Higher education is one of the most valuable investments you can make—but it’s also one of the costliest. Thankfully, education loans in India make it possible for students to pursue their dreams in top institutions across the country and abroad.
In this blog, we’ll cover everything you need to know about education loans in India—eligibility, interest rates, repayment, documents, and more.
An education loan is a special-purpose loan provided by banks and NBFCs to help students finance:
Tuition fees
Hostel/PG charges
Books and supplies
Travel and other education-related expenses
Education loans are available for both domestic and international studies.
Student is the primary applicant
Parent/guardian usually acts as co-applicant
Must have a confirmed admission offer from a recognized institution
Should be an Indian citizen
Some banks allow pre-admission or pre-visa loans as well.
Education loans can be taken for:
Undergraduate and postgraduate degrees (B.Tech, MBA, MBBS, etc.)
Professional and technical courses (CA, CS, Law, etc.)
Specialized or vocational programs
International degree programs (in the US, UK, Canada, Australia, etc.)
| Loan Amount | Collateral Requirement |
|---|---|
| Up to ₹7.5 Lakhs | Usually unsecured |
| Above ₹7.5 Lakhs | Collateral may be required (property, FD, etc.) |
Some private lenders offer unsecured loans up to ₹25–30 Lakhs for reputed institutions.
Interest rates range from 8.5% to 13.5%, depending on lender and profile
Some banks offer interest rate concessions for girl students
Repayment usually starts 6–12 months after course completion (moratorium period)
Loan tenure can go up to 15 years
For student:
Admission letter
Marksheets (10th, 12th, graduation)
ID and address proof
Passport (for overseas education)
For co-applicant:
Income proof (salary slips/ITR)
ID/address proof
Bank statements
Collateral documents (if applicable)
SBI Student Loan & SBI Global Ed-Vantage
HDFC Credila
Bank of Baroda
Axis Bank
Punjab National Bank (PNB Pratibha)
Avanse Financial Services
InCred, Auxilo, and other NBFCs
Compare interest rates and processing charges
Check prepayment options and moratorium terms
Ask about loan insurance or protection plans
Understand the impact of forex fluctuations (for abroad loans)
Yes! Under Section 80E of the Income Tax Act, you can claim a deduction on the interest paid on your education loan for up to 8 years.
An education loan gives you the freedom to focus on your studies, not finances. But it’s crucial to plan wisely, borrow only what you need, and choose a lender that supports your academic goals.
