Two Routes Into the Same Degree
Every study-abroad loan in India falls into one of two structures: secured (backed by collateral such as property or fixed deposits) or unsecured (backed by a co-applicant's income). The right choice depends on your family's asset position and how much you need to borrow.
Secured Loans: Lower Rate, Bigger Amount
- Typical rates in 2026: roughly 9%–10.5% per annum
- Loan amounts up to ₹1.5 crore with strong collateral
- Moratorium covers the course period plus 6–12 months
- Longer processing time due to property/legal verification
Unsecured Loans: Faster, But Pricier
- Typical rates in 2026: roughly 10.5%–13.5% per annum
- Usually capped around ₹40–75 lakh depending on lender and profile
- Faster sanction — often 7–15 working days
- Co-applicant income and credit score drive approval
The Tax Benefit Everyone Forgets
Interest paid on an education loan is fully deductible under Section 80E of the Income Tax Act for up to 8 years — effectively reducing the real cost of the loan for families in higher tax brackets.
Mistakes That Cost Families Lakhs
- Applying to one lender instead of comparing 3–4 sanctioned offers
- Starting the loan after the offer letter instead of alongside the application
- Ignoring processing fees, forex markup and insurance add-ons in the true cost
- Choosing a longer tenure than needed — small EMI, much bigger total interest
How Sage Eduloan Helps
Sage Eduloan, SICS's financing desk, prepares your file once and takes it to multiple banks, NBFCs and international lenders — so you compare real sanctioned offers, not advertised rates. The service is free for SICS students.
"Don't ask 'will I get a loan?' Ask 'which of these three sanctions is cheapest over 10 years?'"
Ready to take the next step?
Talk to a SICS counsellor and turn this guide into a personal action plan.
