What is the interest rate for education loans in India?

Interest rates for education loans in India typically range from 6.85% to 12% per annum. Government banks offer lower rates (6.85%-9.5%), while private banks and NBFCs may charge 9%-12%. Female students often get a 0.5% concession on interest rates.

Is collateral required for education loans in India?

Collateral is not required for loans up to ₹7.5 Lakhs under government schemes like Vidya Lakshmi. For loans between ₹7.5 Lakhs to ₹20 Lakhs, third-party guarantee may be required. Loans above ₹20 Lakhs typically require collateral security.

What is the repayment period for education loans?

Education loans in India typically have a repayment period of 5-15 years after the moratorium period ends. The moratorium includes your course duration plus 6-12 months. Some banks offer extended repayment up to 20 years for larger loan amounts.

Can I get tax benefits on education loans?

Yes, under Section 80E of the Income Tax Act, you can claim deduction on the entire interest paid on education loans. This benefit is available for 8 years from the year you start repaying the loan. There is no upper limit on the deduction amount.

What courses are eligible for education loans?

Education loans cover a wide range of courses including engineering, medical, management, law, arts, science, and professional courses like CA, CS. The course should be from a recognized institution in India. Both undergraduate and postgraduate courses are eligible.

How long does it take to get an education loan approved?

For collateral-free loans up to ₹7.5 Lakhs, approval typically takes 7-10 working days. For larger loans with collateral, the process may take 15-20 days. At FundMyCampus, we help expedite the process with our partner banks.

What documents are required for an India education loan?

Required documents include: Admission letter, fee structure, academic marksheets, income proof of parent/guardian, bank statements (6 months), KYC documents, and property documents (if collateral). Students from weaker sections may need caste/income certificates.

500+ Institutions

IITs, IIMs, AIIMS & more

Study in India

Education Loans forIIT, IIM, AIIMS& Top Universities

Achieve your academic dreams at India's premier institutions with our comprehensive education loan solutions. Get up to ₹75 Lakhs for premier institutions with competitive rates.

₹40 Lakhs

Max Loan

7-10 Days

Approval

6.85%

Interest Rate

Why Choose Our India Study Loans

Tailored features for Indian education aspirants

Up to ₹75 Lakhs

Complete financing for tuition, hostel and other expenses at premier institutions

No Collateral

Up to ₹7.5 Lakhs without any security for premier institutions

Quick Approval

Loan approval within 7-10 working days

Best Interest Rates

Starting from 6.85% per annum with flexible terms

Premier Institutions We Cover

Finance your education at India's top universities and colleges

IITs

Engineering, Technology

Indian Institutes of Technology

Average Fees₹2-8 Lakhs

IIMs

MBA, Management

Indian Institutes of Management

Average Fees₹20-25 Lakhs

AIIMS

MBBS, Medical

All India Institute of Medical Sciences

Average Fees₹5-15 Lakhs

NITs

Engineering, Technology

National Institutes of Technology

Average Fees₹2-6 Lakhs

NLUs

Law, Legal Studies

National Law Universities

Average Fees₹3-12 Lakhs

Private

All Disciplines

Top Private Universities

Average Fees₹8-25 Lakhs

Government Schemes & Benefits

Take advantage of government interest subsidy schemes

Central Sector Interest Subsidy Scheme

Interest subsidy for economically weaker students

100% interest subsidy during moratorium period

Family income below ₹4.5 Lakhs

Dr. A.P.J. Abdul Kalam Interest Subsidy Scheme

Interest subsidy for technical education

Interest subsidy for technical courses

Family income below ₹4.5 Lakhs

Padho Pardesh Scheme

Interest subsidy for study abroad

Interest subsidy for overseas education

Family income below ₹6 Lakhs

Simple 4-Step Process

From application to disbursement in just 7-10 days

Students studying at premier Indian educational institutions

Excellence in Indian Education

Fast approval for top Indian institutions

Online Application

Fill out our simple online form with your details

Document Verification

Upload and verify all required documents

Institution Verification

We verify your admission and course details

Quick Disbursement

Direct payment to institution account

Eligibility Criteria

Indian citizen seeking admission to recognized Indian institutions
Age between 18-35 years at the time of application
Co-applicant (parent/guardian) with stable income source
Minimum 50% marks in qualifying examination
Confirmed admission to eligible course and institution

Documents Required

Admission letter from recognized institution
Academic mark sheets and certificates
Income proof of co-applicant (salary slips, ITR)
Bank statements of co-applicant (last 6 months)
Identity and address proof of applicant and co-applicant
Property documents (if collateral required)

Course-Specific Loan Options

Explore tailored education loan solutions for your chosen course

B.Tech Loan MBBS Loan MBA Loan BBA Loan BCA Loan BDS Loan B.Sc Nursing CA Loan Hotel Mgmt

The Complete India Loan Guide

Everything about studying in India on a loan

80% of eligible Indian students never apply for an education loan — they think it's "unnecessary debt." With Section 80E benefits and government subsidies, an Indian education loan often costs less than 7% effectively — cheaper than your parents' FD returns.

Lenders

Bank & NBFC Comparison

PSU banks dominate Indian loans — cheaper, willing to lend to non-tier-1 colleges, with government schemes attached. Private banks and NBFCs come into play for IIMs/ISB or when speed matters.

Lender	Type	Rate Range	Max Loan	Best For
SBI Scholar Loan	PSU	8.05% – 9.65%	₹40 L	IIT, IIM, AIIMS, NIT
Bank of Baroda Vidya	PSU	8.45% – 10.10%	₹40 L	All recognised colleges
Canara Bank Vidya Turant	PSU	8.60% – 10.30%	₹40 L	Fast PSU disbursal
Punjab National Bank	PSU	8.50% – 10.25%	₹40 L	North India network
ICICI Bank	Private	9.85% – 12.00%	₹50 L	IIM, ISB, top private
Axis Bank	Private	10.10% – 12.25%	₹50 L	MBA / management
HDFC Credila	NBFC	10.50% – 13.00%	₹75 L	High-amount premium
Avanse Financial	NBFC	11.00% – 14.00%	₹75 L	Non-conventional courses

Indicative rates as of May 2026. PSU banks revise rates quarterly with RBI repo movements.

By Course

Typical Loan Amounts

Loan amount depends heavily on course and college tier. Ranges cover total program cost (tuition + hostel + books + travel).

MBA

₹15 L – ₹50 L

TopIIM A/B/C, ISB, XLRI

Tier-2IIM Tier-2, MDI, FMS

MBBS

₹5 L – ₹1 Cr

TopAIIMS, JIPMER (govt)

Tier-2Pvt colleges (₹70L+)

B.Tech

₹3 L – ₹30 L

TopIIT, BITS Pilani

Tier-2NIT, IIIT, VIT, SRM

BDS

₹3 L – ₹50 L

TopGovt dental colleges

Tier-2Private (₹50L+)

₹2 L – ₹8 L

TopCA + coaching

Tier-2CA articleship support

Law

₹5 L – ₹25 L

TopNLU Bangalore/Delhi

Tier-2Symbiosis, Jindal

B.Sc Nursing

₹2 L – ₹12 L

TopAIIMS, CMC Vellore

Tier-2State colleges

Government Subsidies

Free money most students miss

India runs 4 major schemes that dramatically cut your effective loan cost — eligibility is income-based, not merit.

Up to ₹7.5 L

CGFSEL

Credit Guarantee Fund Scheme

75% guarantee

Collateral-free PSU loan at 8–10% rates that would otherwise need property. No income cap — every student qualifies.

Income ≤ ₹4.5 L

CSIS

Central Sector Interest Subsidy

100% interest paid

Government pays your interest during course + 1 year moratorium. Available on loans up to ₹7.5 L from scheduled banks.

Income ≤ ₹8 L

PM Vidyalakshmi

PM Vidyalakshmi Scheme (2024)

100% guarantee + 3% subsidy

Collateral & guarantor-free loans for top 860 NIRF-ranked institutions. 3% interest subsidy on loans up to ₹10 L.

Income ≤ ₹6 L

Padho Pardesh

Padho Pardesh Scheme

Interest subsidy

For minority community students pursuing PG abroad. Applied through IBA online portal. Stackable with bank loans.

State Benefits

State-Wise Schemes (Stack with central)

Beyond central schemes, several state governments offer their own subsidies. If you're a state domicile, these stack with CSIS / PM Vidyalakshmi for major savings.

Kerala

₹20 L @ 7.5%

KSFE Vidya Sahay

Medical & professional

Tamil Nadu

Interest subsidy

Dr. M.G.R. Loan

SC/ST/MBC (income ≤ ₹2 L)

Karnataka

Interest subsidy

Vidyasiri

Backward class students

Maharashtra

₹15 L @ 0%

Annasaheb Patil

Maratha community

Andhra / Telangana

Full fee reimbursement

Jagananna Vidya Deevena

Income ≤ ₹2.5 L

Punjab

Up to ₹40 L

Punjab Cooperative

Higher studies in India / abroad

Pro tip: State schemes can be combined with CSIS / PM Vidyalakshmi + a bank loan. Paperwork is heavier but rate savings are significant.

Recommended starting point

Vidya Lakshmi Portal

One government form. Apply to 3 banks at once. Track all of them from one dashboard. Free.

vidyalakshmi.co.in →

One form → up to 3 banks at once

Track status across all banks from one dashboard

13 PSU banks + most private banks integrated

Form auto-fills repeat fields (saves 30+ min)

Apply 24×7 from anywhere in India

Free for students — no portal or bank fees

Recommended approach: Apply via Vidya Lakshmi to 1 PSU (lowest rate) + 1 private bank (speed) + 1 NBFC (flexibility). Compare sanction letters when they arrive.

Decision Framework

Which lender should you pick?

Choose PSU IF

Loan under ₹40 L
Govt or top-ranked college
Family income ≤ ₹8 L
25+ days available
Lowest cost matters

Choose Private IF

IIM / ISB / top private
₹25–50 L unsecured needed
7–14 day approval
Strong co-applicant
Existing bank relationship

Choose NBFC IF

Need ₹50 L+ unsecured
Non-conventional course
Self-employed co-applicant
Need approval in 5–7 days
Borderline credit score

Insider Tips

5 tips for faster approval

Get college on bank's approved list

If yours isn't, ask the bank to add it (takes ~7 days but unlocks lower rates).

Apply right after admission

Once classes start, processing slows. Apply within 2 weeks of your admission letter.

Carry semester-wise fee structure

Banks disburse fees per semester. Clean breakdown shortens disbursement by 5–10 days.

Open a savings account first

Banks expedite approvals for existing customers. Opening 2 months prior helps.

Don't negotiate rate before sanction

Banks rarely budge on rate pre-sanction. Always negotiate after offers come in.

India Education Loan FAQs

Common questions about education loans for studying in India

For studying in India, you can get education loans up to ₹75 Lakhs for premier institutions like IITs, IIMs, and AIIMS. For other recognized institutions, loans up to ₹20-30 Lakhs are available. Collateral-free loans are available up to ₹7.5 Lakhs under government schemes.

Start Your Education Journey in India Today

Apply now and get approval within 7-10 days

Lender

Type

Rate Range

Max Loan

Best For

SBI Scholar Loan

PSU

8.05% – 9.65%

₹40 L

IIT, IIM, AIIMS, NIT

Bank of Baroda Vidya

PSU

8.45% – 10.10%

₹40 L

All recognised colleges

Canara Bank Vidya Turant

PSU

8.60% – 10.30%

₹40 L

Fast PSU disbursal

Punjab National Bank

PSU

8.50% – 10.25%

₹40 L

North India network

ICICI Bank

Private

9.85% – 12.00%

₹50 L

IIM, ISB, top private

Axis Bank

Private

10.10% – 12.25%

₹50 L

MBA / management

HDFC Credila

NBFC

10.50% – 13.00%

₹75 L

High-amount premium

Avanse Financial

NBFC

11.00% – 14.00%

₹75 L

Non-conventional courses