how much loan can I get for studying abroad
how much loan can be raised for studying abroad depends on three things: the university, the course, and the co-applicant's financial profile. lenders advertise amounts of up to ₹1 crore for overseas studies, though the amount actually sanctioned varies significantly with those three factors.
most public banks in India sanction between ₹20 lakh and ₹1 crore for studies abroad, while private banks and NBFCs can go higher. the final figure turns on whether the loan is secured against property or unsecured, which university the student has been admitted to, and the co-applicant's income and credit history.
every lender limit, interest rate, and fee mentioned here is indicative, gets revised from time to time, and varies by scheme and applicant profile, so the current terms are worth confirming directly with the lender before an application is filed.
how much loan can I get for studying abroad: secured against unsecured
collateral is the single largest factor in the size of the sanction. a secured loan pledged against property carries no upper limit in many cases, and Canara Bank sanctions loans above ₹7.5 lakh with no maximum cap when collateral coverage is 100% or more, because a lender is willing to commit more against pledged security.
an unsecured loan has a cap that differs by lender. SBI sanctions up to ₹50 lakh under its Global Ed-Vantage scheme for premier institutes, ICICI Bank goes up to ₹1 crore for select premier institutes, and Axis Bank up to ₹1.5 crore in some cases. among NBFCs, HDFC Credila offers up to ₹75 lakh without collateral and Avanse goes up to ₹1.25 crore.
lender-wise unsecured education loan limits for studying abroad
| lender | unsecured loan limit |
|---|---|
| SBI, under Global Ed-Vantage | up to ₹50 lakh |
| ICICI Bank | up to ₹1 crore for select premier institutes |
| Axis Bank | up to ₹1.5 crore in select cases |
| IDFC FIRST Bank | up to ₹75 lakh for select universities |
| HDFC Credila | up to ₹75 lakh |
| Avanse | up to ₹1.25 crore |
| InCred | up to ₹1 crore |
| Auxilo | up to ₹50 lakh |
the no-collateral feature usually applies only up to these limits and only for the specific universities a lender treats as low-risk, and any amount beyond the cap requires collateral. a headline limit therefore describes the ceiling of a scheme rather than the offer a particular applicant will receive.
what lenders check before sanctioning a study abroad loan
university and course
admission to a recognised foreign university with a good ranking improves the sanctioned amount, and a postgraduate STEM degree from a well-known university in the US, the UK, or Canada is usually easier to fund. niche courses and newly launched programmes need more explanation and sometimes attract a higher margin requirement from the family.
academic record
past academic performance, entrance test scores, and the student's likely earning potential after the course all feed into the decision, and most lenders expect at least 50% in previous degrees.
co-applicant profile
the co-applicant's income, credit history, and job stability carry considerable weight, and a parent or guardian is required as co-applicant even on a no-collateral loan. lenders also examine the loans a family is already servicing to judge whether the co-applicant can absorb a new repayment on top of them.
course duration and total cost
the total project cost, covering tuition, living expenses, travel, and study materials, sets the loan requirement. lenders fund these expenses, although they may not cover 100% of the cost.
margin money requirement for an overseas education loan
most banks do not fund the entire cost. a margin of 10% to 15% is commonly expected from the family, Canara Bank specifies a 10% margin for overseas education loans, and the margin on an unsecured loan can run higher than that.
this margin has to be in hand before fee deadlines fall due, which makes it a cash requirement rather than a paperwork one. a family that has not set the amount aside in advance often ends up borrowing it at short notice and at a higher cost.
what a study abroad education loan covers
an education loan is not restricted to tuition fees. it covers hostel charges, travel expenses, library fees, books, and living costs while studying abroad, and living expenses, travel, and study materials are typically included when the lender's policy allows for them.
interest rates and repayment on education loans for studying abroad
education loan interest rates typically range from 8% to 16%, depending on the lender and on whether the loan is secured or unsecured. public banks sit in the 8% to 13% range while NBFCs can go up to 16%, and unsecured loans are priced higher because the lender carries more risk without security. HDFC Credila, for instance, starts secured loans at 9.95% and unsecured loans at 11.25%.
most loans carry a moratorium covering the course duration plus a further 6 to 12 months, and the repayment tenure can extend up to 15 years. interest continues to accrue through the moratorium, so a loan left entirely untouched during the study years grows before the first EMI is ever paid. servicing at least the interest during the course reduces the final burden significantly.
what to check before applying for a study abroad loan
| what to check | why it affects the loan |
|---|---|
| collateral requirement | any amount above the unsecured cap needs property as security, and knowing that threshold early avoids a change of plan midway through an application |
| margin money | 10% to 15% of the total cost has to come from family funds, which belongs in the budget from the start rather than at the fee deadline |
| processing fees | banks charge ₹10,000 to ₹20,000, while NBFCs charge 1% to 2% of the loan amount, which becomes a large sum on a big sanction |
| co-applicant requirement | a co-applicant is usually mandatory even on a no-collateral loan, and the co-applicant's income and credit score affect both the sanctioned amount and the interest rate |
| approved university list | lenders maintain lists of approved foreign institutions, and a university outside that list may not be funded under an unsecured scheme at all |
frequently asked questions
what is the maximum education loan for studying abroad without collateral
SBI sanctions up to ₹50 lakh, ICICI Bank up to ₹1 crore, and Axis Bank up to ₹1.5 crore in select cases, while NBFCs such as Avanse go up to ₹1.25 crore without collateral. the limit that applies in a specific case depends on the university, the course, and the co-applicant profile.
can I get a study abroad loan without a co-applicant
this happens rarely, since most lenders require a co-applicant, usually a parent or guardian, even for no-collateral loans. loans without a cosigner are reserved for strong profiles that combine a top university with an excellent academic record.
what credit score is needed for an education loan abroad
lenders examine the co-applicant's credit history and income stability rather than the student's credit score. a good credit score improves the chance of approval and can secure a better interest rate.
does an education loan cover living expenses abroad
most education loans cover tuition fees, living expenses, travel costs, and study materials, with the exact coverage set by the lender's own policy.
how much margin money is required for a study abroad loan
the margin is typically 10% to 15% of the total cost and has to come from the family, and the requirement can be higher on an unsecured loan.