Student Loan Eligibility Criteria for Studying Abroad

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Anumika Bahukhandi
Study Abroad Expert
Updated on Mar 1, 2023 22:55 IST
Student Education Loan

Education Loan: Education loans, sometimes known as student loans, are advances made to students by banks or other financial organisations to help cover the costs of their higher education. High-achieving students are provided financial help to attend universities abroad under this unique loan programme. Every student wants to go overseas to further their studies. Beautiful scenery, cutting-edge infrastructure, the best education system, and the promise of a better way of life are just a few of the things that tempt students to leave the comfort of their homes for distant places. All of this comes at a cost, though. Students' aspirations to pursue higher education overseas are sometimes shattered by universities' expensive tuition fees and students' disproportionately high living expenses when compared to India. Scholarship Programmes and similar initiatives by various private and public institutions have made studying abroad possible for limited students who possess the gift of the brain, leaving the majority out.

Also, the accelerating education expenses, rupee depreciation, as well as inflation, have resulted in applicants searching for clever ways to deal with their overseas study expenses. It is here that Indian public and private banks along with other financial institutions have stepped in to provide Education Loans to students of all calibres to pursue their dream of studying abroad by providing them with financial assistance. However, there is a stringent eligibility criterion that has been laid down by financial institutions for student loan schemes and it is very important for students to satisfy them to be eligible for Education Loans for studying abroad. 

It has been observed that over the past ten years, a higher number of students in India have been taking education loans. 

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Check: Student Loan Vs Self Finance - Which is Better to Study Abroad?

EMI and Interest Rate on Education Loan provided by popular Indian banks

Bank Name EMI (Rs 20 lakh Education Loan) Interest Rate (per annum)
SBI INR 31,472 8.30%
ICICI Bank INR 32,688 9.50%
PNB INR 31,472 8.30%
Bank of Baroda INR 32,026 8.85%
UCO Bank INR 32,739 9.55%
Federal Bank  INR 35,627 12.30%
Axis Bank INR 37,149 13.70%
Canara Bank INR 32,332 9.15%

Education Loan Eligibility Guidelines

It is important for students to understand the education loan eligibility guidelines and qualify the same, to be able to apply to their preferred money lending institution/bank for their Education Loan. The education loan eligibility criteria vary for different banks. However, some common factors that are taken into account by all money-lending institutions (banks) include:

  • The applicant must be an Indian national.
  • If the loan applicant is under 18, then his or her parents must apply for the loan on their behalf.
  • The applicant must have a strong academic record.
  • The applicant must have received admission to a reputable overseas college, university, or institution.
  • The applicant's chosen course must be technical or professional since banks favour programmes that prepare students for employment.
  • A graduate, postgraduate, or post-graduate credential must be the aspirant's goal.
  • A strong academic record enables quicker loan approval.
  • Full-time students must have a co-applicant, who may be either a parent, a guardian, a spouse, or a parent-in-law (in case of married candidates). The co-applicant needs a steady source of income.

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Documents Required for Education Loan

While the formalities vary for different banks while applying for an Education Loan, however, there are a set of formalities that are identical across the board, such as documents that you would require to disclose along with your Loan Application Form. The documents primarily include but are not limited to:

Education Loan Process documents required for Student-applicants:

  • Proof of Identity (either): PAN/ Passport/ Driver’s License/ Voter ID card
  • Proof of Residence/ Address (either): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhaar Card
  • Income Proof
  • Valid Indian Passport
  • Academic Records: 10th Result and 12th Results
  • Graduation Result: Semester-wise (if applicable)
  • Entrance Exam Result through which admission has been secured including GMAT, GRE, TOEFL, IELTS scores
  • Proof of admission: Offer Letter or Admission Letter from the Institution. A conditional admission letter may be considered in the case of studying abroad.
  • Statement of cost of study/ Schedule of expenses
  • 2 passport-size photographs
  • If any previous loans from other Banks/Lenders, then the Loan A/C statement for the last 1 year

Also, Read

Guide to Student Loans Indian Banks offering Education Loans for Studying Abroad
Top Education Loans Providers in India for Study Abroad Public v/s Private Education Loan Providers

Education Loan Documents required from Co-applicants:

  • Proof of Identity (any one): PAN/ Passport/ Driver’s License/ Voter ID card
  • Proof of Residence/ Address (any one): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhaar Card
  • 2 passport-size photographs
  • If any previous loans from other Banks/Lenders, then the Loan A/C statement for the last 1 year

We have also provided the Income Proof documents that would be required from the Co-applicant as part of the Education Loan process. 

Documents required for Income Proof for Salaried Co-applicant/ Guarantor:

  • Salary Slip or Salary Certificate of last 3 months
  • Copy of Form 16 for the last 2 years or a copy of IT Returns for the last 2 financial years, acknowledged by IT Dept.
  • Bank account statement for the last 6 months (of Salary Account)


Documents required for Income Proof for Self-employed Co-applicant/ Guarantor:

  • Business address proof (If applicable)
  • IT returns for the last 2 years (if IT payee)
  • TDS Certificate (Form 16A, if applicable)
  • Certificate of qualification (for C.A. / Doctor and other professionals)
  • Bank account statement for last 6 months

Check: Eligibility Criteria of Education Loan for Studying Abroad - Documents Required

What will improve the chances of an Education Loan?

To guarantee that students receive financial help, banks are vigilant while evaluating a candidate's eligibility. The general academic standing of the applicants, their intended course of study, and their present admission status are taken into account before authorising a loan.

  • Obtaining a good grade or ranking on the prerequisite examinations
  • Showing academic excellence
  • Being accepted into a reputable institution of higher learning
  • Parents, guardians, and co-borrowers have a solid financial history.
  • Showing promise for new employment and revenue growth

Related Reads

Steps to filing an Education Loan Form Education Loan Vs. Self-Funding to Study Abroad
Top 5 Mistakes International Students Make While Applying for Student Loans Financial Documents Required for Study Abroad Applications 

Students are informed that from the education loan process to approval and disbursement, the entire loan process is time taking, so it is always advisable to apply for an Education Loan months in advance to avoid any last-minute complications. Students who have applied for an education loan from a nationalized bank are required to start the repayment process after the completion of the moratorium period (Repayment commences one year after the course completion or 6 months after securing a job, whichever is earlier). However, students should understand the moratorium time varies for different loan-providing institutions. Read: SBI Education Loan for Study Abroad: Ultimate Guide

Education Loans for Popular Countries Abroad

Education Loan to Study in the USA

Education Loan for Studying in Canada

Education Loan to Study in the UK

Education Loan for Studying in Australia

Education Loan for Studying in Germany

Education Loan for Studying in Singapore

Applying for a loan to study in New Zealand

Education Loan for studying in Ireland

Education Loan for studying in Sweden

Education Loan for Studying in France

Education Loan for Studying in the Netherlands


Contact India’s leading education loan providers through Shiksha Study Abroad For more queries. Do write to us in the comments below. Or request a call back from our Shiksha Study Abroad Counselling Services

About the Author
Anumika Bahukhandi
Study Abroad Expert

Holding an overall experience of 5 years, Anumika Bahukhandi has worked in the field of Journalism as a reporter/journalist, feature writer, and senior sub-editor with renowned media houses. She has been associated ... Read Full Bio



manoj kumar

9 months ago

Hi I am having 12 Years of experience in Fire protection system, plan to do upgradation Fire related courses to develop and settle my career in abroad locations, please guide me what to do next?

Reply to manoj kumar


Rahul Singha

9 months ago

Hello Manoj. You can get in touch with our Shiksha Study Abroad Counsellors, who provide assistance with university admissions:

Hello sir am Kato sebunya Emmanuel a Ugandan student I want to study in Italy MBBS what can I do maybe to get a scholarship there

Reply to emmanuel sebunya kato


Rahul Singha

a year ago

Hello Emmanuel. You should check out popular MBBS universities in Italy. You can check out our MBBS guide here: and check out scholarships here:


kender kumar

a year ago

I want to get Bank loan for the abroad study so plz suggest me how I fill the tuition fees of University.

Reply to kender kumar


Rahul Singha

a year ago

Hello Kender. You can apply for an education loan to take care of your university expenses as well as living costs. Kindly contact a bank closest to you to know more about the details on education loans. You can also visit:



a year ago

Hello sir, I want to study MBBS in Australia or UK. Can I get a 50 to 100% loan from any bank?

Reply to ranveer


Rahul Singha

a year ago

Hello Ranveer. Most banks provide education loans for students wanting to study abroad. However, you would have to get in touch with the banks to understand the process of obtaining an Education Loan and complete the application that entails.

Hello sir
I want to do masters in london university but financially we are not settled , can I get educational without any land documents kindly give your piece of advice sir .

Reply to marapalli vamshi


Rahul Singha

2 years ago

Hello Marapalli. The right person to ask this would be the bank you are planning to take an education loan from. They will be able to give you other alternatives to availing of an education loan.

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