An education loan is a financial product offered by banks and financial institutions to help students pay for their education expenses, including tuition fees, books, accommodation, and other related costs. It can be availed for studies in India or abroad.
Generally, Indian citizens aged between 16–35 years who have secured admission to a recognized educational institution in India or abroad are eligible. A co-borrower (usually a parent/guardian) is often required.
The moratorium period is the time during which you are not required to make any repayments on the education loan. It typically includes the course duration plus 6–12 months after course completion.
Repayment usually starts 6–12 months after the completion of the course or when the borrower gets a job, whichever comes first.
Repayment can be done through EMIs (Equated Monthly Installments) over a tenure ranging from 5–15 years, depending on the loan amount and lender’s terms.
Yes, most lenders allow prepayment of education loans, often without any penalty. Prepayment reduces interest burden.
Repayment begins after the moratorium period via EMIs. You can set up automatic bank deductions or make payments online/offline directly to the lender.
Yes, under Section 80E of the Income Tax Act, you can claim a deduction on the interest paid for up to 8 years from the start of repayment.
Missing payments can lead to penalty charges, increased interest costs, and a negative impact on your credit score.
Some lenders allow restructuring of repayment terms based on your financial situation. This may include extending tenure or changing EMI amounts.
Yes, some lenders provide education loans to international students, often requiring a co-borrower in the lender’s country or collateral.
Most lenders require a co-borrower (parent/guardian) or a guarantor, especially for larger loan amounts or unsecured loans.
You can apply online or offline by submitting the loan application form, proof of admission, ID documents, financial documents, and collateral details (if applicable).
The maximum loan amount varies by lender. For studies in India, it may go up to ₹10–20 lakhs, while for abroad studies it can be ₹20–50 lakhs or more.
Common documents include admission letter, academic records, KYC documents, income proof of co-borrower, collateral documents (if applicable), and bank statements.
It’s best to apply as soon as you receive your admission letter, allowing enough time for loan processing before your course begins.
Yes, many banks offer education loans to NRI students for pursuing studies in India or abroad, often requiring an Indian co-borrower.