Top 10 Banks for Education Loans to students of India.
Share this article

Why education loan is required?

 A student loan can be a great way to cover the cost of an education when family resources are insufficient. Banks and other financial organizations can be approached to provide a loan, which can be used to pay for all or part of educational expenses.

Education Loan for Abroad studies:-

 Studying abroad can be a life-changing decision, however, that does not come easy. For students from low-income families, however, this goal can be out of reach.

Those who want to pursue higher studies abroad, but find it difficult to arrange for funds, now have the option to make arrangements for funding their education. In this article, we will cover every detail related to education loans from the top 10 different banks for studying abroad and in India.

Education Loan in India:

Some of the Leading Indian banks offer education loans to help students achieve their academic objectives. A school loan with a payback duration of up to 20 years at 7% per year in interest is available. Both in the country and out of the country higher education can benefit from education loans.

Eligibility criteria to apply for the education loan:-

The first and foremost thing is to check, whether you are eligible to apply for an education loan or not from the bank. Below we provide the general terms and conditions that are usually followed by any bank in the process of granting an education loan.

Kindly note that individual banks could have their eligibility guidelines which would have to be adhered to when applying to that particular bank.

  • The student must be an Indian national citizen.
  • If the applicant is under 18 years old, then his or her parents will have to take out the loan.
  • The student must have a strong academic record.
  • The student must have been accepted to a reputable overseas university institution or college.
  • Since banks favour courses that are job oriented, the applicants chosen courses must be technical or professional.
  • Underwriting norms are the standards set out by loan providers to guarantee that only safe and secure loans are made available to the student.
  • The banks determine whether or not to provide a person with a study loan for overseas study, as well as how much money the firm is prepared to loan and at what rate of interest.

Punjab National bank –Education Loan:-

  • The maximum loan amount is Need based.
  • Maximum loan tenure is 15 years. Nil Collateral up to 7.5Lakh.
  • Margin –Nil up to Rs. 4 Lakh
  • Loans offer to Indian residents and OCIs/PIOs students born abroad to Indian parents and who want to pursue studies in India.
  • No securities required up to Rs. 7.50 Lakhs.
  • The moratorium period is a course period and 1 year.
Top 10 Banks for Education Loan to students of India.

State Bank of India –Educational Loan:

  • No collateral or third-party guarantee is required up to Rs. 7.5Lakhs.
  • Repayment is to be done one year after course completion.
  • Repayment up to 15 years post the course completion+12 months
  • There is a Zero processing fees for loans up to Rs. 20 Lakhs.
  • A second loan can be availed for completing higher studies.
Top 10 Banks for Education Loan to students of India.
Axis bank Student Educational Loan

AXIS Bank-Education Loan:-

  • Minimum loan amount Rs. 50,000
  • Maximum Loan Tenure is 20 years
  • Margin is NIL up to Rs. 4 Lakhs
  • Secure a loan before admission based on profile.
  • The loan will be disbursed within 15 days from the date the bank receives your complete application.
  • Unsecured loans up to Rs. 20 Lakh for working professionals.

Bank of Baroda –Education Loan:-

  • The maximum Loan amount is Rs.150 Lakhs
  • No security up to Rs. 7.5 Lakhs
  • No margin on loans up to Rs. 4 lakh
  • No processing fees
  • No documention charges
Top 10 Banks for Education Loan to students of India.

HDFC Bank-Educational Loan:-

  • The maximum Loan amount is Rs. 1.5 Crore
  • The loan repayment to the student tenure is 15 Years.
  • Easy documentation process
  • No collateral required up to Rs. 7.5 Lakh
  • Tax benefits can be availed on educational loan
  • The loan amount will be directly disbursed to the institution based on its fee structure.

Tata Capital-Educational Loan:-

  • The maximum Loan amount is Rs. 30 Lakhs
  • Colleteral NIL up to Rs. 4 Lacs
  • The rate of Interest starts from 10.99% in this bank.
  • The processing amount will be 2.75% of the loan amount
  • Choose three EMI plans at your convenience.
  • Minimum document and quick approval of the loan.
Top 10 Banks for Education Loan to students of India.

 IDBI Bank -Educational Loan:-


  • IDBI Bank is one of the leading providers of educational loans in India.
  • The bank offers loans of up to Rs 20 lakhs for education within India and up to Rs 30 lakhs for education abroad.
  • These loans cover tuition fees, examination fees, travel expenses, course materials, laboratory fees, library fees, and other related expenses.
  • To be eligible for an education loan, you must be enrolled in one of the diplomas, CPA, CIMA, graduate, or postgraduate courses in a reputable institution.
  • Like BOB, IDBI Bank requires a third-party guarantee if your education loan is between Rs 4 lakhs and Rs 7.5 lakhs.
  • If your education loan is more than Rs 7.5 lakhs, the bank requests that you provide a co-borrower and tangible collateral security.
  • However, if your loan is less than Rs 4 lakhs, the bank will not take any collateral security.



Canara Bank-Educational Loan:-


  • Canara Bank offers an education loan with a maximum of Rs. 40 lakhs for premier institutions and up to Rs. 20 lakhs for other institutions.
  • No collateral security is required for loans up to Rs. 4 lakhs, and a third-party guarantee is needed for loans from Rs. 4 lakhs to Rs. 7.5 lakhs.
  • Loans over Rs. 7.5 lakhs require a co-borrower and tangible collateral security.
  • The repayment period is up to 10 years for loans up to Rs. 7.5 lakhs, and up to 15 years for loans above Rs. 7.5 lakhs. Female students are eligible for a 0.5% discount on the interest rate.
Top 10 Banks for Education Loan to students of India.

ICICI Bank-Educational Loan:-


  • ICICI Bank is another great education loan provider in India. It offers Rs. 50 lakh for Indian education and Rs. 1 crore for international education.
  • There is no collateral security for education loans of up to Rs. 20 lakh if you are applying for undergraduate courses and up to Rs. 40 lacks if you are applying for post-graduate courses.
  • No loan margin is required if your education loan is up to Rs. 20 lacks. The ICICI Bank’s interest rate ranges between 10.25% and 12.75%.
  • You will need to start repaying your loan after six months of completing your course. Avanse Financial Services is one of the best education loan providers in India as it processes your application quickly.
  • It offers loans for education seekers at over 1600 universities around the world.
  • To apply for the Avanse education loan, you should submit the KYC documents, collateral security requirements, income documents, course fees, and other important documents.
  • Avanse will determine the security collateral according to the loan amount. The loan covers tuition fees, travel expenses, living expenses, book fees, and other related expenses.
  • There is no maximum loan amount as it is customized according to your needs. However, the minimum loan amount for Indian education is

For Which Courses Banks provide Loans in India:-

  • Undergraduate programs
  • Postgraduate programs
  • Doctoral courses and PhDs
  • Certificate courses of 6 months or longer duration
  • Job-oriented courses
  • Technical/diploma/professional courses

 List of Expenses Covered in Education Loan

 Here’s what the loan amount will cover:

  • Tuition fees
  • Hostel fees
  • Travel expenses passage money for students studying abroad
  • Insurance premium
  • Cost of books/equipment/instruments/uniform
  • Examination/laboratory/library fees
  • Cost of a computer/laptop required for course completion
  • Caution deposit, building fund/refundable deposit supported by institution bills/receipts
  • Any other expenses required to complete the course such as study tours/thesis/project work.

List of Documents Required for Education Loan


Here is an indicative list of documents that most lenders ask for:

  • Admission letter from the educational institution
  • Mark sheets (previous education – school/college)
  • Age proof
  • ID proof
  • Address proof
  • Signature proof
  • Salary slips
  • Recent bank account statements
  • ITR with the income computation
  • Audited balance sheet
  • Recent bank statements
  • Proof of turnover (service tax return/sales receipt)
  • Completed application form with signature
  • Latest passport-size photographs
  • Appropriate Visa for studies abroad



  1. Question:-What are the 4 types of student loans?
  2. Answer:-There are four types of federal student loans: Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans. Private student loans are issued through institutions like banks, credit unions, schools, and even state agencies.
  1. Question:-Who is eligible for an education loan?
  2. Answer:-The candidate applying for the loan must be a resident of India. He/she must have confirmed admission to recognized educational institutes in India or abroad. The age of the candidate must fall within the bracket of 18 to 35 years during loan application.
  1. Question:- Can I get an education loan without my parents?
  2. Answer:-It is to keep in mind that you get an education loan without a financial co-applicant but a primary co-applicant is mandatory for contact purposes only and their financial status will not be checked. Co-applicant should be of your first family i.e parents, parents-in-law, siblings, and spouse.
  1. Question:-What percentage is required for an education loan?
  2. Answer:-Must have secured at least 50% in Higher Secondary and Graduation. University or college should be in the bank’s categorical list of educational institutions. Co-applicant’s salary should be sufficient to pay simple interest during the moratorium period.
  1. Question:-How many years will it take to repay an education loan?
  2. Answer:-The Loans are sanctioned as Term Loans and are to be repaid in EMIs over a maximum repayment term of 15 years(180 EMIs) for Student, Scholar, and Global Ed-vantage Education Loans.
  1. Question:- Is education loan easy without collateral?
  2. Answer:-Any student without collateral to pledge can apply for an education loan as long as they can arrange for a co-applicant to co-sign the loan. 4. Almost all loans without collateral come without a holiday period.
  1. Question:- Which bank gives study loans easily?
  2. Answer:-Bank of Barodaoffers various education loans at attractive interest rates with repayment tenure of up to 15 years. No collateral needs to be provided for education loans of up to Rs. 40.00 lahks for the identified premier institutes.

Share this article


I am Ajay Kumar Patra. ( & MBA-Finance) with 27years of Accounts & Taxation Experience in Large Manufacturing Units in India. In 2021 I started my own tax consultancy firm called “Ajay Tax consultant”. I started my Digital marketing on my website "".I have already published more than 100 Blogs on Business, Finance, startups, Digital marketing & Tours & Travel for my viewers.