Education Loan Options for Sweden

    Updated on: 11 Sep 2023

    Education Loan for Sweden

    More than 12 Sweden universities are ranking at top positions in QS World University rankings. 

    From its world-renowned universities and English-taught programs to its vibrant student life and career opportunities, Sweden has something exceptional to offer every aspiring learner. If you are also an aspiring student who is interested in studying in Sweden but are worried about the cost then let’s take a deeper look at the cost of education from Sweden and the available loan options.

    Cost of studying in Sweden 

    Sweden is home to top-tier universities renowned for their programs in medicine, arts, science, and technology. Pursuing a graduation degree in Sweden costs around SEK 129,000 per year, while a post-graduate degree tends to cost approximately SEK 220,000 per year.

    Top 5 QS ranked Swedish universities 2023

    QS Ranking 2023

    University name

    Tuition fee (per annum)


    KTH Royal Institute of Technology

    SEK 310,000 - SEK 366,000


    Lund University

    SEK 200,000 - SEK 225,000


    Uppsala University

    SEK 50,000 - 70,000


    The Chalmers University of Technology

    SEK 50,000 - SEK 80,000


    Stockholm University

    SEK 90,000 - SEK 140,000

    Check Your Education Loan Eligibility Apply Here

    Cost of living in Sweden

    The cost of living in Sweden varies depending on the city you are living in. Your cost of living will be high if you are staying in big cities like Stockholm or Gothenburg compared to smaller cities like Lund or Uppsala. International students can, however, expect to shell out SEK 2500 - 6500 as monthly rent (INR 21,000 - INR 54,000)


    Cost per month


    SEK 2500 - 6500


    SEK 550 


    SEK 2000 

    Health Insurance

    SEK 1500


    SEK 300

    Education loan options for studying Sweden

    Embarking on an international education journey, especially in a country as academically distinguished as Sweden, is an exciting prospect. However, with tuition fees, living expenses, and other costs to consider, financial planning becomes a crucial part of the process. Fortunately, there are various education loan options available that can help make your study abroad dream a reality. For abroad education there are two types of loans, secured and unsecured loans.

    What are secured education loan options for Sweden?

    Secured education loans are those loans that require borrowers to pledge some sort of security against the loan amount. That security is known as a Collateral. It can be an immovable property or liquid assets such as fixed deposits or government bonds. Secured education loans are offered by public banks, private banks, and NBFCs, but public banks are often considered the preferable choice due to their reliability and ability to provide lower interest rates.

    Secured education loan - overview





    Loan amount 

    Up to INR 1.5 cr

    Up to INR 2 cr

    INR 1.5 cr

    Interest rate

    10.65 - 11.15%

    9.8 - 10.15%

    10.14 - 11.15%

    Margin money

    10 - 15%

    10 - 15%


    Repayment tenure

    15 years

    15 years

    15 years

    Processing fees

    INR 10,000 + GST

    INR 5,000

    INR 10,000 + GST


    What are unsecured education loan options for Sweden?

    Unsecured education loans are those loans that do not require collateral instead they require a co-applicant with a stable monthly income and a good CIBIL score. A co-applicant can be the applicant’s parents, siblings, or a close relative. Unsecured loans are offered by public banks, private banks, and NBFCs.

    Unsecured education loan - An overview


    Private banks

    (ICICI Bank, Axis Bank, IDFC First Bank)

    (HDFC Credila, InCred, Avanse)

    Loan amount

    Up to INR 40 Lakh

    Up to INR 30 Lakh

    Interest rates

    11.15% - 13%

    12.5% - 14%

    Margin money



    Repayment tenure

    10 - 15 years

    15 years

    Tax benefits


    Not available
    (Except HDFC Credila)

    Processing fees

    0.5 - 1%

    0. 5 -2%

    Expenses covered by education loan in Sweden

    The expenses covered under education loans by various lenders include the following

    Cost of study

    Cost of living

    Other costs

    Tuition fee

    Admission fee

    Examination fee

    Books or laptop expenses

    Accommodation or hostel fee

    Food costs

    Travel expenses

    Health insurance expenses

    Miscellaneous expenses

    Education loan eligibility criteria for Sweden

    The eligibility criteria for an Indian student to secure an education loan to study in Sweden include the following:

    • The student should be an Indian citizen.
    • The minimum age of the student should be 18 years.
    • The student should have secured admission to a recognized university/ college in Sweden.
    • The student should have a good academic record.
    • The student’s intended course should be a professional/ technical graduation degree course/post-graduation degree like MCA, MBA, MS, or diploma course.


    Get the Funds you need to Study Abroad Check Your Loan Eligibility Now!

    Documents required for education loan in Sweden

    The documents required for an education loan for Sweden depend on several factors, primarily your academic and professional history, and your co-applicants financial and credit profile.

    Applicant’s documents

    • Identity proof: PAN/ Passport/ Driver’s License/ Voter ID card or government-issued identification document.
    • Education loan application form.
    • Address proof: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill/ Driving License/ Aadhaar card.
    • Passport
    • Visa documents
    • Statement of expenses.
    • 2 passport-size photographs.
    • Loan A/C statement of one year (if applicable)
    • Bank account statement of the student (if applicable)

    Academic record.

    • 10th standard mark sheet
    • 12th standard mark sheet
    • Undergraduate result (semester-wise)
    • Entrance exam results (e.g. GMAT, GRE, TOEFL, etc.)
    • Proof of admission: admission letter (A conditional admission letter is also applicable).

    Co-applicant’s documents

    • Identity proof: PAN/ Passport/ Driver’s license/ Voter ID card or government-issued identification document.
    • Address: recent copy of telephone bill/ electricity bill/water bill/ piped gas bill or copy of Driving license/ Aadhaar card.
    • 2 passport-size photographs.
    • Bank account statement of the co-borrower/guarantor, for the last 6 months (in case of takeover of education loan).
    • If any previous loan is from other banks/ lenders, then the loan A/C statement of 1 year.
    • Legal documents of the collateral/ property documents.

    Income proof for salaried co-applicant/guarantor

    • Salary slips for the last 3 months.
    • Copy of Form 16 of the last 2 years or copy.
    • Bank account statement for the last 6 months (Salary account).
    • Brief statement of assets & liabilities of parent/ guardian/ other co-borrower.

    Income proof for self-employed co-applicant/guarantor

    • Business address proof.
    • Last 2 years IT returns ( If IT Payee).
    • TDS certificate (Form 16A, if applicable).
    • Certificate of qualification (for C.A./ doctor and other professionals).
    • Brief statement of assets & liabilities of parent/ guardian/ other co-borrower
    • Bank account statement for the last 6 months.

    Repayment of education loan for Sweden

    The Repayment tenure of an education loan is one of the key factors that a student should keep in mind before selecting a lender. Most lenders require borrowers to pay simple interest or partial simple interest during the moratorium period.


    Repayment during the moratorium period

    Public Banks

    Nil or Simple interest

    Private Banks

    Nil or Simple/Partial interest/EMI


    Simple interest/ Partial interest / EMI


    Also, international students in Sweden have the flexibility to work while pursuing their studies, with no official restrictions on the number of hours they can work. Moreover, most universities offer career services to assist students in securing part-time employment opportunities during their academic journey. Working part-time can help students earn 8000-10,000 SEK per month with a 20-30% tax reduction in Sweden. This income helps them manage their expenses and plan their repayment early. To plan your repayment better you can also use the estimate future earning tool by GyanDhan, which helps you gain a rough idea of your future earnings and enables you to plan your repayment for the future.

    Furthermore, students have the option to extend their residence permit by six months for searching for a job or to start a company, followed by the opportunity to apply for a work permit. As the birthplace of renowned multinational corporations like IKEA, Volvo, Ericsson, and H&M, Sweden provides an ideal platform for students to launch their careers. 

    How to apply for an education loan for Sweden?

    Securing an educational loan for Sweden is a simple process. Nevertheless, handling multiple lenders separately is a daunting task. To your rescue, GyanDhan is here. We provide assistance in obtaining education loans for studying in Sweden, with a streamlined process through the following steps:

    Step 1: Check loan eligibility

    Step 2: A dedicated loan counselor will be assigned to you.

    Step 3: Loan counselors will evaluate your profile and suggest you the lender.

    Step 4: After starting your loan application, they will send you a customized document checklist.

    Step 5: The lender will verify your documents, this can take up to 7-10 days. Once approved, sign the loan agreement and monitor progress through GyanDhan's user dashboard.

    Step 6: Initiate the loan disbursement according to the lender's procedures, with funds being directly deposited into your account or to the university.

    Best education loan option for Sweden

    The best education loan option varies according to each student's profile and requirements. Students can make a well-informed decision by evaluating the following scenarios. These are general takeaways. However, students should select a loan that suits their needs and individual requirements. 

    • Secured education loans offer higher loan amounts to the students. It is better to have a higher sanctioned amount than you need to cover all bases. The sanctioned amount is the amount you are eligible for and not the amount you actually use. 
    • A lower interest rate on a secured education loan will further help you manage the financial debt of an education loan. 
    • Refundable processing fee is one of the eye-catching features of secured education loans. 
    • Unsecured education loans are approved swiftly and with fewer hiccups.
    • Since 100% of the expenses are covered by taking an education loan from NBFCs, students often prefer NBFCs for an unsecured education loan. However, NBFCs are private lenders and should be kept as a last resort. 


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    Choosing the right education loan from all the choices out there is a big decision that affects your future financial planning. So, to help you navigate through all the options available, GyanDhan is here to help. We offer personalized guidance and counseling services to students. This assistance helps them choose the right lender amongst the various loan options available. From offering a tailored document checklist to acting as your personal coordinator with the lender, we have got it all covered. To start your abroad education loan journey for Sweden, check your loan eligibility and leave the rest to us!

    Read also:

    Frequently asked questions

    What is the age limit for student visas in Sweden?

    There is no age limit for student visas in Sweden. However, there is an age limit for securing financial aid which is 18 years.

    Are there student loans for Sweden?

    Yes, there are student loans available for Sweden. Leading Public and private banks such as SBI, UBI, ICICI Bank, and Axis provide education loans for Sweden. Apart from this, leading NBFCs such as HDFC Credila, Avanse, and Auxilo also provide loans for Sweden.

    Is IELTS a requirement for Sweden?

    Most of Swedish universities require IELTS. However, to secure a Swedish visa, an overall score of 6.5 bands is required in IELTS.

    Can I get a 20 lakh education loan without collateral for Sweden?

    Yes, you can get an education loan without collateral for Sweden from private banks and NBFCs. To start your abroad education loan journey check your loan eligibility now.

    How much of a study gap is acceptable in Sweden?

    In Sweden, a study gap of about 4-5 years is acceptable. However, a legitimate justification of the gap should be submitted during the application and visa process.

    First published date: 04 Sep 2020

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About author

Vishakha Bhagia
Interest in Finance with a flair for writing, Vishakha has written on education loans and the study abroad field for the last two years with articles published in Times of India, Outlook India, The Hindu, and many more publications.

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