According to the Economic Times, around 3 lakh Indian students go abroad annually and in last two-three decades, the number of students choosing for higher education abroad has increased tremendously. Educational loan is the biggest support for middle class and lower-middle-class students who wish to acquire education in foreign countries as we all know that it is a costly affair and the overall expenses are very high. Today, there are numerous financiers and banks offering loans to students depending on the amount of loan.

In India, there are two types of loan are available: Education loan for studying in Indian universities and education loan for studying overseas. Naturally, there are some differences in the requirements for overseas and Indian education loans. But, in general, when applying for a study loan, you must keep in mind the following standards:

  • A co-applicant is a must, could be parents, a sibling or a spouse.
  • For minimum amount loans between Rs 4 – 7.5 lacs a third party guarantor is required, in this case, you don’t have to mortgage your property.
  • Guarantee needs to be provided for student loans above Rs 7.5 lacs, need to mortgage something.
  • Loan repayment starts 6 to 12 months after course completion, depending on the terms and conditions of financers.
  • If a student goes abroad, financier recovers the rest from co-applicant for example parents.

The criteria for the interest rate to be charged, the period of payments, the upper limit of payment and complete loan period are dependent on respective financers.

Loan sanction policies also depend on financers, usually, they have some pre-approved courses and institutions. The sanction education loans also depend on the basis of the quality of the institution, the significance of the course to career options, creditworthiness of the guarantor or co-applicant and applicants credibility.

Those who want to apply for education loan in India, lenders will look for AICTE or UGC approval.

What will be covered in education loan for abroad or for India:

  • Tuition fees
  • Hostel expenses to some extent
  • Examination fees; library and laboratory charges
  • Cost of books and stationery
  • Study tours, seminars and project work
  • Travel expenses for study abroad

You need to provide all the supporting documents for your institution or university fee structure and other expenses you wish to claim.

Documents Required:

Study Abroad

  • Mark sheet for last qualifying examination for school and graduate studies in India original and a set of attested one
  • Proof of admission to the course, admission letter or letter of acceptance
  • The fee structure for university and scheduled fee structure
  • If applicable a copy of the letter confirming scholarship
  • Copy of passport as a document
  • Two passport size photographs
  • Statement of borrowers bank account for last six months or depending on bank terms and conditions
  • Income Tax valuation order not older than two years
  • A brief statement of Borrowers Assets and Liabilities or borrowers parents

Study in India

  • Completely filled the application form
  • Identity Proof
  • Photographs
  • SSC, HSC, and Graduation mark sheets
  • Degree certificates
  • Age Proof
  • Residential Proof
  • KYC
  • Income certificate of parents/guardians
  • Mortgage documents of property or in the form of FDs.


If you are a student from India aiming to study abroad or in a good Indian university, you can make the process easier by choosing to apply through “The Educational Adviser”. We have experience dealing with education loan for abroad and also in India. We have a team of qualified and dedicated staff. We offer valuable advice to students and help them find the right university and study changes in countries like Canada, US, Australia, UK, New Zealand, Germany by helping them in financial planning. We also guide our students throughout the loan application and documentation process.