Education loans for study abroad: fund it without risking your home
Compare secured and collateral-free loans from SBI, HDFC Credila, Axis, ICICI and international lenders, with typical limits and the documents banks ask for.
Indian students can usually borrow up to ₹50 lakh without collateral from lenders such as HDFC Credila, Axis Bank and ICICI Bank, depending on the university and course. Secured loans against property or a fixed deposit go up to ₹1 crore or more, often at lower rates, through banks like SBI. International lenders such as Prodigy Finance and MPOWER lend without an Indian co-signer for selected universities. Abbacy helps you compare offers and get a sanction letter before your visa appointment, free of charge.
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Should I take a secured or collateral-free loan?
| Secured (with collateral) | Collateral-free (unsecured) | |
|---|---|---|
| Loan amount | ₹7.5 lakh to ₹1 crore+ | Usually up to ₹50 lakh |
| Interest | Lower | Higher |
| Security | Property, fixed deposit or LIC policy | None; strong co-borrower needed |
| Processing time | Typically 3–6 weeks | Typically 1–3 weeks |
| University rules | Few restrictions | Often limited to approved universities |
| Typical lenders | SBI, Bank of Baroda, PNB | HDFC Credila, Avanse, Axis, ICICI |
Indicative; terms vary by lender, course and co-borrower.
Which banks and lenders give study abroad loans?
| Lender | Type | Best for |
|---|---|---|
| SBI (Global Ed-Vantage) | Public bank | Large secured loans at low rates |
| Bank of Baroda | Public bank | Secured loans for strong profiles |
| HDFC Credila | NBFC | Collateral-free loans, fast sanction |
| Axis Bank and ICICI Bank | Private banks | Quick processing, secured and unsecured |
| Avanse and InCred | NBFCs | Flexible profiles and courses |
| Prodigy Finance and MPOWER | International | No Indian co-signer, selected universities |
Interest rates change frequently; we compare live offers for your profile.
What documents do banks ask for?
- Admission or offer letter and cost of study
- Your academic marks memos, test scores and passport
- Co-borrower's KYC, income tax returns and salary slips or business proof
- Bank statements for the last 6 months
- Property or fixed deposit documents for secured loans
- Compare offersWe match your profile to lenders likely to approve you.
- Pre-sanctionGet an in-principle sanction to support your I-20, CAS or visa file.
- Final sanctionSubmit documents and receive the sanction letter.
- DisbursementFunds are paid to the university, usually in instalments.
What will my EMI be?
| Loan amount | At 9% (secured) | At 11% (unsecured) |
|---|---|---|
| ₹20 lakh | ≈ ₹25,300/month | ≈ ₹27,600/month |
| ₹40 lakh | ≈ ₹50,700/month | ≈ ₹55,100/month |
| ₹60 lakh | ≈ ₹76,000/month | ≈ ₹82,700/month |
Over 10 years. Most loans have a moratorium during the course plus 6–12 months. Try the EMI calculator.
Interest paid on an education loan can be deducted from taxable income under Section 80E for up to 8 years, which reduces the real cost of borrowing.
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Frequently asked questions
Can I get an education loan without collateral?
Yes. Lenders such as HDFC Credila, Axis Bank, ICICI Bank and Avanse offer unsecured loans of up to about ₹50 lakh, depending on your university, course and co-borrower's income.
How long does an education loan take to sanction?
Unsecured loans can be sanctioned in 1–3 weeks once documents are complete; secured loans usually take 3–6 weeks because of property valuation.
Is a loan sanction letter accepted for the visa?
Yes. A sanction letter from a recognised lender is accepted as proof of funds for UK, US, Canadian and Australian student visas, subject to each country's rules.
What is the moratorium period?
Most lenders let you start full repayment after your course ends plus 6–12 months, though some ask you to pay simple interest during study.
Does Abbacy charge for loan help?
No. Our education loan guidance and sanction support are free.
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