Educational loans are forms of financial assistance that enable students to obtain funds to finance their education. Usually offered by banks, credit unions, or various financial entities, these loans can be utilized to pay for tuition, fees, accommodation, and other expenses related to education.
In India, students seeking financial support for their higher education have access to various education loan options. These loans can be obtained from banks, financial institutions, and other lending organizations to help cover tuition fees, housing, travel, and other related expenses for their studies.
To pursue an education loan in India, applicants must satisfy certain eligibility requirements, including being an Indian citizen, possessing a strong academic performance, and showing a need for financial assistance. Additionally, depending on the lender and the amount of the loan, you may need to offer collateral or have a co-signer.
Types of Education Loan
- Undergraduate education loan for higher education after secondary education
- Post-graduate education loan for pursuing courses after completion of undergraduate courses
- Career growth education loans for courses, training or certification
Parents availing education loans for their children
Education loans act as a financial lifeline, covering a wide range of expenses including tuition fees, hostel charges, travel costs, insurance premiums, and more. With loan amounts extending up to Rs.1 crore and flexible repayment tenure of 15 years, students receive substantial support throughout their academic journeys.
Best Education Loans in India 2025
Here are some of the best bank for student loan
S.No.Best Education Loan in India
- Punjab National Bank Education Loan
- SBI Education Loan
- Axis Bank Education Loan
- Bank of Baroda Education Loan
- HDFC Bank Education Loan
Bank & Interest Rates
Axis Bank
13.70% to 15.20%
Kotak Mahindra Bank
Up to 16.00%
State Bank of India
8.05% p.a. to 11.75% p.a.
ICICI Bank
10.25% onwards
Punjab National Bank
4% p.a. to 12.75% p.a.
Canara Bank
9.25%
Bank of Baroda
8.15% p.a. to 13.70% p.a.
Top 10 Education Loan Providers in India
Here is the list of 10 best education loan providers in India. These lenders offer up to INR 2 crore to finance your dream of studying abroad. Check the list.
- State Bank of India (SBI)
- HDFC Bank
- Axis Bank
- Punjab National Bank (PNB)
- Bank of Baroda
- ICICI Bank
- Federal Bank
- Union Bank of India
- IDBI Bank
- Canara Bank
Eligibility Criteria for an Education Loan
- Nationality : Citizens of India, Non-Indian Residents (NRIs), Overseas Citizens of India (OCI), Persons of Indian Origin (PIOs), and Students born to Indian parents abroad and wish to study in India.
- Nursery to class 12, Approved graduation and post-graduation courses, Job oriented courses, Doctoral courses, PhDs, Diploma courses, etc.
- Residential or commercial property, plot, fixed deposits, and insurance
Expenses Covered under Education Loans in India
Education loans in India typically cover the following expenses
- Tution Fees: This encompasses the charges imposed by the educational institution for the course or program.
- Examination Fees: This incorporates any fees levied by the educational institution for examinations, projects, or assignments.
- Library Fees: This covers any fees that the educational institution imposes for library usage or online resource access.
- Hostel Fees: This entails any charges applied by the educational institution for accommodation in a hostel or dormitory.
- Laboratory Fees: This includes any fees set by the educational institution for access to laboratories or specialized equipment.
- Travel Expenses: This represents the expenses related to traveling to and from the educational institution, including airfare, train fares, and bus tickets.
- Book & Material: This comprises the cost of obtaining books and other materials necessary for the course or program.
- Insurance: includes any insurance premiums required by the educational institution, such as health insurance or accident insurance
You can even use Education Loan EMI Calculator to calculate your EMI and assess your loan estimation and computations
List of Required Documents for Education Loan
- Admission Letter
- Previous Marksheets
- ID & Addhar card
- Latest Salary Slip
- Bank statements
- Proof of Turnover
- Latest photo
- Complete application form with signature
Features & Benefits of Study Loan
- Loan financing up to Rs.1 crore is available
Loan repayment tenure is up to 15 years
Get education loans for studies in India and abroad - For abroad studies some lenders offer loan disbursals before applying for a Visa
Door-step service to collect required documents - Children of the bank’s employees enjoy preferential rates at several banks
Certain banks offer concessional interest rates to female students - Enjoy a moratorium period of up to 1 year after course completion. During this period, you do not have to make payments on the loan
- Enjoy tax benefits for up to eight years on the interest paid
