Bank or NBFC — which is better for studying abroad?

Banks (especially PSU banks) are cheaper, while NBFCs are faster and more flexible: higher collateral-free limits, lower CIBIL thresholds for the co-applicant, and quicker sanction letters for visa deadlines. If you have collateral and time, a bank usually wins on cost; if you need a large unsecured loan quickly, an NBFC is often the practical choice.

How long does it take to get a study abroad education loan?

Typically 5–8 working days at NBFCs, 7–14 at private banks and 10–25 at public sector banks, once all documents are submitted. Start at least 6–8 weeks before your visa appointment so the sanction letter is ready in time.

What processing fee do lenders charge?

Public sector banks charge the least — often nil or up to 1%, and frequently waived. Private banks typically charge 0.5–1%, and NBFCs about 0.75–2% plus GST. On a ₹40 Lakh loan, a 1% fee is ₹40,000, so include it when comparing offers.

Can I take loans from two lenders for the same course?

Yes, it's possible — for example a secured loan from a PSU bank plus a smaller unsecured top-up from an NBFC — but each lender will check your total borrowing and repayment capacity. It adds paperwork, so it's usually worth it only when one lender won't cover the full cost.

Do Indian lenders pay the university directly?

Yes. Tuition is usually disbursed directly to the university, in instalments as fees fall due. Living expenses and other costs are typically released to the student's account. Interest is charged only on the amount disbursed so far.

Compare Study Abroad Education Loans

Q: Which is the best bank for a study abroad education loan?

There's no single best lender — it depends on your university, whether you can offer collateral, and how fast you need the sanction letter. Public sector banks like SBI and Bank of Baroda usually have the lowest rates but take 2–5 weeks; NBFCs like HDFC Credila and Avanse approve in about a week and lend more without collateral, at higher rates. Comparing 3–4 lenders for your profile usually gets the best deal.

All 15 lenders we work with, side by side — interest rates, how much they lend, collateral-free limits, speed and fees — so you can shortlist the right ones for your university and budget.

Written by Deepak Agrawal, Founder & CEO, FundMyCampus · MBA, IIM BangaloreReviewed by Ashmita Agarwal, Senior Education Loan Counsellor, FundMyCampusUpdated on 30 Sept 2026

Quick answer

Lowest rates: public sector banks — SBI starts at 8.05%, but approval takes 2–5 weeks.
Fastest & most flexible: NBFCs — about a week, with higher collateral-free limits and rates from ~10.5%.
No Indian co-signer: international lenders like Prodigy Finance, for select universities.

Interest rates, fees and tenure

Study abroad education loan rates and fees by lender
Lender	Type	Interest rate	Processing fee	Tenure
SBI	Public sector bank	8.05% – 10.15%	Nil for loans up to ₹20 L; ₹10,000 + GST above	Up to 15 years post-moratorium
Canara Bank	Public sector bank	8.60% – 10.25%	Up to 1% (often waived under ₹20 L)	Up to 15 years post-moratorium
PNB	Public sector bank	8.80% – 10.95%	Up to 1% (often waived for amounts < ₹20 L)	Up to 15 years post-moratorium
Bank of Baroda	Public sector bank	8.85% – 10.50%	Up to 1% (often waived for amounts < ₹20 L)	Up to 15 years post-moratorium
Prodigy Finance	International lender	9.25% – 13.50% (USD/GBP)	0% – 5% (varies by university and program)	Up to 20 years (USD loans)
Union Bank	Public sector bank	9.30% – 11.40%	₹0 – ₹5,000 (often waived)	Up to 15 years post-moratorium
ICICI	Private bank	9.85% – 12.50%	0.5% – 1% of loan amount (₹2,000 minimum)	Up to 14 years post-moratorium
Axis Bank	Private bank	10.10% – 12.75%	0.75% – 1% of loan amount	Up to 15 years post-moratorium
IDFC First Bank	Private bank	10.25% – 12.25%	0.75% – 1% of loan amount	Up to 12 years post-moratorium
Yes Bank	Private bank	10.50% – 12.75%	0.75% – 1% of loan amount	Up to 15 years post-moratorium
HDFC Credila	NBFC	10.50% – 13.00%	1% – 1.5% of loan amount + GST	Up to 14 years post-moratorium
Poonawalla	NBFC	10.50% – 13.50%	0.75% – 1% of loan amount + GST	Up to 15 years post-moratorium
Tata Capital	NBFC	10.99% – 13.99%	1% – 1.5% of loan amount + GST	Up to 12 years post-moratorium
Avanse	NBFC	11.00% – 14.00%	1% – 2% of loan amount + GST	Up to 12 years post-moratorium
Auxilo	NBFC	11.00% – 13.50%	1% – 1.5% of loan amount + GST	Up to 10 years post-moratorium

Loan amounts, collateral-free limits and speed

Study abroad loan amounts and processing time by lender
Lender	Max for study abroad	Max without collateral	Processing time
SBI	₹1.5 Crore (Global Ed-Vantage)	₹50 Lakhs (for select premier universities)	15–25 working days
Canara Bank	₹1.5 Crore (with collateral)	₹7.5 Lakhs (CGFSEL) / ₹40 L (premier institutes)	10–15 working days
PNB	₹1.5 Crore (with collateral)	₹7.5 Lakhs (CGFSEL) / ₹40 L (premier institutes Pratibha)	15–25 working days
Bank of Baroda	₹1.5 Crore (with collateral)	₹7.5 Lakhs (CGFSEL) / ₹40 L (premier institutes)	12–20 working days
Prodigy Finance	Up to $150,000 (or GBP equivalent)	Up to $150,000 (no collateral required)	10–14 working days
Union Bank	₹40 Lakhs (collateral-free abroad scheme)	₹40 Lakhs (rare PSU advantage for abroad)	12–20 working days
ICICI	₹1 Crore (₹2 Crore with collateral)	₹50 Lakhs domestic / ₹1 Crore abroad (premier institutes)	7–14 working days
Axis Bank	₹75 Lakhs (₹2 Crore with collateral)	₹50 Lakhs domestic / ₹75 Lakhs abroad (premier institutes)	7–14 working days
IDFC First Bank	₹1 Crore (₹2 Crore with collateral)	₹1 Crore (premier institutes)	7–10 working days
Yes Bank	₹2 Crore (with collateral)	₹50 Lakhs domestic / ₹75 Lakhs abroad (premier universities)	7–14 working days
HDFC Credila	₹1.5 Crore	₹1.5 Crore (premier global universities)	5–8 working days
Poonawalla	₹3 Crore (with collateral)	₹1 Crore (premier global universities)	5–8 working days
Tata Capital	₹1.25 Crore	₹75 Lakhs (premier institutes)	5–7 working days
Avanse	₹1.25 Crore	₹75 Lakhs (extends to ₹1.25 Cr with collateral)	5–7 working days
Auxilo	₹50 Lakhs (₹1 Crore with collateral)	₹50 Lakhs	5–7 working days

Indicative figures from each lender's published terms; final terms depend on your profile and university.

EMI on a ₹40 Lakh loan at each lender's starting rate

10-year repayment, no unpaid moratorium interest. Starting rates usually apply to the strongest profiles and top universities.

EMI comparison by lender
Lender	Starting rate	Monthly EMI	Total interest
SBI	8.05%	₹48,637	₹18,36,414
Canara Bank	8.6%	₹49,808	₹19,77,015
PNB	8.8%	₹50,238	₹20,28,604
Bank of Baroda	8.85%	₹50,346	₹20,41,540
Union Bank	9.3%	₹51,322	₹21,58,643
ICICI	9.85%	₹52,529	₹23,03,432
Axis Bank	10.1%	₹53,082	₹23,69,845
IDFC First Bank	10.25%	₹53,416	₹24,09,872
Yes Bank	10.5%	₹53,974	₹24,76,880
HDFC Credila	10.5%	₹53,974	₹24,76,880
Poonawalla	10.5%	₹53,974	₹24,76,880
Tata Capital	10.99%	₹55,077	₹26,09,284
Avanse	11%	₹55,100	₹26,12,001
Auxilo	11%	₹55,100	₹26,12,001

Between the lowest and highest starting rates, total interest differs by about ₹7.76 Lakh. Prodigy Finance lends in USD/GBP, so it isn't included. Model your own loan, including the moratorium, in the education loan EMI calculator.

Which type of lender suits you?

Public sector banks (SBI, Bank of Baroda, Canara, PNB, Union Bank): best if you have collateral and 3–5 weeks. Lowest rates and fees.
Private banks (ICICI, Axis, IDFC First, Yes Bank): a middle ground — faster than PSU banks, with sizeable unsecured limits for top universities.
NBFCs (HDFC Credila, Avanse, Auxilo, Tata Capital, Poonawalla): best for large collateral-free loans, tight visa deadlines, or co-applicants with lower CIBIL scores.
International lenders (Prodigy Finance): when you have no Indian co-signer or collateral and your university is on their list.

Not sure which applies to you? Read about loans without collateral, loans without a co-applicant, or browse loans by destination on our study abroad education loan guide.

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