Best Education Loan in India for Higher Study Aspirants

Types of Education Loan in India

Most of the time, students who wish to pursue higher studies at a prestigious university or college require a large sum of money. The best way for you to secure this amount is to avail of an education loan in India. However, the number of study loans available for students might overwhelm you. Thus, in this segment, you will learn about the different types of study loan for abroad and Indian colleges. So, let’s know about these in detail.

Based on collateral

There are different types of loans based on the security that you need to offer. These include the following:

• Against property, security or deposit: These are study loans where you need to offer property or deposit as collateral. The loans have lower interest rates as they are secure.
• Third-party guarantee: These are loans where someone takes the responsibility for repaying your study loan in case you are unable to do so.
• Non-collateral loans: These study loans do not require borrower to submit a security. However, because of this, the interest rates for these loans are higher.

Based on courses

Based on the type of course or degree you are pursuing, the types of education loan can be as follows:

• Career development loans: These are low-interest rate loans that can help you, with your training or courses for skill development.
• Undergraduate loans: These are loans available for UG degree courses from abroad or in India. They cover the tuition fee and living costs for the degree. You can use a course finder to learn more about the program.
• Postgraduate loans: If you are pursuing a master’s degree then you can apply for a postgraduate loan from the banks.

Based on location

Depending on the location of the Institute or college, the education loan can be classified as follows: 

• Domestic loans: These are study loans that are available to those pursuing studies from India and have lower interest rates.
• Overseas loans: The loans that are available for pursuing your studies from overseas are included in this category. They cover all the major expenses of studying abroad.

Let’s find out what are the expenditures covered by the study loans.

Expenses Covered under Education Loans in India

The education loan available in India are known to cover a wide range of expenses related to the process of higher studies. Discussed below are some of the areas that are included in the study loans in India.

• Tuition fees: The total fees charged by the college or university for higher studies are included in the loan amount.
• Examination fees: The various charges for projects, examinations and assignments are also included in the loan sum.
• Library fees: If the college is expecting money to use the library and other online resources, then that money is also included in the loan amount.
• Hostel fees: If you are staying in an on-campus accommodation, then the fees for it are also included with the loan.
• Miscellaneous: Other charges that are included with the amount for education loan include the travelling expenses, laboratory fees, books and study materials, insurance, and any other additional expenditures.

Next up is a list of some of the top banks and institutes in India that offer education loans.

Top Banks & Institutions Offering Best Education Loans in India

There are a lot of banks and institutions that lend money to those interested in studying in India or from abroad. However, before you select the study loan you want, it is important that you compare the aspects of the different banks. Thus, the following are some of the facts about the best bank for education loan in India.

If you are interested in studying abroad, then there are also some NBFCs and international lenders who can provide you with the best education loan for overseas.

Now, let’s see the requirements to apply for the above mentioned study loans.

Also read: Non Collateral Education Loan For Abroad

How to Apply for an Education Loan in India

Many students or applicants struggle while applying for an education loan as they are not aware of all the minute details. Thus, it is essential that you know full well about all the different prerequisites for getting a loan for your higher studies. Hence, the following segment will shed light on the requirements for a study loan in India.

Eligibility Criteria for Education Loan

When applying for an education loan in India, it is crucial to consider all the different conditions that you need to fulfil to get the approval. Moreover, banks and institutions can have variable criteria for granting education loans in India. Hence, the following are some of the criteria:

• Age: The applicant must be between 18 to 35 years of age. However, for some courses the upper limit can be more.
• Academic qualifications: Most of the lenders require students to have 50% or above for a UG course education loanand 60% or above for a PG course.
• Course and University type: The eligibility criteria can also vary based on the type of course and the college that you choose.
• Co-applicant: Certain banks require a co-applicant in case the amount exceeds the limit set by them.

Required Documents

The following are some of the general documents that you require in order to get the best education loan in India for studies:

• Identity proof
• Address proof
• Academic records
• Income proof of the co-applicant
• Loan application form
• The fee structure of the course or program
• Collateral documents (if applicable)
• Passport sized photographs

Conclusion

To sum up, these are some of the best education loan for studying in India or abroad. You can compare these loans and find the one which is most suitable for you. In addition to that, if you need help in collecting the documents or applying for a loan, you can get guidance from the study abroad consultant experts at Gradding. Along with that, with the help of their university finder tool, you can also find out about the fee structure of various courses at the college you wish to study at.

Also read: Education Loan For Abroad Studies

FAQs

Ques.1 What is the minimum CIBIL score required for an education loan in India?

In India, if you are applying for an education loan then the minimum CIBIL score required is 700 or above. A score below 700 can cause issues with the loan approval.

Ques.2 What is the interest rate for education loans in India in 2025?

The rates at which education loans are available in India can vary between 8 to 12% per year. However, the education loan interest rate in India is prone to changes depending on the institute and type of loan chosen by you.

Ques.3 What is the maximum amount I can get in an education loan in India?

The maximum limit for availing of an education loan India varies from INR 50 L to 1.5 Cr. Further, the maximum limit also depends on the fact, whether you are studying in India or overseas.

Ques.4 Which bank provides the best education loan in India?

There are a variety of banks offering education loans in India. However, some of the best bank for education loan in India are the following:

• State Bank of India
• Bank of India
• ICICI Bank
• Punjab National Bank
• Central Bank of India
• Bank of Baroda, etc.

Ques.5 Which banks offer education loans without collateral?

The following is a list of the banks that offer study loan in India without collateral for the purpose of higher studies:

• State Bank of India
• ICICI Bank
• Bank of Baroda
• Axis Bank Education Loan
• Union Bank of India
• Canara Bank and others.