Educational Loans in India: Complete Guide, Top Banks & NBFCs, Eligibility, Interest Rates, and How to Get the Best Deal.

Educational loans in India explained in detail. Learn about top banks, NBFCs, eligibility, interest rates, tax benefits, repayment terms, and how GrowMoreLoans helps students get the best education loan deals.

Introduction: Why Educational Loans Matter in India.

Higher education in India and abroad has become increasingly expensive. With rising tuition fees, accommodation costs, and living expenses, education loans in India have emerged as a crucial financial tool for students and parents. Whether pursuing engineering, medical, MBA, or overseas education, student loans enable access to quality education without immediate financial burden.

India’s education loan ecosystem includes public sector banks, private banks, NBFCs, and fintech platforms, each offering different terms, interest rates, and eligibility norms.

We provide a comprehensive guide to educational loans in India, covering top lenders, terms & conditions, interest rates, tax benefits, and how professional loan advisors like GrowMoreLoans.com simplify the entire process.

Also Read: Profectus Capital—Educational Institution Loans Made Simple

What is an Educational Loan?

An education loan is a financial product designed to fund a student’s higher education expenses, including:
Tuition fees,
Hostel and accommodation charges,
Books and study materials,
Laptop and equipment,
Travel expenses (for overseas education),
Examination and library fees,

These loans typically come with moratorium periods, allowing students to repay after completing their education..

Types of Educational Loans in India.

1. Education Loans for Studies in India
Engineering, Medical, Law, MBA, CA, CS, etc.
Offered mainly by PSU banks and private banks
Lower interest rates compared to overseas loans

2. Education Loans for Overseas Studies
USA, UK, Canada, Australia, Europe, Singapore, etc.
Higher loan amounts
Often require collateral for large ticket sizes.

3. Collateral-Free Education Loans
Usually up to ₹7.5 lakhs in India
Offered by PSU banks and select NBFCs
Higher interest rates compared to secured loans.

4. Secured Education Loans
Backed by property, FD, LIC, or other assets
Lower interest rates
Higher loan eligibility.

Top Educational Loan Providers in India.

Public Sector Banks
State Bank of India (SBI Education Loan)
Bank of Baroda
Punjab National Bank
Canara Bank
Union Bank of India

Advantages:
Lower interest rates, government-backed schemes, tax benefits

Private Sector Banks
HDFC Bank
ICICI Bank
Axis Bank
IDFC First Bank

Advantages:
Faster processing, flexible documentation, better digital experience

NBFCs & Fintech Lenders
HDFC Credila
Avanse Financial Services
InCred
Auxilo
Tata Capital

Advantages:
High loan amounts, customized overseas education loans, quicker sanctions
Interest Rates on Educational Loans
Interest rates vary based on lender, course, country, and collateral.

Lender Type
Interest Rate Range :

PSU Banks: 8.0% – 10.5%
Private Banks : 9.5% – 13.0%
NBFCs : 10.5% – 15.0%

Rates may change based on market conditions and borrower profile.

Broad Terms and Conditions of Education Loans
Eligibility Criteria: Indian citizen
Confirmed admission to recognized institution
Strong academic background
Co-applicant (parent/guardian)

Loan Amount
India: Up to ₹10–₹20 lakhs
Abroad: Up to ₹1.5 crore (with collateral)

Margin Money
5% for loans up to ₹4 lakhs
10–15% for higher loan amounts

Moratorium Period
Course duration + 6–12 months
No EMI during study period (interest may accrue)

Repayment Tenure
Up to 15 years after moratorium
Flexible EMI structures available

Tax Benefits on Educational Loans
Under Section 80E of the Income Tax Act, borrowers can claim:
100% deduction on interest paid
No upper limit
Available for up to 8 years
This makes education loans one of the most tax-efficient financing options in India.

Also Read: ₹100 Crore for a Nobel Prize: Why Chandra Babu Naidu Is Thinking Decades Ahead of Indian Politics.

Common Challenges Faced by Students:

Loan rejection due to low credit score of co-applicant
Confusion between bank and NBFC offerings
Delays in disbursement
Complex documentation
High interest rates due to poor guidance

How GrowMoreLoans.com Simplifies Education Loans:

GrowMoreLoans.com is a professional education loan advisory platform that helps students and parents secure the best education loan deals across banks and NBFCs.

Why Choose GrowMoreLoans.com?.

Access to multiple lenders
Personalized loan structuring
Faster approvals and disbursement
Support for domestic & overseas education loans
End-to-end documentation assistance.

Contact Details
📞 Mobile / WhatsApp: 98200-88394
📧 Email: intellex@intellexconsulting.com

GrowMoreLoans acts as a single-window solution, saving time, money, and effort while maximizing approval chances.

Tips to Get Education Loan Approved Faster:

Maintain a good credit score of co-applicant
Choose the right lender based on course & country
Opt for secured loans for better interest rates
Apply early to avoid last-minute delays
Use expert advisors like GrowMoreLoans.com

Conclusion:

Education loans in India have become a powerful enabler of academic and career growth. With multiple banks and NBFCs offering tailored products, choosing the right lender is critical. By understanding interest rates, terms, tax benefits, and eligibility, students can make informed decisions.
For hassle-free processing and expert guidance, GrowMoreLoans.com stands out as a trusted education loan service provider in India.