Documents Required for Education Loan to Study Abroad


Cyril Zachariah
Updated on Jun 16, 2023 08:33 PM IST

To apply for an education loan to study abroad, you need certain documents for verification without which the loan may not be approved. Check the list of documents that you will need to apply for an education loan.

Documents Required for Education Loan to Study Abroad

Documents Required for Education Loan to Study Abroad: One of the main obstacles for Indian students who want to attend international universities is finding the money to pay for their higher education. Although many colleges provide scholarships, not every student is eligible for the same ones. As a result, a lot of students rely on taking out an education loan, which is now the main way to pay for studying abroad.

Both banks and Non-Banking Financial Companies (NBFC) offer educational loans. An NBFC is an organisation that has been registered under the Companies Act of 1956 and is engaged in lending and advanced business. Loans for education abroad are available from almost all Indian public and private sector banks.
If one has all the documents required to be supplied while filling out the application form, the process to apply for an education loan to study abroad might be uncomplicated. If you have any questions concerning study abroad educational loans or the documents that are needed for application, continue reading the article below.

Factors to Consider While Applying for an Education Loan

When applying for an education loan, the bank considers a number of factors as mentioned below:

  • The academic background and credentials including grades, credits, etc. of the candidate will be taken into account.

  • The program of study must be accredited and the bank will also want to know if the candidate has a good likelihood of landing a job and moving up the career ladder.

  • The higher education institution where the candidate intends to study should also be highly ranked, certified and well-known.

  • The applicant must also be able to provide collateral for the loan.

  • One may also choose to estimate and pay equated monthly instalments (EMI). In case an applicant wishes to go for monthly payments, factors such as loan amount, interest rate and tenure should be considered.

  • Before settling on a bank, an applicant must read all the terms and conditions as well as the specifics mentioned on the application form.

  • It is better to opt for a bank that lets one extend the repayment period in case of unexpected occurrences.

  • The bank will not give the loan to the applicant directly. It will forward it to the university at the start of every semester.

Types of Education Loans for Higher Education to Study Abroad 

Broadly education loan is categorised as secured loans and unsecured loans. Both loans can be borrowed from a public sector bank, private sector bank and NBFC with varying rates of interest on different amounts.  Let’s discuss each of them in brief. 

Secured Loans: Secured Loans require the applicants to provide some kind of security in the form of collateral while applying for it. These loans have a lower rate of interest, however, the processing time is high. 

Unsecured Loans: Unsecured loans do not require applicants to provide any collateral while applying for it. The rate of interest on secured loans is high. However, the processing time is quick and usually, the repayment period on secured loans is short.

Education Loan - Limit and Rate of Interest

Government banks usually approve secured loans of up to Rs 20 to 30 Lakhs with State Bank of India as an exception that approves loans up to Rs 1.50 crore. However, private banks and NBFCs grant loans up to 50 Lakhs. The rate of interest for secured loans is low. Applicants can expect a moratorium period of six to 1 year on a secured loan. For unsecured loans, students can receive loans ranging between Rs 8 lakhs to 50 lakhs. The moratorium period is usually six months in private banks and it varies for NBFCs. The rate of interest for secured loans is higher than the secured loans.

Loan Type 


Moratorium Period 

     Rate of Interest

Secured Loan

Rs 20 to 30 Lakhs (Exception SBI- up to Rs 1.50 crore)

6 months to 1 year

          09% to 15%


Unsecured Loan


Rs 8 lakhs to 50 lakhs.

6 months. Varies fr NBDFs

            11% to 15%

Indian Banks and their Education Loan Interest Rates

Here is the list of banks in India that offer education loans with interest rates starting from 6.8% for a loan of Rs 20 lakh for 7 years.

Bank Rate of Interest
Union Bank of India 6.80%
Bank of Baroda 6.85%
Bank of India 6.85%
Central Bank of India 6.85%
State Bank of India 6.85%
Punjab National Bank 6.90%
IDBI Bank 6.90%
Canara Bank 6.90%
Bank of Maharashtra 7.05%
Indian Bank 7.15%

List of Documents Required to Apply for an Education Loan to Study Abroad

The following documents submitted at the bank are cross-checked and verified before an approval for education loan is given: 

KYC: The KYC documents include the photo identity proof of the candidate i.e. the Aadhaar Card and PAN Card.

Passport: You must have a valid passport to apply for an educational loan to study abroad. 

Address Proof: You will have to submit the permanent residential proof and the present residential proof documents along with the application.

Proof of Education: All academic certificates of Class X, Class XII and degrees are included in the educational certificate. In case there is any gap in between your qualifications, you will also have to submit the gap certificate at the bank. If you have any work experience, you will be required to submit the offer letter, ITR, salary slips of the organization and work experience certificate.

Certificate from University: You would need to submit the offer letter received from the university to apply for an education loan. Along with that, you would have to show the fee structure, and scorecard of the admission tests like GRE/ GMAT, IELTS/ TOEFL or any other entrance test you have appeared for. 

Documents of Co-Applicant 

Above are the documents of the candidates required to apply for an education loan. In addition to it, the documents of the co-applicants must also be submitted at the bank.  A co-applicant acts as a guardian of the applicant. The list of documents required of the co-applicant is mentioned below:

  • Photo Identity Proof 

  • Address Proof 

  • Salary Proof 

  • Bank Statement of Salary Account 

  • Income Tax Return 

  • Proof of Business (if any)

Eligibility Criteria to Apply for an Education Loan to Study Abroad 

The bank sets certain eligibility criteria in order to offer education loans for study abroad. While the banks do not set hard and fast criteria to apply for an educational loan, candidates who meet the below-mentioned criteria are preferred by banks:

Academic Performance: The bank expects candidates to have good academic records to avail of loans for study abroad. The minimum percentage expectation of a public sector bank is 60% in Class X, Class XII and graduation. However, candidates with low percentages may also be considered. Private banks, on the other hand, do not specify any cutoff but expect an overall good academic record. 

Academic and English Language Test: The test score obtained must be good, however, there is no specific cutoff for the same. If the candidate is applying to study abroad from the US at postgraduate level then he/ she must have a good GRE score.

Reasons for Gap: The bank expects candidates to submit a letter explaining the gap between the last qualifying degree and the year in which they plan to study abroad (if there is any).  

How to Apply for an Education Loan to Study Abroad?

Now that you know the list of documents and eligibility criteria required to apply for loans, check out the step-by-step application procedure: 

Select the Bank: Almost all public sector and private sector banks in India provide education loans for study abroad. Selecting the bank is the first step while applying for the same. The terms and conditions, rate of interest and other formalities associated with the loan may vary from one bank to another. You can shortlist a set of banks and then finalise the bank from which you want to take the loan. 

Understand Loan Details: Before applying for the loan, make sure to have a complete understanding of every detail of the loan. It includes the features, terms and conditions, benefits, rate of interest, etc. Discuss with the bank executives about the hidden charges, processing charges, and more.

Verify the Eligibility Criteria: You must meet the eligibility criteria defined by the respective bank to get the loan approved. Before you fill in the application form, cross-check the eligibility criteria. Also, make sure that you have all the necessary documents required to prove the eligibility criteria.

Apply for the Education Loan: Almost at every bank, you can apply for an education loan through its online portal. You can visit the official website of the bank and under the educational loan section, fill out the application form and submit it. Usually, one of the representatives of the bank will contact you within 24 hours of submission of the form.

You can also directly visit one of the nearest branches of the bank and fill out the application form under the guidance of the bank representatives. 

Hope the above information is useful. You can write to us at and clear out your doubts about study abroad education loans and another study abroad information.

Know More About Study Abroad Education Loans With Expert Help! 


What are the documents required to get an education loan to study abroad?

The documents required to get an education loan to study abroad for the applicant and co-applicant are two passport-size photographs, their valid photo ID, and residence proof. The documents required specifically from the applicant are academic documents and proof of admission while that from the co-applicant are his/her bank statements of the last eight months, income proof, and collateral (immovable property), if applicable.

Are original documents required while applying for an education loan to study abroad?

Yes, original documents are required while applying for an education loan to study abroad. Documents such as the ID proofs of the applicant and co-applicant or the income proof of the co-applicant and likewise must be original documents. The requirement of original documents may differ slightly with the choice of the bank and their terms and conditions to give an education loan to study abroad. Hence, the applicant and co-applicant must provide all the necessary original documents as asked by their bank.

What is the maximum limit up to which an education loan to study abroad can be taken?

An education loan to study abroad can be taken up to a maximum limit of 50 lakhs without collateral. An education loan without collateral, also known as a non-collateral education loan, is obtained without pledging any collateral such as a house or property to the lender. However, the applicant’s academic background, choice of country and course to study abroad, and the financial situation of the co-applicant are important factors to obtain a non-collateral education loan.

Is ITR mandatory to obtain an education loan to study abroad?

Yes, an ITR is mandatory to obtain an education loan to study abroad, especially if the applicant is filing for a non-collateral or unsecured education loan. The ITR documents of at least two years of the co-applicant are to be submitted at the bank to get a non-collateral education loan to study abroad. A high SIBIL score of the co-applicant is also required.

What documents are to be submitted as proof of income for an education loan to study abroad?

Documents to be submitted as proof of income for a non-collateral education loan to study abroad include the payment slips of the last three months of the co-applicant, copies of Form 16, IT returns from the past two to three years of the co-applicant, bank account statements of the last six months of the co-applicant, and any additional documents listed by the bank. However, for a collateral loan, the co-applicant will also have to submit the necessary property documents.

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