Tata Capital Abroad Education Loan: Key Features, Eligibility & More

Dreaming of studying at a Top Global University? That dream probably comes with a not-so-little question: how do you fund it? While the idea of packing your bags for a new country is exciting, figuring out your finances can feel like trying to solve a Rubik’s Cube blindfolded. That’s where overseas education loan steps in, not just as financial aid, but as a launchpad for your future.

Now, with dozens of financial lenders promising the best deals, choosing the right one can get tricky. But if you're looking for a blend of trust, flexibility, and legacy, you might want to take a closer look at Tata Capital. Backed by the credibility of the Tata Group, this NBFC has been helping students like you fund their overseas dreams since 2007, with loan features that are both viable and student-friendly.

The best part? You don’t need to hop across tabs to gather the details. We’ve put everything you need to know about the Tata Capital Abroad Education Loan in one handy guide. So, let’s get straight to it.

Key Features of Tata Capital Abroad Education Loan

Tata Capital is one of the most trusted NBFCs in India, offering both secured and unsecured loans at competitive overseas education loan interest rate. Whether you're aiming for a top University in the US, UK, or beyond, Tata Capital provides flexible solutions to support your academic journey. So, let’s take a closer look at the key numbers and features in the table below. 

Here’s an interesting fact you should know as a borrower: you can enjoy tax benefits on the interest paid under Section 80E of the Income Tax Act, a smart perk that often flies under the radar but can lead to significant savings over time.

Now that you’re aware of this added advantage, let’s move ahead and take a look at the education loan eligibility to understand who can apply for Tata Capital’s abroad education loan.

Eligibility Criteria for Tata Capital Abroad Education Loan

When it comes to applying for an overseas education loan, knowing whether you meet the eligibility criteria can save you a lot of time and effort. Thankfully, Tata Capital keeps things fairly simple, ensuring that eligible students and their co-applicants can move through the process smoothly. Here’s what you need to check off.

• You should be between 18 to 35 years old at the time of application.

• Only Indian Nationals are eligible to apply.

• A confirmed admission to a recognized International University is a must.

• A minimum of 60% in your most recent academic qualification (10th, 12th, or graduation) is generally expected.

• The Fixed Obligation to Income Ratio (FOIR) for your financial co-applicant should be 65% or lower, ensuring they can support the repayment.

• If salaried, your co-applicant should be 60 or below; if self-employed, the limit is 65 years.

• A CIBIL score of 700+ is ideal. However, Tata Capital may consider profiles with slightly lower scores based on the overall strength of the application.

By ticking these boxes, you're already on the right track to securing the financial support you need for your global education goals. But meeting the eligibility criteria for education loan is just the first step; your application also needs to be backed up by the right set of documents.

So, before you move ahead, let’s take a look at the essential paperwork required under the next section. 

Documents Required for Tata Capital Abroad Education Loan

Submitting the right paperwork not only speeds up the approval process but also reflects your readiness and credibility as an applicant. Here's a simplified and comprehensive list of documents you’ll need to submit, both as a student and as a co-applicant.

Basic Documents of Applicant & Co-Applicant

• Duly filled Tata Capital Education Loan Application Form

• Applicant and Co-Applicant Signatures

• Proof of identity such as PAN Card and Passport

• Two recent Passport-Sized Photographs

• Proof of residence, any one or two if present and permanent addresses differ of the following:

         1. Ration card
        2. Voter ID
        3. Telephone or Electricity Bill
        4. Aadhar Card
        5. Passport

• Latest Six Months’ Bank Statements (Personal or Salary Account)

• If the co-applicant is salaried or self-employed, a 12-month Bank Statement showing business transactions is preferred

• A Self-Attested Personal Asset and Liability Statement, reviewed by a Tata Capital Representative

Academic Documents of the Applicant

• Mark sheets of Class 10, Class 12, and Graduation

• Admission letter or confirmation showing the full duration of the course

• Cost structure or I-20 Form (for applicants going to the USA)

• English Language Proficiency & Standardised Test Scores (if applicable)

Income Documents of the Co-Applicant

If salaried:

• Last 3 Months’ Salary Slips

• Form 16 for the past 2 years

• Employment Certificate and Employer ID Card

• Income Tax Returns (ITRs) filed for the last 2 financial years

If self-employed:

• ITRs for the past 3 years

• Latest Balance Sheet and Profit & Loss Statement

• Business Address Proof

Other Supporting Documents

• A signed undertaking by the co-applicant confirming they’ll cover any additional expenses not funded by the loan

• A cheque of Rs. 11,800 towards processing fee

• Separate cheque for legal and property valuation charges, if done by Tata Capital

• Property owner’s affidavit (on Rs. 20 or Rs. 100 stamp paper). If there are multiple owners, each must provide one.

Additional Documents if Applicable

• Pro Forma Invoices for Travel, Laptops, or Related Study Expenses

• Receipts for advance payments made towards the course or materials

• Any existing loan account statements for the past year

Submitting these documents, arranged and self-attested, will ensure that your loan journey stays on track without unnecessary delays. Now that you’ve ticked off the eligibility criteria and gathered all the required documents, it’s time for the most important step for the loan. 

How to Apply for a Tata Capital Abroad Education Loan?

Applying for an overseas education loan might sound like a long process, but with Tata Capital, it’s fairly simple as long as you know what to expect. Since the entire application is handled offline, it’s a good idea to be well-prepared before visiting the branch. To make things easier for you, here’s a step-by-step breakdown of how the process works.

Step 1: Visit your nearest Tata Capital Branch

Start by heading to the Tata Capital branch closest to you. The representatives there will provide you with the official education loan application form.

Step 2: Meet the Eligibility & Submit Documents

Once they review your profile and confirm that you meet the eligibility criteria, you’ll be guided to submit all the necessary documents, make sure everything is self-attested and neatly arranged.

Step 3: Submit your Completed Application

Return to the branch with your filled-out form and complete set of documents. The staff will help verify and process your application.

Step 4: Loan Processing & Disbursement

After document verification and credit evaluation, the loan will be processed. If approved, the sanctioned amount will be disbursed, usually directly into the student’s bank account or as per the University’s fee payment structure.

Now that you know exactly how to apply, there's one more important detail to cover before you proceed. 

Tata Capital Abroad Education Loan Processing Fee & Insurance

When applying for your Tata Capital abroad education loan, it’s important to factor in the additional charges that come along with the sanctioned amount. One of the key components is the processing fee, which is 1% of the loan amount plus GST. This is a one-time, non-refundable charge collected by the lender during the loan processing stage.

In addition to this, Tata Capital also offers loan insurance, which can be up to 2% of the sanctioned loan amount. While optional in some cases, taking insurance is strongly recommended, especially since it offers financial protection in case of any unfortunate events such as disability or the untimely demise of the borrower. 

It ensures that your co-applicant or family doesn’t face the burden of repaying the loan in your absence. Moreover, travel insurance is mandatory and is part of the loan package, giving you added security as you prepare to move abroad. Now that you know the costs involved beyond the loan amount, let’s understand how your EMIs would look based on interest rates.

Tata Capital Education Loan EMI Calculation as per Interest Rate

Once your loan is sanctioned, the next big thing to understand is how repayment works. Tata Capital offers flexible repayment options, giving you ample time to manage your finances after completing your studies.

Your EMI (Equated Monthly Installment) will depend on the loan amount, interest rate, and repayment duration. To give you a clearer picture, here’s a sample scenario:

Let’s say you borrow Rs. 20 lakhs at an interest rate of 11% for a tenure of 10 years. Your repayment schedule would be as given below: 

• Monthly EMI: Rs. 27,527

• Total Amount Payable: Rs. 33,03,240

• Total Interest Payable: Rs. 13,03,240

This gives you a fair idea of what to expect and how to plan your finances accordingly. You can also use an EMI calculator to estimate your exact repayment based on your chosen loan terms. Now that you’ve got a handle on how repayments work, let’s explore another smart move, that is, transferring your existing education loan to Tata Capital for better benefits and lower rates.

Why & How to Transfer your Abroad Education Loan to Tata Capital?

If you already have a collateral or a non collateral education loan but feel like you’re paying more than you should, transferring your loan to Tata Capital could be a smart financial move. It’s a simple process, and the benefits can be substantial. But there might be two questions in your mind: Why and How? Well, let us discuss that head.

Why should you consider transferring Your Loan to Tata Capital?

You could enjoy a lower interest rate, which means reduced EMIs and overall savings in the long run. The transfer process is quick and hassle-free, especially since Tata Capital works closely with major Private Banks, Public Banks, and other NBFCs. It’s an excellent way to get better repayment terms and improved flexibility, something you might not have had with your original lender.

How can you transfer your Education Loan to Tata Capital?

Start by reaching out to the financial experts at Élan or request a callback from our team. A dedicated expert will guide you through the process and share a customized list of documents required for the loan transfer. Once you're ready, submit the required documents to your nearest Tata Capital branch. 

From there, the loan transfer request will be processed for approval. Throughout the process, you won’t be left to guess; our expert will be there to answer all your questions and ensure your transition is smooth from start to finish.

So, here we are at the end of your Tata Capital education loan journey. While the entire process might seem simple at first glance, the reality is, it involves a lot of back-and-forth, paperwork, and branch visits. Since it’s an entirely offline process, it can quickly become time-consuming and a bit overwhelming.

But here’s the good news: you don’t have to go through it alone. Instead of juggling everything yourself, let our Élan Loan Experts step in. From checking your eligibility to helping you compile documents and guiding you through loan approval or transfer, they’ve got it all covered. With their expert support, your education loan process becomes smooth, well-structured, and stress-free. 

So why wait? Book your free counselling session today!

FAQs

1. Is there a possibility of getting a top-up loan if my education expenses increase midway?

Tata Capital may allow a top-up or additional loan during the course period, but it depends on the original repayment record, co-applicant’s financial profile, and remaining eligibility based on property or income.

2. Does Tata Capital fund Part-Time or Online International Programs?

No, Tata Capital only offers loans for full-time, on-campus programs at recognized international institutions. Part-time, distance learning, or online-only courses are generally not eligible.

3. Can I repay the loan early? Is there a prepayment penalty?

Yes, you can prepay your Tata Capital education loan either partially or fully. The good news is that there are no prepayment penalties for floating rate loans, making early repayment easier and cost-effective.

4. What happens to the loan if I don’t get a job immediately after completing my course?

Tata Capital offers a moratorium period (grace period) that covers the course duration plus a few months afterwards. However, if you're unable to start repayment after this period, you may need to request a restructuring or extension, which is handled on a case-by-case basis.

5. Do you need a Gap Certificate for a Tata Capital Abroad Education Loan?

Not necessarily. Tata Capital usually doesn’t ask for a gap certificate. However, you’ll still need to provide a complete set of academic documents, like your 10th and 12th mark sheets, entrance test scores (if applicable), and proof of admission to a recognized International University.