Securing funds for an overseas degree starts long before you fill out a loan application. Banks and NBFCs want clear proof that you’re a strong candidate before they commit. That’s why understanding the eligibility criteria for study abroad education loan is so important.
This guide breaks down exactly what lenders look for, from academic performance and admission offers to co-applicant requirements and credit scores, so you can prepare a solid application and boost your chances of quick approval.
General Eligibility Criteria for Study Abroad Education Loan
The loan application process is a two-part assessment, focusing on both the student's academic profile and the co-applicant’s financial stability. Meeting these criteria is essential for a smooth and successful loan sanction.
- Student as the Primary Applicant:
The student is the primary borrower. They must be an Indian citizen and have a confirmed admission to a recognised university or college abroad.
- Co-applicant is a Must:
A co-applicant, typically a parent, guardian, or sibling, is mandatory. As students often lack a credit history, the co-applicant's financial profile is the key factor in the lending decision.
- Confirmed Admission:
The loan is sanctioned only after the student receives a firm, unconditional admission letter from an overseas institution. The university and course must be on the lender's approved list.
For a detailed look at the complete application process, read our blog on Education Loans for Studying Abroad in 2025
Get an Education Loan 10X Faster than Banks.
Qualification Criteria for Education Loan Processing
The student’s academic profile is a major determinant in the lending process. A strong profile not only improves the chances of approval but can also lead to more favourable loan terms, such as a lower interest rate.
- Academic Performance:
Lenders assess your 10th, 12th, and undergraduate marks. A strong, consistent record shows you’re likely to complete your course and secure a good job.
- Standardised Test Scores:
Good GRE/GMAT and English test scores (TOEFL/IELTS) strengthen your profile for international education loans.
- University and Course:
Top-ranked universities and high-demand programs like STEM, Business, or Medicine increase your approval chances, as they signal strong career prospects.
- Age and Nationality:
The student must be an Indian citizen, and while there is no strict age limit, banks prefer to lend to students who are between 18 and 35 years of age.
Income Criteria for Co-applicants in Study Loans
The financial profile of the co-applicant is paramount to the loan sanctioning process. Their stability and income are the lender’s primary assurance of the loan’s repayment.
- Stable and Verifiable Income:
The co-applicant must have a stable and verifiable source of income. This can be from a salary, business, pension, or rental income. The income should be sufficient to cover the loan’s EMI, in addition to their existing financial obligations.
- Credit Score:
The co-applicant’s CIBIL score is a crucial factor. A good score, typically 750 or higher, indicates a history of responsible borrowing and timely repayment. A low score can be an immediate cause for rejection.
- Debt-to-Income (DTI) Ratio:
Lenders will calculate the co-applicant’s DTI ratio to understand how much of their monthly income is already being used to service other debts. A low DTI ratio is preferred, as it shows they have the financial capacity to take on a new loan.
If you’re looking for education loan options that don’t require collateral, do check out our detailed guide on Banks That Give Education Loans without Collateral for Abroad.
Minimal Docs, Maximum Approval - Apply Now.
Who Can Apply for Secured Overseas Education Loans?
For loan amounts exceeding ₹7.5 lakhs, banks typically require collateral. The eligibility for these loans is directly linked to the value and type of security offered.
- Collateral:
The loan amount is sanctioned based on a percentage of the collateral's market value. Accepted collateral can be a residential house, a non-agricultural plot of land, or liquid assets such as Fixed Deposits or government bonds.
- CIBIL Score:
The co-applicant must maintain a good credit history and CIBIL score.
- Repayment Capacity:
The lender will still assess the repayment capacity of the co-applicant, ensuring their income is sufficient to service the EMI, even if collateral is pledged.
Who Can Apply for Unsecured Overseas Education Loans?
Unsecured loans do not require collateral, but they have a more stringent set of criteria for the student and co-applicant.
- University Ranking:
Lenders often provide higher unsecured loan amounts only for students admitted to a top-tier university, as the higher quality of education is considered a factor in future earning potential.
- Academic Merit:
The student must have a very strong academic record with no backlogs and high scores in entrance exams like the GRE/GMAT.
- Co-applicant's Financial Profile:
A strong co-applicant with a high and stable income, a high CIBIL score (750+), and a low debt-to-income ratio is a must for unsecured loans.
Documents Needed from the Student
To process an overseas education loan, you’ll need to share a complete set of records:
- Academic certificates: 10th and 12th mark sheets, plus semester-wise graduation mark sheets if applicable.
- A valid passport is mandatory for all international education loans.
- Proof of address, such as a current electricity or telephone bill.
- Two recent passport-size photographs.
- Entrance-test results like GRE, GMAT, IELTS, or TOEFL, if required for admission.
- Admission confirmation, either an unconditional offer letter or a conditional admission letter from the university.
- Identity verification with any one document, such as an Aadhaar card, PAN card, or passport.
- The estimated cost of the study or an official fee schedule from the institution.
- Bank statements for the past year if you have taken any previous loans.
Documents Needed from the Co-applicant
The co-applicant’s paperwork is equally important for income and credit evaluation:
- Two passport-size photographs.
- Proof of residence, such as an Aadhaar card, electricity bill, or telephone bill.
- Bank account statement for the last year, if any loans were previously availed.
- A government-issued photo ID, PAN, passport, voter ID, or driving licence.
If the co-applicant is salaried
- Six months’ salary-account bank statements.
- Form 16 for the last two financial years along with acknowledged income-tax returns.
- Salary slips or a salary certificate for the past three months.
- For retired co-applicants: pension passbook for the last 12 months plus the pension order.
If the co-applicant is self-employed
- Two years’ balance sheet, profit-and-loss statement, and income calculations.
- Bank statements for the past six months.
- Income-tax returns for the last two years.
- Business registration proof.
Securing an overseas education loan can seem complex, but with the right preparation and understanding of eligibility requirements, the process becomes much smoother. Whether you’re opting for a secured or unsecured loan, having your documents ready and knowing the eligibility criteria for study abroad education loan ensures a faster approval and a stress-free journey toward your international education goals.
Propelld has you covered with personalised education loans that fit your unique needs. Propelld offers fast digital approvals, study loans of up to ₹50 lakhs, and the ease of zero-collateral requirements.
Take the first step towards your future—Apply with Propelld today!
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General Eligibility Criteria for Study Abroad Education Loan
The loan application process is a two-part assessment, focusing on both the student's academic profile and the co-applicant’s financial stability. Meeting these criteria is essential for a smooth and successful loan sanction.
- Student as the Primary Applicant:
The student is the primary borrower. They must be an Indian citizen and have a confirmed admission to a recognised university or college abroad.
- Co-applicant is a Must:
A co-applicant, typically a parent, guardian, or sibling, is mandatory. As students often lack a credit history, the co-applicant's financial profile is the key factor in the lending decision.
- Confirmed Admission:
The loan is sanctioned only after the student receives a firm, unconditional admission letter from an overseas institution. The university and course must be on the lender's approved list.
For a detailed look at the complete application process, read our blog on Education Loans for Studying Abroad in 2025
Get an Education Loan 10X Faster than Banks.
Qualification Criteria for Education Loan Processing
The student’s academic profile is a major determinant in the lending process. A strong profile not only improves the chances of approval but can also lead to more favourable loan terms, such as a lower interest rate.
- Academic Performance:
Lenders assess your 10th, 12th, and undergraduate marks. A strong, consistent record shows you’re likely to complete your course and secure a good job.
- Standardised Test Scores:
Good GRE/GMAT and English test scores (TOEFL/IELTS) strengthen your profile for international education loans.
- University and Course:
Top-ranked universities and high-demand programs like STEM, Business, or Medicine increase your approval chances, as they signal strong career prospects.
- Age and Nationality:
The student must be an Indian citizen, and while there is no strict age limit, banks prefer to lend to students who are between 18 and 35 years of age.
Income Criteria for Co-applicants in Study Loans
The financial profile of the co-applicant is paramount to the loan sanctioning process. Their stability and income are the lender’s primary assurance of the loan’s repayment.
- Stable and Verifiable Income:
The co-applicant must have a stable and verifiable source of income. This can be from a salary, business, pension, or rental income. The income should be sufficient to cover the loan’s EMI, in addition to their existing financial obligations.
- Credit Score:
The co-applicant’s CIBIL score is a crucial factor. A good score, typically 750 or higher, indicates a history of responsible borrowing and timely repayment. A low score can be an immediate cause for rejection.
- Debt-to-Income (DTI) Ratio:
Lenders will calculate the co-applicant’s DTI ratio to understand how much of their monthly income is already being used to service other debts. A low DTI ratio is preferred, as it shows they have the financial capacity to take on a new loan.
If you’re looking for education loan options that don’t require collateral, do check out our detailed guide on Banks That Give Education Loans without Collateral for Abroad.
Minimal Docs, Maximum Approval - Apply Now.
Who Can Apply for Secured Overseas Education Loans?
For loan amounts exceeding ₹7.5 lakhs, banks typically require collateral. The eligibility for these loans is directly linked to the value and type of security offered.
- Collateral:
The loan amount is sanctioned based on a percentage of the collateral's market value. Accepted collateral can be a residential house, a non-agricultural plot of land, or liquid assets such as Fixed Deposits or government bonds.
- CIBIL Score:
The co-applicant must maintain a good credit history and CIBIL score.
- Repayment Capacity:
The lender will still assess the repayment capacity of the co-applicant, ensuring their income is sufficient to service the EMI, even if collateral is pledged.
Who Can Apply for Unsecured Overseas Education Loans?
Unsecured loans do not require collateral, but they have a more stringent set of criteria for the student and co-applicant.
- University Ranking:
Lenders often provide higher unsecured loan amounts only for students admitted to a top-tier university, as the higher quality of education is considered a factor in future earning potential.
- Academic Merit:
The student must have a very strong academic record with no backlogs and high scores in entrance exams like the GRE/GMAT.
- Co-applicant's Financial Profile:
A strong co-applicant with a high and stable income, a high CIBIL score (750+), and a low debt-to-income ratio is a must for unsecured loans.
Documents Needed from the Student
To process an overseas education loan, you’ll need to share a complete set of records:
- Academic certificates: 10th and 12th mark sheets, plus semester-wise graduation mark sheets if applicable.
- A valid passport is mandatory for all international education loans.
- Proof of address, such as a current electricity or telephone bill.
- Two recent passport-size photographs.
- Entrance-test results like GRE, GMAT, IELTS, or TOEFL, if required for admission.
- Admission confirmation, either an unconditional offer letter or a conditional admission letter from the university.
- Identity verification with any one document, such as an Aadhaar card, PAN card, or passport.
- The estimated cost of the study or an official fee schedule from the institution.
- Bank statements for the past year if you have taken any previous loans.
Documents Needed from the Co-applicant
The co-applicant’s paperwork is equally important for income and credit evaluation:
- Two passport-size photographs.
- Proof of residence, such as an Aadhaar card, electricity bill, or telephone bill.
- Bank account statement for the last year, if any loans were previously availed.
- A government-issued photo ID, PAN, passport, voter ID, or driving licence.
If the co-applicant is salaried
- Six months’ salary-account bank statements.
- Form 16 for the last two financial years along with acknowledged income-tax returns.
- Salary slips or a salary certificate for the past three months.
- For retired co-applicants: pension passbook for the last 12 months plus the pension order.
If the co-applicant is self-employed
- Two years’ balance sheet, profit-and-loss statement, and income calculations.
- Bank statements for the past six months.
- Income-tax returns for the last two years.
- Business registration proof.
Securing an overseas education loan can seem complex, but with the right preparation and understanding of eligibility requirements, the process becomes much smoother. Whether you’re opting for a secured or unsecured loan, having your documents ready and knowing the eligibility criteria for study abroad education loan ensures a faster approval and a stress-free journey toward your international education goals.
Propelld has you covered with personalised education loans that fit your unique needs. Propelld offers fast digital approvals, study loans of up to ₹50 lakhs, and the ease of zero-collateral requirements.
Take the first step towards your future—Apply with Propelld today!
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