Can I apply for a loan with a cosigner?
Yes, you can apply for a loan with a cosigner. A cosigner with a strong credit history can improve your chances of approval, especially if you have limited or no credit.
Can I get a study abroad loan without collateral?
Yes, unsecured education loans are available up to ₹7.5–40 lakhs (depending on lender and student profile).
However, interest rates may be higher compared to secured loans.
What types of courses are eligible for an education loan abroad?
• Undergraduate programs (Bachelors)
• Postgraduate programs (Masters, MBA, MS)
• Professional courses (Medicine, Engineering, Law)
• Diploma and certificate courses (in select cases)
What is the difference between an education loan from banks vs NBFCs for studying abroad?
• Banks: Lower interest rates, government subsidy schemes, but stricter rules and longer processing.
• NBFCs: Faster approval, flexible repayment, higher sanction amounts, but higher interest.
How much loan amount can I get for studying abroad?
• Up to ₹1.5 Cr with collateral-based loans.
• Unsecured loans generally range between ₹7.5 lakhs to ₹40 lakhs.
Loan amount depends on country, university ranking, and course expenses.
What is an SOP for a study abroad loan?
A Statement of Purpose (SOP) for a loan is a document where you explain:
• Why you want to study abroad
• Your career goals
• Your repayment plan after studies
A strong SOP can improve your chances of loan approval, especially for unsecured loans.
How do I write a convincing SOP for an education loan?
• Mention course details, university, and why you chose it.
• Highlight your academic and career achievements.
• Explain financial background and need for the loan.
• Show repayment capability (future job opportunities, salary expectations).
What are the interest rates for overseas education loans?
• Public banks: 9% – 12% (with collateral, can be lower).
• Private banks/NBFCs: 11% – 15% (unsecured).
• Female students may get concessions of 0.5%.
Do I need to show collateral for every study abroad loan?
No. Collateral is mandatory only for secured loans.
For unsecured loans, income proof and credit history of the co-applicant are crucial.
Can I apply for a study abroad loan online?
Yes, most banks and NBFCs allow online applications.
You can check eligibility, upload documents, and get pre-approval digitally.
How does the moratorium period work in an education loan abroad?
The moratorium is a holiday period where you don’t need to repay EMIs.
It usually includes your course duration + 6–12 months after graduation.
Can I get a study abroad loan if my co-applicant has a low CIBIL score?
Yes, but lenders may reduce the loan amount, increase interest rates, or ask for collateral.
In such cases, NBFCs are often more flexible.
What are the common reasons for education loan rejection?
• Low academic performance
• Unrecognized university/course
• Weak financial background of co-applicant
• Poor CIBIL score
• Incomplete documentation
How to improve chances of getting a study abroad loan approved?
• Maintain a strong academic record.
• Apply to recognized and reputed universities.
• Arrange a financially stable co-applicant.
• Submit a detailed SOP for the loan.
• Provide collateral if possible.
Are there government schemes for study abroad loans?
Yes, schemes like Vidya Lakshmi Portal and Padho Pardesh (for minority students) provide subsidized interest rates and easy access to education loans.
Can I transfer my existing education loan to another lender?
Yes. Loan refinancing or balance transfer allows you to shift to a lender with lower interest rates or better repayment terms.
Can I get a study abroad loan if I don’t have an admission letter yet?
Some lenders provide in-principle sanction letters which can be used to strengthen your visa application.
Final loan disbursement needs admission proof.
Is health insurance covered in a study abroad loan?
Yes, most lenders include medical insurance, travel insurance, and visa-related expenses under the loan.
How do lenders decide the education loan amount?
Loan amount is based on:
• University ranking and country
• Tuition + living cost
• Co-applicant’s financial profile
• Student’s academic record
Can I work part-time abroad to repay my education loan?
Yes, but repayment is expected primarily from post-study employment.
Some countries have restrictions on part-time work hours for international students.
Can I apply for a study abroad loan if my parents are retired?
Yes, but lenders may ask for another co-applicant with a steady income or collateral security.
Some NBFCs accept retired parents if there are strong collateral assets.
What is the minimum percentage required to get an education loan for studying abroad?
Generally, students should have at least 55–60% marks in their last academic qualification.
However, for reputed universities, even average scores may be accepted if other factors (SOP, collateral, co-applicant) are strong.
Can I get a study abroad loan for diploma or short-term courses?
Yes, but most lenders prefer degree or professional courses.
Some NBFCs and private banks do provide loans for diplomas, vocational, and language programs abroad if the institute is recognized.
Can I apply for multiple education loans from different banks?
You cannot take multiple loans for the same course, but you can apply to different banks/NBFCs to compare offers and choose the best one before finalizing.
What happens if I am unable to repay my education loan abroad?
Defaulting affects both the student’s and co-applicant’s CIBIL score,
leading to legal action or collateral seizure (if applicable).
It also impacts future loan eligibility.
Can I get an education loan if I already have a personal loan or home loan?
Yes, but lenders will check your existing liabilities and repayment capacity.
Too many loans can reduce eligibility or increase interest rates.
Is GRE/GMAT/IELTS/TOEFL mandatory for study abroad loans?
Not mandatory for loans, but required for admission to certain universities.
If the course/university doesn’t demand these tests, banks/NBFCs generally do not insist on them.
Do banks provide foreign currency loans for studying abroad?
Yes. Many banks disburse loans in foreign currency directly to the university’s account to avoid conversion charges.
NBFCs also offer forex-based loans.
What is the maximum repayment tenure for a study abroad loan?
Repayment tenure can go up to 15–20 years, depending on the lender, loan amount, and whether collateral is provided.
Can I get a study abroad loan if I have a gap year in my studies?
Yes, but lenders will ask for justification (SOP or explanation letter).
Strong reasons like preparing for entrance exams, internships, or work experience are acceptable.
