Best Education Loans for Studying Abroad


  • What should you seek while choosing an education loan for overseas studies?
  • Greater loan amount without collateral, attractive interest rate and less margin should be your consideration

Education loans are not limited to studying in India alone, you can get the same for overseas studies. So, if you want to study abroad, you should first know the cost of it there. The cost of studies can exceed 20 lakh. That should make you search for lenders offering education loan amounts above the said quantum. Besides, you should see which offers the maximum loan without any collateral at lower rates of interest. We have listed out such banks before you.

List of Banks That Offers Maximum Loan Without Collateral


You can meet your fund requirements for higher studies abroad by applying at HDFC bank. The bank offers you the desired amount at an attractive rate of interest starting from 9.95% per annum. You can go to the bank branch to apply for the loan. And one of the important things to do before applying for the loan is making sure that your admission is secured in the desired educational institution. You might ask, can I borrow money without collateral? Yes, you can get an unsecured education loan up to INR 35 lakh. The interest rate is based on the co-borrower’s credit history. You can get a low-interest rate if the co-borrower’s credit record doesn’t show any default. The loan can be paid via Equated Monthly Installments (EMIs) over 15 years.

Axis Bank

You can not only complete your overseas study but also be able to repay the Axis Bank Education Loan over a maximum of 15 years. In addition to this, you also get a multi-currency free forex card to make your expenses affordable outside India. To pursue any specialized course or degree, you can apply for the Axis Bank Prime Abroad Loan. You can borrow up to INR 40 lakh without any collateral for your higher studies. The student doesn’t need to worry about the payment. You will never feel any problem during the loan assessment process with doorstep service. To request for an education loan, you can fill up the online form and submit it by going to the official Axis Bank website.

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List of Banks Offering a Greater Loan Amount with a Collateral

BankLoanCollateralInterest Rate
State Bank of India (SBI)INR 20 lakh to 1.5 CroreTangible collateral & 3rd party Guarantee6.90% - 9.30%
Punjab National Bank (PNB)From INR 7.5 LakhTangible collateral & 3rd party Guarantee6.90% - 9.55%
Bank of IndiaINR 10-20 LakhTangible Collateral9.05% - 9.85%
Indian Overseas BankINR 7.5 Lakh to 40 LakhCollateral security7.25% - 10.05%
HSBC BankINR 5 Lakh to 1 CroreAgainst Property10.50%-12.00%

A Close Look at the Collateral

You can apply for the loan for foreign studies by providing security to the bank. Under the Credit Guarantee Fund Scheme, students can borrow loans up to INR 7.5 lakh without collateral. But beyond that will require you to submit any of the following collaterals.

Fixed Deposit: The FD value can help you secure the borrowed amount, submit the deposit receipts and other documents of your FD to offer it to the bank. But the FD must be in the bank from which you are applying for an education loan.

Land or Property: Your land or house can also be taken as collateral for your education loan. The security of the loan is released later after the loan payment has been done. And before that, the bank has the right to your property. In case you default, the bank can take over the same.

Insurance Policies: The value of your life insurance policy can help you secure the education loan for foreign studies.

There is a 15% margin on foreign education loans, which implies your loan sanction would be 85% of the applied amount. You need to pay the rest amount to the university or college. To manage the margin money, you can use scholarship or assistantship.

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