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Starting at 4% Simple Interest for students in India & abroad. A perfect solution for your education financing needs.
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Empowering Students
Through Education Loans
Our mission is to simplify the loan process and ensure students get
the best possible funding options.
What Is An Education Loan?
Education loans are the loans offered to students to finance their higher education in India and abroad. Financial institutions like Public sector banks, Private banks, and NBFCs offer education loans in India. The banks evaluate several factors, including the country(overseas, domestic), the course (undergraduate, postgraduate), the student’s profile, and the co-applicant’s income and creditworthiness, to provide student loans. These factors decide the loan terms, such as the Loan amount, interest rate, Moratorium period, and the education loan Repayment period.
Study loans in India offer various benefits, including higher loan amounts, lower interest rates, long repayment tenure, and an income tax rebate on education loans etc. To know more about each of these aspects, keep on reading and comment if you have any further queries.
Features and Benefits of a Study Loan in India
The funds provided by the student loans help students cover their educational expenses, including the tuition fees, hostel charges, travel, books, and other essential costs. This ensures that financial constraints do not become a barrier to pursuing higher education in India or abroad.
A loan amount of up to ₹3 crores can be offered with student loan interest rates starting
from 8.15%
Tax Benefits on Student Loans
Student loans offer certain tax benefits, such as an income tax rebate on education loans and
TCS on foreign remittance, to the borrowers of the loan:
-
Income Tax rebate on education loans:
Under section 80E of the Income Tax Act 1961, borrowers can claim tax
deduction of the interest paid on education loans for a maximum of 8 years. -
TCS on foreign remittance:
When you send money abroad, you need to pay TCS on foreign remittance. TCS is 5% of the
money when you are transferring money from your account. However, the TCS on the funds
transferred through an education loan is 0%. This means there is no TCS on foreign
remittances through an education loan in India.
Expenses Covered in an Education Loan
Here is the list of Expenses Covered in an Education Loan:
- Tuition fees – The tuition fee is covered in all education loans, as it is the
primary expense that students have to pay. The tuition fee is mentioned in your offer
letter or admit card provided by your university. It is disbursed directly into the
university’s bank account.
- Tuition fees – The tuition fee is covered in all education loans, as it is the
primary expense that students have to pay. The tuition fee is mentioned in your offer
letter or admit card provided by your university. It is disbursed directly into the
university’s bank account.
Education Loan Eligibility Criteria
In the sections below you can check the applicant and co-applicant education loan
eligibility, CIBIL requirements with the acceptable universities and courses:
Applicant:
- Overseas Citizens of India (OCI) and Persons of Indian Origin (PIOs) are eligible
for student loans to study in India but not for overseas education. - The co-applicant must also be an Indian citizen residing in India or an NRI.
Co-applicant:
- Overseas Citizens of India (OCI) and Persons of Indian Origin (PIOs) are eligible
for education loans to study in India but notfor overseas education. - Applicants must have any of their parents/ parent-in-law/ siblings/ spouse as their
co-applicants while applying for a student loan - The applicant should have an admission letter from a recognized School abroad or in
India.
University and course:
- The applicant must have opted for a full-time or part-time UG/PG program.
- An exceptional academic record is always beneficial for the process.
What Will Improve My Education Loan Eligibility?
- Banks carefully assess students’ education loan eligibility to make sure they
qualify. They consider factors like a strong academic record, admission to a
reputable university, the financial stability of parents or guardians, potential for
future employment, and income generation also play a role in making a student
eligible.
Note: However, the specific education loan eligibility depends on your bank and the scheme under which you are taking the education loan. There is always a possibility of deviation from the usual process.
What is the Best Bank for Education Loans in India?
Financial institutions like Public banks, Private banks, and NBFCs offer student loans in
India. These banks offer student loans with varying terms to cater to the diverse needs and
requirements of students.
The best bank for education loans in India is not the same for every student, as each
individual has a unique situation. You should assess various factors, such as the education
loan interest rates, loan amounts, collateral requirements, and the education loan
repayment terms, before choosing the best bank for education loans. The following table helps you compare education loan interest rates, processing fees, and loan amounts of prominent banks and NBFCs offering study loans in India.
Note: These interest rates are effective as of Jan 2025. The student loan interest
rates may change with changes in the RBI repo rate and bank policies.
(Keep in mind that these are the applicable education loan interest rates on going through
your education loan with WeMakeScholars, which can vary on a case-by-case basis)
| Banks | Interest rate | Processing fees | Loan Amount |
|---|---|---|---|
| State Bank of India (SBI) | Starts from 8.15% | Starts from 8.15% | ₹50 lakhs |
| Bank of Baroda (BOB) | Starts from 9.15% | Rs 10,000 + GST or 1% of the loan amount, whichever is lower | ₹7.5 lakhs |
| Canara Bank | Starts from 8.60% | Rs. 10,000 + GST | ₹7.5 lakhs |
| ICICI Bank | Starts from 8.60% | 1 – 2% of the loan amount | ₹1 Cr |
| Credila | Starts from 9.75% | 1 – 1.5% of the loan amount + GST | ₹50 lakhs |
Top NBFCs Offering Study Loan in India
NBFCs refer to the Non-Banking Financial Companies offering credit services in India.
They are known for offering higher loan amounts and flexible repayment terms for an
education without collateral. The following are the top 4 NBFCs offering a study loan in
India:
Credila:
- Up to 100% finance of I20 value
- Option of a 100% collateral-free student loan
- Sanction before admission for I20
- Doorstep service
Avanse:
- 100% education finance
- There is no limit to the maximum amount
- Sanction within 1 day after logging the file
- Prefers meritorious students
- Can be disbursed in 1 instalment
- Doorstep service
Frequently Asked Questions
How does Education Loan work? +
Education loan is the financial aid offered by public banks, private banks, and NBFCs in India to students who lack proper financing to pursue their higher education in India or even abroad, as per their eligibility and requirements. The lenders charge interest on the offered education loan and have certain repayment policies according to which a student will have to repay the loan amount within the repayment duration.
What is the best way to repay an education loan? +
Apply with ease using our automation tools tailored for accuracy and efficiency.
Can I get an interest-free education loan? +
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Loan Services
Loan Subsidy
Up to 100% interest subsidy on education loans for students in India or abroad. Achieve your education goals with minimal financial burden.
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Loan provided at 0% interest for selected meritorious students. A unique opportunity to study without financial worries.
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