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Home · Worldwide · Education loans

Education Loans for Study Abroad

8 Indian lenders compared. Public-sector banks (lowest rates, slower processing, strict collateral above ₹7.5L). Private banks (faster, slightly higher rates). NBFCs (fastest, often non-collateral up to ₹40-50L for premium institutions, highest rates). Shishya has zero affiliate or referral arrangement with any lender on this page. Numbers are indicative — actual rate depends on co-applicant income + co-applicant credit + institution + program.

Comparison

SBI Global Ed-Vantage

Bank

Largest single education-loan provider for Indians studying abroad. Strict collateral discipline; reliable disbursement; longer processing than NBFCs.

Max loan
₹1.5 crore
Interest range
10.15%–11.15% (Repo + spread; varies by program + collateral)
Collateral policy
Required for loans above ₹7.5L (mandatory immovable property).
Repayment
Moratorium = course duration + 6 months. Repay over 10–15 years.
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HDFC Credila

NBFC

Fastest sanction (4-7 days for top universities). Higher rates than banks but faster + more flexible on documentation. Very common for US MS / Canada PG.

Max loan
No fixed cap — based on funding need
Interest range
10.50%–12.50%
Collateral policy
Up to ₹40-50L without collateral for top universities + STEM courses; more requires collateral.
Repayment
Moratorium = course duration + 6 months. EMIs over 10-12 years.
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Axis Bank Education Loan (Premium)

Bank

Strong for premium-institute list (IIMs, top US/UK). Slightly higher rates than SBI; faster processing.

Max loan
₹75 lakh
Interest range
10.99%–13.49%
Collateral policy
Up to ₹40L without collateral for premium institutions; more requires immovable property.
Repayment
Moratorium = course duration + 12 months. Up to 15-year repayment.
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ICICI Bank Education Loan

Bank

Good for ICICI bank account holders (existing relationship discount). Decent processing speed.

Max loan
₹1 crore (abroad), ₹50L (domestic)
Interest range
10.50%–13.50%
Collateral policy
Up to ₹50L without collateral for top universities + premium courses.
Repayment
Moratorium = course duration + 6 months. Up to 12-year repayment.
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Bank of Baroda Education Loan

Bank

Among the lowest rates from public-sector banks. Slower processing than NBFCs.

Max loan
₹1.5 crore
Interest range
9.85%–11.40%
Collateral policy
Required above ₹7.5L (similar to SBI policy).
Repayment
Moratorium = course duration + 6-12 months. 15-year repayment.
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Avanse Financial Services

NBFC

Quick sanction + flexible documentation. Higher rates than banks. Often funds the bridge between PG admit and bank loan.

Max loan
Based on need (typical ₹50-75L)
Interest range
11.25%–14.25%
Collateral policy
Non-collateral up to ₹50L for premium institutions; collateral for higher.
Repayment
Flexible — moratorium varies by product. 10-15 year repayment.
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GyanDhan (loan aggregator)

NBFC

Not a lender — compares offers from SBI, HDFC, Axis, ICICI, Avanse + others. Useful first stop before approaching individual lenders. Shishya does NOT have an affiliate relationship with them — just an honest mention.

Max loan
Varies by partner lender
Interest range
10.25%–13.50% (depending on lender)
Collateral policy
Marketplace for multiple lenders; varies.
Repayment
Per lender's terms.
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Prodigy Finance (UK-based, USD loans)

NBFC

Specialised in international students; USD-denominated so no rupee depreciation risk. Premium for top US MBA / MS programs; rejects most non-premium institutions.

Max loan
Up to USD 220k (~₹1.8 crore)
Interest range
11%–15% (USD-denominated)
Collateral policy
Non-collateral; based on future-earnings model + course + institution.
Repayment
Moratorium = course duration + 6 months. 7-20 year repayment.
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Section 80E tax benefit

Under Section 80E of the Income Tax Act, the interest paid on an education loan is fully deductible from taxable income for the borrower (no upper limit). The deduction is available for 8 assessment years starting from the year you begin repayment, or until interest is fully paid — whichever is earlier.

How to actually shop for an education loan

  1. Get sanction letters from 2-3 lenders before paying any university deposit. Sanction is free; it locks in your rate + amount.
  2. Compare APR, not just headline rate. Banks often quote MCLR/Repo + spread; NBFCs quote flat rate. Use APR (effective annualised rate) to compare apples-to-apples.
  3. Check processing fee + insurance + foreclosure charges. These add 1-3% to the effective cost.
  4. For US/UK MS programs at top universities, HDFC Credila or Prodigy Finance can give non-collateral loans that exceed bank limits. Higher rates, but unblock students who can't put up immovable property.
  5. For Canada / Germany / Australia, SBI Global Ed-Vantage is usually cheapest if you can put up collateral (parental property). 1.5-2.5% rate advantage over NBFCs compounds heavily over 10-year tenure.
  6. Don't sign with the first lender. Loan officers will quote different rates to different applicants based on co-applicant profile. Negotiate.

Red flags from "study abroad consultants"

  • "We get you a better rate through our partner bank" — usually means they're a DSA earning commission on your loan
  • "Pay our processing fee + we'll guarantee approval" — banks process the loan themselves; consultants can't guarantee anything
  • "Fixed-rate loan" pitched as a benefit — for education loans, MCLR/Repo-linked floating typically beats fixed over 10 years
  • Lender asks for "facilitation charges" outside the loan agreement — fraud signal, walk away