Education Loan
Fund higher studies in India and abroad with flexible repayment.
Invest in education with loans covering tuition, living and allied expenses for studies in India and overseas, with moratorium and flexible repayment.
Interest rates and terms are indicative and subject to lender approval.
Education Loan
Key features
- Covers tuition & living costs
- Moratorium during course
- Tenure up to 15 years
- Tax benefits under 80E*
Eligibility
- Admission to a recognised institution
- Co-applicant (parent/guardian)
- Acceptable academic record
Documents
- Admission letter
- KYC of student & co-applicant
- Income proof of co-applicant
- Fee structure
In depth
Understanding Education Loan
A loan provided to students to cover the cost of higher education, including tuition fees and accommodation.
- The Mechanism
- Funds are often disbursed directly to the institution. Repayment usually begins after a "moratorium period."
- Key Components
- Co-applicant, Moratorium period, Course fees, and Employability potential.
- What the Results Mean
- Empowers students to pursue premium education regardless of their immediate financial background.
- Smart management
- Try to pay off the simple interest applied to the loan during the moratorium to reduce the principal burden upon graduation.
Regulatory source
Administered under the Model Education Loan Scheme formulated by the Indian Banks' Association (IBA) under RBI guidance.