How competitive is the loan market for students from Delhi and Mumbai who are seeking a study abroad loan? To put it shortly, demand for education loans is ever growing and is expected to grow bigger. Auxilo Finserve recorded a 98% yearly jump from 2022 to 2025 in disbursing education loans in Delhi-NCR. This makes the capital India’s fastest-growing study abroad loan market in India.
Meanwhile, Mumbai’s Andheri-Kurla stretch, nicknamed India’s ‘loan mile’, saw the heaviest load in the country. The public-sector banks over here moved over ₹11,000 crore in education-loan sanctions last fiscal year.
Delhi tops the growth charts; Mumbai tops the volume charts.
Yet students in both cities share the same anxieties, like forex swings, collateral appraisals, and that ticking visa clock.
So as an international education loan seeker from Delhi and Mumbai, how can you navigate through the crowd of applications and simplify the process?
We will answer that in this step-by-step study loan guide.
You will walk through city-specific shortcuts, paperwork hacks, timing strategies, and more.
Let’s get started.
Understanding study abroad loans
What Is A Study Abroad Loan?
A study abroad loan (sometimes called an international education loan) is a specialized credit product that funds tuition, living costs, insurance, travel, and exam fees in a foreign currency.
The lender disburses amounts semester-wise. You typically pay only simple interest during your course plus a one-year grace (moratorium) period.
What Is The Difference Between A Domestic And International Education Loan?
Unlike domestic loans, currency hedging, visa-linked disbursal schedules, and university-wise cost caps come into play. Think of it as the financial bridge between an Indian savings account and a dollar-denominated expense sheet.
Types of study abroad loans in India
To make the right choice, you need to understand your options.
The market of study abroad loans in India has several types of lenders. Each has their own advantages.
- Secured vs. Unsecured: Secured loans demand tangible collateral (urban property, fixed deposits) and offer lower rates. Unsecured products don’t need collateral. However, they come with higher loan rates and strict eligibility criteria.
- Public-Sector Banks: Public banks like SBI, Bank of Baroda, and Canara Bank have been traditionally popular choices for study abroad loans. SBI’s Global Ed-Vantage starts at 9.15% for collateralized tickets up to ₹3 crore.
- Private Banks & NBFCs: Private banks like HDFC, ICICI, and Axis Bank provide faster processing and more flexible terms than PSBs. NBFCs have competitive rates and innovative loan products. For example, Avanse sanctions up to ₹1.25 crore without collateral and HDFC Credila’s unsecured slabs begin around 11.25%.
- International Lenders: They offer specialized products and have options for students heading to specific countries. Platforms such as Prodigy Finance or MPower disburse USD loans without Indian co-signers, but rates float over SOFR.
Eligibility criteria for study abroad loans
You need to be aware of 4 common filters while applying for Indian student loans:
| Criterion | Typical Benchmark |
| Academics | 60%+ in the last qualifying exam |
| Admission | Unconditional offer from a recognized foreign university |
| Co-applicant | Indian citizen with stable income; CIBIL ≥ 700 |
| Collateral (if asked) | Urban residential/commercial property at 100–125% of loan value |
Note: Economically weaker section borrowers with a family income ≤ ₹4.5 lakh can avail the Central Sector Interest Subsidy during the moratorium.
Step-by-step application process for Delhi students
As an applicant for an education loan in Delhi, here is a step-by-step process breakdown for you:
Pick From The Best Banks And NBFCs In Delhi
- SBI (Connaught Place, Karol Bagh)
- HDFC Bank (multiple locations)
- ICICI Bank (CP, Nehru Place)
- Axis Bank
- NBFCs like Auxilo, Credila, and InCred.
Note: Navigating education loans across multiple banks and NBFCs can be overwhelming. That’s where GradRight’s loan-search platform comes in.
Instead of approaching each lender individually, you can access offers from 15+ Indian and international banks and NBFCs in one place. The platform is app-based, and 100% free, letting you compare interest rates, repayment terms, processing fees, and collateral requirements easily.
You also get personalized guidance from a financial advisor to negotiate better loan amounts and lower rates. Sharing documents is secure and only done after reviewing lender offers.
You save time, reduce paperwork, and maximize your chances of securing the most affordable and flexible loan tailored to your needs. This makes managing your study abroad funding far simpler and smarter.
Next, let’s find out what documents you need to submit to get your loan application approved.
Collect Document Proofs
Electricity bill (BRPL/TPDDL), voter ID (GNCTD), and a DDA house tax receipt often satisfy address verification.
Follow The Procedure
- Online vs. Offline: Consider applying online first to get a reference number. Following that, you can visit the branch for document verification. If you are starting off offline, then you can seek an education loan counselor at the branch. SBI’s YONO portal lets you upload PDFs of your admission letter and Form I-20. Offline, carry originals to the local learning centre desk for instant scanning.
- Municipal valuation for collateral: If you pledge property in Delhi, obtain an MCD circle rate certificate before the technical lawyer visit.
- Track status: Use the unique Loan Account Number for tracking. E.g., SBI’s digital dashboard or HDFC Credila’s mobile app allows you to easily track your application status.
The above steps will reduce branch visits and speed up your study abroad loan sanction in Delhi.
Step-by-step application process for Mumbai students
Let’s see a step-by-step process breakdown of getting an education loan in Mumbai:
Pick From The Top Educational Loan Providers In Mumbai
- Focus on major branches in areas like Nariman Point, Fort, and Bandra-Kurla Complex. Axis Bank, ICICI, HDFC, and Union Bank are top picks.
- NBFCs specializing in student loans, like Avanse’s headquarters in Andheri, offer same-day provisional sanction letters.
Address Verification
Apart from the usual document requirements (we will go through them in the next section), you need to attach your latest MCGM property tax e-receipt or Aadhaar with a Maharashtra address. Passport copies stamped at the Worli PSK also work.
Speed Hacks
- Specialized online services: They help in speeding up your study abroad loan process. E.g., booking an e-meeting slot with the ICICI’s NRI-services wing will pre-verify KYC and spare you a trip across the Sea Link.
- Digital collateral evaluation: For suburban flats, lenders accept MahaRERA e-registration numbers. This can save two days in off-site visits.
- Coastal flood insurance add-on: Some Mumbai branches insist on property insurance riders. Keep the premium quote ready to avoid processing delays.
With these steps you can wrap up the study abroad loan process in Mumbai in three weeks instead of six.
Required documents for student loan application
Let’s go through the details of document requirements for student loan applications in India.
Identity And Address
- Aadhaar, passport, PAN, voter ID.
- Recent electricity/telephone bill or municipal tax receipt.
Tips: Banks now accept e-documents pulled directly from DigiLocker as ‘officially valid documents’ (OVDs) under the updated RBI KYC master directions. Download the PDF and share the auto-generated URL instead of a hard copy to avoid two verification days.
Academic Records
- Class X/XII marksheets.
- Latest degree transcripts.
- Standardized-test scores (GRE/IELTS).
Pro-Tip: Self-attest every page and keep the size of scanned files below 2 MB. Most portals for student loan applications in India reject larger uploads.
Admission And Cost Proof
- Unconditional offer letter/I-20/CAS.
- University cost-of-attendance sheet.
Pro-Tip: Make sure the fee schedule shows semester dates. Lenders release forex in tranches tied to these milestones.
Co-applicant Income
- Last 3 ITRs or Form-16s.
- Six months of salary slips or bank statements.
Pro-Tip: A CIBIL score ≥ 720 can shave 0.50% off the rate. Include a score report if your co-applicant meets the mark.
Collateral (secured loans)
- Title deed, latest encumbrance certificate, property tax receipt.
- Valuation and legal-opinion reports.
Pro-Tip: Delhi borrowers should attach the MCD circle-rate certificate. Mumbai students can quote the MahaRERA registration number to speed up e-valuation.
Miscellaneous
- Two passport-size photos of the borrower & co-applicant.
- Completed loan application form.
Pro-Tip: Sign with black ink and scan at 300 dpi. Lenders flag faint blue-ink signatures during OCR.
Complete, correctly formatted files can cut average processing from 30 days to about 18. A tidy folder also means fewer last-minute courier runs when your visa interview email arrives.
Comparing the best study loans in India
Here’s how you can zero in on the best study loans in India:
| Factor | Public Bank | Private Bank | NBFC | International Lender |
| Interest (p.a.) | 8.65–9.15% | 10–11% | 11–13% | 12–14% |
| Collateral | Often | Sometimes | Rarely | Never |
| Max Amount | ₹1.5 cr | ₹3 cr | ₹1.25 cr | USD 100k+ |
| Processing Fee | 0.5% | 1% | 1–2% | 5% origination |
| Subsidy Eligibility | Yes | Yes | Sometimes | No |
The above will help you decide based on your course budget, repayment horizon, and co-applicant profile before you lock in a lender.
Here’s a quick-comparison table of the most competitive study-abroad loans right now:
| Lender/Scheme | Interest Rate (p.a.)* | Max Loan Amount | Collateral | Turnaround Time |
| SBI – Global Ed-Vantage | 8.65-9.15% (girl-student 0.50% rebate) | Up to ₹3 cr | Mandatory above ₹7.5 L | 4-6 weeks |
| Bank of Baroda – Baroda Scholar | 9.70-11.15% | Up to ₹1.5 cr (premier list) | Tiered; 100% collateral only past ₹7.5 L | 3-5 weeks |
| Axis Bank – Study-Abroad Loan | 9.99-10.97% average for 2024-25 | No formal upper limit | Secured or unsecured (profile-based) | 2-4 weeks |
| Avanse Financial Services | From 8%; typical 11-13% | Up to ₹1.25 cr | Not mandatory ≤ ₹1.25 cr | 7-10 days |
| Prodigy Finance | From 9.17% variable over SOFR | Up to USD 220k (course-linked) | None | 10-15 days |
| MPOWER Financing | 9.99% fixed (11.16% APR) | Up to USD 100k | None | 10-15 days |
Note: Rates and fees are current as of 16 August 2025 and may change with benchmark revisions. Always confirm on the lender’s website before you file your student loan application India-wide.
Study abroad financing tips
Here are some handy tips for the study abroad loan process:
- Apply six months early: Visa slots open only after proof of funds.
- Maintain a CIBIL score above 720: A clean borrowing history is not only trustworthy but also can help you reduce 50 bps off the rate sheets.
- Stage-wise disbursal: You can request the bank to release the hostel fees directly to the university.This will help you save money by reducing forex conversion fees.
- Use scholarships first: It’s a great idea to use scholarships to lessen the loan burden. For example, the PM Vidyalaxmi’s 3% interest can reduce the cost of borrowing.
These smart habits can ensure that your Indian student loans feel lighter once repayments kick in.
Final thoughts
A well-timed study abroad loan application is more than just paperwork. It is peace of mind.
Start with research, narrow options city-wise, and treat this guide as a checklist.
Whether you are applying for an education loan from Delhi or from Mumbai, leverage your city’s banking infrastructure.
As you seek to study abroad, your loan journey will be temporary, but the education and opportunities it will provide will last you a lifetime.
A smart choice of a lender is one who understands your dreams and offers terms that won’t burden your future.
FAQs
1. What Is The Process To Apply For A Study Abroad Loan From India?
Simply put, you need to complete an online eligibility form, upload documents, get provisional sanction, submit collateral (if any). Once your visa is approved you will receive disbursement. It typically takes 4-6 weeks.
2. Which Is The Best Study Abroad Loan For Students In Delhi Or Mumbai?
There’s no one-size-fits-all. You can choose between SBI and Bank of Baroda for lower rates if you have collateral. Avanse or HDFC Credila are faster unsecured options but take into account your city’s turnaround times.
3. What Documents Are Required To Apply For An International Education Loan?
You need identity and address proofs, academic transcripts, an admission letter, a cost-of-attendance breakdown, co-applicant income proofs, and collateral papers if the loan is secured.
4. Can I get a study abroad loan without collateral in India?
Yes. Private banks, NBFCs, and several international lenders offer unsecured study abroad loans of up to ₹50 lakh–₹1.25 crore, depending on your university and co-applicant income.
5. How Long Does It Take To Get A Study abroad Loan Approval In India?
Public banks may take 4–6 weeks. NBFCs often issue sanctions within 7–10 days if documents are complete and your credit profile is strong.
