Education Loan Schemes
Interest Rate
Loan Amount
Processing Fees
PNB 7.30% onwards Up to 15 Lakhs 1% of loan amount
SBI 7.97% p.a. - 10.05% p.a. Above Rs. 20 Lakh Rs.10,000 + tax
Axis 13.70% to 15.20% Up to 7.5 Lakh Nil to Rs.15,000 + tax
Bank of Baroda 8.25% to 10%* Up to 4 Lakh and above 1% of loan amount up to Rs.10,000
HDFC For preferential rates contact HDFC Max Apr Up to 1.5% of loan amount + tax
Tata Capital 10.99% onwards Up to 30 Lakh Up to 2.75% of loan amount + tax
Union Bank of India 6.90% onwards Need-based finance Nil for Indian students 0.50% of loan amount + GST for NRI students
Bank of India 9.10% onwards For courses in India: Up to Rs.10 lakh For courses abroad: Up to Rs.20 lakh Nil for courses in India Rs.5,000 + other fees for study abroad
Kotak Mahindra Bank Up to 16% For courses in India: Up to Rs.10 lakh For courses abroad: Up to Rs.20 lakh Contact the bank
ICICI Bank Contact the bank For courses in India: Up to Rs.50 lakh For courses abroad: Up to Rs.1 crore Contact the bank
Federal Bank 10.05% onwards For courses in India: Up to Rs.10 lakh For courses abroad: Up to Rs.20 lakh Contact the bank

Education Loan Eligibility

Nationality:
  • Indian citizens
  • Non-Indian Residents (NRIs)
  • Overseas Citizens of India (OCI)
  • Persons of Indian Origin (PIOs)
  • Students born to Indian parents abroad and wish to study in India
Courses:
  • Undergraduate programs
  • Postgraduate programs
  • Doctoral courses and PhDs
  • Certificate courses with 6 months or longer duration
  • Job-oriented courses
  • Technical/diploma/professional courses
Institutes:
  • Recognized institutions and government colleges
  • Private institutes aided by government
  • Professional institutions
  • International colleges and universities
Collateral:
  • Collateral-free loans up to Rs.7.5 lakh from leading lenders
  • Collateral-free loans up to Rs.40 lakh for select courses/institutions from select lenders

Tax Benefits on Education Loan

You will get tax deduction on the interest paid on your education loan under Section 80E of the Income Tax Act, 1961. This benefit is only offered to individual borrowers and for the purpose of higher education. The deduction covers all fields of study in India and overseas. It also includes vocational as well as regular courses.

Please note that the tax deduction is only applicable on the interest portion of the EMI and not the principal. However, there is no maximum limit to claim this benefit. You will require a certificate from your bank or financial institution segregating the principle and interest portions of your EMIs to claim this benefit.

You can claim this benefit for 8 years from the year you started repayment or until the interest portion of your loan has been repaid, whichever occurs first.

List of Documents Required for Education Loan

Here is an indicative list of documents that most lenders ask:

  • Admission letter from the educational institution
  • Marksheets (previous education – school/college)
  • Age proof
  • ID proof
  • Address proof
  • Signature proof
  • Salary slips
  • Recent bank account statements
  • ITR with income computation
  • Audited balance sheet
  • Recent bank statements
  • Proof of turnover (service tax return/sales receipt)
  • Completed application form with signature
  • Latest passport size photographs
  • Appropriate Visa for studies abroad

Frequently Asked Questions

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