Where can you get a student loan in India?



The simplest way to understand an education loan is that you (or your parents) borrow money to pay for your college tuition, resources, and other academic expenses. The money is repaid by you (the student) after you graduate and start earning giving you the freedom to study without the burden of working your way through college. Student loans – or education loans as they are also called – also open the doors for getting an international degree – an important and prized acquisition in today’s globalized world.

Are student loans easy to get?

The answer to that is both yes and no. It’s easy as most institutions have reduced the processing time and requirement considerably from about a decade ago. So in that sense, they are relatively easier to get. The real question is, are you assured that you will get a job that can not only support your family but also repay your loan?

What is the ROI of your degree?

In that sense, taking a loan may seem like a daunting proposition because not only are you worried about repaying the loan itself, but also about your loan repayment going into a tailspin leaving you endlessly paying EMIs.

So here are some questions to ask yourself and potential lenders before applying for a student loan:

  • Are you eligible to take the loan under your name?
  • Do you need one or both of your parents/guardians to co-sign the loan application?
  • How much loan do you need and how much is available?
  • Do you need to put up part of the tuition fees yourself to avail of the loan?
  • What is the duration of the loan?
  • What is the processing time?
  • What documents are required for application?
  • What are the processing and other charges applicable?
  • What is the rate of interest chargeable?
  • What is the moratorium period (a period free from EMI payments) if any?
  • What are your repayment options?
  • Are there any subsidies on your loan?
  • Do you need to put up any collateral?
  • What are the loan requirements vis-à-vis your admission status?
  • Is the loan specific to certain institution/s?
  • Can you use the loan to supplement your scholarship or government grant?
  • What exactly does the loan amount cover?

When you talk to bankers and other lenders answers to these questions will help you decide. They may also pose more questions which you should ask and get answers to. The point we are trying to make here is that you should thoroughly understand your loan terms before you sign up.

Understanding Student Loans

Where can you get a student loan?

You can get a loan for higher education or study in a foreign country either through a public sector or private sector institution.

Here we present some of the top public and private sector banks that offer student loans in India. While the information is accurate as per our knowledge, it is subject to change.

When taking a loan it is always advisable to get detailed information directly from the lender.

The Indian government encourages education intending to reduce the illiteracy rate. Education loans are therefore easier to obtain in India.

With that said, here are some of the more popular banks that provide education loans in India for your quick reference. As you scroll through do share them with your Twitter friends.


Punjab National Bank Education Loan

PNB has three education schemes:

  1. PNB Saraswati: Regular Scheme for pursuing higher studies in India & Abroad.
  2. PNB Pratibha: Collateral free Education loans at lower ROI to those students getting admission in of 103 premier institutions in India, as identified by Bank.
  3. PNB Udaan: Education Loan Scheme for providing financial support to meritorious students for pursuing higher education abroad.

Other details include:

  • Maximum Loan Amount: Minimum 1 lakh to Maximum 50 lakh
  • Interest Rate: 7.30 % onward to 11.50 %
  • Processing Time:  Nil
  • Processing Charges: 0 % – 2 % 
  • Requirement for Collateral/Security Margin: Up to Rs. 4 lakh –Nil 4 – 7.5 lakh cosigner + third party guarantee Above 7.5 Tangible collateral + co-signer + third party guarantee

  • Requirement of Co-Signer/Applicant/Borrower: Parent/guardian be made joint borrowers
  • Margin % (Amount required to be put up by student):  No Information Available
  • Moratorium: Course duration + 1 year or 6 months after securing job whichever is earlier.
  • Duration: 5 – 7 years after commencement of repayment.
  • Extension Time for Course completion: Maximum 2 years.


State Bank of India Education Loan

  • Maximum Loan Amount: Studies in India – Maximum Rs. 10.00 lacs Studies Abroad – Maximum Rs. 20.00 lacs
  • Interest Rate: 6.85 % – 8. 65 % 
  • Processing Time:  For loans up to Rs.20 lakh: Nil
  • Processing Charges: For study abroad loans a security deposit of INR 5000 is required. The deposit will be forfeited if the loan is not availed within 4 months of sanction. It will be adjusted as margin money for repayment.
  • Requirement for Collateral/Security: Nil up to 4 lakhs. Up to 7.50 lakh cosigner + collateral, Above 7.5 lakh cosigner + tangible collateral such as property + documented assignment of future income towards loan repayment.
  • Margin % (Amount required to be put up by student): No Information


Axis Bank
Education Loan

  • Maximum Loan Amount: Minimum 50 thousand to 5 core
  • Sanction before Admission: YES
  • Interest Rate: 8 % – 16 %
  • Processing Time: 7 days
  • Processing Charges: 

For Loan < 20 Lakhs, Rs. 15,000 (refundable) + GST.
For Loan > 20 lakhs, 0.75% of (Loan Amount – Rs. 20 lakhs) + GST (Non refundable).
For Example, for a Rs. 21 Lakh loan: 0.75% of (Rs. 21 lakh – Rs. 20 lakh) = Rs. 750 +GST.

  • Requirement of Co-Signer/Applicant/Borrower:

The co-applicant should be an Indian resident citizen.

The co-applicant should have a stable monthly income and should be a regular tax-payer.

The co-applicant should have a CIBIL score of at least 700.

  • Margin % (Amount required to be put up by student): Nil for loans above Rs. 4 Lakh, the margin for studies within India is 5% and for studies overseas is 15%.


Bank of Baroda Education Loan

Bank of Baroda (BOB) offers three categories of student loans:

Baroda Education Loan to students of premier Institutions

  • No processing charges.
  • No Margin.
  • Free Debit Card.

Skill Loan Scheme

  • This scheme applies to all our Branches across the country.
  • The applicant should be an Indian National
  • Minimum Qualification: As required by the enrolling institutions/organizations as per NSQF.

Government of India Interest Subsidy Schemes for Education Loan

  • The government of India, Ministry of Human Resources Development, and Department of Higher Education have formulated an Interest Subsidy for Education Loans…

In general, the bank adheres to the following limits:

  • Maximum Loan Amount: 80 Lakh
  • Interest Rate: 6.75 % – 9.85%
  • Processing Time: Nil
  • Processing Charges: 1% of the loan amount, a maximum of Rs.10,000 will be charged. However, this amount is refundable after the first disbursement. Rs.7,500 will be charged per property and will be taken upfront. This amount is non-refundable.
  • Requirement for Collateral/Security: Depending on the amount of loan:
  • Up to Rs.4 lakh: No security needs to be provided.
  • Above Rs.4 lakh and up to Rs.7.50 lakh: Third-party guarantee must be provided as collateral. Assignment of future income must also be provided.
  • Above Rs.7.50 lakh: Collateral security worth 100% of the loan amount must be provided as collateral. Future income of the student must also be provided to show that future payments can be made.


Education Loan

HDFC offers two types of education loans:

The criteria and requirements for the two loans vary slightly but in general, the following are the terms for an HDFC education loan.

  • Maximum Loan Amount: Get up to ? 45 lakhs as an education loan. Avail loans of up to ? 7.5 lakh without collateral
  • Interest Rate: 9.40% – 13.34%
  • Processing Time: Minimal processing time. Loans directly disbursed to the institute.
  • Processing Charges: Pay no hidden charges and experience a completely transparent process
  • Requirement for Collateral/Security: If you wish to take a loan higher than ? 7.5 lakh, you will need to provide collateral.


Union Bank of India
Education Loan

  • Maximum Loan Amount: Need-based finance
  • Interest Rate: 6.80% to 10.05%
    • If interest is regularly serviced during the course and moratorium period, i.e. before the commencement of repayment, then the student is eligible for interest rebate**.
    • Simple interest will be calculated during the course/moratorium period
    • Subsequently compounding interest will be charged.
  • Processing Time and charges: Nil for Indian students 0.50% of loan amount + GST for NRI students
  • Requirement for Collateral/Security:
Quantum of loanSecurity
Up to Rs.4 LakhNo security is required if the loan is covered under CGFSEL.
Above Rs.4 Lakh & up to Rs.7.50 Lakh
Above Rs.7.50 LakhTangible collateral security of minimum value equivalent to the loan amount and interest accumulation during course & moratorium period, acceptable to the bank**
  • Requirement of Co-Signer/Applicant/Borrower:
    • The parent(s) of the student must join in as co-applicant.
    • In case of a married individual, co-applicant can be spouse/parent(s)/parent(s)-in-law.
    • In cases where both the parents are not alive, a close relative or legal guardian is to be taken as co-applicant.
    • The co-applicant should be Indian national
  • Margin % (Amount required to be put up by student)
Up to Rs.4 LakhNil
Above Rs.4 LakhStudies in India5%
Studies abroad15%
NRI students (irrespective of the loan amount)15%


Bank of India
Student Loan

  • Maximum Loan Amount: For courses in India: Up to Rs.10 lakh For courses abroad: Up to Rs.20 lakh
  • Interest Rate: 9.05% to 9.85%
  • Processing Charges:  Nil for courses in India Rs.5,000 + other fees for study abroad
  • Requirement for Collateral/Security
Upto Rs. 7.50 lakh:Parents or Guardian to be joint borrowers (No collateral security or Third Party Guarantee since covered under CGFSEL)
Above Rs.7.5 lakh:Co-obligation of Parents together with tangible collateral security of suitable value along with the assignment of future income of the student for payment of instalments.

Note: The security can be in the form of land/building/Govt. Securities/Public Sector Bonds/NSC/KVP/LIP/ Banks Term Deposit etc., in the name of Student/ Parent/ Guardian/Guarantor with suitable margin

  • Margin % (Amount required to be put up by student): Upto Rs.4 lakh: Nil Above Rs.4 lakh – Studies in India: 5% Studies Abroad: 15%· Scholarship could be included in margin: Margin to be brought in on year to year basis as and when disbursements are made.


Education Loan

Interest RateStarting at 10.50% per annum (10.75 for unsecured loans)
Loan tenureUp to 8/10 years for Under Graduate post-course period + 6 months
Up to 10/12 years for Post Graduate post-course period + 6 months
Maximum loan amountUp to Rs 50 lakhs for domestic courses
Up to Rs 1 crore for international courses
Collateral requirementExceptional collateral can be accepted in the form of Fixed Deposit, Fresh Property, Cross collateralization with existing Mortgage loans
Unsecured Loan requirementUnsecured loan for selected institutes: Up to 20 lakhs for UG & up to Rs 40 lakhs for PG courses **
Moratorium periodAs per the course and institute.
MarginNo margin for premier institutes
No margin up to Rs 20 lakh for other categories of institutes
Ranging from 5% – 15% margin for loans above Rs 20 lakh (Margin can be FD/scholarship/initial fee paid to the institute)

Interest rate range for Education Loans for January 2021 to March 2021:

Type of credit facilityMinimumMaximumMean
Education Loan –iSMART interest rates9.50% per annum12.99% per annum11.35% per annum

For loan amounts exceeding Rs.7.5 lakhs, the parents will be co-obligators with collateral security proportionate to the loan amount.


Federal Bank
Education Loan

Quantum of finance is subject to repaying capacity of the parents/students.

Satisfactory performance of the student necessary for continued disbursal.

Items covered under the loan

  • Fee payable to College/School, Hostel, Tuition, Examination, Library, Lab
  • Cost of books, equipment, instruments, Uniform, Travel expenses, Computer (if essential for the course)
  • Expenses for study tours/project work/thesis etc
  • Caution deposit, Amount payable towards building fund, refundable deposit etc supported by bills/receipts but cannot exceed 10% of the tuition fee.


  • Up to Rs 4.00 L, No Margin is applicable.  
  • For studies in India above Rs 4 Lakhs – 5%
  • For Studies Abroad above Rs 4 Lakhs – 15%

Loan Period

Moratorium period+ 15 years as the repayment period

(Moratorium period will be course period + one year)


Documents should be executed by the student and parent/guardian as joint borrowers


  • No security is needed Up to Rs 4 Lakhs.
  • A third-party guarantee is acceptable to bank/collateral security for loans up to 7.50 Lakhs.
  • Above Rs 7.50 Lakhs, collateral security with stipulated margin is required

Kotak Mahindra Bank:

  • Maximum Loan Amount: For courses in India: Up to Rs.10 lakh For courses abroad: Up to Rs.20 lakh
  • Interest Rate: Up to 16%

Processing Charges

  • Some collection, deposit and swap charges are applicable.

Eligible Courses


  • Post-Graduation Courses: Masters and PhD from accredited institutions.
  • Professional Courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management and Computer Sciences.
  • Other professional courses such as CA, ICWA, CS, and CFA.
  • Masters and Diploma Management Programs.
  • Other courses leading to degree/diploma conducted by colleges/universities approved by UGC/Govt./AICTE/AIBMS/ICMR, etc.
  • Regular Degree/Diploma course like aeronautical, pilot training, shipping, nursing or any other discipline approved by Directory General of Civil Aviation/Shipping/Indian Nursing Council or any other regulatory body as the case may be if the course is pursued in India.
  • Any other course as shall be declared from time to time.

Studies abroad

  • Graduation: Reputed universities.
  • Post-graduation: MCA, MBA, MS and other courses.
  • Other courses such as CIMA – London, CPA in the USA, CFA, CISA, and other approved courses.
    Degree/Diploma courses like aeronautical, pilot training, shipping, etc. provided these are recognised by competent regulatory bodies abroad for employment in India/abroad.

There you go! We’v brought you some of the more popular banks offering education loans in India. If you need any more information do write in. We’re also on Facebook and LinkedIn. Don’t forget to stay tuned.

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