- The government PM-Vidyalaxmi scheme, approved in November 2024, offers collateral-free and guarantor-free loans to students admitted to the top 860 institutions, with interest subvention during the moratorium
- Under RBI norms, loans up to Rupees 4 lakh need no collateral or guarantee and loans up to Rupees 7.5 lakh need no tangible collateral
- SBI Global Ed-Vantage funds abroad study up to Rupees 3 crore, repayable over 15 years
- Section 80E lets you deduct the full education-loan interest for up to eight years.
Studying abroad is expensive, and most Indian families fund it with an education loan rather than savings alone. Loans come from four kinds of lenders: banks, which usually offer the lowest interest rates; Non-Banking Financial Companies (NBFCs), which sanction loans faster and lend larger unsecured amounts; crowd-funded lenders, which can disburse in the destination currency; and foreign banks, which need a co-signer abroad. This guide explains the process, collateral rules, government schemes, the main lenders and the tax benefits available in 2026.
Apply once you receive your admission offer letter. Compare banks on interest rate and margin, then check that your course qualifies as a long-term programme. Arrange a co-applicant, usually a parent, sibling or spouse. Submit identity, address and signature proofs, academic mark sheets, the admission letter and a cost estimate. Banks disburse funds directly to the university.