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With rising education costs, students are diversifying their study destinations. While the US, UK, Canada, and Australia remain top choices, 35% of students are now considering alternative countries for higher education.
For students in Vijayawada, studying abroad is now more achievable thanks to education loans designed for international studies. Banks like SBI, ICICI, and HDFC offer loans with competitive rates and flexible repayment options for abroad studies.
In this guide, you’ll discover all you need to know about an Abroad Education Loan in Vijayawada, from top banks and interest rates to a simple, step-by-step application process.
Best Banks for Education Loan in Vijayawada For Studying Abroad
According to the RBI, among public sector banks, the State Bank of India (SBI) leads the way, having disbursed over ₹32,311 crore in student loans over the past three years, making it the largest contributor to funding Indian students’ education.
The following table shows some of the top banks for an abroad education loan in Vijayawada:
Many students also explore Banks That Give Education Loans without Collateral for abroad to avoid pledging assets while still securing funds for their studies.
Get an Education Loan with Higher Chances of Approval.
Education Loan Interest Rates in Vijayawada for Studying Abroad 2025
When considering studying abroad, understanding the prevailing education loan interest rates is crucial for financial planning. As of 2025, interest rates for education loans to study abroad typically range between 9% and 14% per annum, depending on various factors such as the lender, loan amount, and applicant's profile.
Here’s a table showing the latest interest rates for an abroad education loan in Vijayawada offered by leading banks and NBFCs.
Can You Get an Education Loan of ₹30 Lakh for Studying Abroad? Reddit Insights!
Many students aiming for Europe often wonder if securing a high-value loan, such as ₹30 lakh, is realistic. While countries like Poland and the Czech Republic are more affordable, students sometimes shift their plans to other EU nations that require higher budgets. In such cases, large loans become essential.
A Reddit user shared:
“I’m planning a bachelor’s in engineering in the EU. Initially budgeted ₹10–15 lakh for Poland/Czech Republic, but now considering higher-cost countries. Wondering if a ₹30 lakh loan is possible with collateral and parents as co-applicants.”
Insight: For loans above ₹7.5 lakh, collateral usually strengthens your chances, especially when parents have stable incomes. Most banks approve such amounts if assets are pledged, and the process typically begins after receiving the university’s offer letter.
What do we infer?
- Large loans are achievable with collateral and steady co-applicant income.
- Approval timelines often align with admission cycles, so applying early is crucial.
- Public sector banks like SBI and private lenders such as ICICI or Axis are common options for loans up to ₹30 lakh.
Tip: If you’re considering a bigger budget for studying abroad, start with collateral documents ready. This reduces approval delays and increases your chances of securing higher funding smoothly.
Student Loan Eligibility in Vijayawada For Abroad Studies
Lenders assess the risk involved (you repaying the loan), the credibility of your course & institution, your co-applicant’s financial stability, and whether you’ve completed the required eligibility steps.
Here are the common criteria you’ll need to fulfil:
- You must be an Indian citizen to apply.
- Usually between 18-35 years at the time of loan application. Some lenders might permit older age depending on specific policies.
- Banks usually consider students with at least 50-60% marks, depending on the lender and the course.
- You should have an admission offer (or offer letter) from a recognised university abroad. The course must be full-time and eligible under bank/NBFC rules.
- For full-time courses, a co-applicant or guarantor is often required. Usually a parent, guardian, or spouse. Their income, credit history, and stability are checked.
- The course you choose must be recognised by approved accrediting bodies (UGC, AICTE, etc.), and the foreign university should be in the bank’s list of acceptable institutions.
Documents Required for Education Loan in Vijayawada for Studying Abroad
Indian banks have streamlined the education loan application process, providing clear guidelines on the necessary documentation. While specific requirements may vary slightly between institutions, the following documents are commonly required:
1. Personal Identification Documents
- Aadhaar Card: Mandatory for identity verification and eligibility for government subsidy schemes.
- Passport: Essential for international studies; must be valid for at least 18 months beyond the course duration.
- PAN Card: Required for tax-related documentation and income tracking.
- Voter ID or Driving License: Serves as additional proof of identity.
2. Academic Records
- Class 10 & 12 Mark Sheets: Proof of basic educational qualifications.
- Undergraduate Degree and Transcripts: For postgraduate applicants, these documents validate prior academic achievements.
- Entrance Exam Score Cards: GRE, TOEFL, IELTS, or other relevant test scores.
- Admission Offer Letter: From a foreign university or college.
- Fee Structure: Detailed breakdown of tuition and other charges.
- Scholarship Documents: If applicable, proof of any scholarships or financial aid received.
3. Proof of Address
- Utility Bills: Electricity, water, or gas bills not older than 2 months.
- Bank Statements: Recent statements with the current address.
- Rental Agreement: If residing in a rented property.
4. Income Proof of Co-applicant
- Latest salary slips, Form 16, and Income Tax Returns (ITR) for the past 2 years for salaried individuals
- Business address proof, ITRs for the past 2 years, and audited financial statements for self-employed individuals.
- Pension slips and bank statements for pensioners.
5. Additional Documents
- Accurately filled loan application form and signed by the applicant and co-applicant.
- Statement of Purpose (SOP) explaining your study plans, career goals, and reason for choosing the course and university abroad.
- Recent passport-sized photographs of the applicant and co-applicant.
- Gap certificate, if there is a break in the academic timeline, a self-declaration, or supporting documents explaining the gap.
- Asset-Liability Statement for loans above ₹7.50 lakh, detailing the financial standing of the co-applicant.
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Essential Documents for a Secured Education Loan in Vijayawada
Secured education loans are typically offered for amounts above ₹7.5 lakh, especially for studies abroad. These loans require the borrower to pledge collateral, which the bank can claim in case of default. According to RBI guidelines, this collateral can be in the form of property, fixed deposits, or other assets.
While specific requirements may vary slightly between banks, the following documents are generally required for property authentication (if you pledge property as collateral):
1. Proof of Ownership
- Legal ownership documents to ensure the property can be used as collateral
- Possession certificate confirming that the applicant is the rightful owner and in control of the property.
- Land ownership proof documents that establish the rightful ownership of the land being pledged.
- Vijayawada Property Allocation Letter for properties in Vijayawada, an official allocation letter from authorities like the Amaravati Metropolitan Region Development Authority (AMRDA) verifies the location and legal status of the property.
2. Title Verification
- Title Deed certifying ownership rights and serving as an official record of the property.
- No Objection / Encumbrance Certificate confirming that the property is free from any legal disputes, mortgages, or financial liabilities.
- Society/Association Consent: If the property is part of a housing society, written consent from the society is required to use it as collateral.
3. Property Valuation
- A professional valuation report assessing the market value of the property to help the lender determine the loan amount that can be sanctioned.
This set of documents ensures that the property offered as collateral is legally valid, free from disputes, and has a verifiable market value, giving confidence to the lender and speeding up the loan approval process.
Acceptable Collateral for Education Loan in Vijayawada for Abroad Studies
Banks and financial institutions in Vijayawada accept various forms of collateral for secured education loans. These can be broadly categorised into two types: tangible (immovable) assets and intangible (liquid) assets.
How to Secure an Abroad Education Loan in Vijayawada in 2025?
Planning to study abroad? Getting an education loan involves more than just filling out forms. Knowing the correct steps and timeline can make a big difference. Below is a clear guide:
1. Obtain Admission Offer
Secure a confirmed admission letter from a recognised foreign institution. Many banks will not disburse funds unless you have this.
2. Compare Lenders & Loan Options
Check different banks / NBFCs in Vijayawada. Compare interest rates, margin money requirements, collateral, or guarantee needed. Look into government schemes and other RBI guidelines to see whether any bank is offering better terms.
3. Gather Required Documents
Fill out the loan application form carefully and submit the required documents listed in the above section.
4. Submit Application to the Bank
Submit to a branch of your chosen bank or through their online portal, wherever available. Make sure all documents are correct and complete to avoid delays.
5. Bank’s Processing and Verification
The bank verifies your credentials, admission, course, co-applicant’s details, and collateral (if applicable). With government directions, PSBs are expected to complete this within 15 days.
6. Loan Sanction & Disbursement
Once approved, you will get a sanction letter stating the amount, interest rate, repayment schedule, moratorium period, etc. Disbursement can be made prior to the visa or immediately after, depending on the bank and your stage.
If you’re exploring funding options for your higher education, check out this detailed guide on How to Get an Education Loan for Abroad Studies to understand the step-by-step process.
What Expenses Are Covered by Abroad Study Loan Providers in Vijayawada?
Most banks or NBFCs offering overseas study loans include costs beyond tuition, such as travel, accommodation, and study materials. Here are the major expenses usually covered:
- Tuition Fees – Complete coverage of tuition as charged by the university.
- Living and Maintenance Costs – Hostel or rental accommodation, food, groceries, and daily commute expenses.
- Books and Study Materials – Textbooks, course-related supplies, and sometimes laptops or lab equipment.
- Travel Expenses – Airfare to the destination country and related travel charges.
- Visa and Exam Fees – Costs linked to visa applications, entrance exams, or standardised tests required for admission.
- Insurance – Health or travel insurance, especially when it is mandatory by the university or host country.
- Refundable Deposits / Caution Money – Deposits demanded by universities or hostels, reimbursable with valid receipts.
- Equipment and Technology – Specialised software, devices, or tools needed for certain academic programs.
Additional Features of Abroad Education Loan in Vijayawada
When planning to take an education loan, it’s helpful to know not just the loan amount or interest rate, but also the additional features that come with it. Below are some commonly offered features:
1. Moratorium Period
The period during which you are not required to make full EMI payments. This usually includes the duration of the study plus an additional grace period (often 6 months to 1 year after course completion, or after securing a job).
2. Loan Margin & Collateral Requirement (Margin Money)
Loans up to ₹4 lakh are usually collateral-free under RBI guidelines. For loans above ₹4 lakh, a margin is required: around 5% for studies within India and 15% for education abroad on the amount that exceeds ₹4 lakh.
3. Repayment Period
After the moratorium, the repayment tenure often extends up to 15 years in many standard schemes. Repayment usually begins immediately after the grace period or once the student is employed.
4. Interest Subsidies / Support Schemes
Government-backed schemes like PM Vidyalaxmi and CSIS offer interest subsidies during the moratorium period for eligible students (income-based eligibility).
5. Prepayment / Part Payments During Moratorium
Some lenders allow interest payments during the moratorium even if you are not making full EMIs, which helps reduce the overall interest you’ll pay later.
For more details on managing your loan after approval, check out Education Loan Repayment Rules in India.
Getting an abroad education loan in Vijayawada has become much more student-friendly. Banks like SBI are leading with high loan disbursals, while private lenders and NBFCs are giving flexible options. Students now have better chances to fund their overseas studies smoothly. If you prepare your documents well and compare lenders carefully, your study abroad dream can become a reality without financial roadblocks.
Why let finances hold you back from studying overseas? Propelld makes it simple with collateral-free loans up to ₹50 lakhs, fast digital approvals, and custom repayment plans designed to fit your future. Whether it’s tuition, living costs, or exam fees, Propelld covers it all so you can focus on your education.
Apply with Propelld today and take the first step toward studying abroad hassle-free!
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