Education Loan for Abroad Studies
*T&C Apply. Deduction under Section 129 of the Income Tax Act, 2025 (erstwhile Section 80E of the Income Tax Act, 1961) is available only under the old tax regime and shall not be applicable if the taxpayer opts for the new tax regime. Customers are advised to consult their tax advisors for applicability.
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When is the Right Time to Apply for a Loan for Overseas Education?
International students normally begin their study abroad journey between June and September. To ensure a hassle-free process, here’s a timeline to help you plan your education loan application effectively:
- July 2026 Begin preparation for language proficiency/standardized tests.
- Aug-Sept 2026 Organise documents: academics, finances, recommendations, etc.
- Oct-Nov 2026 Apply to universities, prepare for admission interviews.
- Dec-Jan 2026 Start your education loan process with Credila
- Feb- Apr 2027 Get your admission letter, secure your loan approval.
- May- Jun 2027 Finalise disbursement and complete student visa formalities
- Jun- Sept 2027 Begin your study abroad journey confidently with Credila.
Disclaimer: The above timeline is for general guidance only. Actual loan processing and disbursement timelines may vary based on individual profiles, university requirements, and visa procedures.
What Expenses Does Your Abroad Education Loan Cover?
An education loan for abroad studies may cover different expenses depending on the lender, loan product and applicable terms. Common eligible expenses may include:
- Tuition fees: Fees payable to the educational institution for the approved course.
- Living expenses: Eligible costs related to accommodation, food and other day-to-day expenses during the study period.
- Travel expenses: Certain loan products may cover travel costs associated with travelling to the country of study.
- Books and study materials: Expenses for books, equipment, instruments and other course-related materials.
- Examination fees: Applicable examination and academic-related charges.
- Insurance: Education loans may include certain insurance-related expenses, depending on the loan terms.
- Other academic expenses: Other costs required for completing the course may be covered if permitted under the lender's policy.
The expenses covered in an education loan for studying abroad vary by lender and loan agreement, so students should check the applicable terms before applying.
Types of Education Loans for Abroad Studies
Broadly, there are two main types of education loans:
- Secured Education Loan: A secured education loan is backed by collateral, such as residential property, fixed deposits, or insurance policies. This collateral will serve as a guarantee for the lender in case the borrower defaults.
- Unsecured Education Loan: An unsecured education loan is a type of student loan that does not require any collateral or security. Approval is based on the borrower’s financial profile.
Interest Rates for a Oversea Education Loan
Access affordable financing with zero penalty on prepayment.
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 9.95%* p.a. onwards |
| Origination Fee | 1.25%* + GST |
| Prepayment & Foreclosure Charges | None |
*Terms and conditions apply. The above table is only an indicative and not exhaustive list. The education loan facility provided by Credila Financial Services Limited will be at the sole discretion of the Company and within the Company's prescribed credit and underwriting norms/guidelines prevailing at the time of processing and disbursing the education loan. The Company maintains the right to change the interest rate at any time and at its sole discretion, without prior notice.
Credila Financial Services Limited .Eligibility Criteria for an Education Loan for Abroad Studies
Access affordable financing with zero penalty on prepayment.
| Criteria | Details |
|---|---|
| Who Can Apply | Students pursuing higher education in India or abroad can apply. |
| Academic Qualifications | Undergraduate or Graduate programs |
| Eligible Courses | All courses |
| Eligible Institutions | All universities, colleges, and vocational institutes |
Documents Required for Student Loan to Study Abroad
Documents required for an education loan application vary based on the borrower’s profile and the type of education loan the borrower applies for.
| Particulars | Photo ID | Residence Proof | Signature Verification |
|---|---|---|---|
| PAN Card |  | | |
| Valid Passport | | | |
| Voter Identity Card | | | |
| Driving License | | ||
Aadhaar Card  | | ||
| ID Card | | ||
| Bank Statement / Passbook | | ||
| Telephone Bill | | ||
| Utility Bill | |
- Marksheet or Certificate for Grade 12 or equivalent.
- Marksheet or Certificate for the last semester/year/degree (e.g. B.E., B.Com., B.Sc. etc.).
- Scholarship Documents (if applicable).
- You must submit the college/university admission/acceptance letter when received.
- Submit the fee structure from the college or university, mentioning the course fee and the estimated living expenses.
- Salaried
- Latest 3 Salary Slips or Salary Certificate on employer’s letterhead.
- Latest one year’s Form 16 from the employer along with one year’s Income Tax Returns.
- Any other income proof not reflected in the above documents (e.g., Rent Agreement etc.).
- Self-Employed Professional
- Latest two years’ Income Tax Returns with I.T. acknowledgement.
- Latest two years’ Audited Financials of the Company including Computation of Income, Balance Sheet, P&L along with all the Schedules.
- 3CB & 3CD for Professionals with a turnover of more than INR 15 lakh and for others whose turnover is more than INR 60 lakh.
Additional DocumentsIn addition to the above, the following documents are to be submitted- Proof of Establishment of the Firm (Shop Act, TIN No, Service Tax registration copy, SSI Certificate etc.).
- Copy of qualification or degree certificate.
- Self-Employed Non-Professional
- Latest two years’ Income Tax Returns with I.T. acknowledgement.
- Latest two years’ Audited Financials of the Company including Computation of Income, Balance Sheet, P&L along with all the Schedules.
- 3CB & 3CD for Professionals with a turnover of more than INR 15 lakh and for others whose turnover is more than INR 60 lakh .
Additional DocumentsIn addition to the above, the following documents are to be submitted- For Proprietors: Proof of Establishment of the Firm (Shop Act, TIN No, Service Tax Registration Copy, SSI Certificate etc.)
- Partnership: Copy of Partnership deed.
- Private Company: Articles of Association (AoA), Memorandum of Association (MoA) and Shareholding Pattern Certified by the C.A.
- Salaried
- Latest six months Bank Statements are required where your salary is credited every month.
- Self-Employed Professional / Proprietorship/ Partnership / Private Limited Company
- Latest 8-month Current Account Bank Statement of the Bank Account where business receipts are credited every month.
- Latest eight months Saving Account Bank Statements.
- Any document to establish the relationship between the student and co-applicant, e.g, Ration card, Marriage Certificate, Birth Certificate, School Leaving Certificate, etc
- Account Statement for loans or credit cards that had delays in payment (as proof of clarification).
- For students with past work experience, the last drawn salary slip.
- Proof of balance funds.
- Notes
- The audit report, duly signed and verified by the Chartered Accountant, must be given in such form, setting forth such particulars as prescribed by the Board. Rule 6G of the I.T. Act provides that such audit reports and particulars should be given in Forms No. 3CA/3CB as applicable, and the statement of particulars should be given in Form No. 3CD.
- For Salaried/SEP/SENP Co-applicant: Saving Bank statement should be up to 15 days before the login date.
- For Self Employed Professional/Non-Processional Co-applicant: Current/O.D. bank statement should be up to 30 days before the login date.
- Copy of PAN Card or Passport is compulsory for all Income Earning/Retired Co-applicants.
we will be happy to assist you further
How to Apply for an Education Loan for Studying Abroad
Follow this 3-step process
1- Apply Online
Fill out the application form and upload documents.
2- Application Review
Get your sanction letter after our credit appraisal.
3- Funds Disbursed
You are all set to get started.
Why Avail a Credila Student Loan to Study Abroad?
Save time. Go online.
Customer-centric processes with just 3 steps to disbursement.
We cover it all
Up to 100% financing of tuition and living expenses.
Start early. Apply before admission.
Benefit from seamless loan sanctions.
Friendly rates. All the way.
Student loans with customised interest rates.
Dream big. Achieve bigger.
Exploring funding for larger education costs? Not a problem.
Pan-India network of branches
Enjoy multi-city co-borrower(s) and collateral flexibility.
The benefit of tax saving
Added tax deductions* that bring down your cost of financing
Flexible payment plans
Repayment tenure of up to 15 years.
No hidden charges
What you see is what you pay.
Disclaimer: Deduction under Section 129 of the Income Tax Act, 2025 (erstwhile Section 80E of the Income Tax Act, 1961) is available only under the old tax regime and shall not be applicable if the taxpayer opts for the new tax regime. Customers are advised to consult their tax advisors for applicability.
Benefits of Education Loan for Studies Abroad
An education loan can help students finance eligible costs associated with overseas education instead of relying entirely on personal savings. Depending on the loan and lender, possible benefits include:
- Financing tuition costs: A loan can help meet eligible tuition and academic expenses.
- Support for living expenses: Certain loans may cover eligible accommodation and other living costs.
- Reduced immediate financial burden: Education expenses can be distributed through a structured repayment arrangement rather than being paid entirely from savings upfront.
- Access to unsecured financing: Some lenders offer education loans without requiring collateral, subject to their eligibility criteria.
- Flexible repayment options: Loan products may provide different repayment tenures and structures based on the lender's terms.
- Potential tax benefits: Interest paid on an eligible education loan may qualify for tax benefits subject to the applicable provisions of the Income Tax Act and the taxpayer's eligibility.
- Financial planning: A loan can allow students and families to plan education funding around the expected cost of the programme and available resources.
#Under the old tax regime. Please consult your Chartered Accountant or Tax Advisor for information specific to you.
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Our Students' Success Stories
I must also commend the relationship managers, who were an integral part of my positive experience. Their dedication is a testament to Credila's commitment to excellence in customer service. Their support played a crucial role in making my educational journey smooth and successful, and I'm immensely grateful for their exceptional service."
Ameya Shahu
Arizona State University
Arizona
Abhinav Kshitij
University of Oxford
Nupur Neelanjan Moti
Algonquin College, Canada
Canada
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