Education loan to study in UAE: Complete Guide

You want to study abroad for your higher education. You’re looking for a destination that checks your boxes and is also comparatively cheaper than, let’s say, the USA or the UK. 

So, you research other top destinations offering education of a comparable quality to that offered by popular countries in the West. 

You land in the UAE – it is definitely comparatively affordable and has high-ranking, research-intensive universities. However, the overall cost is still… poking a hole in your pocket. 

In such a situation, an education loan to study in the UAE is the answer to your biggest roadblock – unaffordability.

In recent years, the UAE has become one of the popular destinations for Indian students. In fact, according to the country’s education ministry, the enrollment of Indian students in UAE institutions was 15% higher in 2023 than the previous year.

Now, although one of the biggest reasons for this is the lower cost of education, the overall expenses can amount to ₹40+ lakhs for a one-year master’s degree. 

For example, an MSc at one of the top UAE institutions – Khalifa University – has an estimated tuition of ₹35 lakhs. University housing for graduate students can cost up to ₹8 lakhs per year. And if you include your other expenses, which can be a big percentage of your budget, the total would come to approximately ₹50 lakhs. 

But, everything is manageable with the right education loan to study in the UAE. 

Note: When the cost of studying in the UAE feels overwhelming, an education loan can be your key to turning that dream into reality. GradRight’s loan search platform simplifies this crucial step by helping you compare loan offers from over 15 trusted banks and NBFCs, all tailored to your profile and financial needs. You get access to low-interest options, loans without cosigners or collateral, and expert advice to negotiate better terms — often with approvals in just 10 days.

By securing the right loan, you can confidently cover tuition, housing, and living expenses without stretching your budget too thin.

Before you finalize your choice, GradRight’s university search platform can also guide you to affordable, well-ranked programs in the UAE that fit your goals and financial capacity — making sure you invest smartly from the start.

Now, let’s explore how to plan your finances effectively to maximize the value of studying abroad.

Why choose the UAE for higher studies?

The current geopolitical scenarios and newly imposed rules are bringing a shift in students’ interests in higher education. More students are now turning their heads from the West to the Middle East. 

Consequently, the UAE is becoming a hot destination for international students, particularly from India. 

Here are three main reasons why the UAE is turning into a famous study abroad destination:

Quality Education

The QS World University Rankings 2025 feature 6 UAE institutions among the top 500 in the world. From research-intensive institutions to English-taught programs, the UAE has a lot to offer. 

The country has some of the highest-ranking universities in the fields of Engineering and Architecture. Khalifa University and United Arab Emirates University, for instance, rank at #7 and #51-100 in the world for their Petroleum Engineering programs. Similarly, American University of Sharjah ranks #201 for its Architecture and Built Environment program. 

Cultural Diversity

The country is a melting pot of culture. The UAE hosts more than 200 nationalities, creating a unique multicultural environment for international students. 

This diversity also creates space for a lot of strategic partnerships between the UAE and other top institutions abroad. For instance, Khalifa University is partnered with over 50 academic institutions, including Stanford University, Politecnico di Milano, and China University of Petroleum, for exchange programs. 

Strategic Location and Work Opportunities

The UAE is a global business hub. From finance to hospitality to technology to engineering, the country offers many professional opportunities. Taking advantage of your university’s partnerships with big companies becomes particularly easier with the country’s student-friendly visa policies. 

But to take advantage of everything the country has to offer, you must first secure an education loan to study in the UAE. Let’s help you figure that out.

Types of education loans for studying in the UAE

Before we move to the specifics of securing an education loan to study in the UAE, let’s find out the different types of loans. You must know your options to make an informed decision. 

Secured Education Loans

While taking secured loans for studying abroad, you must pledge collateral, such as your property or fixed deposits. Secured loans typically have higher loan amounts with lower interest rates. 

Banks like SBI, HDFC, and ICICI are some of the top Indian lenders providing secured education loans to study in the UAE for up to ₹2 crores. 

The interest rates, although comparatively lower, can vary based on different lenders. However, in most cases, it’s usually below 12%. The repayment tenure can also go up to 15 years. 

Unsecured Education Loans

As the name suggests, these student loans for the UAE are the opposite of the previously mentioned loan type. 

For these loans, you don’t have to pledge any collateral; hence, they are called non-collateral or zero-collateral loans. 

This option is definitely more convenient if you or your co-signer doesn’t have eligible collateral to pledge. However, this type of loan comes with its shortcomings. 

For instance, loan amounts can be comparatively lower, while interest rates may be higher than those of secured loans. With GradRight, you can get unsecured loans for up to ₹1.5 Cr.

Apart from these two types, some loans are specific to a particular university/ program, while some are backed by the government. 

For instance, schemes like the Vidya Lakshmi Portal offer students with education loans to study abroad, including in the UAE. These loans typically offer competitive interest rates and flexible eligibility requirements. 

Let’s explore the eligibility requirements for an education loan to study abroad in more detail. 

Eligibility criteria to get education loans to study in the UAE

There are a lot of factors that can affect eligibility criteria for an education loan. 

For instance, depending on the type of loan you’re applying for, your ability to pledge collateral may or may not be a requirement.

Additionally, something that many blogs discussing education loans for the UAE will not tell you – the ROI of your intended program or university affects your application. A less promising program can cause an addition of specific requirements that a program with a high ROI wouldn’t. 

So, here are some common requirements you can go through to find out whether you’re eligible for a student loan to study abroad –

Indian Citizenship

• Must be an Indian citizen.
• NRIs are eligible as well. However, the documentation process may differ slightly.

Age Limit

• The lower age limit is usually 18 years, and the upper limit is 35 years. 
• The upper age limit may vary for different banks.

Admission to a Recognized University

• You must have secured admission to an accredited UAE university.
• You must be able to prove the same through an offer or acceptance letter issued by the university.

Academic Performance

• Banks or financial institutions usually prefer students with an excellent or good academic background. 
• You must have scored a minimum of 50-60% in the previous level of your education.  
• For postgraduate programs, you may be required to score a higher percentage.

Co-applicant Requirement

• You must have a parent or guardian who can sign as a co-applicant for your student loan.
• The co-applicant’s financial standing will be assessed for loan security.

Collateral/ Credit Score Requirement

• If you’re opting for a secured or collateral loan to study in the UAE, the lender will assess your proposed property values. 
• Apart from that, your credit or CIBIL score is a significant factor. Generally, a credit score above 750 is considered good, especially for non-collateral loans. 

How to apply for an education loan to study in the UAE?

There are two ways for you to apply for an education loan to study in the UAE:

• The longer way – by spending days researching and reaching out to different lenders individually. 
• The shorter way – through GradRight’s loan-search platform.. 

Let’s explore both:

How to Apply for an Education Loan to Study in the UAE On Your Own?

Shortlist the right lenders.

There are more than 25 banks and financial institutions offering student loans to study abroad. 

And then there are different plans and rules offered by these entities that will determine, not just your educational, but also your financial state for the next few years. 

Therefore, carefully review the offerings and shortlist some lenders that meet your requirements. 

Compare the terms.

Now that you have shortlisted a few, it’s time to compare. 

Compare interest rates, repayment options, loan coverage, collateral rules, co-applicant requirements, and additional terms. 

Pick what works the best for you.

Fill out the application form and gather the documents.

Now that you have found your lender, it’s time to take this further. Begin filling out the loan application form and compile the following documents:

• University-issued admission letter
• Academic records
• Student visa
• Passport
• Your co-applicant’s proof of income
• Income tax returns of your co-applicant
• Collateral documents, if any

Submit your application and wait. 

Once done, submit the application along with your documents. If you’re lucky, your lender will take 2-4 weeks for processing. 

Once your loan is processed, you will receive a loan agreement with clearly stipulated terms and conditions. Read the agreement thoroughly and sign. 

Loan disbursement.

With that, your loan will be disbursed – either directly to your account or to your university’s. The disbursement is typically made in stages and depends on the tuition fees and the academic year. 

Now, let’s go through the other way of applying for a student loan to study abroad. 

How to apply for an education loan to study in the UAE through GradRight?

It’s as easy as it gets:

Step 1 – Check your eligibility with GradRight.

Step 2 – Answer a few questions in about 2 minutes. 

Step 3 – Sit back.

Once you’re done, our team of experts will reach out to you to –

• Understand your requirements and situation better.
• Take your application to 15+ lenders and negotiate the best offer.
• Assist you throughout the process to get you the deal that works for you. 

Check out GradRight today to take your education loan journey ahead. 

Interest rates for education loans to study in the UAE

The interest rates for an education loan for the UAE can vary based on –

• Different lenders
• Type of loan
• Your program/ university’s ROI
• Whether or not you have a co-applicant

For example, non-collateral loans generally have higher interest rates, ranging from 9.75% to 15.99%. Collateral loans, on the other hand, have lower interest rates, ranging from 9.25% to 11.5% or more. 

Similarly, public banks generally offer lower interest rates than private financial institutions. 

Here are the estimated interest rates you can expect while applying for an education loan to study abroad with us –

Education loan repayment options to study in the UAE

Comparing repayment options offered by different lenders while choosing a plan is crucial. Here are a few things you need to know about your loan repayment options:

Grace Period: It’s the time after you finish studying but before you begin paying back your education loan. You don’t have to pay EMIs during this period. Some banks offer a 6-month grace period, while others provide a 1-year grace period. 

Repayment Tenure: It’s the period during which you have to complete your repayment. Depending on your loan amount and lender, it can range from 5 to 15 years. 

Foreclosure or Prepayment: If you repay your loan before your repayment tenure ends, it’s called foreclosure. Some banks charge you a foreclosure fee, while some don’t. The penalty can range from 1-2% of the loan amount. Therefore, be sure to review these terms to avoid any surprises later. 

Top banks and financial institutions offering education loans for studying in the UAE

Now that you have understood the process of applying for an education loan to study in the UAE and finding the right lender, here are some top loan providers you can explore:

Alternatives to education loans for international students

If not education loans, then what? Here are some alternatives:

Scholarships and grants:

From university-specific scholarships to government scholarships, there are many options you can explore. 

For example, Khalifa University offers many scholarships to international students pursuing master’s programs. The scholarships can cover 50% to 100% of your tuition cost. 

Part-time work:

You, as an international student, can work part-time in the UAE while completing your studies. You are allowed to work for up to 20 hours per week while your semesters are active. During holidays, you can work full-time. 

Frequently asked questions

Question 1. Can I Get An Education Loan To Study In The UAE?

Yes, you can obtain an education loan to study in the UAE, provided you meet the eligibility requirements. Some standard requirements are: you must have an acceptance offer from a UAE university, you must be an Indian citizen or an NRI, and you must have scored well in your previous education, among others. 

Question 2. What Are The Eligibility Requirements For An Education Loan For Studying In The UAE?

Although the eligibility criteria for an education loan to the UAE may vary, the common requirements are – 

• You must be aged between 18-35.
• You must be an Indian citizen or an NRI.
• You must have a co-applicant (may vary).
• You must be able to pledge collateral, unless you’re opting for a non-collateral loan. 

Question 3. How Do I Apply For An Education Loan To Study In The UAE?

You can apply for an education loan to study in the UAE either directly through GradRight’s loan search platform or by visiting various banks and financial institutions. 

Question 4. What Is The Interest Rate On Education Loans For UAE studies?

The interest rates for education loans to study in the UAE vary depending on the type of loan and the lender. With GradRight, your ROI can typically range from 9.25% – 15.99%.

Question 5. Are There Scholarships Available For International Students In The UAE?

Yes, numerous university-specific, national, and government-sponsored scholarships are available for international students. These scholarships can either cover the cost of your books/ accommodation or 50% – 100% of your tuition cost.