Banks and other financial institutions give students money in the form of student loans to help them pay for college (in India or abroad). They usually cover:
- Tuition fees
- Hostel/mess
fees
- Books
and supplies
- Travel
costs (for studying abroad)
- Exam
and library fees
Important
Things About Student Loans
|
Feature |
Description |
|
Loan Amount |
₹50,000 to ₹1.5 crore (depends on course and location) |
|
Interest Rates |
Usually between 8% – 13% per annum |
|
Repayment Period |
5 to 15 years (after moratorium) |
|
Moratorium Period |
Course duration + 6 months to 1 year |
|
Collateral |
Required if loan > ₹7.5 lakh (depends on lender) |
|
Tax Benefit |
Interest paid is eligible for deduction under Section
80E of the Income Tax Act |
Requirements
for Eligibility: Indian citizen
- Accepted
into a school that is well-known (in India or another country)
- Usually,
a co-applicant (parent or guardian) is needed.
- Approval
may depend on grades and entrance scores.
Banks Offering
Student Loans
|
Lender |
Key Features |
|
SBI Education Loan |
Low interest rates, moratorium, SBI Global Ed-Vantage for
abroad |
|
Bank of Baroda |
Baroda Scholar & Vidya schemes |
|
HDFC Credila |
Non-collateral loans, fast processing |
|
Axis Bank |
Covers full expenses, including travel |
|
PNB Udaan / Saraswati |
Schemes for domestic and overseas education |
Government Programs for students Loan:
The Vidya Lakshmi Portal is the official website for education loans and scholarships from the Government of India. Visit https://www.vidyalakshmi.co.in for more information.
·
The
Credit Guarantee Fund Scheme for Education Loans (CGFSEL)
·
No
collateral needed for loans of up to ₹7.5 lakh
·
Canara
Bank runs it according to IBA Guidelines.
Reliable
Sources for Additional Research
|
Source |
Description |
|
Guidelines and circulars on education loans |
|
|
Apply for loans to multiple banks |
|
|
For scholarships that reduce loan burden |
|
|
Information on tax benefits on loan repayment |
|
|
[Bank Websites (e.g., SBI, HDFC)] |
Check exact interest rates, eligibility, and online
applications |
