Education and Career Forum

what is the amountof bank loan can that canbe be sanctioned to study abroad?

The number of Indian students going abroad mainly in United States, UK, Australia, New Zealand and Canada for higher studies is increasing by the day. Several students prefer to complete their higher studies from a reputed overseas college however financial condition plays a major hurdle for such students.

If you can afford to pay for the foreign study then its fine but in other case you are required to obtain loan from the bank to puruse your goal of higher studes. However in case you require loan as you mentioned in the question there are several things that you need to factor when applying for the loan in Bank.

So bascially what you are going to apply for is Education loan. Most banks offer it however in case when the student is going abroad for studies they demand several certificates before passing your education loan.

The Banks have 20 lakh limit that they pay for the education loan.

Students are required to pay at least 15 percent of the fee from his own pocket.

In case of overseas study the collateral and the terms could be difficult.

Collateral means that you will get loan secured by some of your property. This include:

Fixed Deposits (FD)

National Savings Certificates (NSCs)

Insurance Policy

House or Plot

In case of overseas study you may require to have a co-borrower that could be your father, mother, elder brother. However this depends of the loan amount and bank regulation.

The repayment policy varies from bank to bank. Mostly it starts with 1 year after completing the course of 6 months after you get the job, whichever happens first. You are required to repay the loan in 5 to 7 years.

Here important thing to remember is that do not forget to check the Interest Rate of the bank and how to compute the interest rate. Some Public Sector banks charge less interest rate and offer EMI holiday during the study period.


Second option you have is applying for the loan scholarship also known as fellowships or trust loans.

Aga Khan Foundation

Aga Khan Foundation

JN Tata Endowment

KC Mahindra Education

Rotary Ambassadorial Scholarships

Inlaks Scholarships are some of the most popular trust among the students.

JN Tata Endowment which is the most popular requires you to start repaying the loan which is interest free from the fourth year of the course the employment which ever comes first.