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An education loan is a form of financial assistance that provides the student with funds to pursue higher education. The funds raised on the student loan for study abroad can finance tuition, exam, library, and activity fee, including other facilities such as accommodation/dorm, courses, equipment, etc.
It is paid back in EMIs(Equated Monthly Installments) with interest once the student starts earning i.e by definition between 6 to 12 months after the student who has obtained the student loan for study abroad has graduated, known as the moratorium period. There are various education loan types available for students, and these loans vary from bank to bank. However, on average, the loan acquired is usually between Rs.1 lakh and Rs.5 lakh, extended as required. The interest rates on loans are currently between 8% to 10% which the student will be required to repay over the principal amount when the repayments begin.
Since most students do/do not have an income when pursuing higher studies and the lender may be required to assess the repayment capabilities of the borrower, the borrower may take out a joint loan along with an immediate family member(Parent/Spouse) to increase income level on the agreement contract.
Loans up to 90% of the cost of education
Avail of an education loan of up to 90% of the cost of education from several leading lenders at lower interest rates and flexible repayment tenures of periods extending up to 15 years.
Easy repayment terms
Find preferential rates with any banker of your choice for top-ranked universities with flexible security and co-signer terms.
Moratorium/Pay after graduation
The loan repayment period will start after 6 months to 12 months after graduation. This scheme will allow the student to repay the loan post-course completion without financial stress during the course period.
Tax exemptions
Several tax exemptions can be availed by declaring the education loan details and salary brackets of the applicant(s).
Flexible collateral options
The applicant need not liquidate valuable assets to avail of the loan. Most banks offer education loans by retaining FD, Government bonds, or insurance without requiring tangible assets that you may consider valuable.
Subsidy schemes
The Indian government has introduced several subsidy schemes for the benefit of students belonging to backward sections of society. The benefits of subsidies may allow the student to escape moratorium interest rates.
No processing fee
Most banks offer education loans without processing or disbursement fees. Contact Loanz360 to find the best deals on your loan at lower interest rates.
Affordable interest rates
Education loans have competitive interest rates that allow the student to pay readily once employed.
High LTV
Find options with maximum loan limits of up to 1.5 crores to perform quality education from top-tier universities for any field or department requiring higher funds.
Loan against security: The borrower can submit collateral in Bonds / FD / Insurance / Debentures /equity shares to avail of an education loan.
LAP Loan: LAP or Loan against property is another type of collateral scheme where the borrower can submit a property or immovable asset(owned by him/co-applicant) such as a house or land as collateral against the loan acquired.
Loan against deposit: Gold/fixed/recurring deposits can be submitted as a security against the loan.
Domestic Loan: Domestic loan is acquired for educational purposes of the borrower pursuing education within the country.
International Student Loan: Students studying higher studies or courses abroad may avail of a study abroad education loan with a secured seat among the eligible or listed universities or colleges by the bank or the lender.
Graduate Loan: Students who have completed undergraduate programs can avail of a graduate loan if they are willing to pursue advanced degrees at institutions around the country.
Undergrad Loan: Undergraduate loans are intended to aid students who have completed their secondary education and decide to pursue further education over a strict curriculum period.
Career Education Loan: Professional or career education loan is for individuals enrolled in career-oriented programs (training/courses) within or outside India.
Type By Scheme
Dr. Ambedkar Central Sector Scheme: EBC or OBC candidates intending to pursue studies overseas can avail of this loan with added benefits and flexibility on the terms and conditions of the loan.
Central Sector Scheme Of Interest Subsidy: For ECB candidates with a family income limited to 4.5 L.P.A, this subsidy applies to avail of loan benefits over grad, undergrad, or combined courses in India.
Vidya Lakshmi Scheme: Over 38 banks provide financial assistance under this scheme. First initiated by PM Narendra Modi, Vidya Lakshmi Scheme offers various benefits on loans without any security or collateral up to Rs. 7.5 Lakhs.
Padho Pardesh Scheme: ECB candidates eligible for this loan can avail of tax benefits supported by study abroad programs. To be eligible, the minority member should produce a self-declaration certificate, merit certificates, and yearly family income proof(of not more than 6 L.P.A).
Note: Contact Loanz360 for more detailed information on the loan types and schemes offered by our financial partners.
Age: 18 – 35 years
Nationality: Citizen Of India
Student Requirement:Â
Eligible Courses:
Income: The income requirements may vary with the type of loan, student academic background, amount requested, applied candidate, type of collateral, admitted university, etc.
Note: Contact Loanz360 to know more about Income requirements. Conditions applied.
Collateral: Loan against deposit/security/property
Credit/CIBIL Score: Any profile
Note: The eligibility criteria mentioned above are generic and may vary from lender to lender. Please reach out to us at Loanz360 for a personalized eligibility chart.
Applicable to students and parent/guardian/co-borrower.
ID & Age Proof : Passport/Voter ID/Aadhar/Driving License/PAN Card/Form 60
Address Proof: Rental Agreement/Electricity Bill/Ration Card/Copy of Telephone Bill/Insurance Bond/Latest Copy Of Bank Statements (Student/Co-Borrower)/Gas Book
Income Proof: Copy of latest Salary Slips/Form16 (Co-Borrower),Copy of latest 6 months bank statement of the borrower(s), Copy of updated ITR/ITR Assessment Order of 2 years(Co-Borrower), Any asset or liability documents (If applicable)
Merit Proof: Copy of scholarship(If applicable)/Copy of latest merit certificates (10th/12th/GRE/TOEFL/etc), as applicable/Copy of foreign exchange permit(If applicable)/Proof of admission to foreign university with course details/Statement of Expenses
Additional Requirements: Duly filled application form/Passport sized photographs (2)/Signature proof
CURRENT EDUCATION LOAN INTEREST RATES START @ 8.50% P.A ONWARDS. Compare interest rates and check more deals offered on student loans by our financial partners at Loanz360 in 2022. The interest rates mentioned in the table below are subject to change with parameters such as loan scheme, select institutes, pledged collateral, backdrops, etc.
Bank Name | Interest Rate (P.A) |
HDFC | 9.55% onwards |
SBI | 8.86% |
Bank Of Baroda | 9.15% |
Kotak Mahindra | 16.00% |
Karur Vysya Bank | 11.50% |
IDFC First Bank | 8.50% |
ICICI | 9.25% |
Axis Bank | 13.70% |
Karnataka Bank | 9.49% |
Tata Capital | 11.25% |
Bajaj Finserv | 10.10% |
Fullerton India | 11.99% |
PNB | 8.45% |
Allahabad Bank | 8.95% |
IDBI | 9.45% |
IOB | 10.25% |
Punjab And Sind Bank | 10.25% |
Andhra Bank | 8.70% |
Oriental Bank Of Commerce | 9.70% |
Federal Bank | 10.65% |
UCO Bank | 10.60% |
Syndicate Bank | 10.25% |
Corporation Bank | 10.25% |
Canara Bank | 9.95% |
Note: Our financial partners are not limited to the above-mentioned banks. Contact Loanz360 to discuss options.
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