Quality education is of utmost importance in every individual’s life. But sadly, it comes with high fees which make it unaffordable for many. In India, private institutions charge more than the government colleges. Also, the fee increases if you intend on getting educated outside India. But you can fix most of these issues by opting for an education loan. Here in this post you will know how to get education loan, its advantages and more.


The interest rates vary from 12%- 16% and depend on your course and the chosen financial institution. The education loan includes added benefits like library fees, uniforms, travel expenses for studies abroad, building deposits, and much more.

Advantages of Education Loan
  • An Education Loan can be availed by every citizen regardless of his/her caste and creed. Even the government has come forward with the subsidy schemes (such as CSIS) for the economically backward sections of the society.
  • You can use this loan to pursue any kind of course. Whether you are in India or foreign universities, you use the loan for graduation, diploma, post-graduation, and vocational courses.
  • They are available in almost every financial institution as a priority product. You can get a loan amount of up to ₹22 lakh. The course decides the size of the loan amount.
  • The repayment tenure can be extended to up to 7 years after the completion of the course.
  • Female students are usually offered loans at a lower interest rate.

Conditions to Apply for Education Loan:
  • The course fees and your annual family income are the two biggest determinants of the education loan amount.
  • There must be a co-applicant (your spouse/ either of your parents/ sibling).
  • If you are studying abroad, then you need insurance and look for a part-time job.
  • You do not need collateral if your loan amount is below ₹4 lakh. However, you need a third-party guarantee for an amount exceeding ₹4 lakh; and pledge security for a loan amount more than ₹7.5 lakh.

If you do not have collateral, and you want to study from top universities in USA then you can opt for a loan from reputable NBFCs like Bajaj Finserv. They offer instant loans of up to ₹25 lakh. Your personal loan gets approved in a matter of 5 minutes and disbursed within 24 hours. Make sure to select your lender carefully.