Introduction to Study Abroad Loans
In 2025, study abroad loans empower students to pursue international education by covering tuition, living expenses, and travel costs. Loanpao guides you through financing options for global academic success.
Types of Study Abroad Loans
Unsecured Education Loans
Loans up to ₹40 lakh at 10–14% p.a. for international studies without collateral.
Secured Education Loans
Loans up to ₹1.5 crore at 8–11% p.a. with collateral like property or fixed deposits.
Government-Backed Education Loans
Loans up to ₹50 lakh at 7–10% p.a. under schemes like Vidya Lakshmi for eligible students.
Comparison of Study Abroad Loan Options
Key financing options for international education in 2025:
| Loan Type | Loan Amount | Interest Rate | Tenure | Key Feature |
|---|---|---|---|---|
| Unsecured Education Loans | Up to ₹40 lakh | 10–14% p.a. | 5–15 years | No collateral required |
| Secured Education Loans | Up to ₹1.5 crore | 8–11% p.a. | 5–20 years | Lower rates with collateral |
| Government-Backed Education Loans | Up to ₹50 lakh | 7–10% p.a. | 5–15 years | Subsidized rates via schemes |
Note: Rates and terms vary by lender, course, and country of study.
Benefits of Study Abroad Loans
These loans offer:
- Comprehensive coverage for tuition, accommodation, and travel.
- Flexible repayment with moratorium periods during studies.
- Subsidized rates through government schemes like Vidya Lakshmi.
- Support for diverse courses and countries.
- Quick disbursal to meet university deadlines.
Tips for Securing Study Abroad Loans
Improve your approval chances:
- Admission Proof: Provide offer letters from recognized international institutions.
- Co-Applicant: Include a parent or guardian with stable income for unsecured loans.
- Collateral: Offer assets like property for secured loans to lower rates.
- Course Selection: Choose accredited programs with strong ROI potential.
- Lender Comparison: Use Loanpao to find banks and NBFCs with the best terms.
Frequently Asked Questions
Loans designed to finance international education, covering tuition, living expenses, and travel.
Unsecured loans up to ₹40 lakh don’t require collateral; secured loans for higher amounts may need assets.
Typically 5–20 years, with a moratorium period during the study duration.
Yes, schemes like Vidya Lakshmi offer subsidized loans for eligible students.
Loanpao connects students with lenders, provides EMI calculators, and guides on scheme eligibility.