Funding Your Education, Fuelling Your Dreams!
Education is the foundation of a brighter future—but the rising cost can be a significant challenge. That’s why tailored education loans are designed to make higher learning accessible, affordable, and stress-free for every aspiring student.
An education loan empowers you to invest in your future with confidence. Benefit from competitive interest rates, flexible repayment terms, and a wide range of lender options to find the solution that best fits your needs. Whether you’re planning to study abroad, pursue skill development courses, or enroll in undergraduate or postgraduate programs in India, the right financial support is only a step away.
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What is an Education Loan?
An Education Loan is a financial product offered by banks and financial institutions to help students cover the cost of higher education, including tuition fees, hostel charges, books, travel, and other related expenses.
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Who can apply for an Education Loan?
An Educational Loan can be applied for by students who have secured admission to recognized courses in India or abroad, with a parent or guardian typically acting as a co-applicant.
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What courses are eligible for an Education Loan?
Educational loans are generally available for professional, technical, vocational, and graduate or postgraduate courses from recognized universities and institutions in India or abroad.
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How much can I borrow with an Education Loan?
The loan amount varies based on the course fees, your educational institution, and the lender's policies. Some lenders offer full coverage of educational expenses, while others provide a percentage of the total cost.
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What is the loan amount I can get?
The loan amount varies by lender, but most banks offer up to ₹10 Lakhs for studies in India and up to ₹20–30 Lakhs for studies abroad, with higher amounts possible in special cases.
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What expenses are covered under the loan?
The loan typically covers tuition fees, examination and library fees, travel expenses, hostel or accommodation charges, books, equipment, laptop purchases, and other course-related costs.
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Do I need to provide collateral for the loan?
Collateral is usually not required for loans up to ₹4.00 Lakhs, while loans above ₹7.50 Lakhs may require tangible collateral such as property or fixed deposits, along with a co-applicant.
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What is the repayment tenure for an educational loan?
The repayment tenure generally ranges from 5 to 15 years and usually begins after a moratorium period, which includes the course duration plus 6 to 12 months.
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What is the moratorium period?
The moratorium period is a grace period during which the borrower is not required to repay the loan; it usually includes the course duration and an additional 6 to 12 months after course completion.
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Is there a tax benefit on an Education Loan?
Yes, under Section 80E of the Income Tax Act, the interest paid on an educational loan can be claimed as a deduction from taxable income for up to 8 years.
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How is the loan disbursed?
The loan is generally disbursed directly to the educational institution in installments as per the fee structure, while other expenses may be reimbursed to the borrower based on receipts.
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Can I prepay the Education Loan?
Yes, most lenders allow prepayment of the educational loan without any penalty, though terms may vary and it is advisable to check with the specific bank.
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Do I need a co-applicant or guarantor?
Yes, most banks require a co-applicant, usually a parent or guardian, who is equally responsible for loan repayment.
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Can I get an educational loan for studying abroad?
Yes, educational loans are available for studying abroad and typically cover travel, living expenses, tuition, and insurance, provided the institution and course are recognized.
