Education Loan Options for Studying in France: 2025 Guide

Studying in France offers access to globally ranked universities, diverse programs, and a strong cultural experience. Yet, tuition, living expenses, and visa requirements can create financial pressure. An education loan makes it possible to cover these costs without putting long-term goals on hold.

Students exploring this path have multiple choices. Public-sector banks in India provide structured loans with lower interest rates, while private banks and NBFCs extend flexible options that can cover higher amounts. International lenders also offer no-cosigner loans designed for students heading to France, giving more independence in financing.

Beyond the basic loan categories, there are alternatives such as loans against property, or fixed deposits that can act as financial buffers. With careful planning around disbursal timelines, forex management, and proof of funds for visas, students can avoid common mistakes and improve their chances of approval.

Education Loan Options for Studying in France

Students planning overseas education in France can access two main loan types: secured and unsecured. Each option differs in terms of collateral requirements, interest rates, and repayment flexibility.

Secured loans require collateral such as property or fixed deposits. These loans usually provide higher amounts at comparatively lower interest rates. They often cover tuition, accommodation, and related study expenses.

Unsecured loans do not require collateral but rely on the applicant’s credit history and repayment capacity. These loans are easier to access for students without assets but often come with higher interest rates.

Several banks and financial institutions in India provide tailored education loan products for France. Public sector banks like SBI and private banks such as ICICI and Axis offer secured loans, while NBFCs like HDFC Credila and Avanse specialize in unsecured options.

Lender	Max Loan Amount	Collateral	Tenure	Notes
ICICI Bank	Up to ₹2 crore	Required	10–14 years	Repo-linked rates
SBI Ed-Vantage	Up to ₹1.5 crore	Required	Varies	Simple interest during study
Axis Bank	Up to ₹75 lakh	Required	Up to 10 years	Margin depends on loan size
HDFC Credila	No upper limit	Not needed	Up to 12 years	Floating interest
Avanse	No upper limit	Not needed	Up to 15 years	Flexible repayment options

Education loans typically cover tuition fees, living costs, travel, and study materials, making them a practical route for students pursuing higher education in France.

Public-Sector Bank Education Loans (India)

Public-sector banks in India remain major providers of education loans for overseas studies, including France. They offer structured products with clear eligibility rules, long repayment periods, and benefits such as tax deductions and pre-visa disbursal, which are important for students applying abroad.

SBI Global Ed-Vantage, Bank of Baroda Baroda Scholar

SBI Global Ed-Vantage is designed for students pursuing full-time courses abroad. Loan amounts can go up to ₹3 crores, with collateral-free options available up to ₹50 lakhs for select premier institutions. Repayment can extend up to 15 years, and sanction letters are often issued before visa approval, helping students meet embassy requirements.

Bank of Baroda’s Baroda Scholar scheme is another widely used product. It typically covers tuition fees, living expenses, and travel costs. The loan amount can reach up to ₹1.5 crores for collateral-based loans, while unsecured loans are capped at lower amounts. Interest rates are linked to the bank’s base rate, and concessions may apply for female applicants.

Both banks allow moratorium periods covering the study duration plus additional months, giving students time to settle before starting repayment. These schemes are widely accepted by universities and embassies, making them practical for Indian students heading to France.

How to Apply: Bank Directly or via Vidya Lakshmi

Students can apply directly at a branch of the chosen public-sector bank. This route allows in-person discussions about collateral, co-borrower requirements, and repayment terms. Applicants usually interact with the loan officer assigned to education loans, who guides them through the documentation and sanction process.

The Vidya Lakshmi portal, launched by the Government of India, provides a centralized online platform. Students can fill a single application form and send it to multiple banks. This reduces duplication of effort and makes it easier to compare offers before making a decision.

For overseas education loans, banks often require proof of admission, course cost estimates, and visa-related documents. Sanction letters are usually issued after the application is verified, and in some cases, funds can be disbursed directly to the university in France.

Key Points:

Public-sector banks generally allow repayment periods of 10–15 years, giving students sufficient time to repay after completing their course. This long tenure is especially useful for those pursuing postgraduate or professional programs abroad.

Loan disbursals are typically made in tranches, aligned with university fee schedules. This ensures that tuition and living costs are covered without excess funds being idle. Some banks also allow partial disbursal for initial expenses like travel and accommodation.

Sanction letters issued before visa applications remain valid for several months, giving students flexibility while completing admission and visa formalities. Many banks also provide pre-visa disbursal, releasing part of the loan before the student departs, which helps meet embassy financial proof requirements.

Borrowers can also claim tax benefits under Section 80E of the Income Tax Act. Interest paid on education loans is deductible for up to eight years, reducing the financial burden during repayment.

Eligibility & Documents

Eligibility usually requires the applicant to be an Indian citizen who has secured admission to a recognized university or institution abroad. Courses must be on the bank’s approved list, which typically includes degree programs in engineering, management, medicine, and other professional fields. Vocational or diploma programs may not always qualify.

A co-borrower based in India, usually a parent or guardian, is mandatory. For higher loan amounts, tangible collateral such as property or fixed deposits is often required. The co-borrower’s income and credit history are also assessed.

Key documents include:

• Admission letter from the French university

• Schedule of expenses (tuition, living, travel)

• Academic records and entrance test scores

• KYC documents of applicant and co-borrower

• Income proof of co-borrower

• Collateral documents (if applicable)
  

Banks may also ask for visa copies, fee receipts, and insurance details before disbursing funds.

Pros & Cons

Pros:

• Lower interest rates compared to private lenders

• Long repayment tenure with moratorium covering study period

• Widely accepted sanction letters for visa and university formalities

• Tax deduction on interest under Section 80E

• Transparent terms backed by government regulation

Cons:

• Collateral requirements for higher loan amounts

• Processing time can be longer than private lenders

• Limited flexibility in customizing repayment schedules

• Strict eligibility tied to recognized institutions and courses

• Co-borrower with stable income is mandatory
  

For Indian students planning to study in France, these factors help weigh the benefits of lower costs and government-backed security against the slower processing and collateral requirements.

Private Banks & NBFC Study-Abroad Loans

Private banks and non-banking financial companies (NBFCs) provide education loans with faster processing, higher loan amounts, and more flexible repayment structures than most public banks. These options are especially relevant for students heading to France, where tuition and living costs vary widely depending on the city and institution.

Examples: HDFC Credila, Avanse, InCred, Auxilo

NBFCs like HDFC Credila, Avanse, InCred, and Auxilo focus on overseas education financing. They often approve loans without collateral for amounts up to ₹40–75 lakhs depending on the borrower’s profile.

HDFC Credila allows repayment tenures up to 15 years, while Avanse and Auxilo typically offer 10 years. InCred provides flexible repayment and covers a wide range of expenses, including living costs and travel.

Lender	Loan Amount (Up To)	Tenure	Processing Time	Collateral Requirement
HDFC Credila	₹60 lakhs	Up to 15 years	3–4 days	Sometimes required
Avanse	₹75 lakhs	Up to 10 years	3–4 days	Often not required
InCred	₹70 lakhs	Up to 10 years	3–4 days	Often not required
Auxilo	₹60 lakhs	Up to 10 years	3–4 days	Often not required

Students benefit from faster sanctioning compared to PSU banks, which is critical when admission deadlines are tight. Interest rates usually range between 11–13% per annum, slightly higher than government-backed loans but with greater flexibility.

What Changes vs PSU Loans

Public sector banks like SBI or Bank of Baroda usually require collateral for loans above ₹7.5 lakhs and have stricter eligibility checks. Loan approvals can take several weeks, which may not suit students with short timelines.

NBFCs and private banks differ by offering collateral-free loans, covering up to 100% of tuition and living expenses. They also allow customized repayment options, including moratoriums during study and grace periods after graduation.

Processing fees are typically 1–2% of the loan amount, which adds to upfront costs. However, the trade-off is speed and flexibility. For many students targeting France, especially at private universities or business schools, these institutions bridge funding gaps when PSU loans fall short.

France Visa Angle

For a French student visa, proof of financial resources is mandatory. Students must show funds of roughly €615 per month for living expenses in addition to tuition coverage.

NBFC and private bank loans can be used as valid proof of funds if the sanction letter clearly states the approved amount and disbursement schedule. French consulates usually accept sanction letters from recognized Indian banks and RBI-registered NBFCs.

Students should ensure the loan covers both tuition and living expenses since the visa process requires evidence of accommodation and subsistence funds. Timely approval is important, as visa applications cannot proceed without financial documentation. This makes the faster processing by NBFCs particularly useful for meeting French consulate requirements.

International No-Cosigner Option (France-Compatible)

Some lenders now provide international students with loans that do not require a co-signer, collateral, or credit history in the host country. One of the most established providers in this category is Prodigy Finance, which supports students admitted to select universities in France.

Prodigy Finance: Who Qualifies

Prodigy Finance focuses on graduate-level students, primarily those pursuing Master’s, MBA, or PhD programs. Eligibility depends on admission to a partner university in France, which includes several institutions ranked in global listings.

Applicants must hold a recognized bachelor’s degree and demonstrate strong academic potential. While no co-signer is needed, creditworthiness is still assessed through factors such as career trajectory, future earning potential, and program reputation.

Language proficiency in English or French may be required depending on the program, but the loan application itself is not tied to language test scores. Students from most countries can apply, though some nationalities may face restrictions due to funding regulations.

How Disbursal Works

Funds are typically sent directly to the university to cover tuition and mandatory fees. In many cases, students can also request a portion for living expenses, which is transferred to their personal account after enrollment is confirmed.

Loan amounts vary by program cost, with upper limits tied to the school’s official cost of attendance. Repayment usually begins after a grace period that extends several months beyond graduation, giving students time to secure employment.

Repayments are made in the borrower’s country of residence, and multiple currencies are supported. This cross-border model allows international students to avoid setting up complex financial arrangements in France before arrival.

Limitations

While Prodigy Finance removes the need for collateral or a co-signer, it does not cover every French university. Only students admitted to partner institutions are eligible, so applicants must confirm their school is included in the supported list.

Interest rates are generally higher than government-backed or domestic loans, reflecting the unsecured nature of the product. Borrowers should also account for administrative fees that may be deducted from the disbursed amount.

Additionally, loan approval depends on program type and future earning potential, meaning some fields of study may have fewer options. Students should compare terms carefully and consider alternative funding sources if their program is not supported.

Loan Against Property (LAP), Gold Loan, and FD-OD (Buffer)

When arranging funds for studying in France, secured borrowing options can provide practical solutions. Each option differs in loan size, processing speed, and repayment flexibility, making them suitable for different financial needs.

LAP: Large Ticket at Lower Rate

A Loan Against Property (LAP) allows a borrower to mortgage residential, commercial, or land property to access a higher loan amount. The sanctioned amount usually depends on the market value of the property, often up to 60–70% of its assessed worth.

Because it is secured, the interest rate is lower compared to unsecured education loans. Public sector banks in India may start rates around 7–8% per annum, while private lenders may charge slightly higher. Loan tenures can stretch up to 15–20 years, which helps reduce monthly EMI burden.

This option works well for students needing large sums, such as €20,000–€40,000 or more, to cover tuition and living costs in France. The process involves property evaluation, income assessment, and legal checks, so approval can take longer than other secured loans.

Key points:

• Loan size: High, based on property value

• Interest rate: Lower than unsecured loans

• Tenure: Long, up to 20 years

• Processing time: Moderate to long
  

Gold Loan: Super-Fast

A gold loan requires pledging gold jewellery or coins as collateral. Lenders typically sanction 60–75% of the gold’s market value. Unlike LAP, the disbursal is very quick, often within 24–48 hours, since valuation is straightforward and documentation is minimal.

Interest rates are higher than LAP but still lower than unsecured personal loans. Rates usually range from 9–12% per annum, depending on the lender. Loan tenures are shorter, commonly 1–3 years, which may not align with the full duration of a degree program abroad.

This option suits families who already hold idle gold assets and need immediate liquidity. However, the loan size is limited, often in the range of ₹1–20 lakh, which may not be sufficient for full overseas study expenses.

Key points:

• Loan size: Limited, depends on gold pledged

• Interest rate: Mid-range, higher than LAP

• Tenure: Short, usually up to 3 years

• Processing time: Very fast
  

FD-OD/Overdraft: Quick Buffer

An overdraft against a fixed deposit (FD-OD) provides instant access to funds without breaking the deposit. Banks usually allow borrowing up to 80–90% of the FD value. The interest charged is slightly higher than the FD’s earning rate, often just 1–2% above it.

The advantage is speed and flexibility. Funds can be withdrawn as needed, and interest is charged only on the utilized amount. This makes it suitable for covering smaller, short-term education-related expenses such as visa fees, travel costs, or initial accommodation deposits.

However, the loan amount is restricted by the FD size, so it cannot replace a full-fledged education loan. It works best as a supplementary buffer alongside other financing options.

Key points:

• Loan size: Limited, tied to FD value

• Interest rate: Low, marginally above FD rate

• Tenure: Linked to FD maturity

• Processing time: Instant to very fast
  

France-Specific Tips: Disbursal, Forex & Visa Proof

Education loans for studying in France often require careful planning around how funds are released, how foreign exchange is managed, and what documents are acceptable for visa and admission processes. Students must understand the differences in disbursal methods, the role of sanction letters, and the checks conducted by Campus France.

University Fee Transfer vs Living-Expense Transfer

French universities usually require tuition fees to be paid directly to the institution. Lenders often remit this portion of the loan in euros to the university’s account once admission is confirmed. This ensures compliance with university deadlines and provides proof of payment for visa purposes.

Living expenses, however, are typically disbursed to the student’s personal account. Banks may release these amounts in installments, often linked to semester timelines. This helps students manage rent, food, and transport costs while studying in France.

It is important to clarify with the lender whether both tuition and living expenses are covered. Some lenders restrict the loan to academic fees, while others include accommodation, insurance, and travel. Students should request a clear breakdown of what the loan covers before signing agreements.

Pre-Visa Disbursal Letters; Euro Remittance; Name on Sanction Letter

French student visa applications require proof of financial capacity. Lenders provide a pre-visa disbursal letter stating that the sanctioned loan will cover tuition and living costs. This document is often mandatory for the visa file.

Euro remittance is another critical factor. Since French universities and landlords expect payments in euros, students should confirm that the bank can remit funds directly in the required currency. Some banks charge additional forex fees, so comparing rates is advisable.

The sanction letter must display the student’s full legal name exactly as it appears on the passport and admission letter. Any mismatch can delay both the visa process and fund transfer. Students should cross-check all details before submitting documents to Campus France or the consulate.

Campus France Interview: What Officers Check

During the Campus France interview, officers verify that students have adequate financial support for studying in France. They often review the sanction letter, pre-visa disbursal confirmation, and evidence of euro fund availability.

Officers also check whether the loan covers both tuition and living costs. If only partial expenses are covered, students may be asked to show additional proof of funds such as family savings or scholarships.

Accuracy of documents is emphasized. Inconsistent names, unclear loan coverage, or missing euro remittance details can raise concerns. Students should prepare a complete financial file that aligns with Campus France requirements to avoid delays in receiving the final visa approval.

Common Mistakes & How to Avoid Rejection

Many students face education loan rejection due to incomplete documentation. Missing admission letters, financial statements, or identity proofs can delay or block approval. Preparing a checklist and submitting documents well in advance reduces this risk.

A low credit score or poor repayment history is another common issue. Lenders often review the co-applicant’s CIBIL score before granting approval. Paying off small debts and avoiding multiple loan applications within a short period can improve chances.

Collateral and co-signer requirements also play a major role. If collateral is weak or the co-signer has unstable income, banks may reject the application. Students can explore lenders that offer no-cosigner, no-collateral loans, especially for well-ranked universities in France.

Academic performance matters too. A weak record, low GRE/GMAT scores, or poor IELTS/TOEFL results can raise doubts about repayment potential. Strengthening the profile with retests, internships, or a clear career plan in the Statement of Purpose can help.

The table below highlights common mistakes and simple fixes:

Mistake	How to Avoid
Missing or wrong documents	Use a document checklist, submit early
Low credit score	Pay off debts, check credit report for errors
Weak collateral/co-signer	Consider NBFCs or international lenders
Poor academic/test scores	Retake GRE/GMAT/IELTS/TOEFL, improve SOP

By addressing these areas, applicants can reduce the likelihood of rejection and strengthen their education loan applications for studying in France.

Get a Free Loan Strategy Call + Templates

Students planning to study often face multiple education loan options for studying in france and repayment structures. A free loan strategy call can help them compare lenders, understand eligibility, and identify repayment plans that fit their financial situation.

During the call, advisors typically review:

• Loan eligibility requirements

• Interest rate comparisons

• Repayment timelines

• Scholarship and forgiveness opportunities
  

To make the process easier, downloadable templates can guide students through applications and repayment planning. These templates may include:

Template Type	Purpose	Format Available
Loan Application Checklist	Tracks required documents and deadlines	PDF, Word
Repayment Planner	Outlines monthly repayment options	Excel, Google Sheet
Promissory Note Sample	Demonstrates loan agreement structure	PDF
Budget Worksheet	Helps balance living and tuition costs	Excel, PDF

Using structured templates reduces the chance of missing important details. It also allows students to prepare questions in advance for their strategy call.

By combining professional advice with ready-to-use tools, students can move forward with greater clarity when securing education loans for France.