Collateral Requirement | Interest Rate | Repayment Tenure | Key Highlights |
|---|---|---|---|---|---|
| State Bank of India (SBI) | Up to Rs.1.50 crore | Collateral required for higher amounts; minimum loan Rs.7.5 lakh | Favourable rates (depends on profile) | Up to 15 years | Quick online application, loan sanction before I-20/Visa, tax benefits under 80(E), moratorium 6 months after course |
| Credila Financial Services | Up to 100% of tuition & living expenses | Secured loans require collateral (residential/commercial property) | 9.75% p.a. onwards (secured loans) | Up to 15 years | Customizable loan, multi-city co-borrowers, covers living expenses, exam fees, travel, and equipment |
| Axis Bank | No maximum; starts from Rs.50,000 | Collateral or third-party guarantee for higher amounts | Depends on profile | Up to 15 years | No margin up to Rs.4 lakh, quick disbursement, can refinance older installments, LIC policy may cover 100% of loan |
| Punjab National Bank (PNB Udaan) | Varies per course | Collateral for higher amounts, none up to Rs.4 lakh | Depends on profile | Up to 15 years | Covers tuition, travel, exam, lab, library, and books; fees reimbursed within 6 months in some cases |
| Bank of Baroda (Baroda Scholar Loan) | Rs.80 lakh for specified institutes; Rs.60 lakh for others | No security up to Rs.4 lakh, third-party guarantee Rs.4–7.5 lakh, collateral above Rs.7.5 lakh | Depends on profile | 10–15 years | Moratorium 6 months–1 year after employment, free debit card, low processing charges, flexible repayment |
FAQs: Top 5 Education Loan Providers in India for Study Abroad
Q. What is a study abroad education loan?
A. A study abroad education loan is a financing mechanism that provides students funding for tuition fees, living costs, travel expenses, and other education-related expenses for studying at international universities.
Q. Who can apply for a study abroad education loan in India?
A. Indian students who have received admission offer from a valid international accredited university or institution qualify. Most lenders will request a co-applicant, generally a parent/guardian.
Q. Can I get a study abroad loan without collateral?
A. Some banks and NBFC’s such as SBI, Credila, and Axis Bank, offer education loan without collateral, with difference limits depending on eligibility, course and the institution applied to.
Q. What are the top 5 education loan providers in India for studying abroad?
A. The key educational loan providers in 2025 include State Bank of India (SBI), Credila Financial Services, Axis Bank, Punjab National Bank (PNB Udaan), and Bank of Baroda (Baroda Scholar Loan).
Q. What loan amounts can top 5 education loan providers offer?
A. SBI offers Up to INR 1.50 crore, Credila offers up to 100% tuition and living costs, Axis Bank has had no fixed maximum down to INR 50,000 to start, PNB program will depend on program type and offer can go up to INR 1.50 crore in some cases, and lastly Bank of Baroda can lend up to 80 lakh for specified institute approved programs.
Q. What is the repayment tenure for study abroad loans?
A. Most lenders will offer repayment terms ranging from 10 and 15 years, with at least 6 to12 months moratorium after course completion or before employment.
Q. Which documents are required to apply for a study abroad education loan?
A. Commonly required documents are Admission/offer letter from the foreign university, Academic transcripts and certificates, Passport and visa, KYC documents of student and co-applicant and Proof of income or financial documents of co-applicant.
Q. Are there any tax benefits on study abroad loans?
A. Under Section 80(E) of the Income Tax Act, interest paid on education loans is eligible for tax deduction.