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When scholarships aren’t enough, education loans bridge the gap.
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Here is everything you need to know about getting a study abroad loan in India in 2026.
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Types of Education Loans in India 1.
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Collateral (Secured) Loans Banks like SBI and Bank of Baroda offer these.
The Reality of Financing Study Abroad in India
For middle-class Indian families, sending a child abroad to the USA, UK, or Canada requires significant financial planning. When scholarships aren’t enough, education loans bridge the gap. Here is everything you need to know about getting a study abroad loan in India in 2026.
Table of Contents
Types of Education Loans in India
1. Collateral (Secured) Loans
Banks like SBI and Bank of Baroda offer these. You pledge property or fixed deposits. Interest rates are lower (around 8.5% to 10%), and you can get up to 1.5 Crore INR. The processing time is longer (3-4 weeks).
2. Non-Collateral (Unsecured) Loans
NBFCs like HDFC Credila, Avanse, and international lenders like Prodigy Finance or MPOWER Financing offer these. They look at your GRE/GMAT scores, future employability, and the university ranking. Interest rates are higher (11% to 14%), but processing is incredibly fast.
Top Lenders for Indian Students
- SBI Global Ed-Vantage Scheme: Best for secured loans, low interest.
- Prodigy Finance: Best for top-tier US/UK universities without Indian co-signers.
- HDFC Credila: Great for customized door-step service and unsecured options.
Step-by-Step Loan Application Process
1. Secure your admission letter (I-20 for USA, CAS for UK).
2. Compare lenders (use portals like WeMakeScholars).
3. Gather documents (KYC, academic records, co-applicant income tax returns).
4. Apply and get the sanction letter (required for your visa interview).
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Frequently Asked Questions
What are the basic eligibility criteria for a study abroad education loan in India?
To secure an education loan for studying abroad from Indian lenders, the applicant must be an Indian citizen, have secured admission to a recognized foreign university, and be at least 18 years old. Additionally, you will need a co-applicant (usually a parent or guardian) with a stable income source and a healthy credit score (typically 700 or above) to co-sign the loan.
Can I get an education loan for studying abroad without collateral?
Yes, you can obtain a non-collateral (unsecured) education loan for studying abroad. Leading private banks and Non-Banking Financial Companies (NBFCs) in India offer unsecured loans up to INR 50-75 lakhs for premier global universities. The approval and loan limit depend heavily on your academic profile, the reputation of the target university, and the co-applicant's monthly income.
What are the average interest rates for study abroad education loans in India in 2026?
In 2026, interest rates for secured study abroad loans (backed by property or fixed deposits) from public sector banks range from 8.5% to 11.5% per annum. Unsecured education loans from private lenders and NBFCs generally carry higher interest rates, typically ranging from 10.5% to 14.5% per annum, depending on the student's academic credentials and the co-applicant's financial profile.
Written by the OpenCampusHub Editorial Team
Our global team of education and mobility experts is dedicated to verifying international opportunities. We ensure every guide meets strict standards for accuracy, leveraging official sources and real-world data.
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