🌍 Everything You Need to Know About Study Loans for Abroad Education in 2025

Whether you’re planning to study in Canada, the UK, Australia, or the USA, this 2025 guide will walk you through everything you need to know about study loans for abroad education — from eligibility and documentation to top lenders and repayment options.

🎓 Why Education Loans Are Vital in 2025

In 2025, the average cost of studying abroad (tuition + living) ranges from ₹25–60 lakhs for a full degree. An education loan not only helps manage these expenses but also offers:

✅ Financial flexibility
✅ Tax benefits under Section 80E
✅ Better credit history for the student
✅ Easy forex and fee payments via authorized lenders
✅ Moratorium period (no EMI till course completion)

💰 Types of Study Loans for Abroad Education

There are two main types of education loans available for Indian students:

1. Secured Education Loan (With Collateral)

• Requires property, FD, LIC policy, or other assets as security

• Usually has a lower interest rate (around 9–10%)

• Suitable for large loan amounts (₹30–80 lakhs)

• Offered mainly by public and private banks

2. Unsecured Education Loan (Without Collateral)

• No collateral or property required

• Higher interest rate (10.5–13%)

• Offered by NBFCs, private banks, and fintech lenders

• Ideal for short-term or lower-budget courses abroad

🌐 Top Study Loan Providers in India (2025)

Here’s a list of leading lenders offering international education loans in 2025:

CategoryBanks/NBFCsPublic Sector BanksSBI, Bank of Baroda, Union Bank, Canara BankPrivate BanksICICI Bank, Axis Bank, HDFC Bank, IDFC FirstNBFCsAvanse, InCred, Auxilo, HDFC Credila, Prodigy FinanceGovernment SchemesVidya Lakshmi Portal, Dr. Ambedkar Central Scheme

💡 Tip: Always compare interest rates, moratorium periods, and processing fees before applying.

📋 Eligibility Criteria for Study Loans Abroad

Most banks have similar eligibility guidelines in 2025:

CriteriaRequirementsNationalityIndian citizenAdmission ProofConfirmed admission from a recognized foreign universityCourse TypeGraduate, postgraduate, or professional courseCo-applicantParent/guardian with a steady incomeAcademic RecordConsistent performance and credible backgroundCollateral (if applicable)Property documents or financial security

🧾 Documents Required for Education Loan

Here’s what you’ll typically need:

• Admission letter from university

• Mark sheets (10th, 12th, degree)

• Passport & Visa (if available)

• Cost estimate from university

• KYC documents (student + co-applicant)

• Income proof (salary slips, ITR, bank statements)

• Collateral papers (for secured loans)

💸 Loan Amount & Coverage

Most Indian lenders fund up to ₹50–80 lakhs for overseas education. Coverage typically includes:

✅ Tuition fees
✅ Living expenses
✅ Books & equipment
✅ Travel costs
✅ Insurance & exam fees

🕓 Repayment & Moratorium Period

In 2025, most lenders offer a moratorium period — meaning you don’t have to pay EMIs while studying.

Repayment begins after:

• Course completion + 6–12 months grace period

• Loan tenure: 5–15 years

• Prepayment allowed (check for any charges)

📈 Interest Rates in 2025

Lender TypeAverage Interest RatePublic Banks9–10.5%Private Banks10–12.5%NBFCs11–13%

Pro Tip: Opt for floating rates linked to repo rate cuts for potential future savings.

🧭 How to Apply for a Study Loan in 2025

1. Research & Compare Lenders – Based on country, course, and loan amount.

2. Check Eligibility – Ensure your co-applicant and academic record meet criteria.

3. Gather Documents – Admission letter, cost sheet, KYC, and income proof.

4. Submit Application – Online or through branch.

5. Verification & Sanction – Bank assesses academic & financial profile.

6. Disbursement – Loan amount transferred directly to university account.

🧠 Smart Tips Before Applying

✅ Apply at least 3 months before visa application.
✅ Maintain a strong CIBIL score (700+) for co-applicant.
✅ Choose universities approved by lenders to avoid rejections.
✅ Use Vidya Lakshmi Portal to compare multiple banks easily.
✅ Negotiate for interest rate concessions (especially for female students).

🌏 Multani Visa — Your Study Loan Partner for Global Education

At Multani Visa, we simplify the study loan process for students across India.
With partnerships across 22+ banks and NBFCs, we help you get:

• Quick loan approvals

• Lowest possible interest rates

• Country-specific loan advice

• Step-by-step assistance till disbursement

📞 WhatsApp: +91 70568-49667
🌐 Visit: multanivisa.com

✈️ Final Thoughts

In 2025, a study loan is not just financial aid — it’s your passport to global education. With smart planning, the right lender, and proper documentation, you can unlock opportunities to study in world-class universities without financial stress.

🔖 Suggested Read:

• Top 10 Countries Indian Students Prefer for Higher Education in 2025

• 5 Budget-Friendly International Trips Under ₹1 Lakh for Indians

• Top 5 Work Visa Friendly Countries for Indians in 2025