Education loans are designed to help students and their families cover the costs of higher education in India or abroad, making it easier for learners to access academic opportunities without worrying about finances. These loans generally cover a range of educational expenses, including fees, living costs, books, and travel.

Key Highlights

• Substantial loan amounts are available, starting from ₹25,000, that can cover up to the entire cost of education, including tuition, accommodation, learning materials, and travel expenses.
• Loans can be used for undergraduate, postgraduate, technical, vocational, and professional programs at approved institutions.
• Competitive interest rates: some schemes offer lower rates for female applicants.
• Loans are usually processed within 1-2 weeks after the documentation is complete.
• Borrowers may receive tax advantages on the interest paid under Section 80E.
• A moratorium (grace) period is granted, allowing repayment to start after studies are completed.
• No margin money is required for loans below ₹4 lakhs; concealed charges are minimal or absent.
• Applicants can typically apply online, and the documentation required is straightforward.

Eligibility Requirements

• Applicants must be Indian citizens aged 18 years or older.
• The program for which the loan is sought must be recognized, and admission should be based on merit or entrance examination results.
• Certain schemes require students to have achieved at least 50% marks in their previous examinations.
• For full-time courses, a co-applicant—such as a parent, guardian, or spouse—is often required and should have a regular income.
• Family income caps may apply to some government or subsidized schemes.

Courses and Expenses Supported

• Funding is available for tertiary and graduate-level courses in fields like engineering, medicine, law, and management, as well as technical and professional training.
• Short-term and vocational programs recognized by educational authorities may also be included.
• Covered costs include:
  • Tuition and other institutional fees
  • Accommodation and meal costs
  • Books, equipment, and study materials
  • Exam fees and required insurance premiums
  • Travel for overseas students

How to Apply

1. Complete the loan application form, available online or at branches, providing all personal and academic details.
2. Upload or submit supporting documents, such as admission letters, marksheets, fee schedules, identification, and proof of address.
3. Satisfy the criteria set by the lender and present the necessary documentation.
4. Once approved, the loan amount is disbursed either to the educational institution or to the applicant as per the fee payment plan.
5. Repayment begins following the completion of the moratorium period, with repayment options tailored to the borrower’s needs.

Best Practices

• Prepare a budget covering all study-related and living costs in advance.
• Consider additional options like scholarships along with the loan.
• It is essential to fully understand the loan’s terms and repayment schedule before committing.

Remain in touch with the bank throughout the application and repayment phases.