What is an Education Loan?
An Education Loan is a financial assistance program that helps students pursue higher education in India or abroad. These loans cover tuition fees, living expenses, books, and other educational costs, enabling students to focus on their studies without financial stress.
Types of Education Loans
1. Domestic Education Loan
For students pursuing higher education within India.
2. Overseas Education Loan
For students planning to study abroad in reputed universities.
3. Skill Development Loan
For vocational courses and short-term professional training programs.
4. Loan for Executive Programs
For professionals enrolling in executive MBA or certification courses.
5. Student Loan with Collateral
For higher loan amounts requiring property, FD, or security as collateral.
6. Non-Collateral Education Loan
For students who need financial aid without pledging assets.
Education Loan Features & Benefits
✅ Loan Amount: Up to ₹1.5 Cr for international studies & ₹50 Lakh for Indian studies
✅ Interest Rate: Starting from 8.50% p.a.
✅ Tenure: Up to 15 years (including moratorium period)
✅ Moratorium Period: 6 months to 1 year after course completion
✅ Tax Benefits: Under Section 80E of the IT Act
✅ Flexible Repayment Options: Step-up EMIs after employment
✅ Government Subsidy: Interest subsidy schemes for eligible students
Eligibility Criteria
| Criteria | Requirements |
|---|---|
| Nationality | Indian citizen or NRI with an Indian co-applicant |
| Age | 18 – 35 years |
| Course Eligibility | Undergraduate, postgraduate, diploma, and professional courses |
| Institutions Covered | AICTE/UGC-approved colleges in India & reputed international universities |
| CIBIL Score | 650+ preferred for co-applicant |
| Co-Applicant Requirement | Parent, guardian, or spouse |
Documents Required
📌 For Student:
- Admission Letter from the institution
- Academic Records (10th, 12th, graduation certificates)
- Identity & Address Proof (Aadhaar, Passport, PAN)
📌 For Co-Applicant:
- KYC Documents (Aadhaar, PAN, Passport)
- Income Proof (Salary slips, ITR, bank statements)
- Collateral Documents (if applicable)
Education Loan Interest Rates (2024)
| Lender | Interest Rate (p.a.) | Processing Fee |
|---|---|---|
| SBI Scholar Loan | 8.50% – 10.00% | ₹10,000+ |
| HDFC Credila | 9.00% – 12.00% | 1% of loan amount |
| Axis Bank | 8.75% – 11.50% | ₹5,000 onwards |
| ICICI Bank | 9.25% – 12.00% | 0.50% of loan amount |
| Bank of Baroda | 8.40% – 10.25% | NIL |
Note: Interest rates vary based on applicant profile.
How to Apply for an Education Loan?
📌 Step 1: Check Eligibility – Verify if you meet loan criteria.
📌 Step 2: Gather Documents – Collect admission letter, income proof, and ID documents.
📌 Step 3: Submit Loan Application – Apply online or visit the nearest bank branch.
📌 Step 4: Loan Processing & Approval – Bank verifies documents and approves loan.
📌 Step 5: Disbursal & Payment – Funds are sent directly to the institution.
Frequently Asked Questions (FAQs)
1. What is the maximum amount I can get for an education loan?
Up to ₹1.5 Cr for international studies and ₹50 Lakh for studies in India.
2. Is there a moratorium period on repayment?
Yes, repayment starts 6-12 months after course completion.
3. Can I get an education loan without collateral?
Yes, for loan amounts up to ₹7.5 Lakh, collateral is not required.
4. Are there tax benefits on education loans?
Yes, under Section 80E of the IT Act, you can claim deductions on interest paid.
5. Can I apply for an education loan without a co-applicant?
No, a co-applicant (parent/guardian/spouse) is mandatory for most education loans.
Apply for an Education Loan Today!
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