Education Loan
Your Ticket to Global Education and Your Dream's Financial Superhero!
An education loan to study abroad is money borrowed from a bank or financial institution to pay overseas education costs like tuition fees, living expenses, travel, and insurance, which the student repays later with interest. These loans are commonly used to show proof of funds for a student visa and are usually taken from lenders in the student’s home country to pay universities in popular destinations such as Australia, Canada, the UK, the USA and anymore.
Reason for Education Loan
Higher Education Costs
The average minimum yearly cost of studying abroad is approximately ₹30–40 lakhs for Australia, ₹40–50 lakhs for the USA, ₹35–45 lakhs for the UK, ₹25–35 lakhs for New Zealand, and ₹20–30 lakhs for Canada, and most families cannot pay this full amount upfront.
Limited Family Saving
Most families don't have sufficient savings to cover the total cost of international education without affecting other financial responsibilities and security.
Visa & Financial Requirements
Many countries require proof of funds. A loan sanction letter from an Indian bank satisfies visa documentation requirements.
Who Can Help? Financial Institutions
Multiple Indian banks and financial institutions offer education loans. Here are trusted options with their typical rates:
| Bank | Interest Rate* (p.a.) | Max Loan Amount | Tenure | Key Benefit |
|---|---|---|---|---|
| Union Bank of India | About 8.25% – 12.55% | Up to ₹50 Lakhs | 15 Years | Best & most competitive rates among public banks |
| Bank of India | About 8.95% – 10.25% | Up to ₹50 Lakhs | 15 Years | Affordable government bank option with Star Education scheme |
| ICICI Bank | About 8.50% – 14.00% | Up to ₹50 Lakhs | 15 Years | Competitive private bank option; different rates for secured/unsecured |
| HDFC Bank | About 9.00% – 13.00%+ | Up to ₹1 Crore | 15 Years | Flexible repayment and relatively quick processing |
| State Bank of India (SBI) | About 8.55% – 11.00%+ | Up to ₹75 Lakhs | 15 Years | Most trusted lender with wide government bank network |
| Axis Bank | About 9.50% – 13.00%+ | Up to ₹50 Lakhs | 15 Years | Quick approval and minimal documentation |
💡 Disclaimer: Please compare offers from 3–4 banks before deciding. Interest rates and terms may vary based on your credit score, parental income, loan amount, and the reputation of the university you plan to attend. Always check the latest details on the official bank websites.