🎓 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.