Want to know best education loan in india? Well you have landed on the right article
Did you know that it is possible to take an education loan as early as children begin to study, i.e. nursery class?
Education is a necessity, and a lack of funds shouldn't stop someone from pursuing their studies. You might want a job-oriented certification course or a research-oriented doctorate.
Most banks in India lend money for education. However, you must opt for the best suitable education loan that fulfills your requirements.
Every bank has specific features and benefits that differentiate its loan process.
Hence, it is crucial that you choose the best by carefully analyzing all critical points.
You should be aware of the maximum loan amount, interest rate, processing fees, coverage, ease of application, and, most importantly, repayment.
This article will cover all the major banks in India offering educational loans so that you can make an informed decision based on your needs.
Our Top Picks
Best Education Loan In India (2022)
1. Punjab National Bank Educational loan
Punjab National Bank (PNB) offers a wide range of educational loan schemes catering to students.
There is no maximum loan limit, and students can apply for the loan amount as per their educational needs.
PNB offers loans to Indian residents, overseas citizens of India (OCI), and persons of Indian origin ( PIO) to study in India.
The interest rate ranges from 5% to 15%, depending on the loan scheme. PNB Udaan, a scheme for students who want to study abroad, has an interest rate of 9.5%.
In contrast, PNB Prathiba, a loan scheme for students aspiring for NIT, IIT, and MBA from institutes, has an interest rate of 6.90% to 7.55%.
There are no processing fees or documentation charges for studies in India. However, a processing fee of 1%/minimum of 10,000 applies if studying abroad.
A nominal documentation charge of INR 450 applies for PNB Pravasi Shiksha Loan To apply for an educational loan from PNB, you must be a student enrolled in a relevant course from a recognized institution/university.
You would also require co-obligation of parents/guardians as joint co-borrowers.
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2. SBI Education loan
State Bank of India, India's largest public sector bank, is among India's best education loan providers.
You get the lowest interest rate from SBI while taking education loans for foreign study and skill-based studies within the country.
SBI education loan schemes such as the SBI Student loan scheme at 9.30% interest rate and the SBI Skill Loan at 8.80% are among the best in India.
You can avail yourself up to INR 1.5 crores for your studies and repay after one year of course completion.
The loan covers tuition fees, exam fees, library fees, books and study-related instruments, and significant study expenses. If you plan to study abroad, it also covers travel expenses.
You would need all the relevant documentation, like admission details and course fee details.
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3. Axis Bank Education Loan
Axis Bank education loans may be at a higher interest rate, but they are known for quick processing.
Axis bank offers loans for only Undergraduate and Postgraduate courses. You must have secured at least 50% marks in the qualifying exams (12th or Graduation degree.)
The minimum loan amount is INR 50,000, and one can take a maximum education loan up to INR 75 lakhs from Axis Bank.
The Rate of Interest depends on the loan amount.
- loan up to INR 4 lakhs at a 15.20% interest rate,
- loan between INR 4 lakhs to INR7.5 lakhs at 14.70%, and
- a loan above 7.5 lakhs at a 13.50% interest rate.
You can use the EMI calculator on Axis bank's website to know how much you would have to pay. The bank provides quick processing and disbursement of the loan amount, which you get within 15 days of application.
At the time of application, you would need documents such as a demand letter from the college/university, a signed copy of the loan agreement, Form A2, receipt of any amount paid to the institute, security documents, and mark sheets.
The loan covers tuition fees, library fees, examination fees, hostel fees, lab charges, and laptop costs.
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4. HDFC Bank Education Loan
HDFC bank is one of India's largest private sector banks, offering loans for education in India and foreign.
You can avail maximum loan of INR 20 lakhs at interest rates of 9.25% to 13.68%. If you are studying abroad, you can avail yourself of an unsecured loan up to INR 45 lakhs.
here we have list no. 4 One of the best education loan for abroad studies
HDFC loan covers all the tuition fees, examination fees, living expenses, hostel and travel expenses, and related costs such as a library, purchase of laptops, and relevant types of equipment.
HDFC offers loans to Indian citizens, and the co-applicants must also be Indian citizens. Co-borrower(s) must have Indian bank accounts and meet HDFC credit card underwriting norms.
You can download the loan document online from the HDFC bank website and submit it to the nearest branch with relevant documentation, including,
- Duly filled and signed loan application form.
- Photo IDs, Residence proof, and passport size photographs
- Academic documents of students
- Income proof of co-applicants
- Collateral and immovable property documentation if applicable.
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5. Bank of Baroda Education Loan
Bank of Baroda gives education loans for high school, graduation and post-graduation studies.
The lower interest rates of various schemes make them affordable.
Students can avail of loan amounts ranging from INR 4 lakhs up to INR 1.5 crores, depending on the plan.
Baroda Vidya scheme is for school education that offers up to INR 4 lakhs at a 9.95% interest rate.
Suppose you want loans for higher studies like MS, MBA, or MCA. You can avail yourself of a loan under Baroda Scholar Scheme at an 8.65% to 9.30% interest rate.
You can check your eligibility for various education loans online through the Bank of Baroda's website and apply instantly. You would need documentation including,
- KYC of applicants and co-applicants
- Proof of admission
- Academic records
- Statement of study expenses
- Bank account and income proof of co-applicants
- Property documents, if applicable
Bank of Baroda education loan covers tuition fees, examination fees, library charges, books/laptop/uniform, travel expenses, and the cost of external coaching.
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6. Kotak Mahindra Bank Education Loan
Kotak Mahindra is one of the leading private sector banks in India. It offers loans to meritorious students for further studies.
It is known for quick approval, minimal documentation, and higher loan amounts based on repayment capacity. The maximum interest rate of an education loan is 16%.
For studies within India, the maximum loan amount is INR 10 lakhs. However, if you want to study abroad, you can avail an education loan of up to INR 20 lakhs.
Indian Students can get a loan for their graduate and postgraduate studies from premier institutes.
While there is no age limit for students, co-applicants must be between 21 and 70. You would need to submit the following documents along with the application form,
- Proof of Identity
- 2 photograph
- Proof of residence
- Signature verification from the bank
- Income details for the past two years.
- Letter from the college
- Academic certificates
- Confirmed admission letter
- Proof of ownership and relationship
The loan covers tuition fees and other study-related expenses, like purchasing books, equipment, and laptops.
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7. Federal Bank Education Loan
Federal Bank offers Special Vidya loans to students who want to pursue higher education in India or abroad.
The maximum loan amount for studying in an Indian institute is INR 10 lakhs.
At the same time, students who have secured admission to recognized universities abroad can get up to INR 20 lakhs.
The interest rate is 10.05%, and the loan repayment period is a moratorium period + 15 years.
You must be an Indian citizen admitted to a government-recognized institute based on an entrance test or merit. Vocational and Skill-based courses are not eligible for loans.
You can apply by calling the bank's customer care, visiting the bank's branches, or online through Vidya Lakshmi Portal.
You would need the following documentation along with the completed application form.
- Identity proof ( Voter Id/Driving Licence/PAN Card)
- Offer letter/Admission letter
- Address Proof
- Fee Structure
- Academic qualifications and mark sheets
The Federal Bank education loan covers fees payable towards tuition, hostel, library, and laboratory. It also covers the relevant expenses of study tours, travel, books, equipment, computer, and project work.
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8. ICICI Bank Education Loan
You can get an education loan for your higher studies in India or abroad from ICICI bank at interest rates starting at 10.50%.
It offers a maximum loan of up to INR 1 crore student loans for studying abroad and a maximum of INR 50 lakhs for courses in India.
You must be an Indian citizen aged between 18 and 35 years.
This is best education loan in india for study abroad.
You must have secured admission in an undergraduate or postgraduate course from a reputed university. Your parents or guardians should have a stable income source.
You would need the following documents while applying for an education loan at ICICI bank
- The completed form with attached photographs
- Two passport-sized photographs
- Statement of cost of study
- Aadhar Card and PAN card of student and parent/guardian
- Age Proof
- Identity Proof
- Residence Proof
- Income Proof of co-borrower
The loan covers tuition fees, travel expenses, exam fees, lab fees, and library fees. You can apply online by visiting ICICI bank's website.
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9. IDBI Bank Education Loan
If you are looking to take a loan for your job-oriented courses or skill-based courses.
In that case, you must consider IDBI bank's education loan schemes. It offers education loans at low rates, 6.90% for studies in India and 8.40% for abroad studies.
For any skill development course, the ROI is 8.80%.
Although the processing can be slow, it offers up to INR 20 lakhs for studies in India and a maximum loan of INR 30 lakhs for studying abroad.
IDBI Bank offers a flexible loan repayment period extending up to 15 years. Indian students can apply for loans after securing admission in the relevant course.
The loan covers
tuition fees, exam fees, building deposits, travel expenses, insurance premiums for students, and books/laptops/equipment/uniforms.
You would need documentation like the cost of study, admission letter, residence proof, academic documents, and an affidavit that you haven't an education loan from any other financial institution.
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10. Bank of India Education Loan
Bank of India offers Star Loan Schemes for higher education in India and abroad.
The scheme assists meritorious students in pursuing higher education, graduation, and post-graduation.
It provides up to INR 10 lakhs for studies in India and up to INR 20 lakhs for studying abroad at an interest rate of 8.95%.
Students must be Indian citizens who have secured admission to a recognized university/institute after completing 10+2.
They should have an excellent academic career and not have other educational loans. Only parents can be co-borrowers.
You can apply at the nearest branch from your residence with the required documents, including an admission letter, academic proof, address proof, identity proof, and income statement of co-borrowers.
The loan covers all significant education-related expenses in addition to tuition fees.
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11. Union Bank Of India Education Loan
Union Bank of India offers a wide variety of loan schemes for students pursuing education in different fields.
The interest rate ranges from 7.20% to 10.40% based on the amount and loan scheme.
The best thing about taking an education loan from Union Bank of India is zero processing fees irrespective of the amount. The bank offers a maximum loan of up to INR 30 lakhs.
The loan repayment duration is of 15 years in addition to the moratorium period and course duration.
The applicant should be an Indian national; NRI holding Indian passports can also apply to study in India only. There is no minimum or maximum age restriction.
You can apply online through Union Bank of India's website or visit the nearest branch. The loan covers tuition fees and other study expenses like
- Hotel charges
- Examination fees
- Insurance premium of student
- Purchase of books/instruments/computer/uniforms
- Travel expenses
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12. Indian Overseas Bank Education Loan
Indian Overseas Bank (IOB) offers a maximum loan amount of INR 30 lakhs for studying in India and INR 40 lakhs for studying abroad.
If you are a student pursuing a professional and technical course, you can consider IOB's education loan scheme.
The interest rate ranges from 8.80% to 10.05%, depending on the plan.
The applicant should be an Indian national and must have secured admission in professional/technical courses in India or abroad. The loan repayment amount ranges from 5 to 7 years, excluding the six-month holiday period.
Students may choose the commencement of the interest calculation period. You can download the application form from IOB's website, fill it and submit it to the nearest branch for processing.
The loan covers education expenses, including tuition fees, hostel fees, costs of books, and exam fees. It also covers airfare for studying abroad.
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13. Tata Capital Education Loan
Tata Capitals is a private insurance provider that offers flexible education loans ranging from INR 75,000 to INR 35 lakhs at 10.99% and above interest rates.
You can avail of the loan for pursuing skill-based courses and higher education in India.
If you plan to study abroad, it covers the graduate and PG courses. It doesn't cover diploma courses abroad.
Although the processing fees are a bit higher, up to 2.75%, the entire process from application, approval, and disbursement is online.
You don't need to visit any branch office physically. You can choose a repayment period from 12 months to 72 months (6 years.)
The applicant must be an Indian national between 16-26 years of age. You need a guarantor or security. You or your parents should have a minimum monthly income of INR 15,000. The following documents are required for application:
- Photo Identity proof documents
- Income Proof
- Salary Slips
- Income proof
- Employment certificate
- Academic proof
The loan covers tuition fees, caution deposit, hostel fees, insurance premium, exam fees, lab charges, laptop costs, and relevant equipment/uniform costs. It also covers travel expenses for students studying abroad.
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14. UCO Bank Education Loan
UCO Bank offers attractive education loan schemes for Indian students who want to pursue higher education in India or abroad.
You can avail of a maximum loan of INR 10 lakhs for studying in India and up to INR 20 lakhs education loan for study abroad at an Interest rate of 9.30%. The total loan duration is 15 years after the moratorium.
To be eligible for a UCO Bank education loan, you must be an Indian citizen. The maximum age of the borrower shouldn't exceed 28 years for graduation and 30 years for post-graduation.
You can apply both online and by visiting the nearest UCO Bank branch. Co-obligation of parents required.
You need address proof, admission proof, cost of education statement, academic proof, income proof, and photo identification proof at the time of application.
The loan covers tuition fees and other related expenses like exam fees, library fees, lab charges, and uniform/laptop/equipment costs.
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15. Canara Bank Education Loan
Canara bank offers various education loan schemes like Vidya Turant, Vocational Education and Training, and IBA-based schemes.
You can get a loan starting INR 1.5 lakhs up to INR 40 lakhs at low-interest rates. If you want to study in India, Canara bank is a good option.
However, it doesn't have any particular plan for studying abroad. The interest ranges from 7.40% to 9.40%, with minimum processing fees.
The maximum loan repayment period is 15 years, excluding the moratorium (course duration +1 year.)
The bank also offers management quota need-based loans. Both India and NRI students are eligible for the loan. They have secured education in higher studies programs after 10+2 or equivalent.
You can apply either online or by visiting the nearest branch of your parent's residence or educational institute.
You would need to submit relevant documentation such as admission proof, cost of studies statement, proof of income of co-borrower, academic proof, residence proof, and Photo identification.
The education loan covers tuition fees, exam fees, building charges, caution deposits, and other related expenses such as uniforms, laptop purchases, and instrument costs. If you study abroad, it covers travel expenses and passage money.
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Conclusion
Your dream of pursuing higher education or skill-based training shouldn't be hampered because of a lack of finances. Luckily, several banks and private loan providers provide some of the best education loans that cover your entire study-related expenses.
Taking an education loan is critical and requires careful planning and research. Because once you complete your studies, you need to repay the amount within a specified period.
It would be best to consider factors like foreclosure options, process fees, how the interest is calculated, and the disbursement process while taking an education loan.
Comparing loan options is very easy in today's digital age. You should check authentic sources before finalizing the bank where you want to apply for your education loan.
I hope you liked our article on best education loan in india, if you have any comments or suggestions do share them in the comments below.
Frequently asked questions (FAQs)
Q1. Which bank is best for taking an education loan?
Public sector banks like SBI, UBI, Bank of India, and Bank of Baroda are excellent if you want to pay low-interest rates. However, processing can take some time.
Hence, the choice depends on your need and other factors like ease of approval, flexibility, processing fees, etc. It is best to compare banks depending on your requirement before taking an education loan.
Q2. Who is eligible for an education loan?
Typically, an education loan is offered to Indian nationals who have secured admission in recognized universities and institutes in India or abroad. Some banks also have an age limit for borrowers.
Students need guarantees/collateral for higher amounts, and either parents/guardians or spouse needs to be co-borrowers to cover the risk.
Q3. Is a CIBIL score required for an education loan?
Yes, most public sector banks want a CIBIL score of 650 and above, while a private sector bank asks for a CIBIL score above 700 from applicants. If the applicant is dependent, their parents/guardians' CIBIL scores are considered co-applicants.
Here are the best education loan in india:
