🎓 Education Loans

 Invest in Your Future

Higher education is a stepping stone to a successful career — but quality education can be expensive. An education loan helps bridge the financial gap, ensuring that you or your child can pursue dreams without financial stress.

At GrowMyRupee, we simplify how education loans work in India — from eligibility and interest rates to repayment options.

 

🧾 What is an Education Loan?

An education loan is a loan offered by banks and NBFCs to students or their parents to cover expenses related to higher education — including tuition fees, books, travel, hostel, and more.

Loans can be availed for:

  • Indian institutions (colleges, universities, professional courses)

  • International studies (including visa and travel expenses)

 

📘 What Does an Education Loan Cover?

✅ Tuition Fees
✅ Exam/Library/Lab Fees
✅ Hostel or Accommodation Charges
✅ Books, Equipment & Laptop
✅ Travel (for overseas education)
✅ Insurance Premium (for student if required)

 

🏦 Top Education Loan Providers in India

  • State Bank of India (SBI Scholar / Global Ed-Vantage)

  • HDFC Credila

  • Bank of Baroda

  • Axis Bank

  • ICICI Bank

  • Punjab National Bank (PNB Udaan)

  • Canara Bank

  • IDFC FIRST Bank

 

📊 Loan Amount & Interest Rates

  • Loan Amount:

    • Up to ₹10–15 Lakhs (Domestic)

    • Up to ₹20–40 Lakhs (Abroad)

  • Interest Rate:

    • Starts from 8.5% to 13.5% per annum

    • May vary based on course, institution, and collateral

  • Repayment Tenure: Up to 15 years

 

🧑‍🎓 Eligibility Criteria

  • Indian nationality

  • Admission secured in a recognized course/institution

  • Courses eligible: Graduate, Postgraduate, Diploma, Professional & Technical courses

  • Co-applicant (Parent/Guardian) usually required

  • Academic merit and income of co-borrower considered

 

📄 Documents Required

Student Documents:

  • Admission letter from college/university

  • Academic records

  • Entrance exam results (if any)

Parent/Co-applicant Documents:

  • ID & Address proof

  • Income proof (ITR/salary slips)

  • Bank statements

  • Collateral documents (if applicable)

 

🧠 Key Terms to Know

  • Moratorium Period: You don’t have to repay the loan immediately — repayment usually starts 6–12 months after course completion or job start

  • Collateral: Some loans (above ₹7.5 lakhs or international study) may require property, FD, or insurance as collateral

  • Subsidy Scheme: Students from economically weaker sections can apply under Central Sector Interest Subsidy Scheme (CSIS) for benefits

 

✈️ Studying Abroad? Things to Consider

  • Check if your course/university is on the approved list

  • Estimate cost of living, visa, and travel

  • Look for banks like SBI, Credila, or Axis that specialize in international education loans

  • Consider foreign currency exchange rate fluctuations

 

💡 Tips Before Applying

✔️ Compare interest rates and processing fees
✔️ Look for banks offering longer moratoriums and flexible repayment
✔️ Apply early — some processes may take time
✔️ Check for tie-ups between banks and educational institutions
✔️ Maintain good academic records for better approval chances

 

🧠 FAQs

Q: Can I get a loan without collateral?
Yes, loans below ₹7.5 lakhs often don’t need collateral. But parent/guardian income is key.

Q: Do I need a co-applicant?
Usually yes — especially for students with no income. Parent/guardian acts as co-borrower.

Q: When do I start repayment?
After the moratorium period — typically 1 year post-course or 6 months after getting a job.

Q: Are there any tax benefits?
Yes. You can claim interest paid on education loan under Section 80E of the Income Tax Act — for up to 8 years.

 

🎓 Final Thoughts

Education is one of the best investments you can make. A well-chosen education loan can help unlock your full potential — without burdening your family’s savings.

GrowMyRupee is here to help you compare options, understand fine print, and make informed decisions.

 

📩 Need help finding the right education loan?
Visit our Contact Us page — our team can guide you step-by-step.

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