How to get Education Loan 2024: Eligibility, Interest, Apply

Education Loan: In our country, a huge percentage of people is still suffering to have some quality education despite having a lot of talent and brilliant minds. It’s just that

Raju Choudhary

How to get Education Loan

Education Loan: In our country, a huge percentage of people is still suffering to have some quality education despite having a lot of talent and brilliant minds. It’s just that they don’t possess the fortune. That’s why education loan is so important. It has helped a lot of poor as well as middle-class people of our country. Education is one of the most important things is one’s life and this is like a fundamental right that must be provided to them at any cost. It is the very beginning of someone’s success and it also helps our country in minimizing the effects of poverty.

Interest rate6.75 % to 15.20 %, varies from bank to bank
Processing fee1 % of loan amount or 10,000 rupees + tax
FeaturesInterest rate of loans is very less. A long term loan is provided. Other features like part payment, health cover, etc.
Eligibility criteriaMust be an Indian to have an education loan. An academic record must be good.
Application process (Online/Offline)The application process is both online and offline. Fill the application form and add the required documents.
Documents RequiredTwo passport-size photographs. I’d proof and address proof. Proof of admission into the institution for which you are taking the loan.

Education loans had helped million from the time it was introduced for the first time. The best part about this loan is that it doesn’t ask for a very high-interest rate and once you become able, then you can repay the loan. It also provides a lot of different features like study insurance cover, part payment, and health cover, and many more. The tenure for the loan repayment is also very long and tax rebates and low interest also help a lot.

The loan amount is also very huge, which is 50 lakhs for domestic students to 1 crore for international students. Your travel expenses is also covered under the education loan. It also provides you a laptop for your studies.

Interest Rate6.75% onwards
Minimum Tenure (excluding grace period)5 years
Moratorium Period (after course completion)1 years
Minimum Loan amount₹ 50,000
Maximum Loan without collateral₹ Need Based
Maximum Tenure15 years

Eligibility criteria

There are certain criteria’s on which the education loan relies, so check these carefully:

  • The student must be an Indian otherwise an education loan can’t be sanctioned.
  •  A proof for secured admission form the university or college should be with the student.
  • Student must have the12th pass for an undergraduate or an graduated one for postgraduate.
  • The courses must be defined for which you are selected. Your college or university must provide the details about your degree/diploma, courses offered by IIM, UG degree or PG degree from a recognized university, and others.
  • You need to have more than 60% marks to be considered as a meritorious student and then only your loan will be sanctioned.

Compare Top Education Loan Offers 2024

Name of BankInterest Rate (p.a.)Processing Fees
SBI8.15% p.a. to 11.75% p.a.Up to Rs.10,000No charged required for loan amount below Rs.20 lakhLoan amount above Rs.20 lakh: Rs.10,000 (plus taxes)
Central Bank of India 8.10% p.a. to 10.60% p.a.Nil for studies in India 1% of loan amount for studies abroad (Max: Rs. 15,000) 
PNB9.20% p.a. onwardsNil for studies in India 1% of loan amount for studies abroad (Max: Rs. 10,000) 
Canara Bank 9.25% p.a. onwards0.50% of the loan amount up to Rs.10,000 (for collateral security coverage of 100% and above)0.50% of the loan amount up to Rs. 20,000 (for collateral security coverage of less than 100%)
IDFC FIRST Bank 10% p.a. to 15% p.a.Up to 1.5% of the loan amount
IDBI Bank 8.50% p.a. onwardsNil for studies in India 1% of the loan amount (Maximum: Rs.5,000) for studies abroad
Bank of Baroda8.15% p.a. onwardsNo processing for charges up to Rs.7.50 lakh1% of loan amount up to Rs.10,000 for charges above Rs. 7.50 lakh
Bank of India 11.05% p.a. to 11.85% p.a.No processing fee for studies in India
ICICI Bank 9.85% p.a. onwardsUp to 2% + GST
Bank of Maharashtra 9.45% p.a. onwardsContact the bank 
Axis Bank13.70% p.a. to 15.20% p.a.2.00% of the loan plus GST
HDFC Bank9.50% p.a.Nil for studies in India 1% for studies abroad
Kotak Mahindra BankUp to 16% p.a.Nil
Federal Bank12.55% onwardsContact the bank
Tamilnad Mercantile bank11.75% p.a. to 13.00% p.a.1% of the sanctioned loan amount above Rs. 7.50 lakh for studies abroad

Education Loan Application process

The application process for an education loan is very simple. You can avail the education loan without any trouble only if they possess the required documents and if you are eligible for it. You must have more than 60% marks and you should also carry your call letter or proof of admission from the university or college. You must not be a foreigner if you want to avail the benefits of an education loan. Though Non Residential Indians can now take education loan in India.

Now we will discuss the application process in steps:

  • Step I – first of all, the process is both online and offline, so you don’t have to worry even a bit.
  • Step II – either you can reach directly to the bank or to the lender or you can visit the official website to know the details
  • Step III – after getting the application form, you need to fill it with utmost care. In case of online, you can easily download the application form and can fill it.
  • Step IV – later, you have to add your mark sheet, your admission proof, and other relevant documents.
  • Step V – you also have to give an interview with the officials. They will check whether you are eligible or not.
  • Step VI – this step includes documentation and validation of all the details which you had provided in the earlier steps.
  • Step VII – your loan will be approved in this step and in few days of time, the loan will be disbursed is well.

Documents Required

You need to have a lot of documents if you want an education loan. These documents will proof your background and your qualifications till now. We have discussed about all the documents you need, in points:

  • You need to carry a two passport size photograph or scanned image of your photograph.
  • You need to have a photo identity proof.
  • A residence proof is also very compulsory.
  • Your academic record over the course of time and your current status.
  • College call letter or admission proof form the University.
  • Income proof of your guardian, who is playing the role of co-applicant.
  • Bank statement of the last 8 months is also needed of co-applicant.
  • You need provide all the relevant details about collateral and immovable property.

Compare Student Loan Interest Rate 2024

NameLoan AmountInterest Rate
Axis BankUp to Rs. 4 Lakhs15.20%
Axis BankLoans greater than Rs. 4 Lakhs and upto Rs. 7.5 Lakhs14.70%
Axis BankLoans greater than Rs. 7.5 Lakhs13.70%
Bank of BarodaFor all loan types and amounts8.50% onwards
Canara BankFor Vidhya Turant Loan Scheme6.60%
Canara BankUp to Rs. 4 Lakhs10.40%
Canara BankRs. 4 Lakhs to Rs. 7.50 Lakhs10.40%
Canara BankLoans above Rs. 7.50 lakhs10.20%
Canara Bank9.90%
HDFC BankMinimum APR9.00%
HDFC BankMaximum APR13.86%
HDFC BankAverage APR11.57%
Kotak Mahindra BankFor all loan types and amounts11.5% to 24%
Punjab National BankPNB Kaushal8.55% onwards
Punjab National BankPNB Saraswati/Udaan10.30% onwards
Punjab National BankPNB Pratibha (for admission to IITs , IIMs and XLRI Jamshedpur)8.45% onwards
Punjab National BankPNB Pratibha (for admission to other colleges)8.55% onwards
Punjab National BankPNB Honhaar10.45%
State Bank of IndiaUp to Rs. 7.5 Lakhs10.25%
State Bank of IndiaAbove Rs. 7.5 Lakhs10.50%
AvanseFor all loan types and amounts10% to 16.50%
CredilaFor all loan types and amounts11.85% onwards
Allahabad BankAs per applicant’s profile9.20% onwards
Andhra BankAs per applicant’s profile10.80% onwards
Axis Bank50,000 to 15 lakh12% onwards
Bajaj FinservUp to 25 lakh12.99% onwards
Bank of Baroda50,000 to 10 lakh10.50% onwards
Bank of IndiaUp to 10 lakh9.35% onwards
Bank of MaharashtraUp to 10 lakh9.70% onwards
CASHe9,000 to 3 lakh33% to 36%
Central BankUp to 20 lakh8.45% onwards
Citibank10,000 to 30 lakh9.99% onwards
Early Salary8,000 to 2 lakh24% onwards
Federal BankUp to 25 lakh11.49% onwards
Fullerton IndiaUp to 25 lakhs11.99% onwards
HDFC Bank50,000 to 40 lakh10.75% onwards
Home CreditUp to 2.4 lakh24% onwards
HSBC BankUp to 30 lakh10.50% onwards
ICICI Bank50,000-20 lakhs11.25% onwards
IDBI Bank25,000-5 lakhs12% onwards
IDFC First1 lakh-40 lakhs10.75% onwards
IndiabullsRs. 1000 to Rs. 15 lakh13.99% onwards
Indian BankAs per applicant’s profile9.20% onwards
Indian Overseas BankUp to 15 lakh10.30% onwards
IndusInd Bank50,000-15 lakhs11% onwards
Kotak Mahindra Bank50,000-20 lakh10.75 onwards
Kreditbee1000 to 2 lakh1.02% p.m. onwards
MoneytapRs. 3000 to Rs. 5 lakh1.25% p.m. onwards
MoneyviewRs. 10,000 to Rs. 5 lakh1.33% p.m. onwards
Muthoot FinanceRs. 50,000 onwardsVaries based on applicant profile
Punjab National Bank25,000 to 15 lakh8.95% onwards
RBL Bank1 lakh to 20 lakh14% onwards
Standard Chartered Bank1 lakh-50 lakhs11.00% onwards
State Bank of IndiaUp to 20 lakhs9.60% onwards
TATA Capital75,000 to 25 lakh10.99% onwards
UCO BankUp to 10 lakh8.45% onwards
Union Bank of IndiaUp to 15 lakh8.90% onwards
Yes Bank1 lakh to 40 lakh10.75% onwards
SBI9.25% onwards
HDFC Bank9.35% onwards
ICICI Bank9.55% onwards
Axis Bank9.50% onwards
IDBI Bank9.95% onwards
Punjab National Bank9.25% onwards
Bank of India9.25% onwards
Syndicate Bank10.1% onwards
CitiBank8.80% onwards
Syndicate Bank11.50% onwards
HDFC Ltd.9.50% onwards
State Bank of India9.60% onwards
Kotak Mahindra Bank9.60% onwards
ICICI Bank9.80% onwards
IDBI Bank10.10% onwards
Bajaj Finserv10.10% onwards
PNB Housing Finance Ltd.10.25% onwards
Tata Capital10.50% onwards
LIC Housing Finance Ltd.11.30% onwards
Axis Bank11.35% onwards
PaySense18% to 36% p.a.
Rupeelend30% for 30 days
CASHe1.75% onwards for 15-day loan
CASHe3.25% onwards for 30-day loan
CASHe2.75% onwards (monthly) for 90-day loan
CASHe2.50% per month for 180-day loan
Money View1.33% – 2% p.m.
Credy1% – 1.5% p.m.
EarlySalary2.5% p.m.
LazyPay15% – 32% p.a.
mPokketBased on lender’s terms
MoneyinMinutes0.1% – 0.7% per day
QuickCredit1% per day
FlexSalaryUp to 3% per month

Frequently asked questions

What are the other benefits included in an education loan?

Education loan not only provide education, but it also covers other expenses, such as traveling fee, fooding and lodging, etc.

What’s the maximum amount which one can get?

The maximum loan amount for domestic studies is vary bank by banks, whereas for study in abroad, you can get a maximum Loan on Need Based.

What courses are eligible for education loans?

List of courses eligible for education loan are: 1. Graduation and Post-graduation courses. 2. Professional courses. 3. Diploma/degree courses by recognized institutions.

How to avail tax benefits on education loan?

You can avail tax benefits under section 80C and Section 80E of the Income-tax Act, 1961 for education loan’s interest and payment.


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