List of Approved Foreign Universities for Education Loan

Studying abroad is a big goal for many, but it’s also a huge financial decision. 

Universities in popular countries like the USA, UK, Canada, and Australia offer excellent education, but tuition fees, living expenses, and other costs add up quickly. 

To make this achievable, a lot of students look to education loans from banks and NBFCs. However, banks don’t automatically approve loans for every university and program. 

Most banks in India evaluate the school and course you’ve picked and may choose not to fund institutions or courses where they see limited job prospects after graduation.

In fact, major banks like SBI, Bank of Baroda, and NBFCs like HDFC Credila and Avanse usually approve loans for students accepted into universities they consider reputable, with strong job placement records.

In this article, we’ll break down which universities are generally approved for education loans and which banks or NBFCs offer the best options. If you’re planning to study abroad, this guide will help you understand your loan options clearly and decide on the best way to fund your education.

Which are the approved universities for education loans?

When planning to study abroad, understanding which universities qualify for education loans can make the financial preparation process far smoother. 

Indian banks and NBFCs prioritize funding for specific global universities based on their academic standing, job placement rates, and credibility in specific fields of study. 

To simplify your search, here’s an overview of top universities in major study destinations where Indian banks and NBFCs frequently offer education loans.

Approved universities in the USA

Indian banks and NBFCs tend to approve loans for students accepted into a wide range of reputable universities in the USA. Some of them are:

• Top Ivy League and private research universities like Harvard, Stanford, MIT, and Yale
• Public universities with high employability, like the University of California, the University of Michigan, and the University of Wisconsin-Madison
• Specialized and high-ranking technical schools like Carnegie Mellon University, Georgia Institute of Technology, and California Institute of Technology

These examples reflect only a portion of the eligible universities in the USA. Check with your lender to confirm eligibility for your chosen university.

Approved universities in the UK

Indian banks and NBFCs often approve loans for students who are accepted into highly-ranked universities in the UK. Some commonly approved institutions include:

• Historic and highly-ranked universities like the University of Oxford, University of Cambridge, and University College London (UCL)
• Universities with strong employability, like the London School of Economics (LSE), Imperial College London, and the University of Edinburgh
• Research-focused schools like the University of Manchester, the University of Warwick, and King’s College London

Approved universities in Australia

Some of the Australian universities that are approved for education loans in India include:

• Top public universities like the University of Melbourne, Australian National University (ANU), and University of Sydney
• Institutions known for STEM and applied sciences like Monash University,  University of Queensland
• Growing universities in tech and business, such as the University of New South Wales (UNSW), and Queensland University of Technology (QUT)

Approved universities in Canada

In Canada, some commonly approved universities include:

• Top research universities like the University of Toronto, the University of British Columbia (UBC), and McGill University
• Universities with practical and co-op programs, like the University of Waterloo, 
• University of Alberta
• Business and management institutions like Queen’s University, Western University (Ivey Business School), and York University (Schulich School of Business)

While these are common examples, many other Canadian universities may qualify based on their programs and employability. Once you’ve decided on a few institutions, you can check with your lender. 

Many students face a frustrating situation—they apply to universities and later realize it’s difficult to get a loan because their chosen institutions aren’t on their lender’s approved list. This isn’t just an isolated issue; it happens because banks and NBFCs tend to fund only specific universities they recognize based on academic reputation and employability.

SelectRight (by GradRight) can help you avoid these pitfalls and make smarter choices from the beginning. Instead of going in blind, SelectRight gives you personalized university recommendations that fit your profile and are also likely to get financial backing. This way, you don’t just pick a good university—you pick one you can afford with ease.

Here’s what makes SelectRight a smart choice:

• AI-powered shortlisting: Tailored suggestions based on your academic and career goals.
• Profile-specific recommendations: You’ll know which universities suit you best.
• Fundable options: Only see schools that Indian banks and NBFCs are willing to fund.
• Match scores and insights: Know exactly where you stand and why.
• Extra perks: Enjoy fee waivers, scholarships, and more.

With SelectRight, you don’t just hope things work out—you get a clear path to success.

Now, let’s look at the banks and NBFCs offering education loans for international universities.

Also Read: Lowest interest student education loans

Bank and NBFCs offering education loans for international universities

The choice between banks and NBFCs often depends on factors such as loan amount, collateral requirements, interest rates, and flexibility in repayment.

Banks generally offer lower interest rates but may require collateral and rigorous documentation, especially for higher amounts. NBFCs, on the other hand, provide faster approvals and flexible options like collateral-free loans, though typically at higher interest rates.

Here are some of the major banks and NBFCs providing loans for students accepted into recognized foreign institutions.

Major Banks

State Bank of India (SBI)

SBI’s Global Ed-Vantage program is a great option if you need a higher loan amount up to ₹1.5 crore. But you will need to provide collateral for the same. It’s available for undergraduate, postgraduate, and doctoral programs in countries like the USA, UK, and Canada. 

The interest rates vary between 10.40% to 14% based on the loan amount and collateral​.

Bank of Baroda (BoB)

Bank of Baroda offers loans up to ₹80 lakhs. Most of its education loans cover expenses like tuition, living, and travel costs for selected universities. The interest rates start at 11.40%, and the loan requires collateral beyond certain limits. 

Punjab National Bank (PNB)

Known for its comprehensive Udaan education loan scheme, PNB funds up to ₹60 lakhs for study abroad. PNB offers competitive interest rates of 9.25% and often allows students to add a co-applicant for smoother approval. 

Their policy generally favors applicants with strong academic records accepted to recognized institutions​.

ICICI Bank

ICICI supports high-value loans up to ₹3 crore with favorable terms for existing customers and those pursuing technical and professional courses. ICICI typically requires collateral for substantial loan amounts, but pre-approved options are available for qualified applicants​.

HDFC Bank

HDFC provides collateral-free loans up to ₹50 lakhs and extends special support for STEM and management courses in top-ranking foreign universities. 

The bank’s tax benefits under Section 80E make it a strategic choice for students aiming for a mix of flexibility and minimal documentation​.

Leading NBFCs

HDFC Credila

A dedicated education loan provider, HDFC Credila offers extensive coverage for foreign education costs with collateral-free loans up to ₹50 lakhs. 

Loans are tailored based on the student’s profile and the program, providing a more personalized solution compared to traditional banks. Interest rates generally start around 11%​.

Avanse Financial Services

Avanse supports large, collateral-free loans up to ₹75 lakhs, often preferred for programs in Europe, the US, and Australia. 

They offer moratorium periods with deferred repayment plans, typically six months post-study completion, making it an optimal choice for those with long-duration courses​.

Auxilo and Prodigy Finance

Auxilo provides unsecured loans targeting students in recognized universities, with repayment terms and moratoriums similar to other NBFCs. 

Prodigy Finance, meanwhile, focuses on management and professional degrees in select countries, with loans tailored to cover the full cost of attendance and manageable repayment terms​.

When deciding between banks and NBFCs for an education loan, it often comes down to what works best for your specific situation—loan amount, interest rates, collateral requirements, and repayment flexibility all play a role. But even with all these options, it can be overwhelming to figure out which lender truly fits your needs. 

This is where FundRight (by GradRight) makes a huge difference.

FundRight simplifies the process by connecting you to over 15 leading banks and NBFCs, ensuring you get the best terms possible. Instead of you doing the legwork, lenders compete to offer you better rates and conditions.

Here’s why FundRight stands out:

• Quick comparisons: See offers from multiple lenders, all in one place.
• No paperwork or bank visits: Everything is handled digitally.
• Tailored options: Loans customized to your needs, including collateral-free options.
• Expert guidance: Get personalized advice to secure the most favorable terms.
• Fast disbursement: Often within just 10 days, so you can focus on your studies.

With FundRight, you don’t have to settle—you can get a loan that works for your goals and situation.

Next, let’s move on to some frequently asked questions to address any lingering doubts.

Also Read: How banks decide education loan interest rates

FAQs