This document provides information about obtaining education loans in India. It notes that education costs have increased significantly, necessitating loans for many students pursuing higher education. Education loans in India can range from Rs. 3 lakhs to Rs. 25 lakhs, depending on the course and institution. Interest rates typically range from 12-15% and loans cover tuition as well as other education expenses. Co-signers are usually required and repayment begins 6 months to 1 year after completing their studies. Larger loans over Rs. 7.5 lakhs may require collateral like a property. The major banks that offer education loans in India are listed at the end.

1. How to Get Education Loan in India

2. Today, loans have become an integral part of our life when it comes to purchasing a
new car or a home or for pursing higher education in India and abroad. With the
continuous increase in college fees, we have no option left but to go for education
loan.

3. For engineering courses, the total fees vary from Rs. 4 lakhs to Rs. 20 lakhs, and for
medical courses fees could goes up to Rs. 40 lakhs. It is also a well-known fact that in
India numbers of private colleges is higher than the number of government colleges.

4. In private colleges, fees for engineering or medical courses are much higher
compared to fees in Government colleges.
There has been a continuous increase in the number of students going abroad for
undergraduate’s courses.

5. Many students prefer to pursue their undergraduate courses in US, UK and Australia
instead of studying in India. Banks in India offer education loans Upto Rs. 10 lakhs for
pursuing courses in recognized Indian colleges and Upto Rs. 20 lakhs for enrolling in
courses oversees.

6. For post-graduate courses in top Indian engineering and managementcolleges such
as IIT, IIM, ISB and XLRI banks offer education loans Upto Rs 20 lakhs. Amount of loan
also depends on the college and courses. Ticket size of education loans in India varies
between Rs. 3 lakhs and Rs. 25 lakhs.
These loans cover fees for tuition, library, hostel, examination, costs of buying books
and travel expenses.

7. In some cases, there may be limits on each specific item. Education loans also pay
expenses for project work and study tours.
1. Co-borrowers and guarantors:-
In almostall education loans, there is a need for a co-applicant, typically an earning
member of the family. This can include parents, spouse or siblings.

8. 2. Interest rates:-
Currently, interest rate on education loans is range from 12% to 15%, depending
upon the college and loan amount. For premier institutions, bank offer discount Upto
25 base points (0.25%).

9. 3. Repayment time-period:-
After completing of the course, applicant gets a moratorium of minimum 6 months to
1 year, before which they muststart repaying the loan. In engineering courses,
students get 4 years (complete course duration) along with 1 extra year, to start
repaying. Repayment starts after the moratorium period or when the student gets a
job, whichever is earlier.

10. 4. Why you should take a loan:-
No deserving candidate should be denied education for want of money. Many
students decide not to pursue higher studies as their parents don’t have enough
money to support the education. With most banks now offering education loans at
low interest rates, such candidates can complete their education easily.

11. 5. Security or collateral:-
Typically, higher value education loans (above Rs. 7.5 lakhs) need an immoveable
property such as a house as collateral.
Major Banks offering education loans in India are SBI, Axis Bank, ICICI< IDBI, PNB,
OBC, HDFC – Credila and Avanse.

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