international student education loan

A degree from a prestigious international university can be a pathway to success. But most often, financial constraints prevent that dream from coming true. According to research, the value of education is rising by 15% each year. International universities, the cost of living, no matter how affordable can dip your resources. Luckily, there are ways to finance your student journey abroad. One of them is to opt for an international student education loan. Banks provide them for UG/PG, Diploma or other Professional courses. 

International student loan is a great option which does not drain out your resources. Apart from covering the basic course fees, it has several other benefits. Today, we will discuss why an education loan for international students is the best option to finance your studies abroad. 


Savings like FD’s, MF’s, ULIPs do not happen in one day. A study abroad can cause these hard earned savings to dip within a moment. An international student education loan will help conserve your parents’ savings. Most parents are in the middle of their retirement planning during this time. Education loan for international students will give them that much needed mental peace. An education loan also keeps you safe during your stay abroad. In case of unforeseen events, you can use your savings without any trouble.

The interest for an international education loan varies between 9%-11%. This will act as an impetus to secure a top notch placement as soon as the course ends. 


One of the important benefits of an international student education loan is securing tax benefits. Under section 80E of the Indian Tax Act, students applying for foreign loans are rewarded with lucrative tax benefits. They get to pay interest at a reduced rate. These loans lessen the actual cost of borrowing and can also be availed for a long time. All this makes education loan for international students an attractive option. 


Visa authorities have to make sure the aspirant can cover all costs during their stay abroad. For this they have to keep the entire course fees in their accounts. This can be difficult for most. The entire course fee remains trapped for a long time. With an international student education loan, you will have nothing to worry about. The visa authorities will be convinced of your financial security. Obtaining the visa to your dream country becomes an easy and hassle free process. 

Education loan for international students, especially from public sector banks, is the easiest way to get visa approvals. 


The best part about taking an international student education loan is that you do not have to worry about paying debts while studying. The moratorium period is the gap between the completion of your course and the start date of you paying interest. This period can be anywhere from 6 months to a year. This gives a student enough time to secure an attractive job. It allows you to completely focus and excel in your studies without the burden of paying off the EMI. 


Education loan for international students come with certain eligibility and conditions. Before applying for the loan, it is best to have the basic requirements covered. 

  • Education loan covers the basic course fee, other costs related to the course, living expenses and course material 
  • A student willing to study abroad has to be the main borrower. Parents or guardians can be co-borrowers
  • The admission letter is the most crucial document required for the loan process. Other documents include marksheets of previous exams, income proof like salary slips etc.
  • After crossing a certain amount, the bank may ask for a 3rd party guarantor for the loan. Students can use any property as collateral. This also helps to lower the interest rate 
  • Female students sometimes have the privilege to receive some additional benefits

An international student education loan can really lessen your financial burden. It allows students to enjoy their university years to the fullest. It imbibes in them ambition to excel and secure a progressive job offer. Before finalizing the loan, make sure you clear all your queries for a smooth onboarding process. 

By Anurag Rathod

Anurag Rathod is an Editor of, who is passionate for app-based startup solutions and on-demand business ideas. He believes in spreading tech trends. He is an avid reader and loves thinking out of the box to promote new technologies.