Education Loan: In our country, a huge percentage of people is still suffering to have some quality education despite having a lot of talent and brilliant minds. It’s just that they don’t possess the fortune. That’s why education loan is so important. It has helped a lot of poor as well as middle-class people of our country. Education is one of the most important things is one’s life and this is like a fundamental right that must be provided to them at any cost. It is the very beginning of someone’s success and it also helps our country in minimizing the effects of poverty.
| Interest rate | 6.75 % to 15.20 %, varies from bank to bank |
| Processing fee | 1 % of loan amount or 10,000 rupees + tax |
| Features | Interest rate of loans is very less. A long term loan is provided. Other features like part payment, health cover, etc. |
| Eligibility criteria | Must be an Indian to have an education loan. An academic record must be good. |
| Application process (Online/Offline) | The application process is both online and offline. Fill the application form and add the required documents. |
| Documents Required | Two passport-size photographs. I’d proof and address proof. Proof of admission into the institution for which you are taking the loan. |
Education loans had helped million from the time it was introduced for the first time. The best part about this loan is that it doesn’t ask for a very high-interest rate and once you become able, then you can repay the loan. It also provides a lot of different features like study insurance cover, part payment, and health cover, and many more. The tenure for the loan repayment is also very long and tax rebates and low interest also help a lot.
The loan amount is also very huge, which is 50 lakhs for domestic students to 1 crore for international students. Your travel expenses is also covered under the education loan. It also provides you a laptop for your studies.
| Interest Rate | 6.75% onwards |
| Minimum Tenure (excluding grace period) | 5 years |
| Moratorium Period (after course completion) | 1 years |
| Minimum Loan amount | ₹ 50,000 |
| Maximum Loan without collateral | ₹ Need Based |
| Maximum Tenure | 15 years |
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Eligibility criteria
There are certain criteria’s on which the education loan relies, so check these carefully:
- The student must be an Indian otherwise an education loan can’t be sanctioned.
- A proof for secured admission form the university or college should be with the student.
- Student must have the12th pass for an undergraduate or an graduated one for postgraduate.
- The courses must be defined for which you are selected. Your college or university must provide the details about your degree/diploma, courses offered by IIM, UG degree or PG degree from a recognized university, and others.
- You need to have more than 60% marks to be considered as a meritorious student and then only your loan will be sanctioned.
Compare Top Education Loan Offers 2024
| Name of Bank | Interest Rate (p.a.) | Processing Fees |
| SBI | 8.15% p.a. to 11.75% p.a. | Up to Rs.10,000No charged required for loan amount below Rs.20 lakhLoan amount above Rs.20 lakh: Rs.10,000 (plus taxes) |
| Central Bank of India | 8.10% p.a. to 10.60% p.a. | Nil for studies in India 1% of loan amount for studies abroad (Max: Rs. 15,000) |
| PNB | 9.20% p.a. onwards | Nil for studies in India 1% of loan amount for studies abroad (Max: Rs. 10,000) |
| Canara Bank | 9.25% p.a. onwards | 0.50% of the loan amount up to Rs.10,000 (for collateral security coverage of 100% and above)0.50% of the loan amount up to Rs. 20,000 (for collateral security coverage of less than 100%) |
| IDFC FIRST Bank | 10% p.a. to 15% p.a. | Up to 1.5% of the loan amount |
| IDBI Bank | 8.50% p.a. onwards | Nil for studies in India 1% of the loan amount (Maximum: Rs.5,000) for studies abroad |
| Bank of Baroda | 8.15% p.a. onwards | No processing for charges up to Rs.7.50 lakh1% of loan amount up to Rs.10,000 for charges above Rs. 7.50 lakh |
| Bank of India | 11.05% p.a. to 11.85% p.a. | No processing fee for studies in India |
| ICICI Bank | 9.85% p.a. onwards | Up to 2% + GST |
| Bank of Maharashtra | 9.45% p.a. onwards | Contact the bank |
| Axis Bank | 13.70% p.a. to 15.20% p.a. | 2.00% of the loan plus GST |
| HDFC Bank | 9.50% p.a. | Nil for studies in India 1% for studies abroad |
| Kotak Mahindra Bank | Up to 16% p.a. | Nil |
| Federal Bank | 12.55% onwards | Contact the bank |
| Tamilnad Mercantile bank | 11.75% p.a. to 13.00% p.a. | 1% of the sanctioned loan amount above Rs. 7.50 lakh for studies abroad |
Education Loan Application process
The application process for an education loan is very simple. You can avail the education loan without any trouble only if they possess the required documents and if you are eligible for it. You must have more than 60% marks and you should also carry your call letter or proof of admission from the university or college. You must not be a foreigner if you want to avail the benefits of an education loan. Though Non Residential Indians can now take education loan in India.
Now we will discuss the application process in steps:
- Step I – first of all, the process is both online and offline, so you don’t have to worry even a bit.
- Step II – either you can reach directly to the bank or to the lender or you can visit the official website to know the details
- Step III – after getting the application form, you need to fill it with utmost care. In case of online, you can easily download the application form and can fill it.
- Step IV – later, you have to add your mark sheet, your admission proof, and other relevant documents.
- Step V – you also have to give an interview with the officials. They will check whether you are eligible or not.
- Step VI – this step includes documentation and validation of all the details which you had provided in the earlier steps.
- Step VII – your loan will be approved in this step and in few days of time, the loan will be disbursed is well.
Documents Required
You need to have a lot of documents if you want an education loan. These documents will proof your background and your qualifications till now. We have discussed about all the documents you need, in points:
- You need to carry a two passport size photograph or scanned image of your photograph.
- You need to have a photo identity proof.
- A residence proof is also very compulsory.
- Your academic record over the course of time and your current status.
- College call letter or admission proof form the University.
- Income proof of your guardian, who is playing the role of co-applicant.
- Bank statement of the last 8 months is also needed of co-applicant.
- You need provide all the relevant details about collateral and immovable property.
Compare Student Loan Interest Rate 2024
| Name | Loan Amount | Interest Rate |
|---|---|---|
| Axis Bank | Up to Rs. 4 Lakhs | 15.20% |
| Axis Bank | Loans greater than Rs. 4 Lakhs and upto Rs. 7.5 Lakhs | 14.70% |
| Axis Bank | Loans greater than Rs. 7.5 Lakhs | 13.70% |
| Bank of Baroda | For all loan types and amounts | 8.50% onwards |
| Canara Bank | For Vidhya Turant Loan Scheme | 6.60% |
| Canara Bank | Up to Rs. 4 Lakhs | 10.40% |
| Canara Bank | Rs. 4 Lakhs to Rs. 7.50 Lakhs | 10.40% |
| Canara Bank | Loans above Rs. 7.50 lakhs | 10.20% |
| Canara Bank | 9.90% | |
| HDFC Bank | Minimum APR | 9.00% |
| HDFC Bank | Maximum APR | 13.86% |
| HDFC Bank | Average APR | 11.57% |
| Kotak Mahindra Bank | For all loan types and amounts | 11.5% to 24% |
| Punjab National Bank | PNB Kaushal | 8.55% onwards |
| Punjab National Bank | PNB Saraswati/Udaan | 10.30% onwards |
| Punjab National Bank | PNB Pratibha (for admission to IITs , IIMs and XLRI Jamshedpur) | 8.45% onwards |
| Punjab National Bank | PNB Pratibha (for admission to other colleges) | 8.55% onwards |
| Punjab National Bank | PNB Honhaar | 10.45% |
| State Bank of India | Up to Rs. 7.5 Lakhs | 10.25% |
| State Bank of India | Above Rs. 7.5 Lakhs | 10.50% |
| Avanse | For all loan types and amounts | 10% to 16.50% |
| Credila | For all loan types and amounts | 11.85% onwards |
| Allahabad Bank | As per applicant’s profile | 9.20% onwards |
| Andhra Bank | As per applicant’s profile | 10.80% onwards |
| Axis Bank | 50,000 to 15 lakh | 12% onwards |
| Bajaj Finserv | Up to 25 lakh | 12.99% onwards |
| Bank of Baroda | 50,000 to 10 lakh | 10.50% onwards |
| Bank of India | Up to 10 lakh | 9.35% onwards |
| Bank of Maharashtra | Up to 10 lakh | 9.70% onwards |
| CASHe | 9,000 to 3 lakh | 33% to 36% |
| Central Bank | Up to 20 lakh | 8.45% onwards |
| Citibank | 10,000 to 30 lakh | 9.99% onwards |
| Early Salary | 8,000 to 2 lakh | 24% onwards |
| Federal Bank | Up to 25 lakh | 11.49% onwards |
| Fullerton India | Up to 25 lakhs | 11.99% onwards |
| HDFC Bank | 50,000 to 40 lakh | 10.75% onwards |
| Home Credit | Up to 2.4 lakh | 24% onwards |
| HSBC Bank | Up to 30 lakh | 10.50% onwards |
| ICICI Bank | 50,000-20 lakhs | 11.25% onwards |
| IDBI Bank | 25,000-5 lakhs | 12% onwards |
| IDFC First | 1 lakh-40 lakhs | 10.75% onwards |
| Indiabulls | Rs. 1000 to Rs. 15 lakh | 13.99% onwards |
| Indian Bank | As per applicant’s profile | 9.20% onwards |
| Indian Overseas Bank | Up to 15 lakh | 10.30% onwards |
| IndusInd Bank | 50,000-15 lakhs | 11% onwards |
| Kotak Mahindra Bank | 50,000-20 lakh | 10.75 onwards |
| Kreditbee | 1000 to 2 lakh | 1.02% p.m. onwards |
| Moneytap | Rs. 3000 to Rs. 5 lakh | 1.25% p.m. onwards |
| Moneyview | Rs. 10,000 to Rs. 5 lakh | 1.33% p.m. onwards |
| Muthoot Finance | Rs. 50,000 onwards | Varies based on applicant profile |
| Punjab National Bank | 25,000 to 15 lakh | 8.95% onwards |
| RBL Bank | 1 lakh to 20 lakh | 14% onwards |
| Standard Chartered Bank | 1 lakh-50 lakhs | 11.00% onwards |
| State Bank of India | Up to 20 lakhs | 9.60% onwards |
| TATA Capital | 75,000 to 25 lakh | 10.99% onwards |
| UCO Bank | Up to 10 lakh | 8.45% onwards |
| Union Bank of India | Up to 15 lakh | 8.90% onwards |
| Yes Bank | 1 lakh to 40 lakh | 10.75% onwards |
| SBI | 9.25% onwards | |
| HDFC Bank | 9.35% onwards | |
| ICICI Bank | 9.55% onwards | |
| Axis Bank | 9.50% onwards | |
| IDBI Bank | 9.95% onwards | |
| Punjab National Bank | 9.25% onwards | |
| Bank of India | 9.25% onwards | |
| Syndicate Bank | 10.1% onwards | |
| CitiBank | 8.80% onwards | |
| Syndicate Bank | 11.50% onwards | |
| HDFC Ltd. | 9.50% onwards | |
| State Bank of India | 9.60% onwards | |
| Kotak Mahindra Bank | 9.60% onwards | |
| ICICI Bank | 9.80% onwards | |
| IDBI Bank | 10.10% onwards | |
| Bajaj Finserv | 10.10% onwards | |
| PNB Housing Finance Ltd. | 10.25% onwards | |
| Tata Capital | 10.50% onwards | |
| LIC Housing Finance Ltd. | 11.30% onwards | |
| Axis Bank | 11.35% onwards | |
| PaySense | 18% to 36% p.a. | |
| Rupeelend | 30% for 30 days | |
| CASHe | 1.75% onwards for 15-day loan | |
| CASHe | 3.25% onwards for 30-day loan | |
| CASHe | 2.75% onwards (monthly) for 90-day loan | |
| CASHe | 2.50% per month for 180-day loan | |
| Money View | 1.33% – 2% p.m. | |
| Credy | 1% – 1.5% p.m. | |
| EarlySalary | 2.5% p.m. | |
| LazyPay | 15% – 32% p.a. | |
| mPokket | Based on lender’s terms | |
| MoneyinMinutes | 0.1% – 0.7% per day | |
| QuickCredit | 1% per day | |
| FlexSalary | Up to 3% per month |
Frequently asked questions
Education loan not only provide education, but it also covers other expenses, such as traveling fee, fooding and lodging, etc.
The maximum loan amount for domestic studies is vary bank by banks, whereas for study in abroad, you can get a maximum Loan on Need Based.
List of courses eligible for education loan are: 1. Graduation and Post-graduation courses. 2. Professional courses. 3. Diploma/degree courses by recognized institutions.
You can avail tax benefits under section 80C and Section 80E of the Income-tax Act, 1961 for education loan’s interest and payment.
