Documents Required for Education Loan to Study Abroad

By Neha Kumari Updated On - Apr 01, 2021 02:30 PM

In order to apply for an education loan to study abroad, you need certain documents for verification without which the loan may not be approved. Check the list of documents that you will need to apply for an education loan.

Financing higher education abroad is one of the biggest challenges for Indian students who dream of studying in foreign universities. While many universities offer scholarships, not everyone qualifies for the same. Therefore, many students depend on getting an education loan, which in fact, has become the primary source of funds for study abroad.

Educational loans can be borrowed from banks as well as Non-Banking Financial Companies (NBFC).  An NBFC is a registered company under the Companies Act, 1956 and is involved in the business of loans and advances. Almost all public and private sector banks in India offer loans for study abroad. 

The procedure to apply for an education loan to study abroad can be hassle-free if one has all the necessary documents to be produced while filling the application form.  In case you are not sure about the study abroad education loans and documents required to apply for it, then read on to check the list.

Factors to Consider While Applying for an Education Loan

When applying for an education loan, the bank considers a number of factors as mentioned below:

  • Academic background and credentials including grades, credits, etc. of the candidate will be taken into account.

  • The program of study must be accredited and the bank will also want to know if the candidate has a good likelihood of landing a job and move up the career ladder.

  • The higher education institution where the candidate intends to study should also be highly ranked, certified and well-known.

  • The applicant must also be able to provide collateral for the loan.

  • One may also choose to estimate and pay equated monthly installment (EMI). In case an applicant wishes to go for monthly payments, factors such as loan amount, interest rate and tenure should be considered.

  • Before settling on a bank, an applicant must read all the terms and conditions as well as the specifics mentioned on the application form.

  • It is better to opt for a bank that lets one to extend the repayment period in case of unexpected occurances.

  • The bank will not give the loan to the applicant directly. It will forward it to the university at the start of every semester.

Types of Education Loan for Higher Education to Study Abroad 

Broadly the education loan is categorised as secured loans and unsecured loans. Both the loans can be borrowed from a public sector bank, private sector bank and NBFC with varying rates of interest on different amounts.  Let’s discuss each of them in brief. 

Secured Loans: Secured Loans requires the applicants to provide some kind of security in the form of collateral while applying for it. These loans have a lower rate of interest, however, the processing time is high. 

Unsecured Loans: Unsecured loans do not require applicants to provide any collateral while applying for it. The rate of interest on secured loans is high. However, the processing time is quick and usually the repayment period on secured loans is short.

Also Read: List of Documents Indian Students Need for Canada Visa Application

Education Loan- Limit and Rate of Interest

Government banks usually approve secured loans of up to Rs 20 to 30 Lakhs with State Bank of India as an exception that approves loans up to Rs 1.50 crore. However, private banks and NBFCs grant loans up to 50 Lakhs. The rate of interest for secured loans is low. Applicants can expect a moratorium period of six to 1 year on secured loan. For unsecured loans, students can receive loans ranging between Rs 8 lakhs to 50 lakhs. The moratorium period is usually six months in private banks and it varies for NBFCs. The rate of interest for secured loans is higher than the secured loans.

Loan Type 


Moratorium Period 

     Rate of Interest

Secured Loan

Rs 20 to 30 Lakhs (Exception SBI- up to Rs 1.50 crore)

6 months to 1 year

          09% to 15%


Unsecured Loan


Rs 8 lakhs to 50 lakhs.

6 months. Varies fr NBDFs

            11% to 15%

Indian Banks and their Education Loan Interest Rates

Here is the list of banks in India that offer education loans with interest rates starting from 6.8% for a loan of Rs 20 lakh for 7 years.

Bank Rate of Interest
Union Bank of India 6.80%
Bank of Baroda 6.85%
Bank of India 6.85%
Central Bank of India 6.85%
State Bank of India 6.85%
Punjab National Bank 6.90%
IDBI Bank 6.90%
Canara Bank 6.90%
Bank of Maharashtra 7.05%
Indian Bank 7.15%

List of Documents Required to Apply for an Education Loan to Study Abroad

The following documents submitted at the bank are cross-checked and verified before an approval for education loan is given: 

KYC: The KYC documents include the photo identity proof of the candidate i.e the Aadhaar Card and PAN Card.

Passport: You must have a valid passport to apply for an educational loan to study abroad. 

Address Proof: You will have to submit the permanent residential proof and the present residential proof documents along with the application.

Proof of Education: All academic certificates of Class X, Class XII and degree are included in the educational certificate. In case there is any gap in between your qualifications, you will also have to submit the gap certificate at the bank. If you have any work experience, you will be required to submit the offer letter, ITR, salary slips of the organization and work experience certificate.

Certificate from University: You would need to submit the offer letter received from the university to apply for an education loan. Along with that, you would have to show the fee structure, scorecard of the admission tests like GRE/ GMAT, IELTS/ TOEFL or any other entrance test you have appeared for. 

Also Read: List of Documents Required for USA Visa Application for Indian Students

Documents of Co-Applicant 

Above are the documents of the candidates required to apply for an education loan. In addition to it, the documents of the co-applicants must also be submitted at the bank.  A co-applicant acts as a guardian of the applicant. The list of documents required of the co-applicant is mentioned below:

  • Photo Identity Proof 

  • Address Proof 

  • Salary Proof 

  • Bank Statement of Salary Account 

  • Income Tax Return 

  • Proof of Business (if any)

Eligibility Criteria to Apply for an Education Loan to Study Abroad 

The bank sets certain eligibility criteria in order to offer education loans for study abroad. While the banks do not set hard and fast criteria to apply for an educational loan, candidates who meet the below-mentioned criteria are preferred by banks:

Academic Performance: The bank expects candidates to have good academic records to avail loan for study abroad. The minimum percentage expectation of a public sector bank is 60% in Class X, Class XII and graduation. However, candidates with low percentages may also be considered. Private banks, on the other hand, do not specify any cutoff but expect an overall good academic record. 

Academic and English Language Test: The test score obtained must be good, however, there is no specific cutoff for the same. If the candidate is applying to study abroad from the US at postgraduate level then he/ she must have a good GRE score.

Reasons for Gap: The bank expects candidates to submit a letter explaining the gap between the last qualifying degree and the year in which they plan to study abroad (if there is any).  

Also Read: Documents Required for UK Visa Application for Indian Students

How to Apply for an Education Loan to Study Abroad?

Now that you know the list of documents and eligibility criteria required to apply for loans, check out the step-by-step application procedure: 

  1. Select the Bank: Almost all public sector and private sector banks in India provide education loans for study abroad. Selecting the bank is the first step while applying for the same. The terms and conditions, rate of interest and other formalities associated with the loan may vary from one bank to another. You can shortlist a set of banks and then finalise the bank from which you want to take the loan. 

  2. Understand Loan Details: Before applying for the loan, make sure to have a complete understanding of every detail of the loan. It includes the features, terms and conditions, benefits, rate of interest, etc. Discuss with the bank executives about the hidden charges, processing charges, and more.

  3. Verify the Eligibility Criteria: You must meet the eligibility criteria defined by the respective bank to get the loan approved. Before you fill in the application form, cross-check the eligibility criteria. Also, make sure that you have all the necessary documents required to prove the eligibility criteria.

  4. Apply for the Education Loan: Almost at every bank you can apply for an education loan through its online portal. You can visit the official website of the bank and under the educational loan section, fill out the application form and submit it. Usually, one of the representatives of the bank will contact you within 24 hours of submission of the form.

You can also directly visit one of the nearest branches of the bank and fill the application form under the guidance of the bank representatives. 

Hope the above information is useful. You can write to us at or call us at 785 9990 990 and clear out your doubts on study abroad education loans and other study abroad information.

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