Best Education Loan for Study Abroad 2025: Best Bank Loans with Low Interest!

Are you dreaming of studying in a top university abroad, but the fees and living expenses are bothering you? Don’t worry! There are many great education loan options available for studying abroad in 2025 that can turn your dreams into reality. Whether you want to study in the USA, UK, Canada, or Australia, choosing the right loan can be a game-changer for you.

In this blog post, I will tell you what are the best Education Loan for Study Abroad in 2025, their features, and how you can apply for them to fund your studies. So, read till the end and make your future bright!

Why is an education loan necessary?

Studying abroad can be expensive. The budget for tuition fees, hostel expenses, travel, and books together runs into lakhs of rupees. But with the right education loan, you can easily manage these expenses. These loans not only cover tuition fees but also cover expenses like living costs, insurance, and study tours. Also, tax exemption is available on loan interest under Section 80E, which makes your financial planning easier.

Best Education Loan for Study Abroad in 2025

Let’s look at the loan options of some top banks and NBFCs, which are best for studying abroad. I have explained their features in simple language, so that you can take the right decision.

1. SBI Global Ed-Vantage Scheme

State Bank of India’s Global Ed-Vantage loan is great for students who want to study in countries like USA, UK, Canada, or Europe. This loan is available from ₹20 lakh to ₹1.5 crore. The special thing is that for top universities, you can get a loan without collateral up to ₹50 lakh.

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Features:

• Interest rate: 11.15% p.a. (0.50% discount for girl students).
• Moratorium period: Up to 6 months after completion of course.
• Coverage: Tuition, hostel, books, and travel expenses.

2. Bank of Baroda Baroda Scholar

Bank of Baroda’s Baroda Scholar loan is best for courses like MBA, MCA, MS. The loan is up to ₹7.5 lakh without collateral and up to ₹1.5 crore with collateral. There is no margin for premier institutes.

Features:

• Interest rate: Starting from 10.40% p.a. (0.50% discount for girl students).
• Moratorium: Up to 12 months after completion of course.
• Pre-Visa Loan: Loan sanctioned before admission.

3. ICICI Bank Education Loan

ICICI Bank offers loans up to ₹3 crore for studies abroad. You can avail a collateral-free loan up to ₹1 crore for premier institutes. The process is digital and fast.

Features:

• Interest rate: 11% to 14% p.a.
• Moratorium: Course + 12 months.
• Coverage: Tuition, living cost, and insurance.

4. Avanse Education Loan

Avanse is an NBFC that offers customized loans. It offers loans up to ₹1.25 crore, with or without collateral. The process is fast and pre-visa loans are also available.

Features:

• Interest rate: Starting from 11.5%.
• Moratorium: Course + 12 months.
• Coverage: Tuition, books, travel, and laptop.

5. HDFC Credila

HDFC Credila is India’s first dedicated education loan provider, offering loans for 5000+ universities across 64+ countries. It offers 100% financing.

Features:

• Interest rate: 11% to 15% p.a.
• Repayment tenure: Up to 15 years.
• Coverage: Tuition, living cost, and study tour.

Comparison Table: Top Education Loans 2025

Loan Provider	Key Features
SBI Global Ed-Vantage	Up to ₹1.5 crore, 11.15% interest, 6 months moratorium, up to ₹50 lakh without collateral.
Bank of Baroda Baroda Scholar	Up to ₹1.5 crore, 10.40% interest, 12 months moratorium, pre-visa loan.
ICICI Bank	Up to ₹3 crore, 11-14% interest, 12 months moratorium, digital process.
Avanse	Up to ₹1.25 crore, interest from 11.5%, pre-visa loans, customised options.
HDFC Credila	100% financing, 11-15% interest, 15 years repayment, 5000+ universities.

What to keep in mind before applying for a loan?

• Check eligibility: You must be an Indian citizen, and have confirmed admission in a recognised university. Good academic record and co-applicant (parent/guardian) is a must.
• Keep the documents ready:
  • Admission letter
  • KYC (Aadhaar, PAN, Passport)
  • Income proof of co-applicant (salary slip, ITR)
  • Collateral documents (if required)
• Calculate the loan amount: Calculate the tuition fees, living cost, and other expenses. Platforms like GyanDhan can help you choose the best loan as per your profile.
• Compare interest rates: Interest rates in public sector banks (SBI, BoB) are 9-11%, while in private banks/NBFCs it is 11-15%. Choose the right option.
• Moratorium period: There is a grace period of 6-12 months after the completion of the course, during which EMI does not start.

Take advantage of government schemes

• Dr. Ambedkar Interest Subsidy Scheme: Interest subsidy on loans for studying abroad for OBC and EBC students.
• Padho Pardesh Scheme: Interest subsidy for minority communities.
• Gujarat Government Education Loan: Loan up to ₹15 lakh for students of Gujarat at 4% interest.

Apply for these schemes on Vidya Lakshmi Portal.

Why choose this loan?

• 100% financing: Covers everything from tuition to living cost.
• Flexible repayment: Tenure up to 10-15 years.
• Tax benefit: Interest exemption under Section 80E.
• Pre-visa loan: Proof of funds before applying.

How to apply?

• Choose a loan provider: Choose a bank/NBFC based on your needs and university.
• Apply online: Most banks (like Axis Bank) and NBFCs offer online applications.
• Submit documents: Platforms like GyanDhan make document submission easy.
• Loan sanction: After admission letter and document verification, the loan is sanctioned within 7-15 days.

Conclusion

Fulfilling your dream of studying abroad in 2025 is now easier than ever. Loan providers like SBI, Bank of Baroda, ICICI, Avanse, and HDFC Credila can provide you with the right financial support. With just quality content, the right documents, and smart planning, you can study in your dream university. So, check out your loan options today and give your career a boost!

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