Return to site

A complete guide to getting an education loan for study abroad

What are the Types of Education Loan for Foreign Studies?

· Finance

As per the recent study, over 5 million students prefer to study in a foreign country over India. Why such an exodus to study abroad? Because for Indian students, international education is a life-changing experience that can alter their entire careers and help them achieve a successful life. But to achieve this dream, most of them are dependent on education loans for study abroad. If you too are among them and wish to get an education loan, check this blog post to know everything about loan for study abroad.

What are the Types of Education Loan for Foreign Studies?


A student who wishes to finance their studies with an education loan for the study abroad has two options – loan with collateral, without collateral and International Funds


1. Secured Education Loans

broken image


An education loan for study abroad that asks for an asset or collateral as a guarantee is called a secured loan. The asset can be an FD, property, land, or LIC Insurance. Education loans with collateral have Lower Interest Rate, Higher Sanction Amount, Longer Repayment Time, and No Repayment During the Study Period. These loans are much easier to get and are offered by all Public Sector Banks, NBCS, and Private Banks.The Secured loan for study abroad generally requires a complete set of Documentation. All the papers need to be registered.

Documents Required for Education Loan with Collateral

○ Fee Structure

○ Admission Proofs

○ Property (collateral) Documents

○ Relevant Mark Sheets of Applicant

○ Bank Statements of the co-applicant

○ KYC of the Applicant and co-applicant

○ Income Tax Documents/Form 16 of the co-applicant

○ Basic Academic Qualification records of the applicant

○ Citizenship and Residence Proofs of the Applicant and Co-applicant

2. Unsecured Foreign Student Loans


An education loan for study abroad that doesn’t require students to keep an asset as security is called an unsecured education loan. These are also offered by NBCs, private banks, and international Banks. The maximum amount offered by unsecured nationalized banks is INR 7.5 Lakhs, which is generally never sufficient to cope with the full cost of education abroad. Education loans without collateral have Higher Processing Fee, Higher Rates of Interest, and Partial Payments during the Repayment Period

Documents for Unsecured Education Loans

● Fee Structure

● Admission Proof

● Bank Statements of the co-applicant

● Income Tax Return of the co-applicant

● KYC of the Applicant and co-applicant

● Basic Academic Qualification Records of the applicant

● Citizenship and Residence Proofs of the Applicant and co-applicant

3. International Funds: These are lenders for who provide Unsecured and Non Cosigner loans for study abroad. They are based on Student profiles such as GPA, Test Scores like GRE/GMAT, Course, University and Country. At Edu Loans we have the list of Universities and eligibility criteria for students looking to avail this for education loan for study abroad.

4. US Banks: US banks offer international students education loans for study abroad. You need to have a Cosigner who is a green card holder or US citizen. They provide the most economical loan for study abroad.

Lets now look at the process for education loan study abroad

1. Start by understanding the documents required for your education loan study abroad with the application form. We at a Eduloans provide you complete documentation said with education loan form immediately after understanding your profile.

2.Once the documentation is completed please submit to the bank/lender and initiate the process of document verification. In case of collateral security you would have to undergo property valuation and legal verification.

3. Once the complete documentation is verified the bank will offer you a sanction letter with the terms and conditions. Please read the terms and conditions and if acceptable sign it back and start the process of disbursal documentation.

4. The disbursal documentation would involve submitting all the originals to the bank and in many cases would require University letter for remittance of funds. All future because they require the same set of documents which can be done conveniently.

Wrap UP!

If you wish to take an education loan for study abroad, connect with Eduloan where you can avail the best options for financial assistance depending on your budget needs. We have over 15 players on the platform which are the best across all the 4 types of loans. Call us today at or simply step into the office for face to face counseling.