Students using GradRight App get up to 40% better loan rates
TAP HERE!
Explore and compare education loan options from top banks to fund your international education.
$ 100 K
9.34%
A full look at what Avanse offers. Loan limits, rates, collateral conditions, benefits, and timelines explained in a way that helps you compare and choose better.
It is crucial to choose the right funding options when studying abroad. Banks offer education loans that are affordable and have flexible terms.
Secure the best education loans for higher education abroad.
An education loan is suitable for students who cannot fully fund their study abroad expenses through savings or family income.
It applies to students pursuing undergraduate, postgraduate, or professional courses abroad after completing 10+2 or a diploma.
You should consider study abroad student loans if you:
There are two types of loans for studying abroad:
Loans for studying abroad are offered by different types of lenders:
International/Fintech Lenders: Prodigy Finance, M-Power. No collateral or co-applicant in some cases; limited to specific universities and programs.
There is no single best bank based only on your study destination.
Loan options depend on:
Some lenders may have stronger coverage for specific universities or countries. However, the best bank for an education loan is the one that offers the most suitable terms for your overall profile.
If you wish to find the best banks for a student loan, evaluate the following factors:
Factor | What to Check |
Interest rate | Fixed vs. floating rates and overall cost of borrowing |
Processing and other fees | Upfront charges and any hidden costs |
Collateral requirements | Whether security is required and acceptable asset types |
Loan amount | Maximum funding available based on your total expenses |
Moratorium period | Time allowed before repayment begins |
Repayment tenure | Flexibility and total duration for repayment |
Prepayment terms | Charges for early repayment or foreclosure |
Approval time | How quickly the loan is processed and disbursed |
Bank reputation and support | Service quality and issue resolution |
Both public and private banks offer competitive interest rates for study abroad loans.
Some of the best banks for an education loan include:
Interest rates vary based on factors such as your academic profile, co-applicant’s credit score, loan type (secured vs. unsecured), and chosen university.
Lenders assess your application based on the following factors:
Loan amount and repayment capacity: Whether the requested amount aligns with expected future income
To qualify for a loan in India for study abroad, you must meet the following criteria:
Admission: Must have a confirmed (or conditional) offer letter from a recognized overseas institution for an undergraduate, postgraduate, or vocational course.
To apply for an education loan for abroad, you typically need:
Collateral documents (if applicable): Property papers, FD receipts, or insurance policies
Apart from interest rates, education loans may include the following charges:
Insurance premium: Optional or bundled insurance for loan protection
Education loan approval typically takes 2–30 days, depending on the lender and loan type.
Timelines vary based on document completeness, collateral verification, and lender processes
Once your education loan is approved, the next steps are straightforward, but it’s important to understand the process.
Being aware of these steps helps you stay prepared, avoid delays in fee payments, and manage your loan smoothly once your course begins.
The best banks for a student loan provide the following services:
Being aware of these services helps you manage your loan more efficiently after disbursement.
GradRight enables you to compare options across multiple lenders in a single platform and find the best bank for a student loan.
This approach helps you make an informed decision through structured comparisons, helping you find the best loan in India for study abroad without applying to multiple lenders individually.
*Interest rates mentioned in this piece may vary from current rates due to frequent changes by banks/lenders.
To get an education loan in India, start by confirming your admission to a recognised institution. Then calculate your total funding requirement including tuition, living, and other costs. Visit GradRight to compare offers from 15+ lenders in one place, check your eligibility in 60 seconds, and submit your application. Most lenders process and disburse loans within 7 to 15 working days. GradRight users get approvals in as little as 2 days.
You can take an education loan in India by approaching a bank, NBFC, or using a platform like GradRight that lets multiple lenders compete for your profile. You will need your admission letter, academic records, co-applicant income proof, and identity documents. Once your application is verified and approved, the loan amount is typically disbursed directly to your institution.
The standard documents required for education loan in India are: identity proof (Aadhaar, PAN, Passport), address proof, admission letter and fee structure from the institution, academic marksheets, co-applicant income proof (ITR, salary slips, Form 16), bank statements for the last 6 months, and collateral documents if applicable. Exact requirements vary by lender. GradRight shows you a lender-specific checklist upfront.
A moratorium period is a temporary respite of loan repayments. A postgraduate course abroad typically lasts 1-2 years. The student cannot start repaying the month after the course ends. First, they have to search and find a job, change city, work for a few months, and only then are they in a position to start paying EMIs.
There is no single best bank. Public sector banks generally offer lower interest rates, while private banks and NBFCs provide faster approvals and flexible terms. The best option depends on your profile, loan amount, and repayment capacity.
The best bank depends on factors such as your university, loan requirement, collateral availability, and co-applicant profile. Comparing lenders based on these factors helps identify the most suitable option.
Public sector banks typically offer the lowest interest rates, especially for secured loans. However, the final rate depends on your academic profile, co-applicant’s credit score, and loan type.
Private banks and NBFCs usually offer faster approvals, often within 7–10 days. Public sector banks may take longer due to stricter verification and documentation processes.
You can get up to ₹2 crore or more, depending on the lender, collateral value, and your overall profile.
Some lenders fund up to 100% of expenses, but most require a margin of 10–20%. Full funding is more common for top universities or strong applicant profiles.
Yes, many lenders offer unsecured education loans. However, these usually come with higher interest rates, lower loan limits, and stricter eligibility criteria.
Most lenders require a co-applicant, typically a parent or guardian. Some lenders may waive this requirement for applicants with strong financial profiles, but this is less common.
There is no fixed cutoff, but a co-applicant credit score of 700 or above improves approval chances. Lower scores may still be accepted with strong income or collateral.
Banks usually offer lower interest rates but have stricter eligibility and slower processing. NBFCs offer faster approvals and more flexibility but at higher interest rates.
Applying to multiple lenders helps you compare offers, but doing it individually can be time-consuming. Comparing options across lenders before applying helps you make a more informed choice.
Yes, you can transfer your loan to another lender through a balance transfer to get better interest rates or repayment terms, subject to approval.
Compare lenders based on interest rates, loan amount, collateral requirements, repayment terms, and approval timelines. The best bank for a study abroad loan is the one that fits your overall financial profile and future plans.
Backed by
Copyright © 2026 GradRight. All rights reserved.
