Study Abroad Loan: 5 Mistakes Costing You ₹15L+

Sending your child abroad for higher education can cost up to ₹1 crore today. Education loans help, but hidden costs, currency risk, and wrong loan choices can push your family into a serious debt trap.

Here's what happened: Overseas education costs have surged to ₹50 lakh–₹1 crore all-in, including tuition, living, and travel expenses.. A weaker rupee means every dollar or pound you repay costs more in rupees — silently inflating your total loan burden.. Most education loans carry floating interest rates of 10–13% per year, and moratorium periods still accrue interest daily..

What you should do: Calculate total cost in rupees — include tuition, hostel, flights, and a 10% currency depreciation buffer before applying for any loan.. Compare secured vs unsecured education loans — loans above ₹7.5 lakh typically require collateral but offer lower interest rates of 9–11%.. Check if your lender offers a simple interest moratorium — some banks charge compound interest during the study period, adding lakhs silently..

Pro tip: Repaying even ₹2,000–₹5,000 per month during the moratorium period can cut your total interest outgo by ₹3–6 lakh over the loan tenure.