Studying abroad is a dream for many Indian students, but the high cost of international education can be a major challenge. While scholarships and government-backed education loans help, they may not always cover all expenses. This is where private student loans for study abroad come into play, offering financial support to bridge the gap and make overseas education accessible.
We have encapsulated a list of top private student loans for students going to study abroad. Keep reading to know the details of different types of education loans.
Table of contents
- What Are Private Student Loans for Study Abroad?
- Benefits of Private Student Loans for Study Abroad
- List of Private Student Loans for Abroad Education
- Eligibility Criteria for Private Student Loans
- Documents Required for Private Student Loans to Study Abroad
- How to Apply for a Private Student Loan
- Important Factors to Consider for Private Student Loans
- FAQs on Private Student Loans for Study Abroad
What Are Private Student Loans for Study Abroad?
Private student loans are education loans provided by private banks, NBFCs (Non-Banking Financial Companies), and other financial institutions. Unlike government-backed loans, these loans have different eligibility criteria, interest rates, and repayment terms.
Private student loans for study abroad are often used to cover tuition fees, living expenses, travel costs, and other academic-related expenditures. These loans for study abroad allow students to finance their education without relying solely on scholarships or family savings.
Benefits of Private Student Loans for Study Abroad
When planning to study abroad, understanding the advantages of private student loans for study abroad is crucial. These loans offer various benefits that make them a preferred choice for students who need additional financial aid.
- Higher Loan Amount – Private lenders often offer higher loan amounts compared to government loans, covering full tuition and additional expenses.
- Flexible Repayment Options – Many lenders provide flexible repayment terms, including deferred repayment until after graduation.
- Quick Processing – The approval and disbursal process for private student loans for study abroad is usually faster than public sector banks.
- No Collateral Options – Some private lenders provide unsecured loans, which means students can get financial aid without pledging assets.
- Covers a Wide Range of Expenses – These loans cover not only tuition fees but also accommodation, books, travel, and daily expenses.
Also Read: Andhra Bank Education Loan for Studying Abroad
List of Private Student Loans for Abroad Education
Private student loans for study abroad are available at several NBFCs in India and private lenders in the global market. Indian students opting for student loans without undergoing the stringent requirements of nationalised and private banks of India can avail of these loans.
NBFC Education Loans
Some of the readily available NBFC student loans in India for studying abroad are HDFC Credila, Avanse, Auxilo, and InCred lead the pack. Let’s break it down one by one!
HDFC Credila
HDFC Credila, a subsidiary of HDFC Ltd., is India’s first dedicated education loan provider. HDFC Credila education loan supports over 2,100 universities across 35+ countries, making it a top choice for Indian students. The important figures about education loans by this NBFC are tabulated below:
| S.No. | Particulars | Details |
| 1 | Loan Amount- Minimum Limit | INR 1 lakh |
| 2 | Loan Amount- Maximum Limit | No limitation, but loan amount should be in compliance with Credila’s criteria |
| 3 | Base Interest Rate | 9.75% – 13.25% (floating, linked to CBLR) |
| 4 | Interest Rate Type | Floating; subject to change in each financial year |
| 5 | Loan Tenure | 14 years |
| 6 | Processing Fees | 1% – 1.5% of loan amount |
Advantages of HDFC Credila
Students availing of this loan will be benefited in the following manner:
- Enjoy tax benefits under Section 80E of the Income Tax Act.
- Get loans without collateral up to INR 45 lakh for top universities.
- Cover 100% of tuition, living expenses, travel, and even laptops.
Avanse
Avanse Education Loan to Study Abroad-specified NBFC is an associate firm of DHFL Ltd. Avanse offers tailored private student loans for study abroad, including pre-visa and pre-admission options. It supports over 3,000 institutions worldwide.
Given below are the specifications of one of the most lucrative private student loans for study abroad:
| S.No. | Particulars | Details |
| 1 | Loan Amount- Minimum Limit | INR 1 lakh |
| 2 | Loan Amount- Maximum Limit | No upper limit (case-specific) |
| 3 | Base Interest Rate | 11.5% – 14.5% (floating, base rate 14.55% + spread) |
| 4 | Interest Rate Type | Floating; subject to change in each financial year |
| 5 | Loan Tenure | Up to 15 years |
| 6 | Processing Fees | 1% to 2% of the loan amount |
Advantages of Avanse
Students who have secured admission to an approved university will get the following benefits after availing of the Avanse education loan:
- The loan amount is inclusive of living expenses. Living costs in the foreign land should not exceed 20% of the loan amount.
- 10% of the loan amount will cover tuition fees and other related expenses.
- The loan amount covers travel expenses.
- Get approvals in just 7-10 days.
Auxilo
An NBFC registered with the Reserve Bank of India (RBI), Auxilo Finserve Private Limited specialises in abroad education loans. This NBFC provides customised education loans at express speed. The table below encompasses the specific details of Auxilo Education Loan to Study Abroad:
| S.No. | Particulars | Details |
| 1 | Loan Amount- Minimum Limit | INR 1 lakh |
| 2 | Loan Amount- Maximum Limit | No limitation, but loan amount should be in compliance with Credila’s criteria |
| 3 | Base Interest Rate | 11.5% – 13.5% (floating) |
| 4 | Interest Rate Type | Floating; subject to change in each financial year |
| 5 | Loan Tenure | 10 years |
| 6 | Processing Fees | Up to 2% of the loan |
Advantages of Auxilo
Students getting study abroad education loan from Auxilo will get the following advantages:
- Choose repayment options that suit your budget.
- Access tax benefits under Section 80E.
- Get funds for tuition, accommodation, and more without delay.
Also Read: Dena Bank Education Loan for Studying Abroad
InCred
This Mumbai-based NBFC provides tailor-made education loans for Indian students studying abroad. Loans provided by this NBFC have the following special features:
| S.No. | Particulars | Details |
| 1 | Loan Amount- Minimum Limit | INR 2 lakh |
| 2 | Loan Amount- Maximum Limit | INR 1 cr |
| 3 | Base Interest Rate | 11.5% to 15% |
| 4 | Interest Rate Type | Floating; subject to change in each financial year |
| 5 | Loan Tenure | 15 years |
| 6 | Processing Fees | 1% to 1.5% of the loan |
Advantages of InCred
Students can opt for InCred study abroad education loan to avail of the following benefits:
- Include living expenses and tuition in one loan.
- Add multiple co-applicants for easier approval.
- Pay off your loan early with foreclosure options.
Global Private Education Loans
Thinking of studying in the USA or beyond? Global private lenders offer loans that Indian students can tap into with the right support, like a US co-signer. These options are perfect for covering big costs in top countries! Here are a few standout choices:
Sallie Mae
This student loan provider provides loans to non-U.S. citizens whose co-signer is a U.S. citizen or permanent resident of the states. Sallie Mae International student loan to study abroad is one of the most prominent private student loans for study abroad students. Tabulated below are the basic specifications of this financial assistance:
| S.No. | Particulars | Details |
| 1 | Loan Amount- Minimum Limit | USD 1,000 |
| 2 | Loan Amount- Maximum Limit | 100% of the cost of attendance in an accredited university/college/school |
| 3 | Fixed Interest Rate | 4.50% – 14.83% APR2 |
| 4 | Variable Interest Rate | 5.49% – 15.83% APR2 |
| 5 | Loan Tenure | 10 years to 15 years |
| 6 | Grace Repayment Tenure | 6 months |
Advantages of Sallie Mae
The benefits of Sallie Mae are mentioned below:
- Pick from multiple repayment plans.
- Release your co-signer after just 12 on-time payments.
- Cover all study costs at accredited US schools.
Ascent
Students based in the USA or studying in this North American nation can apply for Ascent education loan. This student support is provided to undergraduate students and students enrolled in approved coaching institutions in the USA. Here are the particulars of this private student loan:
| S.No. | Particulars | Details |
| 1 | Loan Amount- Minimum Limit | USD 2,001 |
| 2 | Loan Amount- Maximum Limit | USD 200,000 |
| 3 | Fixed Interest Rate | 4.62% – 14.99% APR |
| 4 | Variable Interest Rate | 5.86% – 14.14% APR |
| 5 | Loan Tenure | 10 years to 15 years |
| 6 | Grace Repayment Tenure | 6 months |
Advantages of Ascent
The benefits of the Ascent education loan are enlisted below:
- Fund your entire cost of attendance, including living expenses.
- Pause payments with forbearance if needed.
- Enjoy repayment flexibility post-graduation.
Eligibility Criteria for Private Student Loans
To qualify for private student loans for study abroad, students must meet certain eligibility criteria. Each lender has its own requirements, but the common criteria include:
- The applicant must be an Indian citizen.
- A confirmed admission in a recognized foreign university or institution.
- A co-applicant (parent or guardian) with a stable financial background.
- A strong academic record can improve chances of approval.
- Some lenders may require a minimum CIBIL score for co-applicants.
Documents Required for Private Student Loans to Study Abroad
When applying for private student loans for study abroad, students must provide several essential documents. Proper documentation ensures faster approval and smooth loan disbursal.
- Admission letter from the foreign university
- Academic transcripts and certificates
- KYC documents (Aadhar, PAN, Passport)
- Income proof of co-applicant (salary slips, ITR, bank statements)
- Loan application form with passport-sized photographs
How to Apply for a Private Student Loan
Applying for private student loans for study abroad involves several steps. A well-prepared application improves the chances of approval and ensures a smooth process.
- Research Lenders – Compare loan offers from different banks and NBFCs to find the best interest rates and repayment terms.
- Check Eligibility – Ensure you meet the lender’s requirements before applying.
- Submit Application – Fill out the loan application form and upload required documents.
- Loan Approval & Sanction – Once verified, the lender will approve the loan and provide a sanction letter.
- Disbursal Process – The funds are transferred directly to the university or the applicant’s account as per the loan agreement.
Important Factors to Consider for Private Student Loans
Before finalizing private student loans for study abroad, students should evaluate key factors to avoid financial burdens in the future. Here are some crucial aspects to consider:
- Interest Rates: Private loans generally have higher interest rates than government-backed loans, so compare carefully.
- Repayment Terms: Check whether the lender offers a moratorium period (grace period before repayment starts).
- Hidden Charges: Be aware of processing fees, prepayment penalties, and other hidden costs.
- Currency Exchange Impact: If taking a loan in Indian rupees, fluctuations in foreign exchange rates may affect overall repayment costs.
- Budget: NBFCs like HDFC Credila and Avanse offer high amounts with no cap, while Sallie Mae and Ascent cover full US costs.
- Speed: Auxilo and Avanse process loans in as little as 7 days.
- Repayment: InCred and Avanse give you up to 15 years, while Sallie Mae offers shorter terms with flexibility.
- Extras: Look for tax benefits (HDFC Credila, Auxilo) or co-signer options (Sallie Mae).
Private student loans for study abroad can be a valuable financial aid option for Indian students looking to pursue higher education overseas. By carefully evaluating lenders, comparing interest rates, and understanding the repayment terms, students can make informed decisions to fund their education effectively. Before taking a loan, ensure you explore all available scholarships, grants, and government loan schemes to minimize financial burden.
FAQs on Private Student Loans for Study Abroad
Private student loans for study abroad are loans provided by private banks, NBFCs, and financial institutions. These loans help students cover tuition fees, living costs, travel, and academic expenses. Unlike government loans, they have different eligibility criteria, interest rates, and repayment terms.
Private student loans are issued by private lenders, whereas government loans are backed by the government. Private loans may have higher interest rates and require creditworthiness or co-applicants. They also offer higher loan amounts, flexible repayment options, and faster processing.
Students applying for private loans must be Indian citizens with confirmed admission to a recognized foreign university. A co-applicant, such as a parent or guardian with a stable financial background, is often required. Some lenders may also check academic records and credit scores.
Private student loans cover a wide range of expenses beyond tuition fees. These include accommodation, books, travel, daily living expenses, and even technology-related costs like laptops. Some lenders also provide pre-visa and pre-admission loan options.
In India, NBFCs like HDFC Credila, Avanse, Auxilo, and InCred offer private student loans. International lenders like Sallie Mae and Ascent provide loans for students studying in the USA with a co-signer. Each lender has different loan amounts, interest rates, and repayment options.
Some private lenders offer unsecured loans, meaning no collateral is required. However, for larger loan amounts, collateral such as property or fixed deposits may be needed. NBFCs like HDFC Credila and InCred provide unsecured loans up to INR 45 lakh for top universities.
Interest rates for private student loans vary by lender and loan type. In India, rates range from 9.75% to 15%, while international lenders offer rates between 4.5% and 15.83% APR. Interest rates may be fixed or floating, depending on the financial institution.
Repayment tenures typically range from 10 to 15 years, depending on the lender. Some lenders offer flexible repayment plans, including grace periods that allow students to start repaying after graduation. Early repayment or foreclosure options may also be available.
Key documents include the university admission letter, academic transcripts, KYC documents (Aadhar, PAN, passport), and income proof of the co-applicant. Loan application forms, passport-sized photographs, and bank statements may also be required for loan approval.
Explore different types of loans for your study abroad plans with Leverage Edu and Fly Finance. Get detailed information about your financial needs in a foreign land from our experts at 1800 572 000.
