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Education Loan to study in Spain

If there’s one country that has truly embraced the spirit of start-ups and entrepreneurship, it’s Spain—especially cities like Madrid and Barcelona, which are quickly gaining recognition as emerging tech hubs, often compared to Silicon Valley. In addition to its dynamic innovation scene, Spain is also celebrated for its high academic standards and advancements in technology, making it an increasingly popular choice among international students.

This brings us to some important questions: Is studying in Spain affordable for international students? What are the available education loan options? Which types of loans are more accessible? In this blog, we’ll explore all these aspects to help you make an informed decision.

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Types of abroad education loans in Spain

In general, International student loan Spain can be classified into two categories.

Cost of Studying in Spain

Studying in Spain is relatively affordable, especially when compared to other popular study-abroad destinations like the USA, UK, or Canada. Public universities in Spain offer low tuition fees, making them a budget-friendly option for international students. While private universities tend to be more expensive, they are still generally more cost-effective than institutions in many other countries. A unique feature of Spanish universities is their pay-per-credit fee structure, meaning tuition costs are calculated based on the number of academic credits in your chosen program.

Secured education loan in Spain

Eligibility Criteria for Education Loan to Study in Spain

To secure admission to a Spanish university and qualify for an education loan, you must meet the following eligibility requirements:

You must be an Indian citizen and at least 18 years of age at the time of application.
You should have applied to a recognized university in Spain for a full-time academic program.
A solid academic background is crucial to improve your chances of loan approval.

For unsecured loans, your course should demonstrate strong career prospects; for secured loans, you must be able to provide collateral to back the loan.

Expenses Covered Under Education Loans for Studying in Spain

Education loans for Spain typically cover a wide range of academic and living expenses to support students throughout their study period. These may include:

Accommodation costs during the course of study
Tuition fees charged by the university
Examination fees
Travel expenses, including airfare
Library and laboratory charges
Cost of purchasing a laptop or computer for academic use
Expenses for study tours and project work conducted during the program
Cost of books, equipment, uniforms, and other essential materials

Any other justifiable expenses necessary for successfully completing the course

Secured Education Loan for Studying in Spain

A secured education loan for Spain requires the applicant to pledge collateral or security, making it a popular choice among students looking for better loan terms. Also referred to as a loan with collateral, this type of loan involves offering assets such as residential or commercial property, fixed deposits (FDs), or life insurance policies as security.

Secured loans typically come with several benefits, including lower interest rates, longer repayment tenures, and higher loan eligibility. Among lenders, public sector banks are often preferred due to their competitive interest rates, higher loan amounts, and more favorable terms compared to private banks and NBFCs.

Lender Name	Maximum Loan Amount (in INR)	Rate of Interest	Margin Money
SBI	Up to 1.5 Cr	10.65% (for girls) 11.50% (for boys)	10%
UBI	Up to 1.5 Cr	10.65% (for girls) 11.50% (for boys)	10%

Unsecured Education Loan for Studying in Spain

An unsecured education loan for Spain, as the name suggests, does not require any collateral or security to be pledged. Also known as a loan without collateral, this type of loan is ideal for students who may not have assets to offer. However, because there’s no collateral involved, interest rates are generally higher, especially when compared to public sector banks offering secured loans.

There are three main categories of lenders that provide unsecured education loans for Spain: private banks, Non-Banking Financial Companies (NBFCs), and international lenders. Below is a comparison of some of the top options available:

Lender Name	Maximum Loan Amount	Rate of Interest	Margin Money
Axis Bank	Up to 50 Lakhs INR	11% – 13.50%	5%
ICICI Bank	Up to 1.5 Cr	10.85% – 12.50%	0 – 15%
IDFC FIRST Bank	Up to 35 Lakhs INR	11.50% – 12.25%	Nil
HDFC Credila	Up to 65 Lakhs INR	11.25% – 13%	Nil
ICICI Bank	Up to 1.5 Cr	10.85% – 12.50%	0 – 15%
Auxilo	Up to 65 Lakhs INR	11.25% – 13%	Nil
Incred	Up to 60 Lakhs INR	12.25% – 14%	Nil

Fees and Charges – Education Loan for Studying in Spain

When applying for an education loan to study in Spain, it’s essential to be aware of the additional costs beyond interest rates and repayment terms. These extra charges cover various services offered by the bank and can vary from lender to lender. Below is a detailed list of applicable fees based on HDFC’s Education Loan for Foreign Studies, provided to give you a clear idea of the potential expenses involved. Please note that actual charges may differ depending on the bank you choose.

Once you’ve narrowed down the right lender, it’s important to understand the documentation required to ensure a smooth education loan application process for Spain. Here’s a list of essential documents commonly requested by lenders:

An official admission letter from the university in Spain
A duly filled education loan application form
A detailed breakdown of study-related expenses
Identity proof (such as Aadhar, passport, etc.)
Proof of residence
PAN card details of the applicant
Bank statements of the student, co-borrower, or guarantor
Asset declaration of the co-borrower, guarantor, or applicant

Income proof of the co-borrower, guarantor, or applicant

How to Secure an Education Loan for Spain?

Applying for an education loan to study in Spain is a simple process, but coordinating with multiple lenders can be time-consuming and confusing. That’s where LENDING BROTHERS comes in—offering a streamlined, guided loan process. Here’s how it works:

Start by checking your loan eligibility on LENDING BROTHERS ’s platform
Get connected with a dedicated loan expert who offers tailored advice and recommends suitable lenders
Receive a personalized document checklist to keep everything organized
Submit your documents as per the selected lender’s guidelines
Wait for loan verification, which typically takes 7 to 15 days. Once approved, sign the agreement and track the status through LENDING BROTHERS ’s user dashboard
Proceed with loan disbursement, either directly into your account or paid to the university by international lenders

While many believe studying in Spain requires fluency in Spanish, the reality is different—many programs are offered entirely in English. That said, learning Spanish while you’re there is a valuable bonus, as it’s one of the most widely spoken languages globally and can unlock exciting career opportunities.

With affordable tuition fees in public universities and lower living costs compared to other European destinations, Spain offers excellent value for international education. Ready to take the next step? Check your eligibility on LENDING BROTHERS and move closer to making your study abroad dream a reality.