Education Loan Guide
Compare banks, NBFCs & government schemes to fund your higher education.
Max Loan
Up to ₹1.5 Cr
Interest Rate
8% – 16% p.a.
Moratorium
Course + 6–12 mo
Tax Benefit
Sec 80E Deduction
How to Get an Education Loan
Check Eligibility
Course level, institution, admission letter & co-applicant income.
Compare Lenders
Compare interest rates, processing fees, moratorium & repayment tenure.
Gather Documents
Admission letter, fee structure, KYC, income proof & collateral (if required).
Submit Application
Apply online or visit branch; a processing fee is usually charged.
Loan Disbursal
Amount disbursed in instalments directly to the institution.
Collateral-Free Loans
Most banks offer collateral-free loans up to ₹7.5 Lakh (under IBA Model Loan Scheme). Some NBFCs offer up to ₹40 Lakh without collateral for top institutions.
- No security required up to ₹7.5 L
- Co-applicant (parent/guardian) required
- Faster approval process
- Ideal for UG/PG at recognized colleges
Secured Loans
Higher amounts (₹10 L – ₹1.5 Cr) typically require collateral such as property, FD or LIC policy. Common for study abroad or premium institutions.
- Lower interest rates than unsecured loans
- Higher loan amounts available
- Property/FD/LIC accepted as collateral
- Preferred for study abroad programs
Section 80E Tax Deduction
Interest paid on an education loan is fully deductible under Section 80E of the Income Tax Act — for up to 8 years from the start of repayment. There is no upper limit on the deduction amount.
- Available to the individual who took the loan
- Covers loans for self, spouse, children or legal ward
- No cap on deduction amount
- Available for 8 consecutive years
Reduce your loan burden with scholarships
Find government, merit and need-based scholarships that can significantly reduce the amount you need to borrow.