New Education Loans Help Indian Students Study Abroad
- Shruti Menon
- 2 days ago
- 4 min read
Studying at an international university is one of the most transformative experiences a student can pursue. But the rising cost of global education — from tuition fees and travel to living expenses and insurance — often poses a serious hurdle. This is where education loans have become increasingly important, offering students and their families the financial backing needed to turn aspirations into reality.
Now, with Poonawalla Fincorp Limited stepping into the education loan segment, students planning to study abroad have a promising new financing option.
Poonawalla Fincorp launches funding options for overseas education
Poonawalla Fincorp, part of the well-known Cyrus Poonawalla Group, has introduced a loan product exclusively aimed at Indian students seeking education abroad. The offering promises a maximum loan of ₹3 crore, designed to cover a wide range of expenses. For loans up to ₹1 crore, no collateral is required, which is a major relief for families without significant assets.
What’s more, the company now provides instant approvals for education loans up to ₹75 lakh. This feature is especially helpful for students dealing with tight university deadlines, as they can secure funding quickly without prolonged processing periods.
This education loan covers essential academic costs — tuition, accommodation, books, travel, and insurance for both the student and co-applicant. It gives families a clearer view of how to manage their financial planning for international study.
Part of a broader effort to expand loan services
This new initiative builds on Poonawalla Fincorp’s growing focus on expanding its lending portfolio. The company recently rolled out digital personal loans for salaried professionals and has now diversified into education finance. With operations across 18 states and 2 Union Territories and an Assets Under Management (AUM) of ₹30,984 crore as of December 2024, Poonawalla Fincorp Limited is steadily evolving its reach in India’s retail loan market.
By offering student loans with fast disbursal and minimal conditions, the company is addressing real challenges faced by Indian families seeking foreign education opportunities for their children.
A look at what other banks offer for international studies
In addition to Poonawalla Fincorp, many Indian financial institutions already provide strong education loan products. Each one caters to a different type of borrower and academic need. Here's a breakdown of some of the top lenders:
State Bank of India (SBI)
SBI’s Global Ed-Vantage loan is designed for international students and offers up to ₹1.5 crore in funding. The repayment window can stretch up to 15 years, and the bank also includes a moratorium period for the duration of the course, which delays EMIs until after graduation.
ICICI Bank
ICICI Bank’s education loan covers amounts up to ₹2 crore. The bank is known for offering pre-visa disbursements and a streamlined online application process. Students benefit from customized terms and personal loan officers assigned to assist them.
HDFC Credila
As a lender dedicated solely to education loans, HDFC Credila offers customized plans suited to different countries, universities, and academic programs. Students can even apply before receiving admission letters. The NBFC is popular for offering loan flexibility and fast processing.
Bank of Baroda
Bank of Baroda’s Baroda Scholar loan supports students pursuing higher studies abroad, with loan amounts up to ₹1.5 crore. The product also includes borrower insurance and is structured with repayment flexibility in mind.
These established banks continue to support international students effectively, and now with Poonawalla Fincorp Limited entering the space, students have even more reason to compare and find the best fit for their education plans.
Why more loan choices matter now
With the number of Indian students going abroad increasing each year, having more financial options has become crucial. Education is no longer affordable without financial assistance for most families. Loans that are flexible, collateral-free, and quick to process can make a significant difference in a student’s ability to secure admission and prepare for a new life in a different country.
Options like the ones now available from Poonawalla Fincorp can be particularly helpful for
students from mid-income backgrounds who may not have traditional security to offer. Features like instant sanction for high loan amounts can relieve last-minute anxiety and simplify visa application planning.
Planning wisely with the right financial partner
When choosing an education loan provider, students and families must consider several key factors. These include the interest rate, repayment period, collateral terms, and how soon the funds can be disbursed. While some banks offer lower rates, others offer more convenience or broader coverage of expenses.
Comparing these aspects across multiple institutions — including public sector giants like SBI, private players like ICICI Bank, focused NBFCs like HDFC Credila, and new entrants like Poonawalla Fincorp Limited — will help students make informed choices.
Conclusion
The introduction of a new education loan product from Poonawalla Fincorp adds momentum to the push toward making overseas education more accessible to Indian students. Combined with the efforts of existing players like SBI, ICICI Bank, HDFC Credila, and Bank of Baroda, the financial ecosystem is now more student-friendly than ever before.
Education loans are no longer just about funding a degree — they’re about enabling a future. As more financial institutions rise to meet the needs of today’s ambitious youth, students have greater freedom to choose their academic paths without letting financial limitations hold them back.
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