Eligibility criteria for a loan

Pragya Sharma ✅

Pragya Sharma ✅

Co-Founder @ Ace My Prep & Study Abroad Expert


Education loan for studying abroad is one of the many available options which traditionally helps Indian students in pursuing higher education. Students who wish to study at the Victorian campuses across the Charles River at the prestigious MIT , or maybe at the heart of start-up country Israel; can find the financial means to do so with student loans. Applicants can cover all expenses of overseas education, such as tuition fees, living expenses, travel, and even student healthcare insurance services with various banking institutions providing a wide range of services, 

Gladly, universities have accepted diversity in their talent pool with Indian students and study-abroad student-loans have aided in doing so. The aim of higher education abroad, for specialised learning, is now turning into a more credible reality for students of India. However, only a few students are thoroughly aware of the available education funding options for study abroad process. Multiple students are often found to have missed the lifetime opportunities for want of regular financial limitations. This is why apt information about the education loans to study abroad, is a pre-requisite for Indians to realise their educational aspirations, undeterred and independently.

Some peculiar features of education loan for abroad studies are:-

  • Requires a co-applicant and is only provided to an Indian citizen (NRIs/PIOs included)

  • Is only provided for higher education (undergraduate programs and above, colleges and degree programs only)

  • Needs a confirmation of admission (conditional or confirmed)

  • Can also pay for foreign entrance exams like SAT exams, LSATS, GRE, GMAT, IELTS, etc. and also act as ‘Proof of Funds Availability’ required for admissions to various institutions

  • Can be taken against varied collateral options (not necessary or limited to securities, savings, property, etc.)

Standard eligibility parameters for study abroad education loan are:

  • A student should be an Indian national. Wards of PIOs and NRIs are included in this criteria

  • Applicants should have an acceptance letter from educational institution (either permanent or conditional)

  • Students should have passed the requisite international entrance exams and should have permits (VISA and work) in place

  • Should be able to exhibit financial viability for repayment of education loan for study abroad
Courses eligible for international student loans

Banks always prefer to provide education loans for study abroad, to students attending technical or professional courses that offer credible weightage to post academic employability. This is because banks prefer the applicants to have a source of income after education to repay the loan. Almost all international universities/colleges/institutions provide job oriented courses only. Still, for the reference of applicants, all courses eligible for foreign education loan are mentioned below:

  • UG degrees/diplomas and special courses

  • PG degrees/diplomas and special courses

  • PhDs and Doctoral Programmes

  • Exchange programs (the degree to be offered by the foreign institution.

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