Loans
Education loans,for bigger dreams.
Tuition, hostel, books, laptop, travel and exam fees — in India or abroad.
In one minute
- 1
Covers fees and more
Tuition, hostel, books, laptop, travel and exam fees — in India or abroad.
- 2
Start repaying after the course
Repayment usually begins 6–12 months after the course ends.
- 3
Full tax deduction on interest
All interest paid is deductible for up to 8 years under Section 80E.
Chapter 01
What is an education loan?
An education loan pays for studies at a recognised college or university in India or abroad. The student is the main borrower and a parent or guardian is the co-borrower. Rates are typically about 8.5% to 13% a year, lower at public-sector banks and for top institutions.
During the course and a short period after it (the “moratorium”), you can pay just the interest — or nothing — and start full EMIs once the student is earning.
Chapter 02
How much can you borrow?
01
Up to ₹7.5 lakh
- Security usually needed
- No collateral — often government-guaranteed
02
₹7.5 lakh – ₹40 lakh
- Security usually needed
- Third-party guarantee or collateral, depending on lender
03
Above ₹40 lakh (often for abroad)
- Security usually needed
- Property, deposits or policies as collateral
For leading institutions in India and abroad, many lenders offer larger collateral-free loans.
Chapter 03
An example
- Loan
- ₹35 lakh
- Interest rate (illustrative)
- 10% a year
- Repayment starts
- 6 months after the course
- Term after moratorium
- 10 years
- EMI if interest is paid during the course
- About ₹46,000
- EMI if interest is added to the loan
- About ₹58,000
Paying the interest during the course keeps the balance from growing — and lowers the EMI later.
Chapter 04
Documents you’ll need
- Admission letter and fee schedule
- Marksheets of the student
- KYC of student and co-borrower
- Income proof of co-borrower
- Collateral papers, if required
- Passport, visa and I-20 / CAS for studies abroad
Chapter 05
Tax benefits
- 01
Interest — no upper limit
The full interest paid is deductible under Section 80E, for 8 years from when repayment starts.
- 02
Who can claim
The person repaying — student or parent — for the education of self, spouse or children.
Questions
Good toknow.
Do girls get a lower rate?
Many banks offer a concession of about 0.5% for female students.
What if the student doesn’t get a job immediately?
Speak to the lender early — many extend the moratorium or restructure the loan.
Can I apply before getting admission?
Some lenders give a pre-admission sanction letter, useful for visa applications. The final loan is released after admission.
Loans are provided by partner banks and NBFCs and are subject to their credit assessment, terms and conditions. Interest rates, fees and eligibility vary by lender and borrower profile. We facilitate the process and do not lend directly. Rates shown are indicative ranges; the actual rate depends on the lender and your profile. Tax benefits depend on the law in force and your personal situation. The information on this website is for general educational purposes only and does not constitute investment, tax or legal advice. Please consult a qualified professional before making financial decisions.
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