India · Funding your studiesFinancing study abroad from India
Public-sector banks follow the Indian Banks’ Association (IBA) Model Education Loan Scheme, which caps loans at around ₹10 lakh for study in India and ₹20 lakh for study abroad (banks can and do lend more for strong profiles). NBFCs such as Avanse, Auxilo and HDFC Credila, and private banks, lend larger unsecured amounts based on the co-applicant and the university, usually at higher rates.
Collateral & guarantor: Collateral-free lending is backed by the Credit Guarantee Fund Scheme for Education Loans (CGFSEL) up to ₹7.5 lakh. Above that, secured loans against property, fixed deposits or securities are common and bring lower interest rates and larger amounts. A co-applicant (usually a parent) is required either way.
Schemes & lenders
PM Vidyalaxmi / Vidya Lakshmi portal
A single government portal to apply to multiple banks for education loans. The PM Vidyalaxmi scheme offers a 75% credit guarantee on collateral-free loans up to ₹7.5 lakh.
Interest subvention
A 3% interest subvention is available on loans up to ₹10 lakh for students whose family income is up to ₹8 lakh a year.
Section 80E tax deduction
Interest paid on an education loan is deductible from taxable income under Section 80E for up to 8 years — a genuine saving over the life of the loan.
Foreign exchange & remittance
Funds are sent to the university under the RBI’s Liberalised Remittance Scheme (LRS), which allows residents to remit up to US$250,000 per financial year for education and other purposes. Education remittances funded by a loan are generally exempt from the LRS tax-collected-at-source (TCS); check the current TCS rules with your bank.
Documents you’ll typically need
- University admission / offer letter
- Co-applicant (parent/guardian) income proof and bank statements
- Academic records and test scores (IELTS/GRE/GMAT as applicable)
- Collateral documents (for a secured loan)
- KYC — PAN, Aadhaar, passport
- A cost estimate / fee structure from the university
International no-cosigner lenders
Prodigy Finance
Lends to international master's students (MBA, STEM, law, public policy and similar) from 120+ countries without a co-signer, assessing future earning potential and the university/programme rather than a guarantor's income. Can finance up to 100% of the cost of attendance. Students must be admitted to a supported university and programme.
MPOWER Financing
Offers no-cosigner, no-collateral loans to students from 150+ countries studying in the US and Canada, with a lifetime limit around US$100,000. Note: MPOWER paused new lending for 2026 after reaching funding capacity, so check current availability before relying on it.
Frequently asked questions
Can I get an education loan for abroad without collateral in India?
Yes, up to ₹7.5 lakh under the CGFSEL credit guarantee, and larger unsecured amounts from NBFCs and some private banks based on your co-applicant’s income and your university. Public banks generally ask for collateral above the guaranteed limit.
What is the maximum education loan for studying abroad?
Public banks under the IBA Model Scheme typically consider up to around ₹20 lakh for abroad study, but lend more for strong profiles and premium universities. NBFCs regularly fund ₹50 lakh–₹1 crore+ for top programmes, usually unsecured but at higher rates.
How do I apply to several banks at once?
Use the government Vidya Lakshmi portal, which lets you submit one application to multiple participating banks and track responses in one place.
Are there tax benefits on an Indian education loan?
Yes. Under Section 80E, the interest you pay is deductible from taxable income for up to 8 years. There is no upper limit on the interest amount you can claim.
Plan your funding
Sources: PM Vidyalaxmi — Bank of Maharashtra · Vidya Lakshmi scheme guide — GradRight
Last reviewed October 2026. This is general educational information, not financial or lending advice. Loan products, rates, scheme rules and foreign-exchange limits vary by lender and change over time — verify current details with regulated lenders and your bank, and speak to a qualified adviser about your own situation.