Every year, more than 8 lakh Indian students head abroad for higher education. But before the flight ticket and the dream university, comes the toughest hurdle — financing the journey.
This guide explains everything you need to know about getting an education loan to study abroad, including the process, required documents, and how Finnest helps you get fast approvals.
Step-by-Step Process to Get a Study Abroad Loan
1. Shortlist Your Course and Country
Before you approach lenders, finalize your program and destination. Loans are typically available only for recognized universities and accredited courses.
2. Research Lenders
You have three main options in India:
- Public sector banks – Lower interest, longer processing (e.g., SBI, Bank of Baroda)
- Private banks – Faster approval, slightly higher rates (e.g., Axis, ICICI)
- NBFCs – Flexible collateral and co-applicant rules (e.g., HDFC Credila, Avanse, InCred)
Finnest Tip: Compare lenders based on interest rate, processing time, and acceptance rate for your destination.
3. Check Your Eligibility
Lenders evaluate your academic profile, admission offer, and co-applicant’s financial background.
Typical eligibility checklist:
- Indian citizen aged 18–35
- Confirmed admission in a recognized foreign university
- Co-applicant with steady income (parent, guardian, or spouse)
- Strong academic track record
4. Collect the Required Documents
Keep all documents handy to speed up the loan process:
- KYC: Passport, PAN, Aadhaar
- Academic: Mark sheets, degree certificates, admission letter
- Financial: IT returns, salary slips, bank statements (6 months)
- Collateral (if applicable): Property title, valuation certificate
5. Submit Application via Finnest
Finnest helps you:
- Apply to multiple lenders with one form
- Get personalized offers within 24–48 hours
- Secure visa-accepted sanction letters from top Indian banks and NBFCs
6. Wait for Sanction & Disbursal
Once approved, you’ll receive a sanction letter detailing your loan amount, interest rate, and repayment period.
Funds are then disbursed directly to the university or as per the visa requirement.
Eligibility Criteria for Education Loans
| Factor | Requirement |
| Nationality | Indian citizen |
| Admission | Confirmed offer from recognized foreign university |
| Course Level | Graduation / Post-Graduation / Professional courses |
| Co-Applicant | Parent, guardian, or spouse with income proof |
| Credit Score | 700+ preferred (co-applicant) |
| Age Limit | 18–35 years |
Collateral vs Non-Collateral Loans
| Type | Collateral Needed | Loan Amount Range | Key Benefit |
| Collateral Loan | Yes – property, FDs, LIC policies | ₹20–1.5 crore | Lower interest rate |
| Non-Collateral Loan | No | ₹7.5–40 lakh | Faster approval and flexible repayment |
Finnest Advantage:
We work with multiple lenders that provide non-collateral loans for top universities in the USA, Canada, UK, Germany, and Australia, ensuring your visa process doesn’t get delayed.
Common Reasons for Loan Rejection (and Fixes)
- Incomplete documents – Double-check all KYC and academic papers.
- Weak co-applicant profile – Choose a financially stable sponsor.
- Unrecognized university/course – Stick to institutions approved by major accrediting bodies.
- Low CIBIL score – Add a co-applicant with a strong credit history.
- High debt-to-income ratio – Keep total EMIs under 40% of co-applicant’s income.
How Finnest Simplifies the Process
- Multi-lender comparison: Access India’s top banks and NBFCs through one dashboard.
- Pre-Visa Sanction Letters: Fast-track your visa approval with embassy-accepted loan proofs.
- No Collateral Options: Apply for unsecured loans based on your university ranking and profile.
- 24/7 Support: Dedicated loan advisors to guide you till disbursal.
FAQ
1. Can I get an education loan without collateral?
Yes. Many banks and NBFCs offer unsecured loans up to ₹40 lakh for recognized universities. Finnest partners with lenders specializing in such loans.
2. How much loan can I get for studying abroad?
You can get between ₹7.5 lakh and ₹1.5 crore depending on your course, country, and co-applicant profile.
3. How long does it take to get approval?
With Finnest, pre-approvals often happen within 48–72 hours once documents are verified.
4. Are Finnest loans accepted for visa applications?
Yes. All Finnest-partnered lenders provide visa-approved sanction letters accepted by embassies in Canada, UK, Germany, Australia, and more.
