Government Education Loan for Study Abroad
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In this article
- Education Loan for Abroad Studies by the Indian Government
- Vidya Lakshmi Portal Education Loan
- Gujarat Government Education Loan for Study Abroad
- GUEEDC Foreign Education Loan
- Education Loan Scheme of NBCFDC
- Educational Loan Scheme by NSFDC
- WBMDFC Education Loan
- Documents Required for Government Education Loan for Study Abroad
- Frequently Asked Questions
The trend of studying abroad has increased over the years among the students. The trend is fueled by better education, job opportunities, availability of courses, and the prestige of having an international degree. However, pursuing an education abroad often comes with financial challenges. This is where financial aid or loans come to the rescue. Government education loans are financial aid provided to students. This blog will explore how government education loans can help you achieve your study abroad goals.
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Education Loan for Abroad Studies by the Indian Government
The Government of India (GOI) offers education loans to students planning to study abroad. Government education loans usually provide several benefits to students, some of them are:
- Lower Interest Rates: Government loans typically have lower interest rates than banks, making them more affordable for students.
- Flexible Repayment: Government loans offer flexible repayment options with longer moratoriums and grace periods.
- Wide Coverage: Government education loans generally cover tuition fees, living costs, travel expenses, and other essential costs.
Vidya Lakshmi Portal Education Loan
Vidya Lakshmi is a portal for students looking for education loans. It is a portal designed by the government where students can compare loans and apply for the same. The portal helps students connect with multiple banks for loans. The key features of the Vidya Lakshmi portal are:
- 38 banks are registered with 86 loan schemes
- To date, 37 lakhs+ students have registered, and 10 lakhs+ applications have been sanctioned
- Students can apply for overseas education scholarships through the National Scholarship Portal
- Students can apply for loans in three simple steps
- With one single application form, students can apply to multiple banks for loan
Gujarat Government Education Loan for Study Abroad
The Gujarat Government Education loan is given to Gujarat students planning to study abroad. Eligible students can get loans for up to INR 15 lakhs at a 4% interest rate. The eligibility criteria for Gujarat government education loan is as follows:
- Passed class 12th with 60% marks or more
- Annual family income should not exceed INR 6 lakhs per year
- Students must have enrolled in a recognized University abroad
GUEEDC Foreign Education Loan
Gujarat Unreserved Education and Economic Development Corporation (GUEEDC) offers education loans for students planning to study abroad. The loans are offered to students at simple interest at 4% PA. Students must have 60% or more in standard 12, and their annual family income must be INR 6 lakhs or less. The other details for the GUEEDC foreign education loan are as follows:
| Particulars | Details |
| Collateral / Documents for the Loan |
|
| Repayment of Loan |
|
Education Loan Scheme of NBCFDC
The Education Loan Scheme of the National Backward Classes Finance and Development Corporation (NBCFDC) offers education loans to students of backward classes living below the poverty line. Students pursuing general/professional/technical courses or training at graduate and/or higher levels are eligible for the loan. NBCFDC education loans can be availed for a maximum of INR 20 lakhs abroad. The interest rate is 4%, while female students get a concession of 0.5% (3.5%). The eligibility criteria are as follows:
- Students must be members of backward classes
- Annual family income should not exceed INR 3lakhs per year
- Should have secured admission to a recognized University abroad
Educational Loan Scheme by NSFDC
An education loan scheme by the National Scheduled Castes Finance and Development Corporation (NSFDC) is provided to students pursuing their professional/technical courses at recognized universities abroad. The education loan covers scheme by NSFDC features are as follows:
| Particulars | Details |
| Expenses Covered |
|
| Loan Amount | INR 40 lakhs or 90% of the course fee (whichever is less) |
| Rate of Interest | 7% per annum (6.5% for female students) |
| Repayment Period |
|
WBMDFC Education Loan
West Bengal Minorities Development and Finance Corporation (WBMDFC) education loan is designed for students who are from minor communities in West Bengal. The loan covers studies in India as well as abroad. The details are as follows:
| Particulars | Details |
| Eligibility | 75% marks in last examination |
| Eligible Courses | Job-oriented professional/technical degrees (MCA, MBA, MS) from reputed universities. CIMA (London) and CPA (USA) certification courses |
| Loan Amount | Maximum – INR 6 lakhs in a year and INR 30 lakhs for the entire course |
| Interest Rate | 3% – 8% pa (depending on the family income) |
| Repayment Procedure | Starts after 6 months after course completion or on securing employment |
Documents Required for Government Education Loan for Study Abroad
Various documents are required when applying for an education loan to study abroad. Some of the documents are:
| Passport Sized Photographs | Identity Proof (PAN, Aadhar, Voter ID or Driving License) |
| Address Proof | Academic Records |
| Standardized Test Scores (if applicable) | Income Proof |
Frequently Asked Questions
Who is eligible to apply for a Government education loan to study abroad?
Students must be Indian citizens to apply for a government education loan to study abroad. The student must have a confirmed admission to a recognized university abroad.
What expenses are covered by the government education loan for studying abroad?
Government education loans typically cover tuition, travel, living expenses, exam and library fees, lab charges, and more.
What is the interest rate for a Government education loan to study abroad?
The interest rate for Government loans to study abroad varies from 7%-10%. Female students typically get a 0.5% concession in their loan application.
Do I need collateral for a Government education loan to study abroad?
A collateral requirement for a Government education loan to study abroad depends on the loan amount. Typically, loans above INR 7.5 lakhs may require collateral or a guarantor.
Are part-time courses covered by government education loans for studying abroad?
On average, the government offers education loans to students studying abroad for full-time courses. However, some schemes may offer loans for professional certification programs.
Mansi Jain
Updated on September 9, 2025
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