Education Loan in India
Compare Education Loan Options, Interest Rates, Eligibility, Documents & Repayment Terms.
Planning higher education in India or abroad? Understand available financing options and prepare your application with professional loan assistance from LoansBazaar India.
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Education Loan at a Glance
Study in India
Explore financing for eligible graduation, postgraduate, professional and technical courses.
Study Abroad
Explore eligible overseas education financing, including approved tuition and living expenses.
EMI Planning
Estimate monthly repayments, total interest and overall repayment cost.
Secured Loans
Some schemes allow higher financing against acceptable collateral.
Document Guidance
Understand common academic, KYC and co-applicant documents.
Application Assistance
Understand available options and application steps across India, subject to service availability.
What Is an Education Loan?
An education loan is a financing facility offered by banks and eligible financial institutions to help students meet approved higher education expenses. Depending on the scheme, funding may cover tuition fees, examination charges, hostel expenses, books, equipment and other eligible costs.
Lenders assess the course, institution, admission status, academic background, co-applicant's financial profile and applicable security requirements. The final sanctioned amount and conditions depend on the lender's assessment.
Education Loan Amount & Financing Limits
Loan limits differ significantly by lender, course, institution category and security. The following are examples of published lender product limits, not a guarantee of eligibility.
| Bank / Scheme | Published financing information | Important condition |
|---|---|---|
| SBI Student Loan | Standard scheme with different security rules above and below ₹7.50 lakh | Collateral and margin requirements depend on the loan slab and scheme. |
| SBI Global Ed-Vantage | Up to ₹3 crore under the published scheme | Institution eligibility and security conditions apply. |
| ICICI Bank Education Loan | Published product information lists up to ₹2 crore for studies in India and ₹3 crore for studies abroad | Scheme, institute and applicant conditions apply. |
Official product pages: SBI Student Loan · SBI Education Loan Rates · ICICI Bank Education Loan
Education Loan Interest Rates
Interest rates can be fixed or floating, depending on the scheme. Rates may change with the lender's benchmark and depend on the course, institution, loan amount, security and applicant profile.
| Selected SBI Scheme | Published Rate |
|---|---|
| PM-Vidyalaxmi – Utkarsh | 6.90% p.a. |
| PM-Vidyalaxmi – Uttam | 7.20% p.a. |
| PM-Vidyalaxmi – Uday | 8.40% p.a. |
| Student Loan – up to ₹7.50 lakh, without collateral | 9.90% p.a. |
| Student Loan – above ₹7.50 lakh, with collateral | 9.40% p.a. |
| Global Ed-Vantage – selected institutions, without collateral, above ₹7.50 lakh to ₹50 lakh | 9.40% p.a. |
| Global Ed-Vantage – with collateral, above ₹7.50 lakh to ₹3 crore | 8.90% p.a. |
Rates above are taken from SBI's published schedule effective 9 June 2026, retrieved October 2026. Eligibility, scheme conditions and subsequent revisions may affect the actual rate offered.
Verify SBI Interest Rates ↗ ICICI Rates & Charges ↗Education Loan: Secured vs. Unsecured
| Feature | Without Collateral | With Collateral |
|---|---|---|
| Security | No property collateral under eligible schemes | Acceptable security may be required |
| Loan amount | Scheme-specific; high limits only for eligible applicants | May support higher funding, subject to scheme and valuation |
| Interest rate | Depends on the lender and student profile | May be lower under certain schemes |
| Co-applicant | Parent or eligible co-borrower commonly required | Parent or eligible co-borrower commonly required |
| Documentation | Academic, KYC and financial documents | Academic, KYC, financial and security documents |
| Approval | Subject to lender assessment | Subject to lender assessment and security verification |
A collateral-free loan is not automatically approved. Co-applicant requirements, academic criteria, repayment capacity and other conditions may still apply.
Education Loan Processing Fees
Processing fees vary by bank and scheme. The following are the published processing charges for SBI's Student Loan Scheme.
| Loan Amount | SBI Student Loan Processing Charges |
|---|---|
| Up to ₹10 lakh | Nil |
| Above ₹10 lakh to ₹20 lakh | ₹5,000 + applicable GST |
| Above ₹20 lakh | 0.50% of loan amount, capped at ₹25,000 + applicable GST |
Source: Official SBI Student Loan Scheme. Other schemes may have different fees. Check valuation, legal and other applicable charges separately.
Education Loan EMI Calculator
Enter your expected loan amount, annual interest rate and repayment period to estimate your monthly EMI. This calculator uses the standard reducing-balance EMI formula.
Total Interest: ₹5,51,360
Total Repayment: ₹15,51,360
Illustrative estimate only. This calculation assumes a constant interest rate and regular monthly repayments. It excludes moratorium-period interest, fees, insurance and any changes to floating rates. Actual EMI may differ.
Education Loan Eligibility
Student Requirements
- Meets the lender's nationality and age criteria.
- Admission to an eligible recognised institution or course.
- Required academic records and admission documents.
- Course and expenses meet the scheme's requirements.
Co-applicant & Financial Review
- Parent, guardian or other eligible co-applicant, as required.
- Income and repayment-capacity assessment.
- Credit history checks, where applicable.
- Collateral and margin contribution, if required.
These are general criteria, not a guarantee of eligibility. Specific requirements differ by lender and scheme.
Documents Required for an Education Loan
Student Documents
- PAN and accepted identity/address proof.
- Recent photographs.
- Academic marksheets and certificates.
- Admission letter and course fee structure.
- Scholarship details, if applicable.
- Passport, visa and overseas study details, where relevant.
Co-applicant / Security Documents
- PAN, identity and address proof.
- Salary slips, Form 16 or income tax returns, as applicable.
- Bank statements and income evidence.
- Property title and related documents, if collateral is required.
- Other documents requested by the lender.
Repayment Tenure & Moratorium
Some education loan schemes offer repayment periods of up to 15 years, subject to the lender's conditions. The repayment holiday may cover the course period plus a specified additional period.
- Confirm when interest begins to accrue.
- Check whether interest must be paid during the course.
- Understand how unpaid moratorium interest affects the outstanding balance.
- Verify the EMI commencement date and repayment tenure.
- Review applicable prepayment and foreclosure conditions.
For SBI's Student Loan Scheme, repayment is generally scheduled after the course period plus the specified repayment holiday, with the published repayment period subject to scheme conditions.
View Official Repayment Terms ↗How to Apply for an Education Loan
01. Share Requirement
Identify the course, university, study destination and estimated expenses.
02. Explore Options
Review relevant schemes, eligibility and security conditions.
03. Prepare Documents
Organise academic, KYC and co-applicant financial records.
04. Submit Application
Apply through the relevant bank or official application portal.
05. Complete Verification
Respond to lender requests for documents and verification.
06. Review Sanction
Check the interest rate, fees, repayment terms and disbursement conditions.
Why LoansBazaar India?
Professional Assistance
Guidance on understanding loan options and preparing an application.
Transparent Information
Understand applicable rates, fees, eligibility and repayment conditions.
Pan-India Service
Loan enquiry assistance across India, subject to service and lender availability.
LoansBazaar India is a digital loan assistance platform. Assistance does not constitute a guarantee of sanction or disbursement. Final decisions rest with the concerned lender.
Frequently Asked Questions
1. Can I apply for an education loan online?
Yes. You can explore bank websites or the official PM-Vidyalaxmi portal, where applicable. Follow the lender's application and verification process.
2. Can I get an education loan without collateral?
Some schemes offer collateral-free loans for eligible students and institutions. Limits and conditions depend on the lender and applicable scheme.
3. Can I apply for overseas education?
Eligible students may apply for overseas education financing. University, country, course, co-applicant and security criteria vary.
4. Does an education loan cover hostel fees?
Eligible hostel fees and other approved education expenses may be covered, subject to scheme rules and supporting documents.
5. When does EMI repayment begin?
Repayment generally begins after the applicable course period and repayment holiday. Refer to the sanction terms because interest may accrue during the moratorium.
6. What is the minimum CIBIL score required?
There is no single universal CIBIL score applicable to every education loan. Lenders may assess the co-applicant's credit history and other financial factors.
7. Are government interest subsidies available?
Eligible students may qualify for government-supported assistance under applicable schemes. Check the official portal for current eligibility, benefits and application requirements.
8. Does LoansBazaar India guarantee approval?
No. LoansBazaar India provides information and application assistance. Approval, interest rates, loan amount and disbursement are subject to the lender's assessment and final decision.
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Official Sources
Disclaimer
This page provides general educational information and application assistance. Interest rates, loan amounts, processing fees, eligibility criteria, collateral requirements, repayment terms and government scheme benefits may change and vary by lender and applicant. Published SBI rates and fees shown here are scheme-specific examples, not universal market rates or guaranteed offers. Verify all current terms directly with the relevant bank or official portal before applying. LoansBazaar India does not guarantee loan approval, a specific interest rate, sanction amount or disbursement. Final decisions are subject to lender eligibility, policies, verification and approval.
Education Loan: Secured vs. Unsecured
Compare education loan amounts, indicative interest rates, repayment tenure and security requirements before selecting a suitable financing option.
Without Collateral (Unsecured)
₹7.50–50 Lakh
Illustrative general financing range; eligible premium-institute schemes may offer higher limits.
- Loan amount: ₹7.50 lakh–₹50 lakh under selected schemes.
- Interest rate: Indicative 9.40%–13.50% p.a.; actual rates depend on the lender and scheme.
- Repayment tenure: Up to 10–15 years under eligible schemes.
- Collateral: No property collateral under eligible unsecured schemes.
- Co-applicant: Parent or eligible co-borrower commonly required.
- Processing fee: Scheme-dependent; some products have nil fees while others charge a fee.
With Collateral (Secured)
₹7.50 Lakh–₹3 Crore*
Illustrative financing range based on selected schemes, not a universal lender limit.
- Loan amount: Higher limits may be available based on the scheme and eligible education expenses.
- Interest rate: Indicative 8.90%–10.50% p.a. for selected schemes; rates may be higher or lower.
- Repayment tenure: Up to 10–15 years under eligible schemes.
- Collateral: Acceptable property or other security permitted by the lender.
- Co-applicant: Commonly required, subject to scheme conditions.
- Processing fee: Depends on the bank, loan amount and product.
| Comparison Feature | Unsecured Loan | Secured Loan |
|---|---|---|
| Indicative loan amount | ₹7.50 lakh–₹50 lakh under selected schemes | May extend to ₹3 crore under eligible schemes |
| Interest rate | Indicative 9.40%–13.50% p.a. | Indicative 8.90%–10.50% p.a. |
| Repayment tenure | Up to 10–15 years, subject to scheme | Up to 10–15 years, subject to scheme |
| Property collateral | Not required under eligible unsecured schemes | May be required |
| Processing fees | Scheme-specific; may be nil or chargeable | Scheme-specific; additional legal or valuation charges may apply |
| Approval assessment | Course, institution, co-applicant and lender criteria | Course, institution, co-applicant, security value and lender criteria |
Example: Estimated EMI Comparison
The following illustration assumes a ₹20 lakh loan with a 10-year repayment period, at constant interest rates of 10% and 9% respectively.
| Illustrative Loan | Annual Rate | Monthly EMI | Total Interest |
|---|---|---|---|
| ₹20,00,000 — Unsecured example | 10.00% | Approx. ₹26,430 | Approx. ₹11.72 lakh |
| ₹20,00,000 — Secured example | 9.00% | Approx. ₹25,336 | Approx. ₹10.40 lakh |
EMIs are mathematical illustrations based on monthly reducing-balance calculations. Actual rates, fees, moratorium interest and repayment terms may differ.
Official verification: SBI Education Loan Interest Rates | SBI Student Loan Scheme