Education Loan for Graduation Abroad
*T&C Apply. Deduction under Section 129 of the Income Tax Act, 2025 (erstwhile Section 80E of the Income Tax Act, 1961) is available only under the old tax regime and shall not be applicable if the taxpayer opts for the new tax regime. Customers are advised to consult their tax advisors for applicability.
Pursuing higher education abroad is a dream for many Indian students, but the rising cost of global education poses a significant challenge. Did you know that studying in the USA costs between $20,000 – $40,000 annually (₹18,95,000 – ₹37,90,000), while the UK averages $15,000 – $35,000 (₹14,21,250 – ₹33,16,250) per year. Even affordable options like Germany cost around $500 – $2,000 (₹47,375 – ₹1,89,500) annually. With over 7,00,000 Indian students studying overseas in 2025, education loans play a crucial role in bridging the financial gap, empowering students to achieve global academic excellence without financial stress.
Abroad Study Fees for Indian Students by Countries
Below is a table comparing USD and INR tuition fees for popular study destinations, providing guidance.
| Country | Average Annual Tuition Fees* (USD) | Average Annual Tuition Fees* (INR) |
|---|---|---|
| United States | $20,000 – $40,000 | ₹18,95,000 – ₹37,90,000 |
| United Kingdom | $15,000 – $35,000 | ₹14,21,250 – ₹33,16,250 |
| Canada | $15,000 – $30,000 | ₹14,21,250 – ₹28,42,500 |
| Australia | $20,000 – $45,000 | ₹18,95,000 – ₹42,63,750 |
| Germany | $500 – $2,000 | ₹47,375 – ₹1,89,500 |
| France | $3,000 – $5,000 | ₹2,84,250 – ₹4,73,750 |
| New Zealand | $20,000 – $30,000 | ₹18,95,000 – ₹28,42,500 |
| Singapore | $20,000 – $40,000 | ₹18,95,000 – ₹37,90,000 |
| Ireland | $15,000 – $25,000 | ₹14,21,250 – ₹23,68,750 |
| Netherlands | $8,000 – $20,000 | ₹7,58,000 – ₹18,95,000 |
Disclaimer: All USD to INR conversions are based on currency rates as of April 2026. Exchange rates vary over time, so please check the latest rates before making any financial decisions.
Source: https://educationdata.org/average-cost-of-college-by-country
Note: The abroad study fees for Indian students mentioned above are tentative and based on estimates for 2025. Tuition costs may vary depending on the university (public or private), country, course specialisation, and other factors.
Types of Education Loans for Graduation Abroad
Broadly, there are two types of education loans:
- Secured Education Loan: A secured education loan is backed by collateral, such as residential property, fixed deposits, or insurance policies. This collateral will serve as a guarantee for the lender in case the borrower defaults.
- Unsecured Education Loan: An unsecured education loan is a type of student loan that does not require any collateral or security.
Eligibility Criteria for an Education Loan for Graduation Abroad
To qualify for a student loan in the USA, here are the eligibility criteria:
- Applicant Age: 16 years or above
- Co-Applicant: Generally required can be a parent, spouse, or guardian
- Eligible Students: Those enrolling in bachelor’s or master’s programmes
- Approved Courses*: Academic or professional programmes (MBA, MS, MBBS, etc.)
- Recognised Institutions*: Universities and colleges accredited in the USA
Documents Required for an Education Loan for Graduation Abroad
To apply for an education loan, here’s a checklist of documents you’ll need. Requirements vary slightly based on your co-applicant’s income type.
| Document Type | Details |
|---|---|
| A. Application Form | Completed original or digital loan application form |
| B. KYC Documents | PAN Card or Form 60 (mandatory if PAN is mentioned) ONE valid ID & address proof: Passport / Driving License / Voter ID / Aadhaar / NREGA Job Card / NPR Letter |
| C. Student Education Documents | 12th Marksheet (not needed for UG applicants in 12th or Exec PG) Latest semester/year marksheet or transcript Admission proof (Admission Letter / I-20) |
| D. Co-Applicant Financials | → Salaried Last 6 months salary account bank statements 1 recent salary slip/certificate → Self-Employed (Non-Proprietor) Last 6 months Current & Savings A/c bank statements Last 2 years ITRs (online acceptable) 44AD: income statement only Tax audit: CA attestation required Optional: Qualification proof, GST/Shop Act/Aadhaar Udyog → Proprietor Last 6 months Current & Savings A/c bank statements Last 2 years ITRs 44AD: income statement only Tax audit: CA-audited financials (P&L, BS, Computation, Schedules) → No Income Last 6 months Savings A/c bank statements → Pensioner Last 6 months Savings A/c with pension credits OR Pension Order |
| E. Collateral Documents (if applicable) | Latest sale deed Property tax receipt Approved building plan or Occupation Certificate |
Interest Rates on Education Loans for Study Abroad
Get the funds you need for your education abroad with competitive interest rates and zero prepayment or foreclosure charges!
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 9.95%* p.a. onwards |
| Origination Fee | 1.25%* + GST |
| Prepayment & Foreclosure Charges | None |
How to Apply for an Education Loan to Study Abroad
Follow this 3-step process
A simple and transparent journey.
1- Apply Online
Fill out the application form and upload documents.
2- Application Review
Get your sanction letter after our credit appraisal.
3- Funds Disbursed
You are all set to get started.
Expenses Covered Under a Student Loan for Graduation Abroad
When you take an education loan for studying MS overseas, the following expenses are typically covered:
- Tuition fees and academic charges
- Hostel or on-campus accommodation
- Cost of living (food, transport, utilities, etc.)
- Books, lab supplies, and other learning materials
- Laptop or computer (if required for coursework)
- Examination and library fees
- Other education-related expenses as approved by Credila
Repayment Options for Overseas Loan for Students
Repayment for MS education loans is designed to be student-friendly and flexible:
- EMI-Based Repayment: Pay in EMIs as per the loan terms*.
- Part-Payment Option: Make partial payments during the course to reduce total interest.
- Flexible Tenure: Repayment tenure of up to 15 years based on your profile.
- No Prepayment Penalty: You can repay early without any additional charges.
Why Avail Credila’s Education Loan to Study Abroad?
Save time. Go online.
Customer-centric processes with just 3 steps to disbursement.
We cover it all
Up to 100% financing of tuition and living expenses.
Start early. Apply before admission.
Benefit from seamless loan sanctions.
Friendly rates. All the way.
Student loans with customised interest rates.
Dream big. Achieve bigger.
Exploring funding for larger education costs? Not a problem.
Pan-India network of branches
Enjoy multi-city co-borrower(s) and collateral flexibility.
The benefit of tax saving
Added tax deductions# that bring down your cost of financing
Flexible payment plans
Repayment tenure of up to 15 years.
No hidden charges
What you see is what you pay.
Disclaimer: Deduction under Section 129 of the Income Tax Act, 2025 (erstwhile Section 80E of the Income Tax Act, 1961) is available only under the old tax regime and shall not be applicable if the taxpayer opts for the new tax regime. Customers are advised to consult their tax advisors for applicability.
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