Education plays a very important in a person’s life. It is a process through which a person becomes what he/she wanted to become. Education helps an individual to develop personality and confidence. It moulds or shapes a person and imparts them with morals and values. An educated man knows what is right and what is wrong. He knows when to speak and when to keep his mouth shut. This is all because of education.

We all want to study but some wanted to study abroad. Studying in foreign and getting education is important in many ways:

1.     Firstly, a person studying in abroad becomes totally independent. This is because there is no one with him in the new country and an individual will get to know themselves better. This journey should ne embrace by anyone who gets to study abroad.

2.     Studying abroad also helps an individual to have a command over foreign language. In order to learn this individual had to do hard work.

3.      Thirdly, foreign education in addition to improving language skills also improves communication skills. An individual learn to bridge the gap and also know how the people living there communicate in day-today life. This will help them to know about their culture.

4.     Fourthly, when an individual return home with foreign education he/she has greater career opportunities.

5.     Studying abroad also get an individual the experience of new education system. This is because the classes which an individual takes in foreign can be way different from what they have experienced in their own country.


So, foreign education can be important in many ways. But getting abroad and studying there is not an easy task. Many banks provide education loan for foreign studies. There are various schemes which are offered by Indian banks which depend mainly on the type of institution and the course which is selected by the student. Education loans also covered the cost of boarding, tuition fees, travel and other related cost of the student.


There are various features of education loans. They are:

1.     Any individual whose age is between 18 and 35 years can apply for education loan.

2.     Education loans can be provided for various courses like management, engineering, graduate, post graduate, arts, hotel management etc.

3.     An individual has to bring in a margin of 5 to 15% for loans which is taken for foreign studies.

4.     Borrowers have to pay the interest along with the principal amount when the loan tenure starts.

5.     Education loan is generally repaid with monthly instalments through post-dated cheques.

6.     Banks provide education loan for a period of seven years.

7.     For an education-loan to get sanctioned there should be a co-applicant. Co-applicant could be parents, siblings or any other family members.

8.     No security has to be submitted for education loan taken up to Rs. 4 lakhs.


There are many formalities which need to be completed. Education loan for abroad usually covers:

1.     Tuition fees

2.     Examination charges, library, laboratory and hostel charges.

3.     Cost of purchasing books, equipment, instruments and uniform.

4.     Travel expenses

5.     Caution money, refundable deposit etc.

6.     Project work, study tours etc.


Documents required for studying abroad:

1.     Mark sheet for last qualifying examination for school.

2.     Proof of admission to the course.

3.     Schedule of expenses for the course.

4.     Cost of letter confirming scholarship, if any.

5.     Passport size photographs.

6.     Income tax assessment order.


There are many banks in India which provide education loan. They are as follows:

1.     SBI {STATE BANK OF INDIA}: SBI offers term loan to Indian students who wants to study abroad. The loan which is offered by SBI covers almost all expenses like tuition fees, travelling expenses and many others. The loan amount provided is up to a maximum of RS. 30 Lakhs, with a collateral security required only for loans above RS. 7.5 Lakhs. SBI also offers a moratorium period during which the entire interest can be repaid. The interest rate which is provided by SBI is 2%.


2.     AXIS BANK: Axis bank also offers education loan. They offer education loan at competitive interest rates for Indian students. Axis bank offers minimum loan of RS. 20 LAKHS which covers hotel fees, tuition fees, book costs etc. Education loans are sanctioned by axis bank for a period of fifteen days. Axis bank may also ask for LIC policy. The interest rate ranges from 16.50 to 17.50%.

 (Please check present offers, interest rate)