Sweden is a top choice for international students because of high-quality education, English-taught programmes, and strong employability prospects. In 2021–22, Sweden welcomed approximately 2,125 Indian students pursuing higher education.
However, tuition and living costs mean most Indian students need external funding. This guide explains how an education loan for Sweden works, what lenders expect, the documents you need, and which lenders are worth considering.
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Cost of studying in Sweden for Indian students
Estimate the budget first; lenders base loan size on realistic cost projections.
Tuition: public universities’ tuition for international (non-EU/EEA) students typically ranges from SEK 80,000 to SEK 295,000 per year (≈ ₹6.40–₹23.60 lakh/year), with a commonly cited average near SEK 129,000/year (≈ ₹10.32 lakh/year). Here’s a look at the cost range for top universities:
Living costs: the Swedish Migration Agency maintenance requirement (proof of funds) is SEK 10,584 per month for 2025 (this is the baseline you must show to obtain a residence permit). Monthly living costs vary by city, with an average of SEK 9,000–12,000/month, with Stockholm at the higher end.
Typical yearly cash plan (rounded):
- Tuition (public average): SEK 129,000 (~₹1.1–1.3 lakh per month equivalent)
- Living & misc (12 months × SEK 10,584): SEK 127,000
Total annual need ≈ SEK 256,000 (adjust higher for private schools or living in Stockholm).
Get an Education Loan 10X Faster than Banks.
If this is your starting point, our guide can help you learn more about studying abroad after 12th, including universities and more.
Study Abroad Loan for Sweden: What This Covers
Most Indian banks and NBFCs fund these items for students going to Sweden:
- Tuition, admission, and exam fees – usually disbursed directly to the university.
- Living expenses – accommodation, food, transport, and daily needs; released as a lump sum, forex/travel card, or to your account.
- Travel costs – typically a one-way flight ticket.
- Study essentials – books, laptop, lab/course materials.
- Insurance – health or travel insurance, if required by the university.
What Loans Usually Don’t Cover
Often excluded from education loan funding:
- Application, visa processing, and documentation fees.
- Language test and exam fees, such as IELTS, GRE, TOEFL, etc., are usually not financed.
- University application charges: Separate expense.
- Miscellaneous non-academic costs. Items like clothing, luggage, consultant fees, entertainment, or language exam fees are generally excluded.
Secured Education Loan For Sweden
A secured loan requires collateral (property, pledged FD, or cash security). Some banks offering secured education loans include:
If your family can offer collateral and prefers lower EMI obligations, a secured education loan for Sweden is the most cost-effective choice.
Get an Education Loan with Higher Chances of Approval
Unsecured Education Loan For Sweden
An unsecured (collateral-free) loan relies on applicant profile and co-applicant creditworthiness rather than assets. Below are some bank options:
When to use: if you lack collateral but have strong admission and a credible co-applicant, or if you prefer speed and a digital process.
If you’re still unsure about the right option, our guide on Secured vs Unsecured Education Loans can give a clear picture.
Eligibility For Education Loan in Sweden
Typical lender eligibility checklist (varies by lender):
- Nationality: Indian resident/citizen.
- Age: Generally 18+ (specific lender limits may apply).
- Admission: Confirmed offer letter from a recognised Swedish university or college.
- Course type: Full-time degree/diploma at approved institutions.
- Academic profile: Satisfactory prior academic record and, where applicable, entrance/test scores.
- Co-applicant: Most unsecured loans require a co-applicant (parent/guardian) with steady income and a decent credit score; secured loans require collateral documents.
- Minimum CIBIL / credit score: As per lender policy, a higher score improves sanction odds and rates.
If you meet the above, you are typically eligible to apply; weaker profiles may still receive NBFC/international lender support, though at a higher cost.
Documents Required for Sweden Education Loan
Prepare these documents in advance to avoid delays. Lenders request both applicant and co-applicant documentation.
Applicant (student):
- Offer/admission letter and course fee structure.
- Valid passport and PAN.
- Address proof (Aadhaar/driver's licence).
- Academic records (mark sheets, certificates).
- Test scores (IELTS/TOEFL/GRE/GMAT) if applicable.
- Statement of purpose/fee breakup or proforma invoice.
Co-applicant / guarantor:
- ID and address proof.
- Salary slips (last 3 months) or ITR (last 2 years for self-employed).
- Bank statements (last 6 months).
- Statement of assets & liabilities.
- Property/collateral documents (if secured loan).
Additional documents, such as visa fee receipts, health insurance estimates, and rent/hostel quotes, may be required for the disbursement of living cost tranches.
Best Banks for Sweden Education Loan
There’s no single “best” bank, chosen by need (amount, speed, collateral). Typical options:
Public banks (best for secured loans)
1. Provide significant limits and comparatively lower rates. They are suitable for major loans where collateral is available.
Private banks (best for unsecured + speed)
2. Often, faster processing, digital interfaces, and flexible documentation are available. Suitable for medium-sized unsecured loans.
NBFCs and specialised education lenders
3. Tailored products for study-abroad students; flexible underwriting and partial collateral acceptance.
International lenders
4. No co-signer or collateral is needed in many cases; loans are underwritten against future earnings potential, making them useful for students without Indian co-applicants.
How to choose: compare effective interest rate (EIR), margin money, moratorium terms, prepayment penalties, and speed of disbursal.
For a more detailed understanding, read our comprehensive guide on education loans without collateral for studying abroad.
Education Loan Process For Sweden: Step-By-Step
- Estimate total funds needed using tuition + living + misc + contingency (align to Migration Agency requirements).
- Shortlist lenders based on secured vs unsecured needs and compare terms.
- Apply with required documents (online or at a branch).
- Sanction & valuation (if collateral), property valuations or FD holdings are verified.
- Sign the loan agreement and complete any KYC.
- Disbursement: tuition paid directly to the university; living costs may be disbursed in instalments.
- Flight & visa: use disbursed funds or arrange temporary bridge funding if required.
Typical timelines: unsecured loans / NBFCs can take 7-15 days; secured public bank loans can take 2-4 weeks, depending on property valuation and paperwork.
Repayment, Moratorium, and Part-Time Work
Most lenders provide a moratorium covering the course period + a grace period (bank-specific). Some lenders charge simple interest during the moratorium; public banks may offer interest subsidies or simple interest options.
2. Work & post-study stay
International students in Sweden can work part-time and may extend their residence permits to search for employment after graduation. Earnings can help repay loans early or lower EMI pressure. Budget conservatively, rely on part-time income as a supplement, not a primary repayment source.
Securing an education loan for Sweden is a manageable process if you plan carefully. Estimate real costs aligned with the Migration Agency's requirements, select a lending route that suits your collateral situation, and gather all necessary documents before applying.
If you want to skip long bank queues, compare multiple lenders quickly, and get assistance with document checks and fast tracking, Propelld can help you secure the right loan faster and with less paperwork.
Apply with Propelld today and get tailored loan options for Sweden.
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