Studying abroad is an important opportunity for students in developed countries. In India, most students usually go for education loans for studying abroad when planning to get an overseas degree. According to well-known sources, overseas scholastic loans increased from Rs. 16000 crore to Rs. 17000 crore in the financial year 2022-23.

Many financial houses offer these credits to their applicants – however, their interest rates differ, along with their features, payment terms, and conditions for disbursement. People should know the diverse information about an education loan for studies abroad. This blog will provide the necessary information to pursue before starting the loan application process.

What Are The Eligibility Criteria For Education Loan? Usually, financial houses look for the possible capability or definite source of income (which can be used to repay the monthly payment installments) when considering an applicant for other loan types. In the case of educational loans, the student usually doesn’t have a significant income source, so their education loan eligibility criteria are different than other credits. Here are the general conditions one can expect from any financial institution while applying for student loans for studying abroad:

1. The loan applicant must be Indian.
2. The parents or guardian must take out the loan if the applicant is under 18.
3. The loan candidate must have a significantly good and strong academic performance.
4. The foreign institute, university, or college where students wish to be admitted must be reputed.

As financial institutions like banks prefer their EMIs to be on time, they mostly accept applications for education loans for abroad with the highest chances of job acquisition. So, the chance for loan application acceptance increases when the students are studying technical or professional courses at an overseas institution.

The loan providers will set forth some standards (called the underwriting norms) to guarantee the availability and disbursement of safe and secure loans. These standards will also determine whether or not to provide an applicant with a study loan for abroad, as well as the amount of money and the interest rate favoured by the lender concerned.

Benefits of Taking An Education Loan

Students wishing to study in foreign countries and get an overseas degree often will require an education loan for international students to survive and pay the necessary fees in the country. In India, only some families can bear the cost of a foreign education without any help, which is little. In most cases, the family’s income and resources are often insufficient for the entirety of the student’s education. The applicants must approach banks or other financial organizations (commonly known as non-banking financial centres or NBFCs) for a student loan, which can cover the total or part of the student’s education expense. Mostly, applicants who can secure student loans with low interest rates are known to complete their program without facing any monetary issues.

Typically, student loan requirements are different and often easier than other credit plans because the lender invests in the borrower rather than an object. A student will earn money with the degree obtained from the education credit, so its value will increase over time, which is different from other loans as their investment decreases in value over time and is often considered bad debt.

Required Documentation for Getting an Education Loan for Overseas Studies The applicant must provide the correct documentation while applying for an overseas education loan with the current and updated reports. Often, the borrower must provide the co-applicants’ details to the bank or other NBFCs to apply for an education loan. The document’s nature may change according to the academic performance, course, chosen institution, and other factors; still, the usual requirements (technical and legal documents) in this aspect are mentioned below:

General Documents
1. Filled-up loan application form.
2. Required number of photos in mentioned sizes
3. Aadhaar and PAN cards.
4. Relationship evidence.
5. Proof of Signature
6. Admission Proof
7. Academic documents
8. Income proof of the last 3 years.


Technical Papers
1. Title deed with all pages
2. Profits document
3. BDA allotment -NOC and allocation letter
4. Non Impediment certificate
5. Possession Certificate for developed real estate
6. Up-to-date Property tax receipt
7. Duplicate of accepted layout plan and consent
8. Replica of Prior sale deeds
9. Transformation certificate
10. Urban clearance certificate (Case-specific).

Legal Documentation
Besides the typical and official papers, candidates also need to submit the following legal documents for the organization’s education loan process:

1. A sale, gift or partition deed favouring the client and spanning a minimum of 13 years.
2. The encumbrance certificate reflects all sale transactions for 13 years.
3. The revenue extract and certificate (in the current proprietor’s name). Updated property tax receipt.

Best Study Abroad Education Loan Providers

Several banks and financial organizations offer easy student loan processes, a student loan process, reasonable interest rates, and payment terms. The choice of an appropriate financial loan depends upon the customer – still, two of the most requested education loan plans are mentioned below: