Cheapest Education Loans for Studying Abroad: Who Offers the Lowest Interest?

If you’re planning to study abroad, money is likely a major concern, and finding the cheapest education loans for studying abroad is one of the smartest financial steps you can take. Whether you are targeting the USA, UK, Canada, Australia, Germany, or any other global destination, securing affordable funding will make a huge difference in your overall cost of education. Below, we compare 10 top lenders (banks and NBFCs), listing their current interest rates, maximum loan amounts and key tips to help you choose the most affordable option.

Note: Rates vary by profile, collateral, course, country, and RBI benchmarks. Always verify final rates with the lender.

How to Read This List

Each lender includes:

• Interest rate the published starting / range

• Maximum loan amount available for study-abroad students

• A brief note on what makes them stand out for overseas students

By understanding which banks and NBFCs offer the cheapest education loans for studying abroad, students can make informed choices that reduce interest costs, ease repayment, and free up funds for living expenses, internships, and travel.

1) State Bank of India (SBI) – Global Ed-Vantage / Student Loan

• Interest rate: ~8.15% – 10.15%

• Max loan: Up to ₹3 crore (for premier institutions)

• Why it matters: For many students, SBI is consistently considered one of the cheapest education loans for studying abroad, especially when applying to recognized global institutions with collateral.

2) HDFC Credila (NBFC)

• Interest rate: Secured from ~9.95% p.a.; Unsecured from ~11.25% p.a.

• Max loan: Unsecured caps commonly ₹75 lakh; secured loans up to ₹1.5 crore

• Why it matters: Offers quick processing and flexibility for high-cost courses, competitive if you need cheap and fast financing.

3) Avanse (NBFC)

• Interest rate: ~9.75%–13.5% (base + spread, varies by profile)

• Max loan: Up to ₹1.25 crore

• Advanced options and high loan tickets make it a good choice for expensive programs, provided you get a personalized quote.

4) Axis Bank

• Interest rate: ~9.99% – 11.5%

• Max loan: Up to ₹1 crore (Prime schemes)

• Offers 100% finance options — a viable affordable option if you meet eligibility.

5) ICICI Bank

• Interest rate: ~10.25% – 13.75%

• Max loan: Up to ₹3 crore

• Good for large amounts and leveraging FDs as collateral to reduce rates.

 6) Kotak Mahindra Bank

• Interest rate: ~10.25% – 16% (profile-dependent)

• Max loan: ₹10–45 lakh unsecured; higher with security

• Personalized pricing helps; negotiable rates if you have high academic or co-applicant credentials.

7) Punjab National Bank (PNB)

• Interest rate: ~7.85% – 9.50%

• Max loan: Varies; collateral-free up to preset limits

• Among the most affordable education loans for studying abroad, especially through flagship government schemes.

8) Bank of Baroda (BOB)

• Interest rate: Starting at ~7.1%

• Max loan: Up to ₹5 crore for premier institutions

• This is why BOB is often recommended in top rankings for the cheapest education loans for studying abroad in India, particularly for STEM and business programs in leading universities.

9) Canara Bank (Vidya Turant / IBA model)

• Interest rate: ~7.10% for select schemes

• Max loan: Security-free loans for premier institutes up to defined limits

• Another standout for affordability, especially for high-performing students.

10) IDBI Bank

• Interest rate: Competitive; varies by products

• Max loan: Up to crores for select categories

• Flexible terms and expertise in education lending make it worth checking for deals.

Quick Comparison — Lowest Starting Rates

• Bank of Baroda: ~7.1%

• Canara Bank: ~7.10%

• PNB: ~7.85%

• SBI (certain schemes): ~8.15%

While rates can vary based on credit profile, these four lenders frequently dominate student loan comparison charts for the cheapest education loans for studying abroad, making them ideal starting points for your loan search.

Additional Value: Smart Tips for Financing Further

• Understand total cost: Beyond tuition, include living, instruments, and travel.

• FX management: Lock in forex rates ahead of disbursement to avoid losses.

• Leverage co-applicants: Having a salaried co-applicant can significantly reduce your interest rate.

• Check repayment flexibility: Some lenders offer pre-payment without penalty, this can reduce your cost overall.

• Compare beyond rates: Even among the cheapest education loans for studying abroad, factors like moratorium benefits, forex policies, and processing speed can impact your total repayment cost.

Final Thoughts

Finding the cheapest education loans for studying abroad in India is not just about rate comparisons, it’s about finding a loan product that matches your academic goals, repayment ability, and lifestyle. The right financing can mean less stress, fewer compromises on your university choice, and greater freedom to focus on studies instead of financial pressure. Whether you qualify for low-rate public bank schemes, need fast processing from NBFCs, or want high loan limits with collateral, there’s an option for you.

The key is to apply early, compare multiple quotes (including spreads + benchmark), and select based on your profile and study destination. This approach ensures you secure a cost-effective loan for your education journey.

FAQs – Cheaper Education Loans for Studying Abroad

Q1. Which lender offers the cheapest interest for overseas study loans?
Bank of Baroda and Canara Bank often lead in offering the cheapest education loans for studying abroad—starting at ~7.1% for eligible candidates.

Q2. What is the typical maximum amount offered by education loans for studying abroad?
Loan amounts can range from ₹20–45 lakh (unsecured) to ₹3–5 crore (secured) depending on the bank and collateral.

Q3. Can you get an education loan for studying abroad with unconditional offer & 12th English marks?
Yes. Banks may accept MOI or unconditional offers based on Class 12 English marks as proof of admission, even without IELTS/TOEFL.

Q4. Do education loans for studying abroad include living expenses?
Yes, most banks include tuition, accommodation, living expenses, travel, and instruments in the sanctioned amount, check with your lender.

Q5. Which banks offer study-abroad loans without requiring collateral?
Institutions like SBI, PNB, Bank of Baroda, and Canara Bank offer unsecured loans for premier institutions, though amounts may be capped unless collateral is offered.