Education Loan Schemes to Study Abroad: Banks, Loan Amount, Interest Rates & More

You have secured admission at your dream University abroad. Congratulations! Now comes the harder part of figuring out the funds. With international tuition and living costs climbing, education loans aren’t just a fallback; they are now a strategic funding option toward your goals. Thankfully, India’s Nationalized Banks have stepped up with student-focused loan schemes that are made exclusively for overseas studies. These schemes offer generous loan amounts, competitive interest rates, clear sanctions, and exceptional repayment terms. 

To save your precious time in research, in this article, we will take you through the best education loan schemes from India’s top Nationalized Banks. Keep reading to find out more about these exclusive loan schemes so you can confidently choose the one that aligns with your dream course, budget, and repayment comfort.

Education Loan Schemes to Study Abroad – An Overview

Studying abroad in a leading country often costs anywhere between INR 20 lakhs and INR 1.5 crore; at times, it can go beyond this depending on the course and its duration. These schemes usually cover tuition fees, accommodation, living costs, visa charges, travel expenses, health insurance, books, and other associated costs.

While certain schemes may cover 100% of these expenses, some might require a margin contribution from your end. Additionally, they offer moratorium periods of course duration plus 6 to 12 months with optional interest payments. The tenure for repayment can go up to 15 years. Most importantly, Nationalized Banks now provide collateral-free or risk-based collateral of up to INR 50 Lakhs, making it more accessible for students without heavy assets.

In essence, these schemes are enablers of ambition, giving you the means to turn acceptance letters into boarding passes. Going ahead, let’s help you find the right Govt education loan scheme.

Top Nationalized Banks Providing Education Loan Schemes to Study Abroad

As Government-backed financial institutions, Nationalized Banks bring credibility, transparency, and reliability. They support students from diverse economic backgrounds, ensuring access through well-structured schemes. Some of the most reliable education loan schemes supporting ambitious students are detailed below.

SBI Global Ed-Vantage Scheme: State Bank of India

SBI’s Global Ed-Vantage is a premium overseas education loan scheme designed for students heading to study at global Universities and Institutions. With funding up to INR 3 crores and sometimes even more, it offered secured loans for all study options. Very recently, SBI also introduced unsecured loans of up to INR 50 lakhs for selected top-ranked Universities. Interest concessions for women and SBI Life policyholders, this scheme balances financial strength with flexibility.

Key Highlights of this Scheme:

Special Union Education Loan Scheme for Premier Institutes Abroad: Union Bank of India

Another leading provider of substantial loan funding, UBI, has also introduced unsecured education loan options for students heading to Union Bank-approved global institutes. With Universities categorized into list A & B, applicants can get up to INR 40 lakhs of unsecured loans. With collateral submission, UBI is well-known for offering lower interest rates.

Key Highlights of this Scheme:

PNB Udaan: Punjab National Bank

PNB’s Udaan scheme supports meritorious students pursuing Diploma or Degree programs abroad. With an impressive INR 1.5 crore ceiling for select University-bound aspirants, Udaan offers among the lowest starting rates with additional concessions for women and a grace structure.

Key Highlights of this Scheme: 

Star Education Loan – Studies Abroad: Bank of India

Bank of India’s Star Education Loan supports international study aspirations by offering higher loan limits, moderate interest rates and standard collateral requirements. A solid option for students seeking dependable Public-sector support with familiar loan terms.

Key Highlights of this Scheme: 

Baroda Scholar Scheme: Bank of Baroda

The Baroda Scholar scheme brings 100% funding with zero margin for secured loans at Premier listed Universities. It also accepts third-party property as collateral, which is helpful for students without parental assets. With competitive interest rates for select universities and refundable fees, it stands out for flexibility and cost efficiency.

Key Highlights of this Scheme:

Model Education Loan Scheme: Bank of Maharashtra

Bank of Maharashtra’s Model Education Loan is a steadfast PSU scheme offering standard overseas loan benefits, medium-sized ceilings, collateral-based funding, and interest near to other Nationalized Banks. BOM’s education loan EMI calculator is equally excellent.

Key Highlights of this Scheme:

Each of these schemes highlights how Nationalized Banks are striving to simplify overseas education finance. Whether it’s collateral flexibility, low-interest brackets, or zero loan margin, students today experience unprecedented choice and support. Pursuing higher education abroad is one of the boldest investments you will ever make, not just in terms of money, but in your future self. Nationalized Banks, with their deep-rooted trust, are quietly fueling countless success stories every year.

The right education loan doesn’t just pay your fees; it funds your time, confidence, and the freedom to focus on excelling in your academics. So, weigh your options, crunch the numbers, check for the CSIS scheme for education loan and choose the Bank that understands your vision. Reach out to our Experts at Élan Overseas Education Loans to get comprehensive assistance from applications to approval and beyond.

FAQs

1. Can I apply for an education loan before receiving my admission letter?

No, you can start the application process only after having a confirmation of enrolment. In the meantime, you can get your search report and valuation report ready to get a collateral-based loan.

2. Is it possible to get 100% financing without a loan margin from Nationalised Banks?

Some schemes from Nationalised Banks provide up to 100% financing for students admitted to Top-Ranked Universities, eliminating the need for a margin amount. This is often subject to eligibility and collateral.

3. What happens if I can’t secure a job immediately after my studies?

Banks generally provide flexibility by extending the moratorium period or restructuring the repayment schedule. Communication with the Bank is vital in such situations to avoid default.

4. Can I prepay my education loan without penalties?

Yes, most Nationalized Banks do not charge prepayment penalties, allowing you to pay off the loan early if you wish to reduce interest costs.

5. Do Nationalized Banks offer concessional interest rates for female students?

Yes, several Banks offer a 0.5% interest rate concession for female students.

6. How important is a co-applicant for my education loan application?

A co-applicant is almost always required for loans from Nationalized Banks. They are equally responsible for repayment and can improve your eligibility.