Education Loan

Get instant education loan with short disbursal.

An education loan is a type of financial assistance offered to students (or parents/guardians) to cover the costs associated with higher education, such as tuition fees, living expenses, books, and other educational supplies.

Domestic Education Loans: For studies within the home country. International/Study Abroad Loans: For pursuing education overseas. Undergraduate Loans: Specifically for undergraduate studies. Postgraduate Loans: For postgraduate or professional courses (e.g., MBA, MS). Student-Specific Loans: For specialized programs like medical, law, or engineering. Parent Loans: Taken by parents to support their children’s education.

Features of education loan

Loan Amount: Varies by the course, institution, and location (domestic or international). Higher amounts for courses abroad or in reputed universities. Some banks provide loans without a cap for prestigious institutes (like Ivy League schools). Interest Rate:
Fixed or floating rate.
Typically 8-15%, with rates lower for domestic programs compared to international ones. Some governments provide subsidized loans (e.g., under the Student Loan Subsidy Scheme) for specific income groups.
Tenure:
Loans generally have a tenure of 5-15 years, including the moratorium period (grace period) while the student completes the course and finds employment.
Moratorium Period:
6 months to 1 year after completing the course, during which no repayments are required. Interest may accrue during this period.
Collateral/Security:
For higher loan amounts (usually above $10,000 or ₹7.5 lakhs in India), collateral may be required. Collateral could include property, fixed deposits, or insurance policies. Lower amounts might be granted without collateral based on academic performance and institution type.