Pilot Training Loan With Collateral
The government bank route: the lowest rate and nothing to pay during training, with property as security.
- Around 9.5%Linked to the RBI repo rate
- Around 8.5%If you pay interest during the course
- ₹0Paid during training
- 15%Margin: the share of fees you pay yourself
On a ₹70 lakh programme
- Bank lends (85%)
- ₹59.5 lakh
- You pay (15% margin)
- ₹10.5 lakh
- EMI after, 15 years
- ₹73,936
Quick answer
A pilot training loan with collateral comes from a government bank against non-agricultural property. The rate is around 9.5%, linked to the RBI repo rate, with nothing to pay during training. Pay simple interest during the course and it can drop to around 8.5%. You pay 15% of the fees yourself (the margin).
How does a pilot loan with collateral work?
You pledge property to a government bank. In return, the bank lends at a lower rate and lets you pay nothing until training ends.
- Rate: around 9.5% a year, linked to the RBI repo rate
- During training: nothing to pay (full moratorium)
- Lower rate option: pay simple interest each month during the course and the rate can drop to around 8.5%
- Margin: you pay 15% of the fees yourself and the bank lends 85%
- Processing fee: 1% of the loan, refunded later apart from about ₹10,000
- Insurance: about 1% to 2.5% of the loan
- Property: non-agricultural, with a clear title, worth at least the loan
No property in the family? The pilot loan without collateral page covers NBFC loans.
Pay nothing during training, or pay interest and save about 1%?
You have two choices on a government bank loan. Here they are for a ₹70 lakh programme, where the bank lends ₹59.5 lakh and you pay ₹10.5 lakh as margin.
| Pay nothing during training | Pay simple interest during training | |
|---|---|---|
| Rate | Around 9.5% | Around 8.5% |
| Each month during training | ₹0 | ₹42,146 |
| Interest added to the loan | ₹11.3 lakh | ₹0 |
| EMI after training, 10 years | ₹91,620 | ₹73,771 |
| EMI after training, 15 years | ₹73,936 | ₹58,592 |
Source: Worked out with the full loan paid out at the start. The school is paid in stages, so real interest is lower. Checked on 1 Nov 2026.
Paying the interest during training costs you each month, but it keeps the loan from growing and lowers the rate for the whole loan.
What do you pay at the start?
| Item | Amount | What it is |
|---|---|---|
| Margin (15%) | ₹10.5 lakh | Your share of the fees. The bank lends the rest |
| Processing fee (1%) | ₹59,500 | Refunded later, apart from about ₹10,000 |
| Loan insurance (1% to 2.5%) | ₹59,500 to ₹1,48,750 | Covers the loan if something happens to the borrower |
EMI on a government bank pilot loan
| Loan amount | At 9.5% | At 8.5% (interest paid during the course) |
|---|---|---|
| ₹50 lakh | ₹52,211 | ₹49,237 |
| ₹59.5 lakh | ₹62,131 | ₹58,592 |
| ₹85 lakh | ₹88,759 | ₹83,703 |
| ₹1 crore | ₹1,04,422 | ₹98,474 |
Source: Standard reducing balance EMI on the loan amount shown. Checked on 1 Nov 2026.
For other amounts, see the pilot loan EMI tables.
Not every government bank gives a full moratorium on pilot training loans, and government banks are usually slow because of property checks. If you need a fast sanction and an easier process, talk to the FundMyCampus team first.
How does it compare with an NBFC loan?
If speed matters more than the rate, or you do not want to pledge property, an NBFC can fund 100% of the fees. Here are all the options side by side.
| Government bank, nothing paid during trainingAbout 9.5% | Government bank, interest paid during trainingAbout 8.5% | NBFC, with an airline LOI11% to 13% | NBFC, without an LOI11% to 13% | |
|---|---|---|---|---|
| Loan amount | ₹59.5 lakh | ₹70 lakh | ||
| You pay at the start | ₹10,50,000 margin + ₹1,19,000 to ₹2,08,250 fee and insurance | ₹2,10,000 to ₹6,30,000 fee and insurance | ||
| Each month during training | ₹0 | ₹42,146 a month | ₹40,000 a month | ₹79,562 to ₹88,567 a month |
| EMI after training (15 years) | ₹73,936 a month. Includes interest added during the 24-month training | ₹58,592 a month | ₹79,562 to ₹88,567 a month | |
| Co-borrower income | Checked by the bank | At least ₹6 lakh a year | ₹1,09,562 to ₹1,18,567 a month | |
Worked out for a 24-month course with the whole loan paid out at the start. In practice the school is paid in stages, so the interest is lower. Fees use a 1% processing fee plus insurance of 1% to 2.5% for a government bank, and 1% plus 2% to 8% for an NBFC. Exact figures depend on the lender and your profile.
What is an LOI, and why does it matter?
An LOI (Letter of Intent) is a conditional pre-employment letter from a sponsoring airline. It promises you a future role with that airline once you finish training and meet its conditions.
Because a job is lined up, lenders see the loan as low risk. So they offer a partial EMI without collateral: a fixed amount each month during training, with the full EMI only after you finish. Without an LOI, the full EMI starts from the first payment to the school.
Which property is accepted?
Accepted
- Residential flat or house
- Commercial property
- Non-agricultural plot with an approved title
Not accepted
- Agricultural land
- Property with a disputed or unclear title
- Property worth less than the loan
Check if my property qualifies
Tell us the property type and its rough value. We will tell you the likely loan and which banks move fastest.
Documents, valuation and legal checks
Student
- PAN, Aadhaar, and passport if training abroad
- 10th and 12th marksheets
- Flying school admission letter or LOI, with the fee schedule
- DGCA medical certificate
Co-borrower
- PAN, Aadhaar and photographs
- Income proof: salary slips and Form 16, or ITRs if self-employed
- Bank statements for the last 6 months
Property
- Title deed and the chain of earlier title documents
- Approved building plan and latest tax receipt
- Encumbrance certificate
The bank then runs two checks:
- Valuation. The bank's valuer visits and values the property.
- Legal check. The bank's lawyer checks the title and confirms it can be mortgaged.
How long does sanction take?
Government banks are usually slow, because of the valuation and legal check. Start as soon as you have the fee letter.
- Share your documents and the fee schedule.
- The bank completes the valuation and legal check.
- The sanction letter is issued. Many schools ask for it to confirm your seat.
- The property mortgage is registered and the first fee is paid to the school.
Check the full criteria on pilot loan eligibility, or go back to the pilot training loan overview.
How the loan is paid out during training
Lenders do not pay the full loan on day one. They pay the flying school in stages, as each fee falls due.
| Training phase | What the lender pays | What you pay |
|---|---|---|
| Before training | First fee instalment | Government bank: your 15% margin. NBFC: processing fee and insurance |
| Ground school | Ground school and exam fees | Government bank: nothing, or monthly interest. NBFC: partial EMI with an LOI, full EMI without |
| Flight training | Flying fees as hours are completed | Same as above |
| Licence and type rating | Conversion or type rating fees, if included | Same as above |
| After training | Nothing further | Full EMI |
Because the money goes out in stages, interest runs only on what has been paid. It also protects you if training is paused.
Common mistakes families make
- Offering agricultural land, which banks do not accept.
- Assuming the market price is the bank's value. The valuer's figure decides the loan.
- Starting the property paperwork late, so the sanction letter misses the seat deadline.
- Forgetting the 15% margin, which you pay yourself before the bank pays its share.
- Assuming every government bank gives a full moratorium. Ask before you apply.
A counsellor can check your plan for these gaps before you apply. The check is free.
Training in India or abroad: how the loan changes
| Training in India | Training abroad | |
|---|---|---|
| Fee currency | Rupees | The school's currency, such as US dollars |
| How fees are paid | To the Indian school in stages | Sent abroad to the school in stages |
| Living costs | Lower, often in a campus hostel | Higher, plus visa and travel |
| Licence | DGCA CPL directly | Foreign licence, then DGCA conversion |
| Exchange rate | No effect | Your rupee cost rises if the rupee weakens |
Country pages show fees in local currency and rupees, for example pilot training loan for South Africa and pilot training loan for the USA.
Frequently asked questions
Straight answers to what students and parents ask us about pilot training
Plan your pilot training loan
Tell us where you will train, whether you have property and whether you have an LOI. A counsellor will call you with the loan that fits and what you pay each month.
FundMyCampus is a loan facilitation platform. Loans are sanctioned by the lending bank or NBFC at its discretion. Rates are approximate and change with the RBI repo rate and your profile. We never promise approval or a rate.