Make college memories that last a lot longer than your student loan payments.

Education Loan

Education loans are available from leading Indian banks to assist students in achieving their academic goals. Interest rates for an education loan with a payback term of up to 15 years start at 6.60 percent per year. Education loans are accessible for both in-country and out-of-country higher education.

Which courses are eligible for an education loan will be determined by the lender. For courses beginning in Nursery, an education loan might be secured. You can get a loan for higher education for full-time or part-time courses, as well as loans for working professionals.

Compare Top Education Loan Offers 2021

Name of Bank Interest Rate (p.a.) Loan Amount Processing Fees

6.55% to 9.50%

Up to 15 Lakhs 1% of loan amount

6.85% to 8.65%

Up to Rs.1.5 crore Rs.10,000 + tax

13.70% to 15.20%

Up to 75 Lakh Nil to Rs.15,000 + tax
Bank of Baroda

7.85% to 9.85%

Up to 4 Lakh and above 1% of loan amount up to Rs.10,000

9.55% to 13.25%

Max Apr Up to 1.5% of loan amount + tax
Tata Capital

10.99% onwards

Up to 30 Lakh Up to 2.75% of loan amount + tax
Union Bank of India

8.80% to 10.05%

Need-based finance Nil for Indian students 0.50% of loan amount + GST for NRI students
Bank of India

8.95% to 9.75%

For courses in India: Up to Rs.10 lakh For courses abroad: Up to Rs.20 lakh Nil for courses in India Rs.5,000 + other fees for study abroad
Kotak Mahindra Bank Up to 16% For courses in India: Up to Rs.10 lakh For courses abroad: Up to Rs.20 lakh Contact the bank

10.50% onwards

For courses in India: Up to Rs.50 lakh For courses abroad: Up to Rs.1 crore Contact the bank
Federal Bank

10.05% onwards

For courses in India: Up to Rs.10 lakh For courses abroad: Up to Rs.20 lakh Contact the bank

Note: These interest rates are effective as of November 2021 and are subject to change as per the bank's rules and regulations.

You can acquire a fixed interest rate package or a floating interest rate package, depending on the bank or financial institution. Floating rates are most typically based on the Repo Rate, with a spread applied before the final effective interest rate is offered to you (EIR).

Types of Taxes
Education Loan

1. Punjab National Bank Education Loan

  • Maximum Loan Amount: Need Based
  • Maximum Loan Tenure: 15 Years
  • Collateral: Nill Up to Rs.7.5 lakh
  • Margin: Nill Up to Rs.4 lakh
  • Offers loans to Indian residents and OCIs/PIOs/students born abroad to Indian parents and want to pursue studies in India.
  • Security will be 125% of loan amount.
  • Moratorium period of 6 months to 1 year after course completion.

2. SBI Education Loan

  • Loan amount up to Rs.20 lakh with concessional rates for female students.
  • Max Loan Tenure: 15 Years
  • Collateral: Nil upto Rs. 7.5 lakh
  • Margin: Nill Up to Rs.4 lakh
  • Moratorium period of 12 months after course completion.
  • Second loan can be availed for completing higher studies.

3. Axis Bank Education Loan

  • Maximum Loan Amount Rs. 1 Core
  • Maximum Loan Tenure: 15 years
  • Margin: Nill Up to Rs.4 lakh
  • Can secure loan before admission based on profile.
  • Loan disbursal within 15 business days from the date the bank receives your complete application.
  • Unsecured loans up to Rs.20 lakh for working professionals.

4. Bank of Baroda Education Loan

  • Maximum Loan Amount: Rs. 80 Lakh
  • Maximum Loan Tenure: 10 –15 Years
  • Collateral: 100% Tangible Security
  • Margin: Nill Up to Rs.4 lakh
  • Education loan available for education from nursery onwards.
  • Get a free debit card on select education loan schemes.
  • Concessional interest rates for female students.

5. HDFC Bank Education Loan

  • Maximum Loan Amount: India: Rs.20 lakh Abroad: Rs.35 lakh without collateral; no limit with collateral
  • Maximum Loan Tenure: 15 Years
  • Collateral: Nill Up to Rs.7.5 lakh
  • Preferential rates offered for admission to top ranking colleges and universities.
  • Education loan abroad covers more than 950 courses in 36 countries.
  • Co-borrower can be from a different city.

6. Tata Capital Education Loan

  • Maximum loan amount of Rs.30 Lakh
  • Maximum Loan Tenure: 6 years
  • Collateral: Nill Up to Rs.4 lakh
  • Choose from 3 EMI plans as per your convenience.
  • Minimal documentation and quick approval of loans.

Education Loan Eligibility

  • Indian citizens
  • Non-Indian Residents (NRIs)
  • Overseas Citizens of India (OCI)
  • Persons of Indian Origin (PIOs)
  • Students born to Indian parents abroad and wish to study in India
  • Undergraduate programs
  • Postgraduate programs
  • Doctoral courses and PhDs
  • Certificate courses with 6 months or longer duration
  • Job-oriented courses
  • Technical/diploma/professional courses
  • Recognized institutions and government colleges
  • Private institutes aided by government
  • Professional institutions
  • International colleges and universities
  • Collateral-free loans up to Rs.7.5 lakh from leading lenders
  • Collateral-free loans up to Rs.40 lakh for select courses/institutions from select lenders

Acceptable collateral: Residential or commercial property or plot, fixed deposits, insurance

Loan amount: Up to Rs.1 crore

Education Loan EMI Calculator

If you wish to know your monthly payments upon applying for an education loan or what the total cost of the loan will be, you can use the Education Loan EMI Calculator. By entering a few loan-related details such as the loan amount, tenure, interest rate, and processing fees, you will get an estimate of your equated monthly instalment (EMI). You will also get other crucial details such as the total interest payable and a detailed amortisation table breaking down your EMIs into principal and interest amounts on a monthly and yearly basis.

Every year, most lenders allow you to make partial prepayments on your loan. If you want to make such payments, enter the information into the calculator, and the result will tell you how much money you'll save on interest and how many years your loan will be paid off in.

List of Courses that are Covered under an Education loan

  • Nursery to class 12.
  • Graduation and Post-Graduation courses (technical/professional/diploma) conducted by approved universities or colleges under UGC/IMC/AICTE/government.
  • Regular degree/diploma courses administered by autonomous institutions such as IIM/IIT, etc.
  • Regular degree or diploma courses such as pilot training, aeronautical, shipping, and more approved by the Director General of Civil Aviation/Shipping/other regulatory authority.
  • Job oriented courses (professional/technical) for Graduation/Post Graduation/Diploma such as MBA/MCA/MS offered by reputed educational institutions, courses conducted by the Chartered Institute of Management Accountants (CIMA) – London or Certified Public Accountant (CPA) – USA.
  • Loans for skill development.
  • Job oriented courses (professional/technical) for Graduation/Post Graduation/Diploma such as MBA/MCA/MS, etc. offered by reputable institutions.
  • Courses conducted by CIMA and CPA.

List of Expenses Covered in Education Loan

Here’s what the loan amount will cover:

  • Tuition fees
  • Hostel fees
  • Travel expenses passage money for students studying abroad
  • Insurance premium
  • Cost of books/equipment/instruments/uniform
  • Examination/laboratory/library fees
  • Cost of a computer/laptop required for course completion
  • Caution deposit, building fund/refundable deposit supported by institution bills/receipts
  • Any other expense required to complete the course such as study tours/thesis/project work

Features & Benefits of Study Loan

  • Loan financing up to Rs.1 crore available.
  • Loan repayment tenure up to 15 years.
  • Get Education loans for studies in India and abroad.
  • Some lenders offer loan disbursal before applying for a Visa.
  • Door-step service to collect required documents.
  • Children of the bank’s employees enjoy preferential rates at several banks.
  • Certain banks offer concessional interest rates to female students.
  • Enjoy a moratorium period of up to 1 year after course completion. During this period, you do not have to make payments on the loan.
  • Enjoy tax benefits up to 8 years on the interest paid.

Tax Benefits on Education Loan

Section 80E of the Income Tax Act of 1961 allows you to deduct the interest you pay on your student loan. Individual borrowers are eligible for this benefit, which is solely available for the purpose of higher education. The deduction is applicable to all fields of study, both in India and abroad. It covers both vocational and conventional courses.

Please keep in mind that the tax deduction applies only to the interest portion of the EMI, not the principle. However, there is no upper limit on the number of times you can claim this benefit. To claim this benefit, you'll need a certificate from your bank or financial institution that separates the principle and interest sections of your EMIs.

This benefit is available for 8 years from the date you began repayment or until the interest component of your loan is paid off, whichever comes first.

List of Documents Required for Education Loan

Here is an indicative list of documents that most lenders ask:

  • Admission letter from the educational institution
  • Marksheets (previous education – school/college)
  • Age proof
  • ID proof
  • Address proof
  • Signature proof
  • Salary slips
  • Recent bank account statements
  • ITR with income computation
  • Audited balance sheet
  • Recent bank statements
  • Proof of turnover (service tax return/sales receipt)
  • Completed application form with signature
  • Latest passport size photographs
  • Appropriate Visa for studies abroad

*Document charges may be levied by the lender.

How to Apply Education Loan

There are several ways of applying for a student loan:

Apply Online:
  • This is the easiest and the most convenient way of applying. There are two ways of applying online. The first is a straightforward application form that you will fill online, attach the necessary documents, and submit the form.
  • The second is where you apply through providing all the requested details and the lender will then get in touch with you to discuss the terms of the loan before proceeding with the application.
  • Visit a Branch: You can apply for a loan by visiting your nearest branch with the necessary documents, discuss the terms of the loan with a representative, fill the form, and apply in person.
  • Call the Lender: You can either call the lender or request a call back by expressing your interest. You can then discuss the loan terms and proceed to apply.
Virtual Assistant
  • Banks and other financial institutions are now adopting digital methods to better serve their customers. One such method is using a Virtual Assistant to clear your doubts and request assistance with the application procedure.

Education Loan Repayment Process

The loan repayment period usually starts 6-12 months after completing your course or when you get a job, whichever occurs first. Different lenders provide different moratorium periods to applicants to repay the loan. You will have to repay your loan through EMIs.

Here are the different modes of repayments usually available:

  • Internet Banking - Pay online through the lender’s website or mobile app.
  • Cheque – Drop a cheque at any of the branches.
  • Direct debit – Set up recurring payments for your EMI to be directly debited from your bank account on the payment due date.
  • Demand Draft – Pay through a DD.

The preferred method of repayment varies between lenders. Therefore, it is advisable to check with your lender when taking the loan.

Discussed below are a few important details in regard to education loan repayment process:

Moratorium period: In the case of education loans, the beneficiaries will be able to start paying off the loan after the completion of the educational course or after successful employment.

Part-payment of education loans: The beneficiaries of education loans will be allowed to make part payments towards their loans. As an applicant, you can pay back a lump sum amount to make part repayment of the loan.

Pre-payment of education loan: If an applicant is able to manage the funds for the pre-payment of the loan amount, he or she will be able to do the same. However, it should be kept in mind that this might invite a processing fee.

If money is the only obstacle in your way from achieving your professional goals, then consider taking an education or student loan to fulfil your goals. You can get collateral-free goals wherein you need not provide any security to the lender and your repayments will not start immediately after graduation.


  1. Is the RBI moratorium on loans due to the Covid-19 pandemic applicable for education loans too?
  2. Yes, the Reserve Bank of India’s moratorium on retail loans, due to people undergoing financial challenges due to the Covid-19 pandemic, is applicable to education loans as well. The moratorium on Equated Monthly Instalments (EMIs) could be availed from March 2020 to August 2020.

  3. Will I get the same amount of money on my education loan for the same level course in India and abroad?
  4. No, usually education loans for courses in India do not offer the same amount as for comparable level courses abroad. Education loans offer higher amounts for courses abroad as fees and other expenses may be higher there than for courses in India (which also depends on the educational institution).

  5. Is it possible to get an education loan without offering a collateral?
  6. Almost all education loans from banks and other lenders require a collateral which can be fixed deposits, property, shares, bonds, etc. However, you can still avail an education loan without having to give any collateral. This can be achieved through the Credit Guarantee Fund for Education Loan (CGFEL) Schemes which covers a collateral-free loan of up to Rs.7.5 lakh. This is only for education loans dispersed under the Model Education Loan Scheme of Indian Banks’ Association (IBA). To avail this, you have to apply for an education loan under this scheme through a scheduled commercial bank. You don’t need to provide security or collateral for amounts of up to Rs.7.5 lakh but anything above that will require a collateral.

  7. Can I take an education loan against mine or my parents’ fixed deposit?
  8. You can always avail a loan against a fixed deposit, as per the terms and conditions of the lender. However, there are certain banks, such as ICICI, which provide specifically education loan against fixed deposit.

  9. For courses abroad, is the loan offered in the currency of that particular country?
  10. For courses abroad, education loans are typically paid directly to the educational institution in the local currency of that country.

  11. Will the moratorium on education loan get extended if I choose to take a sabbatical from my course?
  12. The moratorium period on education loans differ from lender to lender. However, it is usually until the borrower gets employed or for up to 1 year of the course being completed, whichever is earlier. If you choose to take a sabbatical and want an extension of your moratorium, it would depend on the bank whether to grant it or not, so it is best to have a discussion about this with the lender.

  13. Are NRIs eligible for education loans from banks in India?
  14. One of the eligibility criteria for education loans that are offered by banks and other financial institutions in India is that the individual should be an Indian national. This means that any student who is a citizen of India can apply for and avail an education loan from a lender in the country. Collateral or documents which can be taken as security should be those that are enforceable in India.

  15. What do the lenders consider to approve the loan?
  16. Lenders consider the following factors when approving a loan:

    • The course and institute you choose
    • The amount you need
    • Your academic performance
    • Repayment capacity of your family
    • Family assets
    • Annual income
  17. What happens if I discontinue the course and get an employment within the grace period?
  18. In case you choose to discontinue the course mid-way, you must start repaying the loan immediately after getting a job.

  19. Can I port my education loan to another bank with lower interest rates?
  20. Yes, you can move your education loan from one bank to another. However, your current bank might charge a refinance fees. Therefore, it is important to consider all factors of the existing bank and the new bank before moving the loan.

  21. Do all education loans cover 100% of the education expenses?
  22. Yes, education loans cover 100% of the education expenses. However, full coverage may only be provided for expenses under a certain limit. Lenders have a margin if the expenses go above the limit.

  23. What are the other expenses covered by education loans?
  24. Some of the additional expenses covered by education loans are:

    • Hostel fees
    • Exam fees, laboratory and library fees
    • Cost of books, uniforms, projects, etc.
    • Travel expenses for overseas education
    • Deposits required by the educational institute

NEWS on Education Loan

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    Delhi University (DU) is likely to change the eligibility criteria required for a student to gain admission to a college in DU. The authorities are considering taking into account 50% marks scored during the entrance examination and 50% for the 12 standard’s marks as the best of four cut-off system.

    3 December 2021

  • KVPY 2021 Postponed to 9 January 2022

    The aptitude test for IISC aspirants, the Kishore Vaigyanik Protsahan Yojana (KVPY), will be held on January 9, 2022. The exam was originally set on 7 November 2021. Concerns about the exclusion of several regional languages caused the exam to be postponed. IISC Bangalore had issued a statement that confirmed the change in dates.

    1 December 2021

  • OJEE round two seat allotment results out

    The second-round seat allotment result for Odisha Joint Entrance Examination Counselling (OJEE) 2021, was released on 20 November 2021. Candidates can follow the steps mentioned below to check the result:

    Step 1: visit the official website of Odisha Joint Entrance Examination –

    Step 2: Click on "Counselling for BTECH, BARCH, BPLAN, INT MSc, BCAT courses."

    Step 3: Enter the application number.

    Step 4: Click on 'Submit'.

    Step 5: Check the results.

    Candidates are advised to keep checking official website for updates on OJEE.

    22 November 2021

  • Delhi University Entrance Test results released for PhD and MPhil 2021

    The National Testing Agency (NTA) has released results for 48 courses including PhD and MPhil the year 2021 of Delhi University. The results can be checked online on the official website of the NTA. Candidates can also call the NTA or send an email for any assistance or questions.

    18 November 2021

  • Admit Card for MPPEB PVFT 2021 Released

    Admit card for the Pre –Veterinary & Fishery Test (PVFT) 2021 conducted by the Madhya Pradesh Professional Examination Board (MPPEB) has been released on its official website. Applicants who applied for the entrance examination can now visit the website and download their admit card through candidate login. The PVFT examination is scheduled to be conducted on 27 and 28 November 2021 and will be held offline.

    17 November 2021

  • NEET MDS cut off percentile reduced by 23.09%

    As per the official notification released, the Ministry of Health and Family Welfare has reduced the cut off percentile for National Eligibility cum Entrance Test for Masters of Dental Surgery (NEET MDS) by 23.09%. The revised cut off for the reserved category is 16.971 percentile, for the general category is 26.971 percentile, and for the UR-PWD category is 21.971 percentile

    12 November 2021

  • Admit Card for INI CET 2021 Released

    Admit card for the All India Institute of Medical Sciences (AIIMS) entrance test INICET 2021 has been released on the official website. Candidates who have registered for the INICET January 2022 session can visit the official website to download their admit card.

    10 November 2021

  • Registration process for Joint Entrance Test (JET) for admissions at FTII and SRFTI opens

    The registration process for the Joint Entrance Test (JET) for admissions in various courses of the Film and Television Institute of India (FTII), Pune, and Satyajit Ray Film and Television Institute (SRFTI), Kolkata has been opened. Applicants seeking admission in the academic year 2021-22 can submit their applications by December 2 at The entrance test is scheduled to be held on 18 and 19 December across several centres in the country. Graduates or candidates currently in the final year of undergraduate course can apply for a variety of courses.

    It needs to be mentioned here that JET is usually conducted in the month of February with classes beginning in August. However, because of the pandemic, the admission process for this year was delayed. The 2020 batch of the institutes started earlier this year while the foundation courses were continued in online mode.

    7 November 2021

  • Tamil Nadu NEET Counselling 2021 to be held online

    The NEET counselling of Tamil Nadu will be held online in 2021. The NEET counselling has been overseen by the Selection Committee of the Directorate of Medical Education. The counselling for management/NRI and government quota seats in is set to be handled separately. The NEET 2021 scores are going to be used to determine which Tamil Nadu medical colleges can provide BDS/ MBBS programmes. As a candidate, you should have passed the National Eligibility and Entrance Test 2021 and then only can you participate in the counselling procedure.

    8 November 2021

  • NTA to announce NEET results soon

    National Testing Agency (NTA) will soon announce the result of the National Eligibility cum Entrance Test Undergraduate (NEET UG) examination. NTA will also publish the scorecard along with the answer key for the questions asked during the NEET examination. The examination saw more than 16 lakh students appearing for it where over 95% applicants appeared for the test.

    The result can be checked by the aspirant who can visit the website and login using their login credentials. NTA has also released the provisional answer key post which the applicants were given the choice to raise queries till 17 October. On logging in, the candidate will also be able to check their scores as well.

    The way was cleared by the Supreme Court of India for NTA to announce the NEET result 2021 as they stayed a recent Bombay High Court order which had ordered the body to retake the examination again for a couple of undergraduate medical students.

    8 October 2021

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