Students planning to study abroad have a long journey ahead in managing the transitional process of accommodating themselves to a new country. Finances are an obvious factor that is on the top of the to-sort-out list when it comes to enrolling on a study program abroad. Here comes an education loan that helps students by being a reliable source of financial support for students. But would these education loans possess a limit? What is the education loan limit for study abroad purposes? This blog sheds light on the same, including a distinction between specific maximum loan amounts of banks and non-banking finance companies (NBFCs). Continue reading this blog to know more!
This Blog Includes:
How Does An Education Loan Help?
First, let’s examine how an education loan exactly helps students in their study abroad journey.
- With an education loan, students can receive complete financial freedom.
- By availing of an education loan, the maximum amount of expenses is covered for the students, including healthcare and living expenses.
- The loans can also be processed against securities, insurance, and/or deposits.
- Student VISA assistance is another extension of the helping hand of an education loan.
- Students are able to factorise in the ease of repayment that comes with education loans, for there are options of part-payment options, outward remittances, and consolidation of loans.
Also Read: THINGS TO KNOW BEFORE APPLYING FOR A STUDY ABROAD EDUCATION LOAN FOR YOUR CHILD
Maximum Education Loan Limit for Study Abroad
The maximum education loan limit for studying abroad can be divided into that secured loan and unsecured loan. Find the same below.
| Maximum Education Loan Limit | |
| Secured Education Loans (with collateral) | INR 1.5 crore. |
| Unsecured Education Loans (without collateral) | INR 45 lakh. |
Also Read: WHAT IS THE MAXIMUM EDUCATION LOAN YOU CAN GET IN INDIA?
Please Note: It depends on the applicant’s and co-applicant’s overall profile, including the selected course, country, and more to determine an increase or decrease in the education loan limit for study abroad.
Maximum Education Loan Limit of Banks for Study Abroad
Each bank has its own set limit of education loans that they offer to students. Let’s check the limit in a tabulated form below.
Bank of Baroda
Bank of Baroda provides Baroda Scholar Loans for students who plan to study abroad.
| Name of Scheme | Maximum Education Loan Limit |
| Baroda Scholar Loan | INR 150 lakh |
State Bank of India
The following State Bank of India education loan schemes can be utilised for students planning to study abroad. Their maximum loan amount limit is mentioned alongside.
| Name of Scheme | Maximum Education Loan Limit |
| SHAURYA EDUCATION LOAN FORWARDS OF DEFENSE AND INDIAN COAST GUARD PERSONNEL | INR 1.5 crore |
| SBI Global Ed-Vantage | INR 1.5 crore |
HDFC Bank
Check for HDFC Bank:
| Type of Loan | Maximum Education Loan Limit |
| Education Loan For Foreign Education with Collateral | No Upper Limit |
| Education Loan For Foreign Education without Collateral | INR 45 lakh |
Axis Bank
Check for Axis Bank:
| Type of Loan | Maximum Education Loan Limit |
| Collateralised Education Loan | INR 1 crore |
| Non-Collateralised (Unsecured) Education Loan | INR 50 lakh |
ICICI Bank
Check for ICICI Bank:
| For International Courses | INR 2 crore |
| Unsecured Loan for Selected Institutes | INR 1 crore for UG and PG courses |
Maximum Education Loan Limit of NBFCs for Study Abroad
Moving on, let’s shift to the maximum education loan limit for study abroad that non-bank financial companies (NBFC) offer to students.
| Name of NBFC | Maximum Education Loan Limit |
| InCred | INR 60 lakh |
| HDFC Credila | No Cap |
| Avanse | No Cap |
| Auxilo | INR 60 lakh |
Are You Eligible to Avail of Education Loan Limit for Study Abroad?
For students wondering if they can avail of education loans for study abroad reaching the maximum amount limit, then the following basic eligibility criteria must be met.
- The student must be a citizen of India.
- The student should at least be of 18 years of age.
- The student should have confirmed of their acceptance in the university of the foreign country, with a valid and recognised acceptance letter.
- If there are required international entrance exams, the student must have passed that.
- Students should have their VISA and work permit in place.
- Students should be able to prove their ability to repay education loans for study abroad.
Additionally, some of the essential documents required both from the applicant and co-applicant are mentioned below.
- Driving License
- PAN Card
- Aadhar Card
- Voter’s ID Card
- A valid passport
- Academic Record Documents, specifically from the applicant
- Valid water/electricity/etc bill, along with house (current) agreement
- Collateral-related documents shall also be required from the co-applicant
- Further, there is a need for the presentation of financial documents such as bank statements, IT Returns Copies, Salary Proof and more.
- If applicable, there is also a need for NRI identification documents.
Learn more about: DOCUMENTS REQUIRED FOR EDUCATION LOAN
FAQs
Ans. Each bank has its own offers for students to avail of education loans. State Bank of India is one of the top banks for education loan.
Ans. Yes, you can get a 20 lakh education loan without collateral.
Ans. Central Bank of India has a low-interest rate starting from 6.85% on education loans abroad.
With this blog, we have covered the answers to how much education loan you can get to study abroad. Having mentioned the education loan limit for study abroad, we hope you received a better idea on availing of education loans to study abroad! Connect with Fly Finance for more information and further support.
