Best Banks for Education Loans Abroad – Rates & Eligibility Guide (2026)
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Studying abroad may be the dream come true, however, there is no secret that international studies are costly. Are you confused about which bank is best for education loan for abroad? This guide will help you take more knowledgeable choices. Find out interest rates, TCS waivers, and more all you need to know about it.
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Top Banks for Education Loans Abroad (2026)
Let’s compare some of the leading banks that help students with their overseas education loans for study abroad:
| Bank Name | Interest Rate | Loan Limit |
| State Bank of India | 8.65% – 9.15% | Up to INR 3 Cr |
| HDFC Credila | 9.95% – 11.25% | No Limit |
| ICICI Bank | 10.25% – 13.75% | Up to INR 3 Cr |
| Bank of Baroda | Starting from 8.70% | Up to INR 1.5 Cr |
| Bank of India | Starting from 10.35% | Up to INR 1.5 Cr |
Understanding the TCS Waiver Benefit
TCS (Tax Collected at Source) on international remittances can be a burden for students. Many banks offer a TCS waiver or reimbursement benefit, reducing upfront expenses.
| Bank | TCS Waiver Details |
| State Bank of India | 5% TCS waived if remitting through SBI |
| HDFC Credila | Reimburses TCS on proof of tuition payment |
| ICICI Bank | Case-by-case waiver based on loan terms |
| Bank of Baroda | 5% waiver if paid through their forex desk |
| Bank of India | No TCS on education loan-funded remittances from Apr 2025 |
Education Loan Eligibility Criteria
To qualify for a student loan USA or any other destination abroad, here are the general eligibility requirements:
- Applicant must be an Indian citizen
- Must have admission to a recognized foreign university or institution
- Co-applicant is required (usually a parent or guardian) with a stable income
- Academic records demonstrating strong performance
- Collateral may be required for loans above INR 7.5 lakh
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Choosing the Right Bank for Your Study Abroad Loan
Selecting the correct bank may make a huge difference in your long-term financial health when studying abroad. Consider not only low interest rate but also other benefits such as TCS waivers, flexible loan limits, easy terms of repayment etc.
If you want a more streamlined and personal experience, Nomad Credit can assist with finding lenders to connect with based on their international student expertise and competitive rates that suit your needs.
Compare Rates with a Trusted Education Loan Consultant
Looking for the best student loans for international students? Start by comparing options from top banks and lenders. The US student loan rate can differ based on your course, co-signer, and credit profile.
A reliable education loan consultant can guide you through the study abroad education loan process, helping you find the right lender, meet eligibility requirements, and secure funds faster.
Frequently Asked Questions
Which bank is best for education loan for abroad in 2026?
State Bank of India, HDFC Credila, and Bank of Baroda are top choices. These banks offer competitive interest rates, flexible repayment terms, and TCS waiver options.
Can international students apply for loans without collateral?
Yes, many banks offer unsecured education loans for select institutions. These loans typically require strong academic records and a co-applicant with good financial standing.
Do banks offer a TCS waiver for education loans?
Yes, several banks waive or reimburse the 5% TCS for eligible students. Waivers depend on whether the remittance is routed through the lending bank.
What is the maximum loan amount I can get?
Banks like ICICI and SBI can offer loans up to INR 3 crore. Loan amounts vary based on course, country, and collateral availability.
How important is a co-applicant for an education loan?
A co-applicant is usually mandatory for most education loans. Their income and credit history significantly influence loan approval.
Can I get a loan if I have admission in a community college in the USA?
Yes, some lenders provide loans for community colleges depending on the course. Approval may be easier if you have a co-applicant and strong academic background.
Mansi Jain Updated on September 1, 2025
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