Best Banks Lending Education Loans for Abroad: 2025

An education loan is a big liability in a candidate’s journey to study abroad. It is important for a candidate to consider several factors while applying for an education loan in a bank. Candidates have to look for any additional costs and hidden charges. Here are some factors that students should consider while applying for an education loan.

• Interest rates: Interest rates are a key component to selecting a bank for your education loan. Your education loans involve huge amounts of money and higher interest rates can become a scary figure over time. So select banks with lower rates of interest.

• Repayment Options: Some banks offer flexible repayment options helping students focus on their studies without stressing themselves about the loan repayment. Check for the moratorium periods for each bank.

• Loan Amount: The maximum loan amount that can be availed varies between banks. Most banks offer loans up to 3 cr for studying abroad. The loan amount you are eligible for will be influenced by factors such as your chosen course, the university you plan to attend, and your financial situation.

• Processing fees: Many banks charge a processing fee, which can vary between 0.5% to 1% of the loan amount. Some banks waive this fee during special promotions, so it’s important to check whether the fee is applicable to you.

• Eligibility Criteria: Eligibility criteria differ for each bank and it is important to check the eligibility criteria to avoid your loan rejection.

• Loan Processing Time: A bank with excellent customer service can make the loan application process smoother and more efficient. Look for banks that offer quick loan approvals and transparent communication throughout the process.

Interest rates for education loans are typically in the range of 9.0% to 13%, depending on the bank, the loan amount, and the applicant's profile. While some banks offer fixed interest rates, others offer floating rates that can change based on market fluctuations. Here are some top banks offering education loans for abroad studies.

1. IDFC Bank
2. INCRED
3. Axis Bank
4. AVANSE
5. ICICI Bank
6. Union Bank of India
7. AUXILO
8. Federal Bank
9. HDFC Credila 
10. BOB Bank
11. Canara Bank
12. Punjab National Bank (PNB)
13. IDBI Bank
14. State Bank of India (SBI)

Note: Loan Calculator

Banks in India set specific eligibility criteria for education loans, and these criteria can vary depending on the institution, country, course, and the applicant's financial background. While most banks follow similar basic guidelines, there are often differences in the eligibility conditions.

The following general requirements are common across banks:

• Nationality: The student must be an Indian citizen.

• Age Limit: The age of the student must typically be between 18 and 35 years.

• Academic Qualifications: Most banks require the student to have secured admission in a recognized institution, with a valid offer letter or admission confirmation.

• Co-applicant: A co-applicant, typically a parent or guardian, is required. The co-applicant's financial stability will also be considered for the loan approval process.

• Repayment Capacity: Banks assess the co-applicant's income and credit score to determine the loan amount.

Financial institutions offer various other attractive benefits and students are also advised to look for those benefits while applying for an education loan.

Here are some benefits that you’ll get based on the bank’s 

• Interest Rate Concessions: Few banks offer lower interest rates for students securing admission to top-ranked universities. 

• Processing Fee Waiver: Many banks waive the processing fee for education loans, which can be up to 1% of the loan amount in some cases. This can make a significant difference in the total cost of the loan.

• No Prepayment Penalty: It is advised to check for banks with no prepayment penalty for prepaying the loan amount before the specified time.

• Loan Top-Up Facility: In case of an unforeseen increase in course-related expenses, some banks provide a top-up loan facility, which can be availed without the need for re-application.

• Insurance Coverage: Many banks offer insurance policies that cover loan repayments in case of unforeseen circumstances, such as the co-applicant’s death or disability, which can safeguard the family’s financial well-being.

• Online Application and Tracking: To enhance convenience, several banks offer online portals where students can apply for loans, track their loan status, and manage repayments.

• Flexible Repayment Options: Some banks allow students to choose from different repayment options like a step-up EMI, which starts low and increases over time, or a part-time repayment plan during the course of study.

Applying for an education loan involves several steps, and students must prepare well in advance to ensure a smooth process. Here is a guide to applying for an education loan with your preferred bank both online and offline.

Choosing the right bank for an education loan is a crucial step in ensuring a smooth and financially secure study abroad experience. Factors such as interest rates, loan coverage, repayment options, and eligibility criteria should be carefully considered when comparing different banks. Additionally, students should take advantage of any additional benefits or features offered by the bank, such as interest rate concessions, processing fee waivers, and flexible repayment plans. By researching all these aspects and understanding their implications, students can select the most suitable education loan option, ensuring that they are financially prepared to pursue their international educational aspirations without undue stress.

1. Will Banks Provide 100% Education Loans for Studying Abroad?

Yes, many financial institutions like banks and NBFCs offer 100% loan coverage.

2. What is the HDFC Loan Interest Rate?

HDFC education loan interest rates generally range from 10% to 13% based on your loan type and creditworthiness.

3. Can I Get a 38 Lakh Education Loan?

Yes, banks offer education loans for abroad studies up to 3 cr.

4. Is HDFC Credila  a Public or Private bank?

HDFC Credila is a private bank established in 2006.

5. Can I get an Education Loan Without Collateral for Abroad?

Yes, banks offer Non-Collateral Education Loans for Abroad to finance the candidate’s study abroad dream.