Best Education Loans in India

1. Tuition fees

1. Hostel & accommodation charges

1. Examination, library & lab fees

1. Books, study materials & equipment

1. Laptop/computer (if required for course)

1. Travel expenses (for abroad studies)

1. Insurance premium (if applicable)

1. Living expenses (food & basic utilities)

1. Caution deposit & refundable deposits

Eligibility Criteria for an Education Loan

To apply for an education loan in India, students must meet certain basic eligibility requirements set by banks and NBFCs. While specific criteria may vary by lender, the general requirements include: 

1. The applicant must be an Indian citizen

1. Secured admission to a recognized institution in India or abroad

1. The course should be job-oriented (graduate, postgraduate, professional, or diploma courses)

1. A co-applicant/guarantor (parent, guardian, or spouse) with a stable income is required

1. The student and co-applicant should have a good credit history (CIBIL score)

1. For higher loan amounts, collateral security may be required

1. The student should meet the age and academic performance criteria set by the lender

Documents Required for Education Loan

The major documents required to apply for an education loan are as follows: 

1. Admission letter from the educational institution 

1. Marksheets (previous education - school/college) 

1. Age proof

1. ID proof

1. Address proof

1. Signature proof

1. Recent bank account statements

1. Salary Slips

1. Income Tax Return with the income computation 

1. Audited balance sheet 

1. Recent bank statements 

1. Proof of turnover (service tax return/sales receipt) 

1. Completed application form with signature 

1. Passport-size photographs
2. Visa for studies abroad
   

Tax Benefits on Education Loans 

A major advantage of education loans for higher education provided by major public/private banks and NBFCs is the tax benefits they provide. According to Section 80B of the Income Tax Act, 1961, a deduction on the interest rate paid can be claimed. The deduction can be claimed for a maximum of 8 years beginning from the year of the interest repayments started. There is no maximum limit for the deduction, and it is only applicable under the old tax regime. 

Best Education Loans in India

The details of various education loans offered by various Indian banks are listed below:  

State Bank of India Education Loan

State Bank of India (SBI) provides loans to students who wish to pursue higher education in India as well as abroad. With minimal documentation and a quick application process, you can avail yourself of loans of up to Rs.20 lakh without any processing fee. The repayment period is 15 years and starts a year after the course is completed. 

Bank of Baroda Education Loan

Bank of Baroda offers education loans of up to Rs.150 lakh to students who wish to pursue undergraduate, postgraduate, and various professional courses in India. You don’t have to pay any processing fee or documentation fee to obtain loans from this bank. There is also no margin for loans up to Rs.4 lakh. Those who secured admission to universities through the entrance/merit-based selection process can apply for the loan.  

Punjab National Bank Education Loan

Punjab National Bank (PNB) offers a comprehensive range of education loan schemes tailored for Indian students pursuing higher education in India or abroad. These schemes provide flexible repayment options, competitive interest rates, and support for both meritorious and economically disadvantaged students. 

Canara Bank Education Loan 

Canara Bank offers education loan schemes for students pursuing higher education in India and abroad. The schemes have lower interest rates and provide loans up to Rs.7.5 lakh without collateral. The Canara Bank education loans also offer flexible loan amounts, comprehensive coverage of expenses, and attractive interest rates. 

HDFC Bank Education Loan

HDFC bank offers education loans to Indian students between 16 to 35 years of age. A co-applicant is mandatory to avail this loan, and applicant must secure admission recognized institutions in India or Abroad through Entrance Test or Merit Based Selection process. The loan covers various courses, such as a graduate or post graduate degree and PG diplomas conducted by recognized colleges, universities recognized by UGC, Government, AICTE, AIBMS, ICMR etc.  

IDFC First Bank Education Loan

IDFC First Bank offers education loan schemes for students pursuing higher education at competitive interest rates. The education loan schemes cover all expenses related to the course and provide up to Rs.50 lakh without any collateral. The loan tenure is up to 15 years, and flexible repayment options are available. 

HDFC Credila Education Loan

HDFC Credila offers tailored education loan schemes to aid students undertaking higher studies both in India and abroad. Major features of HDFC Credila education loans include attractive interest rates, 100% coverage of course expenses, and no upper cap for secured loan amount. The Credila loan schemes also provide a repayment tenure of 15 years and tax benefits. 

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