What is an Education Loan?
An Education Loan helps students fund their higher education — whether in India or abroad — covering tuition fees, hostel/accommodation charges, books, equipment and other education-related expenses. It allows deserving students to pursue their academic goals without financial constraints, with repayment usually beginning after completion of the course, giving students a moratorium period to focus on studies first.
We help students and parents identify lenders offering the best combination of interest rate, loan coverage and repayment flexibility for both domestic and international courses.
How an Education Loan Benefits You
- Covers tuition fees, accommodation and other education expenses
- Moratorium period allows repayment to start after course completion
- Available for both domestic and international education
- Builds credit history early when repaid responsibly
- Tax benefits available on interest paid, under applicable laws
Basic Eligibility for an Education Loan
- Indian citizen securing admission in a recognized institution/course
- Co-applicant (parent/guardian) with stable income, generally required
- Good academic record and admission confirmation
- Collateral may be required for higher loan amounts
- Age and course duration within lender's eligible range
Loan Details
| Parameter | Details |
|---|---|
| Rate of Interest | 9% to 15% per annum |
| Professional Segment | 8.5% to 12% per annum (with collateral) |
| Minimum & Maximum Loan Amount | ₹50,000 to ₹1.5 crore (higher for abroad studies) |
| Minimum Work Experience | Not applicable (co-applicant income considered) |
| Age Limit | Student min age 16 years; co-applicant max age 65 years (at loan maturity) |
Documents Generally Required
- KYC of student and co-applicant
- Admission letter and fee structure
- Academic records
- Co-applicant's income proof
- Collateral documents (for higher loan amounts)