An education loan (or student loan) is a type of financial aid designed to help students pay for higher education expenses, including tuition fees, books, accommodation, and other related costs. These loans are offered by banks, financial institutions, and government bodies to support students pursuing undergraduate, postgraduate, or vocational courses.
Domestic Education Loans – For studies within the student’s home country.
International Education Loans – For studying abroad, covering expenses like tuition, travel, and living costs.
Government-backed Loans – Lower interest rates and flexible repayment (e.g., Federal Student Loans in the U.S., Vidya Lakshmi in India).
Private Education Loans – Offered by banks/NBFCs, usually at higher interest rates than government loans.
✔ Loan Amount – Varies based on course, institution, and country (can range from a few thousand to millions in local currency).
✔ Interest Rate – Can be fixed or floating; government loans usually have subsidized rates.
✔ Moratorium Period – Repayment typically starts after course completion (6–12 months grace period).
✔ Collateral Requirement – Loans above a certain amount may require security (e.g., property, fixed deposits).
✔ Tax Benefits – Some countries allow interest deductions (e.g., Section 80E in India).
Admission to a recognized institution (local/abroad).
Academic record (minimum marks may apply).
Co-applicant (parent/guardian) for most loans.
For abroad studies, visa approval may be required.
Admission letter from the institution
Academic records (mark sheets, certificates)
ID & address proof (Aadhaar, passport, etc.)
Income proof of co-borrower (salary slips, ITR)
Cost breakdown of the course
Begins after course completion + grace period.
Tenure usually ranges from 5–15 years.
Some loans offer EMI flexibility based on income.
Minimum Age: 18 years
Maximum Age:
At loan approval: Typically 35 years (varies by bank)
At loan maturity: Usually up to 60 years (some banks extend to 65)
Must have secured admission to a recognized:
University/College (India or abroad)
Professional course (Engineering, MBA, Medicine, etc.)
Vocational training program
Mandatory: Parent/guardian must co-sign
Income Proof: Required (for both student and co-applicant in some cases)
Study Now, Pay Later! Get an Education Loan for India or Abroad – No Collateral up to ₹7.5 Lakhs, Tax Benefits & Easy EMIs.
Part-time income: Usually not considered
Future earning potential: May be evaluated for high-value loans
| Loan Amount | Minimum Annual Income* |
|---|---|
| Up to ₹7.5 lakh | ₹2.5–4 lakh |
| ₹7.5 lakh–₹20 lakh | ₹4–6 lakh |
| Above ₹20 lakh | ₹6 lakh+ |
(Varies by bank; some lenders have no minimum income for smaller loans)
| Loan Amount | Security Needed |
|---|---|
| Up to ₹4 lakh | No collateral |
| ₹4–7.5 lakh | Third-party guarantee |
| Above ₹7.5 lakh | Property/FD as mortgage |
Co-applicant: 650+ (CIBIL/Experian)
Lower scores may qualify with higher interest or collateral
| CIBIL Score | Impact |
|---|---|
| 750+ | Best rates, fast approval |
| 650–749 | Standard rates |
| Below 650 | Higher interest/rejection |
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