Education Loans for Study Abroad

Meridean Overseas
Meridean Overseas

Updated On 20 May 2023 & Read Time 8 minutes



From dreaming about a foreign country to deciding to study abroad, your life can change completely. The idea of studying overseas comes with the promise of a new life experience for you in an undiscovered land. But when you belong to a low-income family, such an idea might seem out of reach. However, you don’t have to worry about arranging the funds. Here, you can explore why and how you can approach taking education Loans for Study Abroad.


Why Should You Take an Education Loan for Abroad Studies?

You might experience a situation where your parents’ income is insufficient to cover your educational costs abroad. In such times, student loans for study abroad programs will be helpful to pay for all your expenses. A student taking an education loan for abroad studies can easily ensure enough money to complete their overseas study program without financial difficulties.

You may find this a bad idea as it creates debt. Such an expression implies that you are taking out a loan for something whose value will eventually decline. Unlike other loans, an education loan for abroad studies is like an investment from which you can earn far more money than you borrowed.


Are You Eligible to Apply for an Education Loan?

Before planning to take an overseas education loan, the first thing to do is check whether you’re eligible for an education loan. Some general terms for an education loan for abroad studies are mentioned below, which may differ by bank. 

  • Candidate must be an Indian citizen

  • Parents have to take out loans for the applicant under 18

  • A strong academic record is a must

  • Acceptance from a reputable university or college

  • The course must be technical or professional

  • Underwriting norms set out by loan providers


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What Documents Do You Need to Apply for Education Loan?

Now that you know the eligibility criteria for foreign education loan, you must also learn about the documents you require. Here are some of the documents needed for you to apply for an education loan for abroad studies:

Document Type



Date of Birth,

Birth Certificate, Passport, Voter card with DOB, College Passing Certificate, PAN Card, Driving license, Aadhaar Card

Residence Proof (if owned)

Electricity Bill, Municipal Tax Receipt, Share Certificate, or Title Deed (with Flat No.)

Residence Proof (for a rented property),

Registered Rent agreement (with utility bill), Landline phone bill, Postpaid Mobile Bill, Bank statement., Passport, Driving License, Voter ID, and Aadhaar card


Aadhaar card

PAN Card

Copy of PAN / Form 60 if PAN is not available


Signature verification from the bank, Passport, Driving License, and PAN Card (all IDs should match with your current signature)

Relationship proof

Passport, Pan, Aadhaar card, Marriage certificate, Birth certificate, Legal heir certificate, Ration card, or any other acceptable documents

Academic documents

10th,12th, UG or PG mark sheets, degree or provisional degree certificate, and applicable entrance test scores

Registration certificates for Professionals (CA, Doctor)

Income proof - Salaried

Documents to establish 3 years of work experience where ever applicable and available

Latest 3 salary slips, Bank Statement for the last 3 months, Form 16,


2 years ITR with the statement of income, Income certificate from Tehsil/collector's office

Office Address


Form 16/ Salary slip/ Letter from HR/ Snapshot of site/Identity card

Admission proof

Invite/admission letter from university/college and Fee structure


Technical Documentation

Now that you know about general documents to carry, you might need to have some more technical documents to avail your loans for study abroad.

  1. Title deed, with all pages attached.

  2. Copy of the approved layout plan and applicable permissions

  3. Revenue Document (Khata/Patta)


  5. Certificate of Non-Encumbrance

  6. A recent tax invoice for properties

  7. Copy of the Deeds of Prior Sales

  8. Confirmation of Conversion

  9. Urban clearance certificate (Case-specific)


Legal Documentation

Besides general and technical documents, you must also have a list of legal documents to apply for an education loan for abroad studies

  1. Sale, gift, or partition deed in the customer's interest - Minimum age 13

  2. Extract and Khata Certificate in the name of the current owner

  3. Certificate of Encumbrance, minimum 13 years, showing all sales transactions

  4. Up-to-date tax invoices for properties


NOTE: Depending on the rules of specific banks, these requirements may change.  


What Procedure Should You Follow to Get an Education Loan for Abroad?

A student loan for study abroad may seem a bit time-consuming, whether it’s filling out a loan application for its approval or disbursement. Early application for any loan will benefit you in many ways. Here are the procedures to follow when applying for foreign education loan

  1. Cross-check whether the course you’ve chosen is recognisable by banks.

  2. Calculate your funds and the loan amount you need

  3. Compare it with all banks and choose the best one catering to your needs

  4. Fill out the loan application form and approach your chosen bank

  5. Take out the loan document that includes all loan elements after your loan approval

Your bank will disburse the loan amount in installments or as per the request of your university.


Which Banks Provide Education Loans for Study Abroad?

 Let’s move ahead to foreign education loan providers, further divided into four categories – Public, Private, NBFCs, and Crowdfunded companies. Here’s a detailed idea on these sorts:

  1. Public & Private Banks – Public and private banks providing loans to Indian students are well-secured. The rate of interest they usually charge is much lower than NBFCs’ interest rates. Here you can receive loans up to 80% to 90% mortgage value. For instance, SBI and Bank of Baroda are public, while ICICI and HDFC are private banks. 

  2. Non-Banking Financial Companies – NBFCs offer both secured and unsecured loans. You’ll receive greater loan amounts for NBFCs’ unsecured loans than from banks, along with 100-120% of the mortgage value. Credila, Avanse, Incred and others are some examples of top non-banking financial companies. 

  3. Crowd-Funded Companies – Some financial companies specialise in student loans for study abroad programs. Such companies only provide loan amounts for students going to selected universities and colleges to ensure security. They offer loans in the local currency of the host country where you’ll be attending college. The borrowed money must be returned in the same currency. 



To conclude, getting education loans for study abroad is not difficult these days. The only condition is to carry all the required documents and know the loan type suitable for your overseas education. Being an international student, the most important point here is to gain entry into a reputable university for increased chances of getting the best education loan for abroad studies.


We hope we have provided you with sufficient information about education loans for study abroad. If you are still unsure or would like to get deeper insight, we encourage you to have a word with our team of expert counsellors at Meridean Overseas Education Consultants (MOEC). If you are unable to travel to our offices, we offer online counselling services via our website. Our dedicated counsellors will provide you with the best guidance regarding your application to study abroad. Don’t hesitate to contact us at or call us at 1800-1230-00011.



Q. Why do overseas education loans get rejected? 

A. Hundreds of thousands of students are applying for education loans to study abroad, and many have to face rejection. There can be several reasons like the short duration of programs, the age of the applicant or co-applicant, and the fixed obligation to income ratio. 


Q. What programs are eligible for loans for study abroad?

A. Undergraduate and postgraduate courses tend to get the most loans from banks and NBFCs. Additionally, most banks prefer to give education loans to professionals and job-oriented students.


Q. What's the maximum foreign education loan you can get?

A. You can get a loan up to a certain amount. Generally, you can expect it to cost between 20 and 30 lakhs.


Q. What is collateral?

A. Any asset, whether movable or immovable, offered to a bank as a security for taking education loans. Many banks ask for collateral to reduce the risk of paying off the credit. Such properties include fixed deposits, agricultural land, gold, etc. 


Q. Can you get an education loan without any collateral?

A. You can get a loan of up to INR 4 lacs without collateral. If you're borrowing up to INR 7.5 lacs, your parents or guardians become joint borrowers and get a third-party guarantee. Property or another asset is required for a loan exceeding INR 7.5 lacs.


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