Educational loan for UAE- A Complete Guide

Studying abroad is a dream cherished by many international students, and the United Arab Emirates (UAE) has emerged as a preferred destination for higher education. With its unmatched education policies and diverse living standards known worldwide, UAE offers an enriching academic and cultural experience. However, the cost of pursuing full-time courses in UAE can be overwhelming for many students. As a result, education loans have become essential to help aspiring students achieve their dreams.

Educational loan for UAE

In this guide, we will explore the options and requirements for obtaining an education loan to study in the UAE from India.

Why Choose UAE for Higher Education?


The UAE’s allure as an education hub stems from its exceptional academic institutions and vibrant multicultural environment. Students are drawn to the UAE for its diverse range of courses, global recognition, and industry-relevant programs. Additionally, the country offers a visa on arrival for international students, making it easier to access educational opportunities. However, due to the higher cost of living in the UAE, financing education through loans becomes a crucial consideration.

Education Loan Providers in UAE

Several banks and financial institutions in the UAE offer education loans to international students. Two prominent lenders that cater to the educational needs of students are:

a. HDFC Credila: HDFC Credila is a trusted financial institution that provides education loans to students aspiring to study in the UAE. The loans cover up to 100% of the cost of living in the UAE, which is known to be expensive. One of the significant advantages is that students can obtain the loan before obtaining their visa, ensuring a smooth financial process.

b. Emirates NBD: Emirates NBD offers the Scholar Plus education loan to students at competitive interest rates. This loan allows students to top up their existing education loan to a maximum amount of AED 300,000. This facility enables students to manage additional expenses, such as rent, daily travel, and educational materials.

Types of International Student Loans in UAE

a. Loan from Universities: Many universities in the UAE have dedicated finance departments that offer financial aid to international students. Some universities also have collaborations with banks to provide easy loans to students. These financial aid plans not only cover students’ expenses but may also extend support to their families.

b. Loan from Private Banks: Private banks in the UAE offer education loans at competitive interest rates. Students can opt for personal loans, which allow them to utilize the funds for various expenses, including rent, daily commuting, and study materials. However, students must carefully review the criteria and terms before applying for a personal loan.

Education Loan Providers in India for UAE Studies

As many Indian students dream of studying in the UAE, several banks in India provide education loans for this purpose. Some major banks offering these loans and their key features are:

a. State Bank of India (SBI): Loan Amount: Up to 1.5 crores Interest Rate: 10.5% per annum
b. Allahabad Bank: Loan Amount: 50 lakhs Interest Rate: 7.15% to 10.5% per annum
c. Axis Bank: Loan Amount: Up to 40 lakhs or as per requirements Interest Rate: Depending on the loan amount
d. HDFC: Loan Amount: Up to 30 lakhs Interest Rate: 14% per annum
e. Bank of Baroda: Loan Amount: 1.5 crores Interest Rate: 8.50% to 9.15% per annum

Please note that the interest rates may vary based on government regulations and policies.

Eligibility Criteria for Getting a Student Loan to Study in UAE

Securing an education loan for studying in the UAE can be a challenge due to the high criteria set by private financial institutions. However, Indian students can approach government banks for secured overseas education loans. The eligibility criteria typically include:

a. Excellent Academic Profile: Students must maintain an outstanding academic record as backlogs in their profile may lead to rejection of their loan applications.
b. Strong Financial Background: Lenders often require a co-applicant with a robust financial background, such as a parent, to support the student’s loan application.
c. Sufficient Collateral: Students must possess high collateral or assets equivalent to their actual education loan requirements, which serve as security for the loan.

Documents Required for Getting a Student Loan in UAE

To apply for an education loan to study in the UAE, students need to submit the following documents:

  • A copy of a valid passport
  • Valid residence visa
  • Student or parent’s bank account statements for the last three to six months
  • A valid copy of the University ID card
  • Original salary certificate (for employed individuals) or trade license (for self-employed individuals)
  • A security cheque equivalent to 120% of the loan amount (if required by the bank)

Repayment Strategy for Unsecured Student Loans in UAE

Unsecured student loans in Dubai typically come with an interest rate starting at approximately 11%. As common practice dictates, the full simple interest rate is applied during the moratorium period for most unsecured loans. In view of these conditions, your Equated Monthly Installment (EMI) repayment plan would resemble the following:

  • Loan Amount: AED 2,350,000
  • Interest Rate: 11.5%
  • Repayment Tenure: 10 Years
  • Grace Period: 6 months

Repayment Strategy for Secured Student Loans in UAE

When opting for secured education loans in Dubai, you benefit from a lower interest rate, typically starting at 8.55%. Moreover, you have the option to defer payments during the moratorium period.

  • Loan Amount: AED 6,250,000
  • Interest Rate: 9%
  • Repayment Tenure: 15 years

Also read:

The Practical Way to Buy Your Dream Car: Avail a Car Loan

Understanding Loans and How to Choose the Best One for You

How to Calculate the Total Cost of a Loan, including Interest and Fees

How to Qualify for a Loan and Improve your Chances of Approval


Can I get an education loan to study in the UAE?

Yes, international students can apply for education loans to study in the UAE. There are various options available, including loans from banks in both India and the UAE.

How much loan amount can I receive for studying abroad in the UAE?

The loan amount can vary based on whether you opt for a secured or unsecured education loan. Generally, you can receive up to 1.5 crores with a secured loan and around 25 lakhs with an unsecured loan.

Is it possible to obtain a 100% student loan for studying in the UAE?

Yes, some lenders may offer 100% student loans depending on factors like the university, chosen course, and academic background. However, full coverage may only be provided up to a specific limit, and lenders might require a margin if the costs exceed that limit.

Are student loans interest-free?

No, student loans are not interest-free. Typically, interest rates for education loans in the UAE range from 8.5% to 13.5%, depending on whether it is a secured or unsecured loan.

Can I apply for a student loan without my parents’ Income Tax Returns (ITR)?

Yes, you can apply for an education loan without your parents’ ITR by opting for a secured loan. Instead of ITR, you would need to provide an income certificate as an alternative.

What expenses are covered by the student loan in the UAE?

The student loan covers various academic expenses, including tuition fees, accommodation costs (such as dorm fees), expenses for textbooks and uniforms, and other necessary academic expenditures.

Are there education loan providers in the UAE for international students?

Yes, there are several banks in the UAE that offer education loans to international students. Some popular banks include Abu Dhabi Commercial Bank (ADCB), HSBC, Emirates NBD, and Dubai Islamic Bank, among others.

What types of education are funded in the UAE?

Education loans in the UAE primarily cover programs offered by universities in the country and executive programs designed for working professionals. Students can inquire about the specific courses covered before applying for a loan.

How do I apply for an education loan for studying in the UAE?

To apply for an education loan, you typically need to submit documents such as a valid passport, valid residence visa, bank account statements, university ID card, salary certificate (for employed individuals), and a security cheque (if required by the bank).

What are the eligibility criteria for obtaining a student loan for the UAE?

The eligibility criteria may vary among different lenders, but common factors include an excellent academic profile, a co-applicant with a strong financial background, and sufficient collateral to cover the loan requirements.

Can I apply for a student loan for both undergraduate and postgraduate courses in the UAE?

Yes, education loans are available for both undergraduate and postgraduate courses in the UAE. Students can explore loan options for the specific course they wish to pursue.

What are the repayment options for education loans in the UAE?

Repayment options for education loans vary among lenders and may depend on factors such as the loan amount, interest rate, and the borrower’s financial situation. Students should discuss repayment plans with their chosen lender before availing the loan.


Studying in the UAE offers a host of opportunities for international students, but the financial burden can be significant. Obtaining an education loan is a practical solution to fulfill the dream of studying abroad. Indian students looking to study in the UAE can explore various options, including HDFC Credila and Emirates NBD, as well as education loan providers in India and UAE-based banks.

Meeting the eligibility criteria and submitting the necessary documents will increase the chances of securing a loan. By carefully navigating through the loan application process, students can pave their way to a successful educational journey in the UAE.

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