Studying abroad is one of the biggest dreams for many Indian students. From exploring new cultures to learning at top universities, it’s truly a life-changing journey. But one thing that often worries students and parents is the cost. Tuition fees, living expenses, travel, insurance, it all adds up fast. This is where an abroad study loan can help make your dreams possible.

But before you apply, it's important to understand the full picture. Choosing the right loan isn’t just about getting the money, it’s about knowing the interest, repayment options, approval time, and more.

In this guide, we’ll walk you through 8 simple things to check before applying for a loan to study abroad. We’ll also give you a tip on how to easily check your loan repayment amount using an abroad Education Loan EMI calculator. Let’s get started!

1. How Long the Loan Takes to Get Approved

Every bank or financial institution takes some time to approve your loan. Government banks might take around a month or more. Private Banks and NBFCs (Non-Banking Financial Companies) are a bit faster, they may take just 10 to 15 days. So, if you’re in a hurry, this is an important thing to check.

Tip: Start your loan process 4–6 months before your course begins, so you don’t face last-minute stress.

2. How Much Loan You Can Get

The cost of studying abroad can vary a lot. A bachelor’s course might cost up to ₹1 crore, while a master’s course may be around ₹30–₹40 lakhs. Every bank or NBFC has a limit on how much they will lend.

For example:

Some government banks give up to ₹1.5 crores (with collateral).
Private banks may give up to ₹40–₹75 lakhs.
NBFCs and international lenders can also offer loans without collateral but with conditions.

Make sure the lender you choose can give you enough to cover all your costs including tuition, hostel, food, travel, and more.

3. What Interest Rate They Charge

This is one of the most important things to check. The interest rate decides how much extra you’ll have to pay back along with the loan amount.

Here’s a quick idea:

Government banks: Around 8.5% to 9.5%
Private banks: Around 11% to 13%
NBFCs: Around 12% to 14%
International lenders: Around 8% to 10.5% (depending on the course and country.

Higher interest means more EMI later. So always compare interest rates of different banks.

(Note: These are approximate figures. Always check the official websites to know the exact interest rates.)

4. How Long You Get to Repay

Repayment period means how many years you’ll get to pay back the loan. This usually starts after your course ends.

Government banks: Up to 15 years
Private banks: Up to 15 years
NBFCs: Around 10 years
International lenders: 10–12 years

A longer repayment period means lower EMIs, but you pay interest for more years. A shorter period means higher EMIs but quicker closure. Choose what works best for your future income plan.

5. Whether You Have to Pay EMI Immediately or Not

Most loans come with a moratorium period, which means you don’t have to pay EMIs while you’re studying and even for 6–12 months after the course. But in some cases you may have to start paying some amount right after the loan is given.

This is called Direct EMI. It may apply to:

Undergraduate students
Non-STEM (science, tech, engineering, maths) courses
Students with weak academic records

Ask your lender clearly if you’ll get a full moratorium or not.

6. Do You Need to Pay Interest While Studying?

Even if EMIs start later, sometimes banks ask you to pay just the interest every month during the course period. Government banks may not ask for this. Private banks and international lenders usually do.

Some lenders allow you to pay a small fixed amount instead of full interest. But it’s best to clarify this early on so you’re financially ready.

7. What Are the Processing Charges

Banks and NBFCs charge a processing fee to handle your loan. This is a one-time payment, but for large loan amounts, it can be quite a bit. Always check the fee before you apply.

8. When Will the Loan Be Given – Before or After Visa?

This is very important. Some universities ask for fees before you even get your visa. So you’ll need a Pre-Visa Disbursement loan. Not all banks offer this.

Many government and private banks can release part of the loan before your visa if you request it. NBFCs also allow this. But international lenders usually give the money after you get the visa and reach your destination.

So talk to the bank and check their rules about when the loan will be disbursed.

Bonus Tip: Use an Abroad Education Loan EMI Calculator

Worried about how much your monthly repayment (EMI) will be? Don’t worry! You can use a simple abroad Education Loan EMI calculator online. Just enter:

Loan amount
Interest rate
Loan period

And you’ll get an estimate of your EMI in seconds. This helps you plan better and choose a loan you can repay comfortably.

Conclusion

Taking a education loan for studying abroad is a big decision. But with the right information, you can make it easy. Always check these 8 key points before applying, and compare options to find what suits your budget and future plans.

There are many good lenders in India who offer study abroad loans. If you need help comparing them, platforms like SpocTree can help you find the best option for your needs, all in one place.

8 Factors To Be Checked Before Applying For Study Abroad Loan