Which is better for an overseas education loan—a bank, an NBFC, or an international lender?

For most parents, paying for their children's education overseas is an expensive endeavor. Parents now need to save a lot more money for their child's overseas education because of the Indian rupee's recent six-month fall versus the US dollar. The cost of a four-year degree could increase significantly if inflation is 4% and the currency depreciates by 3% per year. A course that presently costs Rs 3.18 crore might rise to Rs 5.29 crore in eight years, according to estimations made by Athena Education, an education consultancy organization for undergraduate studies overseas. Parents may need to invest approximately Rs 18,200 per month for 18 years in an equity mutual fund (assuming a 12 percent annual return) in order to cover these costs. This tactic combats currency devaluation and inflation in education. But in addition to your personal funds, there are two more options to pay for your child's education abroad: loans and scholarships. Let's investigate the possibility of an education loan and determine whether your child qualifies. Bank loans for education For students who want to study abroad, the majority of banks provide specialized education loan programs. According to statistics gathered by BankBazaar.com, as of March 11, 2025, these banks offer overseas education loans with interest rates ranging from 8.60 percent to 13.70 percent annually. With the rising cost of overseas education and the depreciation of the Indian rupee against the US dollar, parents are increasingly finding it challenging to fund their children's international studies. According to Athena Education, a consultancy specializing in overseas undergraduate admissions, if inflation remains at 4% and the rupee depreciates by 3% annually, the cost of a four-year degree that currently stands at ₹3.18 crore could rise to ₹5.29 crore within the next eight years. To prepare for such expenses, financial experts suggest that parents start investing early—around ₹18,200 per month for 18 years in an equity mutual fund with an assumed 12% annual return—to offset inflation and currency fluctuations. However, beyond personal savings, education loans and scholarships are viable funding alternatives. Most Indian banks offer specialized education loan schemes for students aspiring to study abroad, with current interest rates ranging between 8.60% and 13.70% annually, as per BankBazaar.com data dated March 11, 2025. These loans typically cover tuition fees, living expenses, and other educational costs, providing essential financial support to families planning for international education.