Education Loan in India – Apply Online, Interest Rate, Documents

Education loan is the financial service offered by the bank or the loan providers to the candidates who ursue technical, educational, or other courses in India. These loans cover all levels of education, include from nursery school to higher studies. Education loans offered by various banks in India range in interest from 4.00% p.a. to 16.00% p.a.

Study loans in India offer various benefits, including higher loan amounts, lower interest rates, long repayment tenure. These loans cover many levels of education, from nursery school to higher studies. In, this article will guide you through the latest interest rates, loan types, and what you need to know to fund your education.

What Is an Education Loan?

An education loan in India provides a flexible way to fund your higher education. These loans cater to both domestic and international studies, with flexible repayment period of up to 20 years. Education loan covers your tuition fees, hostel and living costs, the purchase of books, exam fees, insurance, and other education releted expenses.

A government education loan is a financial assistance program where the government helps students pay for their higher education. Unlike private loans, government-backed loans often come with:

✅ Key Benefits

• Tax Benefit: Interest paid is deductible under Section 80E of the Income Tax Act (old tax regime)
• Moratorium Period: Repayment typically starts after course completion + 6–12 months grace period
• No Collateral: Required for loans up to ₹7.5 lakh (varies by bank/scheme)
• Girl Student Concession: Many banks offer 0.10%–0.50% interest rate concession for female applicants.

Courses Covered Under Education Loans

• Professional courses, such as full-time and part-time courses in engineering and medicine management, CFA, CA, ICWA, etc. 
• Courses offered by XLRI, NIFT, NID, IIMs, IITs, and IISc, among others 
• B.A., BCom., M.A., M.Com., MCA, MCM, etc. 
• Fine arts and design, architecture, agricultural studies, etc. 
• Hospitality and Hotels programs like SAP, ERP, GNIIT, and Air Hostess Training, among others 
• Online credentials and programs for distance learning 
• Aeronautical, pilot training, shipping, and other degree/diploma programs 
• Pre-sea training courses, aircraft maintenance engineering, and similar programs 
• Courses in nursing and paramedicine (including managing quota admission) 
• Courses provided by reputable, government-certified institutions that guarantee employment 
• Courses that reputable, accredited international colleges offer in India. 

Pradhan Mantri Suraksha Bima Yojana Apply Online, Benefits

List of Expenses Covered in Education Loans

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 expenses required to complete the course such as study tours/thesis/project work

Types of Education Loan

Category	Loan Type	Detail
By Location	Domestic loan	Students studying in India and must be enrolled in a recognized Indian institution
	Internation Loan	Studying abroad and it covers fees, travel, and living expenses
By Collateral	Secured Loan	Requires assets like property, deposits, or investments as security.
	Guarantor- Based Loan	Requires a third-party guarantor, often from a bank employee.
By Course	Undergraduate Loan	For bachelor’s degree – three to four years
	Postgraduate Loan	For master’s or advanced degrees (usually two years)
	Career Enhancement Loan	For professionals who wants to pursue short-term courses for training and certification

List of Documents Required for Education Loans

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

KYC Documents	PAN Card, Aadhaar, Passport, Voter’s ID#
Address Proof	Utility bill, Telephone bill, or Bank Passbook#
Income Proof (Salaried)	Latest 3 Salary Slips, Form 16, and ITR#
Income Proof (Self-Employed)	ITR, Audited Financials, and Firm Registration Proof#
Additional Documents (Self-Employed)	Qualification Certificates and Establishment Proof#
Proprietorship & Company Documents	Partnership Deed, MoA, AoA, and Shareholding Pattern#
Academic Records	Grade 12 and Degree Mark Sheets, Scholarship Documents (if applicable)#
Admission Proof	College/University Admission Letter and Fee Structure
Financial Proof	Rent Agreement or Additional Income Sources (if applicable)#
Other Documents	3CB & 3CD Forms for Applicable Professional#

List of Banks Offering Education Loans in India

Name of Bank	Interest Rate (p.a.)	Processing Fees
State Bank of India	7.15% p.a. to 10.15% p.a.	Loans up to Rs.7.5 lakh- Nil
Central Bank of India	7.00% p.a. to 10.00% p.a.	Nil for studies in India1% of loan amount for studies abroad (Max: Rs. 10,000)
Punjab National Bank	4.00% p.a. to 11.85% p.a.	Nil for studies in India1% of loan amount for studies abroad (Max: Rs. 10,000)
Canara Bank	7.60% p.a. to 10.35% p.a.	Minor processing fees or Nil
IDFC FIRST Bank	9.50% p.a. onwards	Up to 1.5% of the loan amount
IDBI Bank	4.00% p.a. to 11.50% p.a.	Nil for studies in India1% of the loan amount (Maximum: Rs.5,000)
Bank of Baroda	7.10% p.a. to 10.70% p.a.	Scholar – 1% of loan amount up to Rs.10,000
Bank of India	7.10% p.a. to 12.35% p.a.	No processing fee for studies in India
ICICI Bank	9.70% p.a. to 14.00% p.a.	Up to 2% of the loan amount
Bank of Maharashtra	7.10% p.a. to 10.30% p.a.	Nil
Axis Bank	3.50% p.a. to 13.00 p.a.	2.00% of the loan plus GST
HDFC Bank	10.50% p.a. onwards	Up to loan amount Rs.7.5 lakh- NilAbove Rs. 7.5 lakh- 1%
Kotak Mahindra Bank	Maximum up to 16%	Nil

Top NBFCs Offering Study Loan in India

NBFCs refer to the Non-Banking Financial Companies offering credit services in India. They are known for offering higher loan amounts and flexible repayment terms for an education without collateral. The following are the top 4 NBFCs offering a study loan in India: 

Credila:

• Up to 100% finance of i20 value
• Option of a 100% collateral-free student loan
• Sanction before admission for i20
• Doorstep service

Avanse:

• 100% education finance
• There is no limit to the maximum amount
• Sanction within 1 day after logging the file
• Prefers meritorious students
• Can be disbursed in 1 instalment
• Doorstep service

Incred:

• Accepts multi-city co-signers
• Can cover all the expenses of a student
• All charges are included in InCred’s origination fees
• Can provide pre-visa disbursal if the situation demands
• Doorstep service

Auxilo:

• 1% processing fees
• 100% Finance
• Pre-admission student loan
• Pre-Visa study loan disbursement
• Fast-track student loan
• Competitive student loan interest rates

Other NBFCs offering a study loan in India are Aditya Birla Capital, Tata Capital, and Bajaj Finserv.

How to Apply for an Education Loan Online

To apply for an education loan through the official bank website, follow these steps:

Step 1: Access the bank’s official website

Step 2: Locate the education loan product page

Step 3: Complete the application-cum-consent form by entering your personal and contact information

Step 4: Provide your academic and financial details when contacted by the bank

Step 5: Choose between the doorstep service option for a study loan or visit the bank for loan approval process.

How to Apply for an Education Loan Offline

You can apply for an education loan offline by following the steps given below:

Step 1: Visit your chosen bank branch

Step 2: Request a student loan application form

Step 3: Fill out the form with personal, academic, and financial details

Step 4: Confirm loan terms with a bank official

Step 5: Submit the completed application form and documents

Step 6: Receive a formal student loan agreement once approved

Step 7: You need to wait for the bank to process the application and release the loan to your account.

Education Loan Repayment Process

The loan repayment period normally starts 12 months after completion of the course. You will be required to repay your loan using EMIs.

Different Modes of Repayment

• 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

Think of the best educational loan in India as an enabler. Education loans offer higher amounts for courses abroad as fees and other expenses.

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