Top Banks Offering Education Loans for Studying Abroad in 2025
Top Banks Offering Education Loans for Studying Abroad in 2025
In 2025, the dream of studying abroad continues to attract students seeking global opportunities, world-class education, and cultural exposure. However, the cost of pursuing higher education overseas can be daunting, with expenses ranging from tuition fees to accommodation, travel, and other living expenses. Fortunately, education loans for studying abroad offer a viable solution for students in India who wish to make this dream a reality.
The Indian government and banks have been actively providing financial assistance to students pursuing education abroad through attractive education loan schemes. This blog will explore the top banks in India offering education loans for studying abroad in 2025, focusing on their eligibility criteria, interest rates, and loan coverage. Additionally, we will explore how government scholarships for students in India can complement these loans, easing the financial burden on students and making studying abroad more affordable.
Understanding Education Loans for Studying Abroad
Education loans for studying abroad are specifically designed to help students fund their overseas education. These loans cover a variety of expenses, including tuition fees, exam fees, travel costs, accommodation, and other living expenses. The government and public sector banks in India provide favorable terms for these loans, offering lower interest rates and flexible repayment plans to make them more accessible.
The primary objective of these loans is to ensure that financial constraints do not stand in the way of students who aspire to gain quality education abroad. The loans are typically available for programs like undergraduate, postgraduate, and professional courses, and they can cover a wide range of institutions, including those in countries like the USA, UK, Canada, Australia, and Europe.
Top Banks Offering Education Loans for Studying Abroad in 2025
1. State Bank of India (SBI)
The State Bank of India (SBI) is one of the leading banks in India offering education loans for students who wish to study abroad. SBI's Global Ed-Vantage Scheme is one of the most popular education loan options for studying abroad in 2025. The loan is designed to cater to the needs of students pursuing higher education in top universities around the world.
Key Features:
- Loan Amount: Up to ₹1.5 crore
- Interest Rate: 9.30% – 11.60% p.a. (subject to change)
- Repayment Period: Up to 15 years
- Collateral Requirement: For loans above ₹7.5 lakh, collateral is required.
- Loan Coverage: Tuition fees, exam fees, accommodation, travel, and other living expenses
Eligibility Criteria:
- The student must have an offer of admission from a recognized foreign university.
- The applicant must be an Indian citizen aged between 18 and 35 years.
- The loan applicant should have a good academic track record.
SBI also offers tax benefits on education loans under Section 80E of the Income Tax Act, which can help students save money during the repayment period.
2. HDFC Bank
HDFC Bank is another top bank offering competitive education loans for studying abroad in 2025. The Education Loan Scheme by HDFC is designed to meet the financial needs of students planning to study in countries like the USA, UK, Australia, and more.
Key Features:
- Loan Amount: Up to ₹30 lakh
- Interest Rate: 9.50% – 13.50% p.a.
- Repayment Period: Up to 15 years
- Collateral Requirement: Collateral is required for loans above ₹7.5 lakh
- Loan Coverage: Tuition fees, travel, accommodation, exam fees, and other living expenses
Eligibility Criteria:
- The student must have secured admission to a recognized university abroad.
- The applicant must be between 18 and 35 years of age.
- The student must have a co-applicant, usually a parent or guardian, who has a stable income.
HDFC Bank provides a streamlined application process, including an online portal, making it easier for students to apply for education loans. They also offer the option of a moratorium period, which means students don’t have to start repaying their loans until after they graduate.
3. ICICI Bank
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ICICI Bank is one of India’s leading private sector banks offering comprehensive education loan solutions for students who want to study abroad. The ICICI Bank Education Loan for studying abroad is flexible and covers a wide range of courses and institutions.
Key Features:
- Loan Amount: Up to ₹1 crore
- Interest Rate: 9.75% – 13.50% p.a.
- Repayment Period: Up to 15 years
- Collateral Requirement: Required for loans above ₹7.5 lakh
- Loan Coverage: Tuition fees, accommodation, travel expenses, exam fees, and other study-related costs
Eligibility Criteria:
- The student must have secured admission to an accredited university abroad.
- The applicant must be an Indian citizen aged between 18 and 35 years.
- A co-applicant (usually a parent) with a stable income is required.
ICICI Bank also offers customized repayment options, including a moratorium period that allows students to begin repaying their loan after their course completion.
4. Axis Bank
Axis Bank is another prominent private-sector bank that offers education loans for students pursuing higher education abroad. The Axis Bank Education Loan is tailored to meet the financial needs of students who wish to study in reputed institutions abroad.
Key Features:
- Loan Amount: Up to ₹75 lakh
- Interest Rate: 9.50% – 13.00% p.a.
- Repayment Period: Up to 15 years
- Collateral Requirement: Required for loans above ₹7.5 lakh
- Loan Coverage: Tuition fees, travel, accommodation, exam fees, and other expenses
Eligibility Criteria:
- The student must have secured admission to a recognized institution abroad.
- The applicant should be an Indian citizen between the ages of 18 and 35 years.
- A co-applicant with a stable income is required.
Axis Bank also offers easy documentation and an online loan application process, making it a convenient option for students applying for education loans.
5. Bank of Baroda
Bank of Baroda offers competitive education loan schemes for students wishing to study abroad. Their Baroda Scholar Loan provides financial support for higher education and covers all necessary expenses.
Key Features:
- Loan Amount: Up to ₹80 lakh
- Interest Rate: 9.25% – 11.50% p.a.
- Repayment Period: Up to 15 years
- Collateral Requirement: Required for loans above ₹7.5 lakh
- Loan Coverage: Tuition fees, accommodation, travel expenses, exam fees, and other living expenses
Eligibility Criteria:
- The student must have secured admission to a recognized institution abroad.
- The applicant must be an Indian citizen and between 18 and 35 years of age.
- The student must provide a co-applicant (parent or guardian) with a stable income.
Bank of Baroda’s Baroda Scholar Loan is known for its low-interest rates and easy application process.
How Government Scholarships Can Complement Education Loans
While education loans provide students with the necessary funding to study abroad, government scholarships for students in India can further reduce the financial burden. Many government scholarships are specifically designed to help students pursue education abroad, either by covering tuition fees or providing living stipends.
Popular Government Scholarships for Studying Abroad:
- National Overseas Scholarship Scheme: Aimed at students from economically weaker sections, this scholarship covers tuition fees and living expenses.
- Commonwealth Scholarships: For students from India wishing to study in the UK, this scholarship offers full funding for postgraduate programs.
- ICCR Scholarships: The Indian Council for Cultural Relations offers scholarships for students to study in various foreign universities.
- Fulbright-Nehru Fellowships: A prestigious scholarship for Indian students wishing to study in the United States.
By combining government scholarships with education loans, students can significantly reduce their financial load, making studying abroad more feasible.
Conclusion
Securing an education loan for studying abroad in 2025 is a viable option for students looking to pursue higher education in prestigious global institutions. Banks like SBI, HDFC Bank, ICICI Bank, Axis Bank, and Bank of Baroda offer comprehensive education loan schemes with competitive interest rates, flexible repayment plans, and the ability to cover a wide range of expenses.
In addition to education loans, government scholarships for students in India can also help reduce financial stress, making overseas education more affordable. Students should explore all their financial aid options, including education loans, government scholarships, and other funding opportunities, to ensure they can pursue their academic dreams without any financial barriers.
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