5 Best Government Education Loan For Study Abroad (Updated 2022)

Vishesh Chogtu
Modified on 2022-07-22 in Loan
Read time: 6 mins
Source: warikoo

There are various kinds of educational loans offered by the Indian government for study abroad. Studying abroad has become more popular in India thanks to the government’s readily available educational loans for studies abroad and subsidies for students from low-income families. Under a number of government programmes, education loans are available for students to finish their higher education in renowned economies like the UK, Germany, and the USA, among others.

Planning and managing finances in advance is crucial for anyone considering studying abroad in order to have a better understanding of what your financial situation will be like when you are abroad.

Although there may be university scholarships available at the time of application, it is frequently challenging to receive a respectable amount due to the competitive nature of financial aid. To finance their studies overseas, Indian students can also take use of the readily available government education loan programme.

Top Government Education Loans for Study Abroad

Mentioned below are some of the top Government education loans for study aborad :

Dr Ambedkar Central Sector Scheme 

Students from minority groups are eligible to get a subsidy of up to 100% under this loan from the Indian government for international study. Only PG and doctoral programmes are eligible for the Dr. Ambedkar Central Scheme, and it can only be used once for a particular programme (either PG programme or PhD programme). In the following sections below check the details about the scheme and eligibility criteria. 

Eligibility criteria

Type Central Government Loan for Abroad Study 
Eligibility Criteria Acceptance letter from a college/ university abroad 
Availability of caste certificates 
Gross annual income to be less than 3.0 Lakhs 
Scored at least 60% in 12th from a recognised institution and board 
Amount Offered as LoanNot specified 

Vidya Lakshmi Education Loan for study abroad

The VidyaLakshmi Education Loan, another government loan for study abroad, is available for undergraduate, graduate, and doctorate programmes. The government grants a loan sum up to Rs. 30 lakhs for international education.

Eligibility criteria

Type Government Loan for Study Abroad
Eligibility Criteria Completion of 12th from a recognised institution and board
Only available for Indian nationals
Acceptance letter from a college/ university abroad 
Amount Offered as LoanUpto 30 Lakhs 

Gujarat Government Education Loan for Study Abroad

The Gujarat state government has approved this programme to encourage higher education. The programme offers Gujarati students who demonstrate merit 100%-subsidized student loans for higher education.

It is applicable to student loans up to 15 lakhs Indian rupees. This loan is available to Gujarati students for a range of study abroad opportunities, including professional courses, language immersion programmes, graduation, and post-graduation.

Eligibility criteria

Type State Government Loan to Study Abroad
Eligibility Criteria Acceptance letter from a college/ university abroad 
Student to be a resident of Gujarat 
Score of at least 60% in 12th standard 
Annual family income to be less than 6 Lakhs 
Amount Offered as LoanUpto 15 Lakhs 

Education Loan Scheme of the NBCFDC

The National Backward Classes Finance and Development Corporation (NBCFDC) offers education loans to backward class students who are enrolled in graduate-level or higher-level general, professional, or technical courses or training and whose income is below poverty line. Under this programme, loans for students who intend to study abroad are limited to a total of INR 20 lakhs.

Eligibility criteria

Type Government Loan for Study Abroad through a Government Institution
Eligibility Criteria Scored at least 70% in 12th from a recognised institution and board
Students should possess the caste certificate 
Annual income to be less than 3.3 Lakhs Acceptance letter from a college/ university abroad 
Amount Offered as LoanUpto 20 Lakhs 

Padho Pardesh Scheme

This scheme covers Indian students enrolled for a postgraduate degree overseas. Padho Pardesh loan is granted to those with a good academic record. In this scheme, 100% subsidy can be availed by the minorities. 

Eligibility criteria

Type Government Education Loan for Abroad through Canara Bank  
Eligibility Criteria Scored at least 60% in 12th from a recognised institution and board Only available in the first year Annual income to be less than 3.3 Lakhs Acceptance letter from a college/ university abroad 
Amount Offered as LoanUpto 20 Lakhs 

Application Procedure to Apply for Government Education Loan for Study Abroad 

Now let’s talk about how to apply for a government student loan to finance your study abroad:

  • Select the government loan that is most appropriate for you to use to finance your studies abroad.
  • Verify all details, such as the moratorium period, the payback time, the interest rate on an education loan provided by the Indian government, etc.
  • Visit the chosen education loan’s official website.
  • Complete the application.
  • Scan and upload the necessary documents 
  • Await the result.

If you meet the requirements and have a letter of offer or acceptance from the university where you desire to study abroad, you can simply obtain an education loan from the Indian government for your international studies. The Indian government offers a range of educational loans with loan amounts up to INR 30 lakhs. For students in specific categories, the Indian government also offers discounted interest rates to make studying abroad easy and hassle-free. 

For proper insight into loans and scholarships get in touch with expert counsellors at Admitkard.

Documents Required to apply for Government Loans for Study Abroad

When requesting a government student loan to study abroad, documentation is crucial. Make sure you upload all the valid documents only.

The following list of documents must be submitted in order to qualify for a government loan for overseas education:

  • Academic transcripts
  • Aadhar card 
  • Application form for the loan 
  • Residential proof 
  • Acceptance letter from university abroad
  • Income proof of your  family (Like property documents,  income tax returns, etc)
  • Standardised test scores 
  • Birth certificate
  • Bank statements
  • PAN Card 
  • Self declaration


Which loan is best for studying abroad?

Ans: Top Education Loans Providers in India for Study Abroad are given by banks like HDFC, SBI, Axis bank, Punjab national etc.

How can I get government loan for study abroad?

Ans: The applicant must sign up for a Vidya Lakshmi Portal account, log in, and then complete the Common Education Loan Application Form (CELAF) by entering all required information. Students can apply for educational loans from a variety of banks and programmes via the CELAF, a single form.

Do student loans pay for study abroad?

Ans: The university-mandated tuition charge is covered by student loans. Additionally, it covers the whole cost of attendance as well as international economy class airfare. The typical methods of paying for higher education overseas include loans, scholarships, and savings.

How much can I get a loan to study abroad?

Ans: There is no cap on how much money banks can lend to students who desire to study abroad. The answer varies from bank to bank. The vast majority of banks provide loans up to INR 20–30 lakhs. Additionally, if the loan amount exceeds INR 20 lakhs, the interest rate also rises.

Can I get a subsidy on government education loan for abroad?

Ans: Under Padho Pardesh scheme you can get interest subsidy on your educational loans.

What is the minimum percentage required to apply for an abroad education loan by Indian government?

Ans: Minimum percentage required to apply for education loan from Governmemt of India differs as per the eligibilty criteria set under different schemes.


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Vishesh Chogtu

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