Zolve: International student Loan
Photo by Nick Morrison / Unsplash
student loan

Finance Your Future: Explore International Education Loans in India

Latika Sharma
Zolve: International Loan

In today's fast-paced world, education plays a pivotal role in shaping one's future. However, the rising costs associated with higher education often pose a significant challenge for students and their families. In such scenarios, educational loans emerge as a viable solution, offering financial assistance to pursue academic aspirations.

In this blog post, we'll delve into the intricacies of education loans, shedding light on their types, benefits, eligibility criteria, repayment process, and more.

Understanding Education Loans

Education loans serve as a lifeline for students, enabling them to fulfill their educational dreams without financial constraints. These loans, provided by banks and financial institutions, cover many expenses, including tuition fees, accommodation charges, travel expenses, and other related costs. One of the distinguishing features of educational loans is the repayment flexibility, allowing students to commence repayment post-course completion, typically after a grace period of six months.

Types of Education Loans

Education loans for undergraduate programs: Designed for students pursuing higher education after secondary education.

Education loan for post graduate students: Tailored for individuals seeking further studies after completing their undergraduate courses.

Loan for vocational courses from abroad: Geared towards individuals undertaking courses, training, or certifications to enhance their professional skills.

Education loan taken by parents: Available for parents seeking financial assistance for their children's education.

Expenses Covered in Education Loans

Student Loan Finance: Zolve

Education loans encompass various expenses essential for academic pursuits, including tuition fees, hostel fees, travel expenses, insurance premiums, and more. Additionally, expenses related to books, equipment, examination fees, and other academic necessities are also covered under these loans.

Features and Benefits of Educational Loans

-Loan financing up to Rs.1 crore

-Flexible repayment tenure of up to 15 years

-Availability for studies in India and abroad

-Preferential rates for certain demographics, such as female students

-Tax benefits under Section 80E of the Income Tax Act

Study Abroad Loan Options in India

Studying abroad has become increasingly popular among students due to the growing awareness of overseas opportunities and the availability of financial aid through student loans. The Government of India provides support to Indian students seeking higher education abroad, offering government education loans and assistance with loan interest.

Here, we highlight the top four government loan schemes for students planning to study abroad.

Scheme Name

Interest Rate

Maximum Loan Amount

Repayment Tenure

Vidya Lakshmi Portal Education Loan


INR 1.5 crore

10 to 15 years

Gujarat Government Education Loan


INR 15 lakh

10 years

Education Loan Scheme of the NBCFDC


INR 20 lakh

15 years

Dr Ambedkar Central Sector Scheme

100% subsidy

INR 20 lakh

Course period, plus one year or six months after getting a job, whichever is earlier)

Meanwhile, let's delve into a few private loan options -

Following are the top 4 financial institutes providing loans for study abroad

Name of Bank

Interest Rate (p.a.)

Processing Fees




IDFC First Bank



Axis Bank



Yes Bank



Eligibility Criteria for Education Loans

Eligibility for education loans is contingent upon enrollment in recognized institutions, completion of requisite academic qualifications, and adherence to other specified criteria. Obtaining an educational loan to pursue studies in foreign countries can be a crucial step towards fulfilling academic aspirations. To facilitate this process, lending institutions typically outline specific eligibility criteria that applicants must meet. Below are common requirements for securing an educational loan for studying abroad:

  1. Indian Citizenship: The primary borrower must be a citizen of India, residing in the country.
  2. Co-Applicant's Citizenship: Co-applicants, if applicable, must also be Indian citizens. Co-applicants often include parents, guardians, or spouses.
  3. Collateral Requirement: Depending on the loan amount and lender's policies, applicants may need to provide collateral or security. This could be in the form of tangible assets such as property, fixed deposits, or government securities.
  4. Bank Account: Co-borrowers (if any) must hold an active bank account in India with cheque writing facilities. This account is often used for loan disbursements and repayments.
  5. Confirmed Admission: Applicants must have received confirmed admission or an offer letter from the foreign college, university, or educational institution. This is a critical prerequisite to demonstrate the purpose and necessity of the loan.
  6. Educational Qualifications: The student applying for the loan must have completed high school (typically equivalent to 12 years of schooling in India) and possess the necessary academic credentials required for the chosen course abroad.
  7. Entrance Exam and Acceptance: The student should have successfully passed any required entrance exams or qualifying tests specific to the foreign educational program. Acceptance into the institution is a mandatory step to qualify for the loan.
  8. Financial Stability of Co-Applicant: In some cases, especially for larger loan amounts, lenders may require a co-applicant with a stable and verifiable source of income to support the repayment of the loan.
  9. Repayment Capacity: Applicants are often evaluated based on their repayment capacity, taking into account their future earning potential post-education.
  10. Repayment Capacity: Applicants are often evaluated based on their repayment capacity, taking into account their future earning potential post-education.
  11. Course and Institution Validity: The course and institution chosen by the student must be recognized and accredited by relevant authorities. This ensures the legitimacy and quality of the educational pursuit.

Meeting these eligibility criteria is essential for securing an educational loan for studying abroad. Prospective borrowers are encouraged to thoroughly review and understand the specific requirements of the lending institution to streamline the loan application process and enhance the chances of approval. Additionally, seeking guidance from financial advisors or loan officers can provide valuable insights into navigating the complexities of educational financing for international studies.

Documentation Required for Educational Loans to Study Abroad

To apply for an educational loan to pursue studies in foreign countries, applicants must submit a comprehensive set of documents to support their loan application. Below is a detailed list of the necessary documentation:

Fully Completed and Signed Application Form:

  • Download the loan application form in PDF format .

Passport Size Photos:

  • Two passport size photos each of the applicant and co-applicant.
  • One set to be pasted on the application form.
  • Second set to be affixed (stapled) to the application form.

Photo ID (Any one of the following for Applicant and Co-Applicant):

  • Permanent Account Number (PAN) Card
  • Passport
  • Driving License
  • Aadhaar Card
  • Voter's ID Card

Residence Proof (Any one of the following for Applicant and Co-Applicant):

  • Passport
  • Driving License
  • Aadhaar Card
  • Voter's ID Card

Academic Documents of Student:

  • Marksheet/Certificate of 12th Exam
  • Marksheet/Certificate of subsequent years of education (e.g., BE, BCom, BSc, etc.)
  • Marksheet of any entrance exam taken (e.g., CAT, CET, etc.) if applicable
  • GRE/GMAT/TOEFL/IELTS, etc., scoresheets if applicable
  • Scholarship documents (if applicable)
  • Proof of admission (printed admission letter from the institute on its letterhead)

Last 8 Months Bank Statements of Co-Applicant:

  • Provide bank statements for the last 8 months.
  • Include statements from all relevant bank accounts where salary or business/professional receipts are credited every month.

Income Proof of Co-Applicant:

For Salaried Employee:

  • Latest 3 salary slips or salary certificate on employer's letterhead
  • Last 2 year's Form 16 from employer or last 2 year's income tax returns
  • Any other income proof not reflected in the above documents

For Self-Employed or Professional:

  • Last 2 year's income tax returns
  • Last 2 year's certified financial statements or provisional financial statements duly certified by a chartered accountant (CA)
  • Proof of office (e.g., lease deed, utility bill, title deed, etc.)
  • Any other income proof not reflected in the above documents

Collateral Documentation (If Applicable - Immovable Property):

Education Loan Repayment Process

The repayment period for education loans typically commences after the completion of the course or upon securing employment, whichever comes first. After completing your education, repaying the study loan promptly is essential to minimize interest costs and financial burden. Effective education loan repayment requires:

  1. Discipline and Planning: Develop a structured plan for loan repayment that aligns with your financial capabilities and goals.
  2. Early Repayment Strategies: Explore methods to repay the loan efficiently and minimize interest payments.

Education Loan Repayment Calculations

Comparing different repayment scenarios can provide insights into the total repayment amount and duration. Key calculations include:

  • EMI vs. Number of EMIs: Evaluate the impact of varying EMI amounts on the total repayment and loan tenure.

Education Loan Repayment Modes

Understanding the various repayment modes available facilitates informed decision-making. Common repayment methods include:

EMI (Equated Monthly Installment):

  • Fixed monthly payments combining principal and interest components.
  • Higher EMIs accelerate principal repayment, reducing the overall interest burden.


  • Some banks allow partial loan repayment with a processing fee.
  • Ideal when you have a lump sum amount to reduce the outstanding loan.

Pre-payment or Foreclosure:

  • Repay the entire loan amount before the tenure ends.
  • Saves significantly on interest but may incur a nominal processing fee.

Education Loan Repayment Modes

Choose a repayment mode that suits your convenience and financial situation:

Cheque/DD Repayment:

  • Submit post-dated cheques (PDCs) or demand drafts (DDs) for scheduled EMIs.

Cash Repayment:

  • Visit the bank branch or opt for home collection to repay EMIs in cash.
  • Standard service fee may apply for cash transactions.

Automated Payments (ECS/NACH):

  • Set up electronic clearance services (ECS) or national automated clearing house (NACH) mandates for automated loan repayments.
  • Ensures timely payments and avoids penalties for default.

Education Loan Repayment Tips

Maximize loan repayment efficiency with these tips:

Financial Planning:

  • Create a repayment timeline and savings targets to meet payment schedules.

Additional Payments:

  • Allocate extra funds towards loan repayment to reduce the principal amount and interest burden.

Part-Time Employment:

  • Consider part-time work opportunities to supplement income and accelerate loan repayment.

Automated Payments:

  • Opt for automated payments to avoid missed EMIs and benefit from potential interest rate reductions.

Prioritize Variable Rate Loans:

  • If managing multiple loans, prioritize repayment of variable rate loans susceptible to interest rate fluctuations.

Employer Assistance:

  • Explore employer-sponsored repayment assistance programs to ease the financial burden.

Insurance Coverage:

  • Consider loan insurance to cover repayment in case of unforeseen circumstances.


Both government and private educational loans are pivotal in facilitating students' pursuit of academic dreams, freeing them from financial burdens. With their myriad benefits and adaptable repayment structures, these loans empower students to achieve their educational goals. Through collaboration with Zolve, students gain access to a diverse range of educational loan options, embarking on their academic journeys with renewed confidence and certainty. It's important to recognize that with adequate financial support, the potential for academic success knows no bounds!


FAQ: Can international students apply for government education loans in India?

Answer: Yes, international students can apply for government education loans in India through specific schemes like the Vidya Lakshmi Portal. However, eligibility criteria may vary, and students are advised to check the requirements of each scheme.

FAQ: Are there any income limits for availing government education loans for studying abroad?

Answer: Yes, certain government loan schemes, such as the Gujarat Government Education Loan, may have income limits for eligibility. For example, applicants must meet the annual family income criterion of below INR 6 lakhs to qualify for the loan.

FAQ: Can students pursuing postgraduate courses abroad avail of educational loans from private banks?

Answer: Absolutely! Private banks offer educational loans for various academic pursuits, including postgraduate courses abroad. These loans often come with competitive interest rates and flexible repayment options.

FAQ: How can students ensure they meet the eligibility criteria for educational loans?

Answer: To ensure eligibility, students should carefully review the specific requirements of each loan scheme. Common eligibility criteria may include academic performance, admission to recognized institutions, and proof of admission or acceptance letters from an educational institution abroad.

FAQ: Is collateral required for availing educational loans for studying abroad?

Answer: While some loan schemes, like the Padho Pardesh Scheme, may offer loans without collateral, others, particularly from private banks, may require collateral or a guarantor. Students need to inquire about collateral requirements when exploring loan options.

Explore Zolve Products: Bank Account,  Money Transfer, Credit Card, Student Loan, Visa Assistance, SIM Card