Which Bank is Best for an Education Loan for Studying Abroad?

It is exciting to receive that offer letter in a dream college abroad. The excitement, the ambition, the fresh start. But when that sunk, reality strikes–how do you finance it?

To the majority of Indian students, an education loan turns out to be the preferred path. But choosing the right bank? It is at that point that things can be overwhelming.

With so many lenders — public banks, private banks, NBFCs, and international players — offering different rates, terms, and benefits, picking the best one feels like decoding a finance textbook.

Don’t worry. We’ve done the homework for you. Here’s a practical guide to understanding which banks are worth considering — and which one is best for you.

Stop Overpaying—Get the Right Loan Now

What Makes a Bank “Best” for Education Loans?

It is worth defining what is even best before leaping into names. It is not only on the lowest interest rate. A good loan should be:

• Affordable (low interest rates and charges)
• Flexible (repayment terms that suit you)
• Quick to process
• Supportive with pre-visa disbursal or forex payments
• Transparent (no hidden clauses)

Top Banks & Lenders for Education Loans for Studying Abroad

Education loans to study abroad are available through a host of competitive interest rates and individualized repayment plans through a wide variety of leading banks and other private lenders. The major financial institutions are nationalized and privately owned banks, and special education-targeted lenders, who are determined to assist students with their future.

• State Bank of India (SBI): A reliable and endorsed government solution that is highly acceptable in the world. Recognized as a reputable support and high level of credibility among the students and institutions.
• Bank of Baroda: Offers attractive schemes like Baroda Scholar with extensive global coverage. An excellent option to students seeking multimodal education loan options without collateral.
• Axis Bank: Known to be fast processors and easier than easy. Offers collateral-free loans to simplify the financing process and make it more accessible.
• ICICI Bank: Reputation of fast sanctioning and the flexible repayment tenure. A solid alternative among the students who are in need of efficiency and flexibility is a strong private bank.
• HDFC Credila: Specializes in education loans with customizable repayment plans. Makes disbursements flexible and customized EMI to various students.
• IDFC First Bank: Dedicated to less paperwork and an effortless, slick process. A great fit for students who value speed and convenience.
• Avanse Financial Services: Covers not just tuition, but also living, travel, and exam expenses. Designed to support the complete financial journey of studying abroad.
• Prodigy Finance: Caters primarily to top international B-schools and MS programs. Ideal for students seeking a lender with global expertise and specialized coverage.

Deep Dive: Which Bank Should You Choose?

Here’s a quick way to understand what might work best for you:

Go for SBI or Bank of Baroda if:

• You want a public sector lender with lower interest rates
• You’re comfortable pledging property or collateral
• You’re looking at longer repayment periods with subsidies (like the interest subsidy scheme

Choose Private Banks (Axis, ICICI) if:

• You need a quicker loan sanction
• You want to avoid the hassle of government documentation
• You may not want to show collateral for smaller amounts (say ₹20–40L)

Pick NBFCs like HDFC Credila or Avanse if:

• You need flexibility in loan amount and disbursement
• You’re studying at a lesser-known or newly listed university
• You want to cover full expenses, including living, travel, laptop, etc.

 Prodigy Finance is great if:

• You don’t have collateral or a co-signer
• You’re going for a Master’s or MBA abroad
• Your university is on their approved list (mainly in the US, UK, Europe)

Stop Searching—Start Exploring Lenders

What Documents for an Education Loan to Study Abroad That You Typically Need?

You will generally be required to submit a list of basic documents when applying to an education loan abroad. These are personal data, your co-applicant data and academic data to demonstrate admission. Also, you might require papers that are associated with your university and program of choice.

• Admission letter from the university
• Academic records (10th, 12th, graduation)
• KYC documents (passport, Aadhaar, PAN)
• Income proof of co-applicant (ITR, salary slips)
• Collateral documents (if required)
• University fee structure

Pro Tip: Use Loan Marketplaces

Platforms like Nomad Credit can help you compare banks, NBFCs, and international lenders side-by-side — personalized to your profile, course, and destination.

They help match you with the best options, often faster and with higher approval chances — especially helpful for students with unique situations (like low GRE scores, gap years, or unconventional programs).

Final Words: Choose Smart, Not Just Safe

Your study abroad experience can be made easy by the right education loan. But the wrong one? It may make you entangled in years of high EMIs and concealed expenses.

So don’t just look at one bank. Compare all your options. Consider what you will do after graduation, how you will repay, and your visas.

And is it still bewildering? There’s help with study abroad consultants!

Loan Finder

Find Your Best Loan
Options in Minutes

Explore Offers Now