Call Elan

Phone Number




Why Approach Government Banks for Overseas Education Loans?

Are you dreaming of studying abroad to expand your horizons and secure a brighter future? Well, you are not alone. Many ambitious minds like you aspire to pursue education in renowned international institutions. But let's face it, financing such endeavors can be overwhelming sometimes.

There are several Government or Nationalized banks that have your back, they understand the importance of global education and are here to make it happen for you. These banks offer affordable and accessible education loans tailored to your needs, ensuring that financial constraints don’t hold your steps behind.

In this article, we will walk through the offerings of education loan for abroad studies by the Indian government banks. With transparent loan structures and favourable interest rates, they ensure that nothing stands in the way of your academic aspirations. So, buckle your seats as we dive in deep.

Benefits of Securing Overseas Education Loans from Government Banks

Weigh up these advantages of opting for an overseas education loan from a government bank. Here's why this route might be a smart move for you.

  • Lower Interest Rates
    Government banks offer significantly lower interest rates compared to private banks and other financial institutions. This leads to substantial savings over the loan tenure, enabling you to focus on your studies abroad.

  • Diverse Schemes for Targeted Support
    Many government banks offer special loan schemes with interest rate concessions for specific demographics or academic pursuits. For instance, some banks provide a 0.50% concession for girl childwhile others might offer lower rates for students enrolled in prestigious universities abroad.

  • Extended Moratorium Period
    These banks often provide a moratorium period that extends beyond the course duration, sometimes up to 1 year. This EMI holiday period allows you to find your footing in the job market after graduation before repayment kicks in, reducing initial financial pressure.

Remember, choosing the right loan provider is crucial but for that, you need to do thorough research and compare interest rates, loan amounts, etc. Nevertheless, to save you time and energy, we have discussed some of the top financial lenders ahead.

Top Government Banks Offering Overseas Education Loans

  • Punjab National Bank
    Punjab National Bank's "PNB Udaan" scheme enables ambitious students to chase their dreams abroad. It offers financial aid for nearly all recognized, courses. With competitive interest rates and flexible repayment options, PNB Udaan helps bridge the gap between your aspirations and international education.

Quantum of Finance
Starting Interest Rate
Up to 1.5 Cr
For Top Ranked Universities - 9.25%
For Other Universities - 10.5%

  • Union Bank of India
    Union Bank of India's "Union Education Loan Scheme for Abroad Studies" offers collateral-free loans up to Rs. 40 lakhs for postgraduate studies at top universities worldwide. This eases the financial burden for meritorious students, allowing them to focus on excelling in their chosen field.

Quantum of Finance
Starting Interest Rate
For Unsecured Loan – Up to 40.00 Lakh
For Secured Loan – Up to 1.5 Cr
9.75% for Unsecured Loan
9.25% for Secured Loans with 100% Collateral

  • State Bank of India
    State Bank of India's "Global Ed-Vantage" scheme caters to students aiming for full-time overseas education. It provides loans up to Rs. 1.5 crore to cover tuition, living expenses, and even travel costs. Competitive interest rates and a long repayment window of up to 15 years make it a comprehensive solution for funding your international academic journey.

Quantum of Finance
Starting Interest Rate
Up to 1.5 Cr

  • Bank of Baroda
    Bank of Baroda's "Baroda Scholar" scheme offers loans up to Rs. 1.5 Cr with attractive interest rates and flexible repayment options. Students can even benefit from a processing fee waiver for loans up to Rs. 7.5 lakhs, making it an accessible option for funding your international studies.

Quantum of Finance
Starting Interest Rate
Secured Loan for Prime List Universities - Up to 1.5 Cr
Secured Loan for Non-Prime List Universities - Up to 60 Lakh

For Prime List Universities - 9.70% 
For Non-Prime List Universities – 10.20% 

  • Bank of India
    Bank of India's "Star Education Loan" empowers students with a secured loan as per your cost project and unsecured loans up to Rs. 7.5 lakhs. It covers tuition fees, travel expenses, and even one-way airfare. The scheme requires minimal paperwork, offers competitive interest rates, and a moratorium period to ease the initial financial burden.

Quantum of Finance
Starting Interest Rate
Up to 1.5 Cr
For Premier University List - 10.25%
For Non-Prime List - 11.75%

  • Bank of Maharashtra
    Bank of Maharashtra's "Model Education Loan" schemes cater to students pursuing overseas education. It provides funding up to Rs. 20 lakhs for job-oriented programs abroad, with a 15% margin requirement.

Quantum of Finance
Starting Interest Rate
Up to 1.5 Cr
For Premier University List - 10.55%
For Non – Prime University List - 10.95%

Before reaching out to these government banks it is important to check whether you are eligible to apply for an overseas education loan. So, for clarity of thoughts, we have discussed it further.

Eligibility Criteria

Here's a general idea of the eligibility for a government bank offering overseas education loan.

  • You must have India citizenship.

  • The age limit should be 18 plus.

  • A good academic record is required.

  • Confirmed admission to a recognized foreign university for a full-time program.

  • A co-applicant with a strong financial footing.

It is always better to be pre-prepared, so file all the essential documents that we have mentioned below.

Essential Documents Required for Loan Application

  • Completed Loan Application Form: Duly filled and signed with recent passport-sized photographs.

  • Admission Documents: Offer letter/Admission letter from the university.

  • Identity & Address Proof: Aadhaar Card, PAN Card, Passport, Utility bills (electricity/water/telephone).

  • Academic Documents: Mark sheets (10th, 12th & Graduation if applicable), Entrance exam scores (GMAT, GRE, TOEFL/IELTS).

  • Financial Documents: Co-applicant income proof (salary slips/ITR/bank statements).

  • Collateral-related documents if you are opting for a secured loan.

  • CIBIL Score Proof: It is essential to have a good CIBIL score and credit history.

Final Thoughts

Certainly, opting for an overseas education loan from government banks is a strategic decision. Since there are numerous banks offering competitive interest rates, attractive schemes, and substantial loan amounts, it's crucial to conduct thorough research to find the right fit. However, this process can be time-consuming. That's where we, at ELAN Overseas Education Loans, step in to assist you every step of the way until your loan is sanctioned. Simply book a session and get free online counselling for study abroad loan with our experts. Moreover, we'll help you find the best banks with competitive interest rates.

So, connect with us today to get all your queries resolved!


  • Which are the top government banks for overseas education loans?

    Here are some of the top government banks: Punjab National Bank, Bank of Baroda, Union Bank of India, Bank of India, State Bank of India, and Bank of Maharashtra.

  • How much quantum of finance is offered by government banks for secured loans?

    Government bank offers loans up to 1.5 Cr or more depending on your project cost.

  • Which scheme is offered by Punjab National Bank?

    PNB Udaan is the scheme offered by Punjab National Bank.

  • How much interest rate is offered by the State Bank of India?

    The starting interest rate offered by SBI is 11.15% with a concession of 0.50% for girl child and 0.50% for Rin Raksha Insurance.

  • What are the basic eligibility criteria to apply for an overseas education loan in government banks?

    You must be a citizen of India, you should be above 18 years old, a good academic record is necessary, confirmed admission to a recognized university and a co-applicant with a strong financial background.


Articles on Overseas Education Loans

Education Loan for MBA in Australia
Pursuing an MBA in Australia is a dream for many international students...
Education Loan for Masters in New Zealand
Imagine waking up to breathtaking landscapes, being part of a vibrant...
Cost of Living and Studying in Canada for International Students
Canada is a popular destination for international students seeking...