Education Loan

Education loan Eligibility

Job oriented professional/ technical Graduation Degree courses/ Post Graduation Degree and Diploma courses like MBBS,MCA, MBA, MS, etc offered by reputed universities.

Eligible Expenses for education loan

Fees payable, accommodation charges, exam and library fees, reasonable expenses for books and equipment including computer, travelling expenses abroad and other reasonable expenses required to complete course.

Quantum of finance

Rs. 10 lakh for study in India and Rs. 30 lakh for study abroad. Banks may consider lending higher amount in special cases at their discretion.


(a) up to Rs. 4 lakh No security, parents to be joint borrower
(b) between 4-7.5 lakhs along with parents collateral security in form of third party guarantee
(C) Above 7.5 lakhs- Parents to be joint borrowers+tangible collateral security of suitable value required.

Moratorium period for repayment

Course period + 1 year or 6 months after getting job, whichever is earlier

Margin money

Nil for loan up to Rs. 4 lakh. 5 percent and 15 percent respectively for study in India and abroad on loan above Rs. 4 lakhs.

Tenure of loan

10 and 15 years for loan up to Rs 7.5 lakhs and above respectively.
Interest paid by the students on educational loan in financial year is eligible for income-tax exemption u/s 80 E of IT Act for 8 years.