Student Loans for NRI| North Loop Official Blog
North Loop Logo
North Loop
23 Sep 2020

Student Loans for NRI

thumbnail for Student Loans for NRI
Credit: North Loop

What are student loans?

Student loans have become the most common means of financing for both resident Indians and NRIs. With the expenses for higher education soaring like never before, the demand for education loans has also increased tremendously. NRI student loans help you meet these expenses and can be used to finance tuition fee, admission fee, maintenance cost, cost of books as well as caution deposits and other refundable deposits in recognized schools and colleges of India.

What are the types of education loans in India?

An education loan in India gets categorized into two different types depending on the need for collateral security. These are –

Secured Educational Loans – For this type of education loan, you may or may not be required to provide collateral to the lender to secure the loan. These educational loans are generally offered by government banks that accept immovable property and liquid security as collateral against the student loan. Examples of liquid security are intangible assets like fixed deposits (you can get (FDs at 7.5% with North Loop), life insurance policies or government bonds. However, even though most of the lenders for this type of loan are well-regulated RBI governed institutions and banks, the various collateral requirements are a deterrent to many. Flexible and low-cost student loans can be secured from other providers as well that do not have too many collateral conditions.

Unsecured Education Loans – These student loans do not require any collateral security and are relatively easier to apply. Most student loans company (in case of student loans UK, students loans UAE, students loans USA etc.), however, pay close attention to a variety of factors like the global ranking of your university, your credit score and also overall repayment capacity. That is primarily because of the lack of any pledging of collateral security in this type of loan. The interest rates on unsecured student loans vary from 11.9% to 14.5%, and the processing fee charges are usually 0.9% to 2% of the total education loan amount. While most lenders also provide a moratorium period, many student loans company expect you to begin the repayment within one month of availing your first disbursement. You can, however, opt for unsecured student loans with North Loop, at low-interest rates and zero processing fees. You also get a six-month moratorium after graduation for the student loan repayment.

Get a zero-balance, no-fee NRE/NRO account with North Loop in 5 minutes

How to get student loans for NRIs?

As an NRI, it is easier to apply for student loans in India as the education loan policies in the country are more flexible and feasible as compared to those of international lenders. Also, the difference in the values of the currencies when opting for students loans UK or students loans UAE, as compared to that of India plays a key factor. However, there are some points that you must remember when applying for students loans in India as an NRI –

A co-applicant is an integral part of an NRI loan application process.
The co-applicant should ideally be an Indian resident.
You can name another NRI as a co-applicant but only after giving them signatory rights to a power of attorney.
The co-applicant with the signatory rights is responsible for providing all necessary documents to the lender banks.

You can apply for no-collateral student loans with North Loop at low-interest rates and with much less hassle. You will not have to worry about any processing fees or extra charges. Click here to use our education loan calculator.

Student loan repayment –

The repayment of the student loan can get done within 12 months after the completion of your course in monthly instalments. If you get a job, you have to complete the repayment within six months.

Documents required –

  • Application form
  • Passport-sized photographs
  • Proof of admission to a university
  • List of all expenses for the course
  • Copy of passport
  • Title deed (in case of property mortgage)
  • Title clear certificate from bank’s approved advocate
  • Possession certificate
  • Valuation certificate
  • Encumbrance certificate
  • Tax receipt


With North Loop, you don’t have to worry about so many documents and also eliminate having to visit bank branches or meet bank officials for your student loan application. The process is 100% digital, thus saving a lot of your time and effort!
To sign up with North Loop, click here.

Save money with

No-fee banking, investments, remittances & insurance for the global Indian

This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.