Dreaming of studying at a top university abroad? For Indian students from the Other Backward Classes (OBC), study abroad loans for OBC category students can turn that dream into reality. Whether it’s an MBA in the USA, engineering in Germany, or a PhD in Australia, the rising costs of international education—tuition, travel, and living expenses—can feel overwhelming. Fortunately, specialized education loans for OBC students, backed by government schemes and banks, offer affordable financing options.
In this guide, we’ll walk you through everything about study abroad loans for OBC category students. From eligibility and loan amounts to interest rates and repayment plans, you’ll find practical insights to fund your higher education abroad. Let’s explore how these OBC student loan schemes can help you soar globally!
Why OBC Students Need Study Abroad Loans
Pursuing education overseas comes with a hefty price tag. Tuition fees alone can range from INR 15 lakh to INR 50 lakh annually, depending on the country and course. Add accommodation, food, and flights, and the total cost often exceeds INR 1 crore for a two-year program. For OBC students from modest backgrounds, saving such amounts is tough, making study abroad loans for OBC category students a vital lifeline.
These loans, including government-backed education funding for OBC students and bank offers, ensure financial barriers don’t stop you. Whether you’re eyeing affordable study abroad financing or low-interest loans for OBC students, these options empower you to focus on your studies, not your wallet. Ready to learn how they work? Let’s dive deeper!
Also Read: How to Get an Education Loan for Studying Abroad
Top Government Schemes for Study Abroad Loans for OBC Students
The Indian government offers incredible support through study abroad loans for OBC category students, ensuring access to global education. Let’s explore two key schemes designed to ease your financial journey.
1. NBCFDC Education Loan for OBC Students
The National Backward Classes Finance and Development Corporation (NBCFDC) provides one of the best OBC student loan schemes for studying abroad. It targets students from families earning below INR 3 lakh annually, offering affordable education loans for OBC students.
- Eligibility: OBC category certificate, family income under INR 3 lakh, and admission to a recognized foreign course.
- Loan Amount: Up to INR 20 lakh, covering 85% of expenses like tuition and hostel fees.
- Interest Rate: 4% per annum (3.5% for girls)—a steal for study abroad financing!
- Repayment: Starts after course completion + 5 years, with a 10-year repayment window.
Apply through your state’s Channelizing Agency to kickstart your overseas education with this low-cost loan option.
2. Dr. Ambedkar Interest Subsidy Scheme
The Dr. Ambedkar Central Sector Scheme is another gem for study abroad loans for OBC category students. It offers interest subsidies for Master’s, M.Phil., or PhD programs abroad, reducing your repayment burden.
- Eligibility: Non-creamy layer OBC with family income up to INR 8 lakh, plus a bank loan from an IBA-approved lender.
- Benefits: Full interest waiver during the moratorium (course duration + 1 year or 6 months post-job).
- Loan Amount: Subsidy applies to loans up to INR 20 lakh.
This scheme pairs perfectly with bank loans, making higher education abroad financing for OBC students more affordable.
Bank Loans: Flexible Study Abroad Financing for OBC Students
Beyond government schemes, banks offer robust study abroad loans for OBC category students with flexible terms. Here are three top options:
1. SBI Global Ed-Vantage Loan
SBI’s Global Ed-Vantage scheme is a popular choice for education loans for OBC students heading abroad.
- Loan Amount: INR 20 lakh to INR 1.5 crore.
- Interest Rate: Starts at 11.15% (as of March 2025).
- Repayment: 15 years post-moratorium (course + 6 months).
Pair it with the Dr. Ambedkar subsidy for unbeatable study abroad funding.
2. Bank of Baroda Education Loan
Bank of Baroda provides study abroad loans for OBC category students with competitive rates.
- Loan Amount: Up to INR 150 lakh for top institutes.
- Interest Rate: From 9.7% per annum.
- Perks: No collateral for loans up to INR 40 lakh at select universities.
3. ICICI Bank Education Loan
ICICI’s digital-first approach makes applying for OBC student loan schemes a breeze.
- Loan Amount: Up to INR 3 crore.
- Interest Rate: 10.5% onwards.
These bank loans, combined with government subsidies, offer a solid path to affordable overseas education.
Must Read- How to Get 100% Loan to Study Abroad?
Simplify Your Search with Vidya Lakshmi Portal
Looking for the best study abroad loans for OBC category students? The Vidya Lakshmi Portal is your go-to platform. It connects you with multiple banks, letting you compare education funding for OBC students, apply online, and track progress—all in one place.
For OBC students, this portal simplifies the hunt for affordable study abroad financing by offering access to tailored loan schemes. Just upload your OBC certificate, income proof, and admission letter, and you’re ready to explore options that fit your budget and dreams.
How to Apply for Study Abroad Loans as an OBC Student
Getting study abroad loans for OBC category students might seem tricky, but it’s simpler than you think with the right steps. Whether you’re aiming for a government scheme or a bank loan, knowing how to apply can save you time and stress. Follow this steps to kickstart your journey to global education!
- Get Admission: Confirm your spot at a foreign university.
- Verify Eligibility: Check if you qualify for NBCFDC or bank loans with your OBC status.
- Pick a Lender: Choose between government OBC student loan schemes or banks.
- Prepare Documents: OBC certificate, income proof, admission letter, passport, and academic records.
- Submit Application: Apply online via Vidya Lakshmi or visit a bank/SCA.
- Claim Subsidy: Add interest subsidies if eligible.
Start early—processing education loans for OBC students can take 15-30 days!
What Do Study Abroad Loans for OBC Students Cover?
Wondering what expenses study abroad loans for OBC category students can handle? These loans go beyond just tuition, covering essentials to make your overseas education smooth. Here’s a quick look at what you can expect to fund with these schemes!
- Tuition and exam fees.
- Hostel or rental costs.
- Books, laptops, and study materials.
- Travel (flights to your destination).
- Insurance and miscellaneous fees.
NBCFDC loans fund 85% up to INR 20 lakh, while bank loans often cover 100% of your study abroad financing needs.
How to Repay Your Study Abroad Loan
Repaying study abroad loans for OBC category students doesn’t have to feel overwhelming with the flexible options available. From moratorium periods to tax benefits, understanding repayment can help you plan smarter. Let’s break it down so you can focus on your career, not your loan!
- Moratorium: No payments during the course + 6 months (banks) or 5 years (NBCFDC).
- Tenure: 10-15 years to clear the loan.
- Tax Perks: Deduct interest under Section 80E for 8 years.
For a INR 20 lakh NBCFDC loan at 4%, your EMI after 7 years (2-year course + 5-year moratorium) is just INR 25,000 over 10 years—doable with a good job!od maybe 10 years after the lapse of the moratorium period of 5 years.
Also Read: Best Education Loan for MBA Abroad: Top MBA Loans, Eligibility and More
Eligibility Requirements for Study Abroad Loans for OBC Students
The eligibility criteria for OBC study abroad loans may vary depending on the loan provider. However, here are some common eligibility criteria that are usually required for study-abroad loans
- The applicant should be at least 18 years old at the time of applying for the loan.
- The applicant should have completed their higher secondary education (10+2) or equivalent from a recognized board or institution.
- The applicant should have secured admission to a recognized university or institution abroad for a course that is eligible for the loan.
- The applicant’s creditworthiness and financial stability are evaluated by the loan provider to determine the loan amount and interest rate.
- Many loan providers require a co-borrower, such as a parent or a guardian, who has a steady income and a good credit score to be responsible for loan repayment in case the student is unable to repay the loan.
- The applicant should be an Indian citizen.
Application Procedure for Study Abroad Loans for OBC Students
The application procedure for study abroad loans for OBC category students may vary depending on the loan provider. However, here are some common steps that are involved in the application process
- Select the government loan that is most appropriate for you to use to finance your studies abroad.
- Verify all details, such as the moratorium period, the payback time, the interest rate on an education loan provided by the Indian government, etc.
- Visit the chosen education loan’s official website.
- Complete the application.
- Scan and upload the necessary paperwork
- Await the result.
Documents Required for Study Abroad Loans for OBC Students
The documents required for an unsecured loan for OBC study abroad loan may vary depending on the bank or lender but typically include
- The loan application form
- Proof of family income (income tax returns, property proof, etc)
- scores on standardized tests
- Grades transcript
- Aadhar Card
- Bank statements Birth certificate
- I.D. Card
- Residential evidence
- Acceptance letter from a foreign university
- Self-proclamation
Challenges OBC Students Might Face with Loans
Applying for study abroad loans for OBC category students comes with great opportunities, but it’s not without hurdles. From paperwork woes to income limits, knowing these challenges can help you prepare better. Let’s explore what might come your way and how to tackle it!
- Paperwork: Delays in getting OBC or income certificates.
- Income Caps: NBCFDC’s INR 3 lakh limit may exclude some.
- Collateral: Banks may ask for security above INR 7.5 lakh.
Stay proactive—research and consult experts to navigate these hurdles in education funding for OBC students
Tips to Boost Your Study Abroad Loan Experience
Maximizing study abroad loans for OBC category students can make your education journey even smoother and more affordable. With a few smart moves, you can stretch your loan benefits further. Check out these tips to get the most out of your funding!
- Start Early: Apply before deadlines.
- Add Scholarships: Pair loans with awards like the National Overseas Scholarship.
- Pick Smart Destinations: Opt for cost-effective countries like Germany.
- Plan Ahead: Target high-paying jobs post-study.
Must Read – How to Track SBI Education Loan Status Online Quickly and Hassle-Free?
FAQs on Study Abroad Loans for OBC Students
Study abroad loans for OBC category students are financial aids offered by the Indian government and banks to help Other Backward Classes (OBC) students fund higher education overseas. These include low-interest education loans for OBC students and interest subsidies.
OBC students with a valid caste certificate and family income below INR 3 lakh (for NBCFDC) or INR 8 lakh (for Dr. Ambedkar Subsidy) can apply. You also need admission to a recognized foreign course.
Government schemes like NBCFDC offer up to INR 20 lakh, while bank loans (e.g., SBI, ICICI) provide INR 20 lakh to INR 3 crore, depending on your course and institution.
NBCFDC charges 4% (3.5% for girls), while bank loans start at 9.7%-11.15%. Pairing bank loans with the Dr. Ambedkar Subsidy can lower costs further.
These loans cover tuition fees, accommodation, travel, books, and insurance—up to 85% of costs with NBCFDC and 100% with many bank loans.
Submit your OBC certificate, income proof, and admission letter to your state’s Channelizing Agency (for NBCFDC), banks, or the Vidya Lakshmi Portal for study abroad financing.
Can I get an interest subsidy with education loans for OBC students?
Yes! The Dr. Ambedkar Scheme offers full interest relief during the moratorium for OBC students with family income up to INR 8 lakh, if paired with a bank loan.
You’ll need an OBC certificate, income certificate, admission letter, passport, visa, and academic records to apply for these education funding options.
Yes, under Section 80E, you can deduct the interest paid on study abroad loans for OBC category students from your taxable income for up to 8 years.
We hope that all your queries regarding study abroad loans for OBC category students are solved through this blog. If you also looking to study abroad and want to enroll with top universities contact us at Leverage Edu on 1800 57 2000
