Education Loan for Diploma Course Abroad: Studying overseas is a dream for many Indian students, and diploma courses abroad offer a practical and affordable path to global careers. However, the costs of tuition, travel, and living expenses in countries like Canada or Australia can add up quickly, often exceeding INR 15 lakh. This is where an education loan for diploma course abroad steps in, providing the financial support you need to pursue your international education goals.
In this guide, we’ll walk you through everything about securing education loan for diploma course abroad. From eligibility to top lenders and repayment plans, you’ll find all the details to make informed decisions. Let’s explore how you can fund your diploma abroad without stress!
This Blog Includes:
- Why Opt for an Education Loan for Diploma Course Abroad?
- What Is an Education Loan for Diploma Course Abroad?
- Types of Education Loans for Diploma Course Abroad
- Public Banks Offering Education Loans for Diplomas Abroad
- Private Banks Offering Education Loans for Diplomas Abroad
- NBFCs Providing Education Loans for Abroad
- Best Countries to Study Diploma Courses
- How to Apply for an Education Loan for Diploma Course Abroad?
- Costs Covered by Education Loan for Diploma Course Abroad
- Repayment Tips for Education Loan for Diploma Course Abroad
- FAQs on Education Loan for Diploma Course Abroad
Why Opt for an Education Loan for Diploma Course Abroad?
Diploma courses abroad are a smart choice for Indian students seeking short-term, skill-based education with global recognition. These programs, lasting 1-2 years, focus on practical fields like IT, hospitality, or healthcare, making them cost-effective compared to full degrees. An education loan for diploma course abroad ensures you can cover expenses without draining your savings.
The appeal lies in the career boost these diplomas offer—think of a Diploma in Digital Marketing from the UK or a Nursing Diploma from Canada. Tuition fees range from INR 5 lakh to INR 15 lakh, and living costs add another INR 6-10 lakh, depending on the country. With international education financing, you can manage these costs and even tap into post-study work opportunities abroad.
Benefits of Diploma Loan Loan for Abroad:
- Affordable and shorter than degrees
- Practical skills for quick job entry
- Post-study work permits (e.g., up to 3 years in Canada)
Plus, countries like Canada offer up to 3-year work permits after diploma courses, helping you earn while repaying your diploma funding. This makes it a win-win for students aiming to study and settle abroad.
Also Read: Learn about how much education loan you can get without collateral. Explore financing options for higher education without pledging assets like property.
What Is an Education Loan for Diploma Course Abroad?
An education loan for diploma course abroad is a financial product tailored to help Indian students pay for overseas education. It covers essential expenses like tuition fees, accommodation, travel, and study materials for diploma programs in countries like Australia or the US. Banks and NBFCs in India offer these study abroad loans with flexible terms to ease your financial burden.
The education loan for diploma course abroad amounts vary according to the banks, public banks like SBI provide up to INR 30 lakh, while private lenders like HDFC Credila offer INR 40 lakh or more, often without collateral. Interest rates hover between 9% and 13%, and you get a moratorium period (course duration + 6-12 months) before repayment starts. This makes international education loans ideal for diploma students.
Types of Diploma Course Abroad
The types of diploma courses that students can take enrollment in abroad countries are mentioned below.
- Diploma Courses after Class X
- Diploma Courses after Class XII
- Graduate Diploma Courses
- Postgraduate Diploma Courses
Types of Education Loans for Diploma Course Abroad
An education loan for diploma course abroad comes in two main types—secured and unsecured—each with distinct features affecting interest rates, repayment terms, and approval chances. Knowing these differences helps you pick the right study abroad loan to fund your international education smoothly.
Below, we break down the two types of education loans for diploma courses abroad: secured (with collateral) and unsecured (education loans without collateral). Let’s explore their benefits and limitations to make your decision easier!
Secured Education Loan for Diploma Course Abroad
A secured education loan for diploma course abroad requires you to pledge collateral, such as property, fixed deposits, or insurance policies. Also known as a collateral education loan, this option offers advantages like lower interest rates (typically 9%-11%), higher loan amounts (up to INR 150 lakh with lenders like Bank of Baroda), and longer repayment periods (up to 15 years).
Indian students opting for secured study loans enjoy a moratorium period—course duration plus 6-12 months—meaning no repayments during studies.
Key Benefits of Secured Education Loan
- Lower interest rates
- Higher approval rates
- Flexible repayment tenure
Unsecured Education Loan for Diploma Course Abroad
An unsecured education loan for diploma course abroad doesn’t require collateral, making it a collateral-free loan option. However, this convenience comes with higher interest rates (11%-14%), shorter repayment terms (5-10 years), and lower loan amounts (up to INR 40 lakh with lenders like ICICI Bank).
For Indian students, unsecured diploma funding is typically available for postgraduate diplomas rather than undergraduate ones due to stricter eligibility and risk assessment by banks.
Key Considerations:
- No collateral needed
- Higher interest rates
- Limited to postgraduate diplomas
| Loan Type | Collateral Required | Interest Rate | Loan Amount | Repayment Period | Best For |
|---|---|---|---|---|---|
| Secured Loan | Yes (property, FD, etc.) | 9%-11% | Up to INR 150 lakh | Up to 15 years | Larger funding needs |
| Unsecured Loan | No | 11%-14% | Up to INR 40 lakh | 5-10 years | Postgraduate diplomas |
Choosing between a secured or unsecured education loan for diploma course abroad depends on your financial situation and course type. Secured loans suit students needing bigger international education financing with family assets to pledge, while unsecured loans work for those seeking quick, collateral-free funding for shorter programs.
Also Read: HSBC EDUCATION LOAN FOR STUDYING ABROAD: CHECK APPLICATION PROCESS, ELIGIBILITY CRITERIA
Public Banks Offering Education Loans for Diplomas Abroad
Public Sector Banks are one of the leaders in education loans for diploma courses abroad. Tabulated below are the details of some of the public sector banks providing education loans for abroad studies.
| Name of the Public Sector Bank | Limit of Loan Amount | Interest Rate | Key Features |
| State Bank of India | Up to INR 30 lakh | 11.15% onwards | 15-year repayment, covers job-oriented diplomas |
| Canara Bank | Need-based, up to INR 40 lakh | 9.5%-11.5% | Maximum 15 years, Covers travel, equipment for diplomas |
| Bank of Baroda | Up to INR 150 lakh | 9.7%-11% | Maximum 15 years, No processing fees, diploma-focused |
| Central Bank of India | Up to INR 2 crore (secured), INR 7.5 lakh (unsecured) | 10.30% onwards | Up to 15 years |
| Punjab National Bank (PNB) | Up to INR 2 crore | 9.25%-11% | Udaan scheme for abroad studies |
| Union Bank of India | Up to INR 30 lakh | 9.8%-11.5% | Flexible repayment, diploma-friendly |
Private Banks Offering Education Loans for Diplomas Abroad
Unsecured education loans are usually provided by private sector banks and NBFCs. Shared below is a list of some of the private banks providing education loans abroad.
| Name of Private Sector Bank | Limit of Loan Amount | Interest Rate | Key Features | |
| ICICI Bank | Up to INR 1 crore | 10.5% onwards | Unsecured up to INR 40 lakh, fast processing | |
| Axis Bank | Up to INR 20 lakh (unsecured) | 11%-13% | Quick disbursal, no upper limit with collateral | |
| HDFC Bank | Up to INR 45 lakh (unsecured), no cap with collateral | 10.25%-12.75% | Up to 15 years, Pre-approval option, covers 950+ courses | |
| Yes Bank | Up to INR 40 lakh (unsecured), higher with collateral | 10.5%-12.5% | Up to 12 years, Fast disbursal, flexible terms | |
| Kotak Mahindra Bank | Up to INR 20 lakh (unsecured), more with collateral | 11%-13% | Up to 10 years, Quick online process, student-friendly | |
| IDBI Bank | Up to INR 30 lakh | 9.5%-12% | Collateral for >INR 7.5 lakh, job-oriented courses |
NBFCs Providing Education Loans for Abroad
Non-bank Financial Companies are another sort of lender of education loans for abroad studies. Mentioned below are some of the NBFCs along with their minimum loan amount for students.
| Name of NBFC | Minimum Limit of Loan Amount | Interest Rate | Key Features |
| HDFC Credila | INR 40 lakh+ (no collateral) | 10.25%-12% | 100% funding, flexible terms |
| Avanse Financial Services | Up to INR 50 lakh | 11%-14% | NBFC, covers 50+ countries, 100% funding |
| InCred | Up to INR 40 lakh (unsecured), INR 60 lakh+ (secured) | 11%-13.5% | Up to 15 years, Fast approval, customized repayment |
| Auxilo | Up to INR 50 lakh (unsecured), higher with collateral | 11%-14% | Up to 12 years, Quick disbursal, supports 50+ countries |
Best Countries to Study Diploma Courses
Now that you know about education loans for diploma course abroad and the top lenders, let’s explore the best countries for pursuing these programs. Each country offers unique diploma courses, affordable education options, and post-study work benefits, making them ideal for Indian students seeking international education financing. Here’s a rundown of the top destinations to consider for your diploma studies abroad.
- Canada: Known for its welcoming immigration policies, Canada offers diplomas in fields like IT, healthcare, and business at colleges like Seneca and Humber. Tuition costs INR 6-12 lakh annually, and you get up to 3-year work permits post-study, perfect for repaying your study abroad loan.
- Australia: With a focus on vocational training, Australia’s TAFE institutes provide diplomas in hospitality, engineering, and design (INR 8-15 lakh/year). The 2-4 year post-study work visa makes it a hotspot for diploma funding abroad.
- The United Kingdom: The UK offers 1-year postgraduate diplomas in digital marketing, finance, and more at institutions like BPP University (INR 10-18 lakh). A 2-year post-study work visa supports your career while managing international education loans.
- New Zealand: Affordable diplomas in agriculture, tourism, and IT (INR 7-13 lakh/year) from institutes like Ara Institute of Canterbury come with a 1-3 year work visa, easing repayment of your education loan for diploma course abroad.
- Germany: Known for low-cost education, Germany offers technical diplomas (INR 3-8 lakh/year) with minimal tuition at public institutions. An 18-month job search visa complements diploma funding abroad.
These countries are recognized by Indian lenders, ensuring your study abroad loan is approved easily. Choose based on your career goals and budget!
How to Apply for an Education Loan for Diploma Course Abroad?
Applying for an education loan for diploma course abroad is simple if you follow the right steps. Start by picking a lender that aligns with your diploma program’s costs and your repayment capacity. Indian banks and NBFCs make the process easy with online options for study abroad loans.
You’ll need documents like your admission letter, academic certificates, co-applicant’s income proof, and IDs (Aadhaar, passport). For secured international education loans, add collateral details. Apply online via bank portals or Vidya Lakshmi, and expect approval within 7-15 days.
- Steps to Apply:
- Research and shortlist lenders
- Gather documents (admission letter, IDs, etc.)
- Submit online and await approval
Once approved, funds are disbursed to your institution or account, ensuring your diploma funding abroad is ready when you need it. Preparation is key to a hassle-free application!
Costs Covered by Education Loan for Diploma Course Abroad
An education loan for diploma course abroad takes care of multiple expenses, making your study journey smoother. Tuition fees, ranging from INR 5 lakh to INR 15 lakh per year, form the bulk of the loan coverage for diploma programs. But that’s not all—living costs and travel are included too.
Accommodation (INR 50,000-INR 1 lakh monthly), airfare (around INR 50,000 one-way), and visa fees (INR 15,000-INR 20,000) fall under study abroad loans. Lenders like HDFC Credila even cover extras like insurance or study materials, ensuring comprehensive diploma funding abroad.
Covered Expenses:
- Tuition fees
- Hostel/rent and travel costs
- Visa, books, and insurance (varies by lender)
Check with your bank for specifics, as coverage varies. This flexibility makes education loans for overseas studies a practical choice for Indian students.
Also Read: Check out the FAQs on the Restructuring 2.0 Scheme of RBI that provides benefits to the borrowers affected by the COVID-19 pandemic.
Repayment Tips for Education Loan for Diploma Course Abroad
Repaying your education loan for diploma course abroad is manageable with the right approach. Most lenders offer a moratorium—course duration plus 6-12 months—before EMIs begin, giving you time to settle abroad. For a INR 20 lakh SBI loan at 11.15%, expect an EMI of INR 27,000 over 15 years.
Private banks like ICICI offer flexible tenures, and prepayment without penalties is often allowed, cutting interest costs. A job during your post-study work permit (e.g., Canada’s 3-year option) can help you repay international education loans comfortably.
Repayment Tips:
- Secure a job during post-study work period Tyrone Prepay to reduce interest
- Discuss EMI plans with your lender
Plan ahead—save during your course and explore options for your diploma funding abroad. This ensures repayment doesn’t become a burden.
An education loan for diploma course abroad is your ticket to a global education without financial worries. With options like SBI, ICICI, and HDFC Credila, Indian students can fund diploma courses in top destinations like Canada or Australia. Start by checking eligibility and applying early to kickstart your journey.
FAQs on Education Loan for Diploma Course Abroad
Yes, many Indian banks and NBFCs offer education loans for diploma courses abroad, covering tuition, living expenses, and travel. However, approval depends on factors like university recognition, loan amount, and applicant eligibility.
You must be an Indian citizen with confirmed admission to a recognized foreign institution. A co-applicant (parent/guardian) is usually required, along with a good academic record and financial stability for secured or unsecured loan approval.
Public banks like SBI provide up to INR 30 lakh, while private banks and NBFCs like HDFC Credila offer INR 40 lakh or more. The exact amount depends on tuition fees, living costs, and whether the loan is secured or unsecured.
Secured loans require collateral like property, FDs, or insurance, offering higher amounts and lower interest rates. Unsecured loans do not need collateral but come with higher interest rates and lower loan limits.
Interest rates typically range from 9% to 14%, depending on the lender and loan type. Public banks offer lower rates (9%-11%), while private banks and NBFCs have slightly higher rates (11%-14%) for unsecured loans.
Yes, Indian banks provide loans for diploma programs in top study destinations like Canada, Australia, the UK, and Germany. These countries offer post-study work permits, making it easier to repay the loan.
Repayment tenure varies from 5 to 15 years, with a moratorium period (course duration + 6-12 months). Longer repayment periods are available for secured loans, making EMIs more affordable.
Yes, most lenders cover tuition fees, accommodation, travel, visa fees, insurance, and study materials. Some banks even include additional expenses like laptops, books, and daily living costs.
The approval process takes around 7-15 days, depending on the lender and loan type. Faster approvals are available for unsecured loans, while secured loans require property verification, which may take longer.
Yes, most banks allow prepayment without penalties, helping you reduce interest costs. Check with your lender, as some NBFCs may charge a small prepayment fee after a certain period.
Ans. Yes, SBI gives a diploma course loan. It is one of the public sector banks that offer education loans through the selection process.
This was all about Education Loans for Diploma Course Abroad. For more information on education loans, reach out to Fly Finance and stay tuned for more informative blogs.
