Check your eligibility
What These Loans Fund
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Tuition fees paid directly to the...
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Living and accommodation costs
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Airfare to and from the country of...
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Health insurance required by the i...
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Laptop
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Examination
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Caution deposits and university ch...
Who Can Consider This Loan?
- Indian national admitted to a recognised course
- A co-applicant, generally a parent, guardian or spouse
- Admission secured through a recognised selection process
- Co-applicant income sufficient to support repayment
- Collateral required above the unsecured threshold
- Satisfactory academic record
What May Not Be Funded?
- Currency losses between sanction and disbursal
- Courses at institutions not recognised by the lender
- Personal travel unrelated to the course
- Amounts above the sanctioned limit
- Costs for accompanying family members
Always check the sanction letter before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading loans companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
- Expert Guidance Personalised advice from experienced loans professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
An overseas education loan funds tuition, living costs, travel and insurance for study abroad. The amounts are far larger than domestic loans — frequently thirty to sixty lakh for a two-year postgraduate programme — which changes both the collateral requirement and the seriousness of the decision.
Currency is the exposure families underestimate. The loan is in rupees and the fees are in dollars, pounds or euros. A rupee depreciation between sanction and the final semester increases what you actually need, and disbursal is usually semester by semester at the rate then prevailing.
Collateral drives the rate more than anything else at these amounts. A secured overseas loan can be several percentage points cheaper than an unsecured one, and over a fifteen-year repayment that difference is very large.
Who should consider it
Students admitted to universities abroad. Families funding a postgraduate programme without liquidating long-term assets. Students whose visa application requires evidence of funding, which a sanction letter provides.
Benefits
- Covers tuition, living costs, travel, insurance and equipment
- Sanction letter supports the student visa application
- Moratorium covering the course plus six to twelve months
- Section 80E deduction on interest with no upper limit
- Secured loans attract materially lower rates at these amounts
- Tenure up to fifteen years after the moratorium
What the loan funds, and what it does not
Read the right-hand column first. It is the one that decides how much you have to arrange yourself.
Usually funded
- Tuition fees paid directly to the university
- Living and accommodation costs
- Airfare to and from the country of study
- Health insurance required by the institution
- Laptop, books and study equipment
- Examination, library and laboratory fees
- Caution deposits and university charges
Usually not funded
- Currency losses between sanction and disbursal
- Courses at institutions not recognised by the lender
- Personal travel unrelated to the course
- Amounts above the sanctioned limit
- Costs for accompanying family members
Funding limits and the treatment of add-ons vary between lenders and move with the borrower profile. The sanction letter you receive is what governs — we will walk you through it before you sign.
How it works with us
- 1 Start before the admission letter, not after Pre-approval based on the course and the co-applicant's profile means the money is ready when the deadline arrives.
- 2 Course and institution assessed first Lenders rank institutions. A recognised course at a listed institution attracts better terms than the same amount elsewhere.
- 3 Collateral decided deliberately Below the threshold no security is needed. Above it, offering collateral usually reduces the rate enough to be worth it.
- 4 Sanction, and the disbursal schedule agreed Fees release semester by semester directly to the institution. Living costs follow the agreed schedule.
- 5 Moratorium tracked, repayment planned We flag when the moratorium ends and what the EMI becomes, so the first repayment is not a surprise.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- Offer collateral if you can. At these amounts the rate difference between secured and unsecured is several percentage points, which over fifteen years is a very large sum.
- Budget for rupee depreciation. Disbursal happens semester by semester at the rate then prevailing, so a sanction sized on today's exchange rate can fall short by the final year.
- Get the sanction letter early. Visa applications require evidence of funding, and a sanction letter is accepted where a bank balance may not be.
- Section 80E applies to overseas loans exactly as it does to domestic ones, with no ceiling on the interest deduction. On a large loan that relief is substantial.
- Check whether the university is on the lender's approved list. Listed institutions attract better terms and faster processing.
Documents required
- Admission letter from the institution
- Fee structure and course details from the institution
- Academic records — mark sheets and certificates
- Entrance examination results, where applicable
- Identity and address proof of student and co-applicant
- Co-applicant income proof — salary slips, Form 16 or returns
- Bank statements of the co-applicant for six months
- Collateral documents, where security is offered
Frequently Asked Questions
How much can I borrow for overseas study?
Amounts commonly run from twenty lakh to a crore and a half depending on the course and the collateral offered. Unsecured limits are considerably lower and priced much higher, which is why security matters so much in this segment.
What about the exchange rate?
The loan is in rupees while the fees are in foreign currency, and disbursal happens semester by semester at whatever rate prevails then. A sanction sized on today's rate can fall short by the final year, so build a buffer into the amount you request.
Will the sanction letter help my visa application?
Yes. Most countries require evidence of funding for the course and living costs, and a bank sanction letter is widely accepted. Getting it early removes a common source of visa delay.
Do I need collateral?
For most overseas loans of any size, yes. More importantly, offering it reduces the rate by several percentage points. On a forty-lakh loan repaid over fifteen years, that difference runs into many lakhs of interest.
Does Section 80E apply to overseas loans?
Yes, identically — full deduction on interest with no upper limit, for eight years from when repayment starts. On a large overseas loan that is one of the most substantial deductions available to an individual taxpayer.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.