Education Loan

You are here : Home / Education Loan

Education Loan


We have contacts with Nationalized banks offering Educational Loans for overseas studies at reasonable rates. We also help you with the entire procedure, starting from eligibility criteria and selection of bank, to making loan application, preparing required documentation etc.

Student Loan as a Sponsorer

An increasing number of financial institutions are offering newer and better education loan schemes at competitive rates of interest. Generally, the repayment starts within 12 months after completion of the study program or six months after securing a job, whichever is earlier. It is much easier getting a loan for an MBA, engineering or medical degree than for graduation in another discipline. Mostly, the maximum amount sanctioned is up to Rs.20 lakhs for studying abroad. The rate of interest varies between 11.5 and 14.25 %. The interest charged, up to Rs 4 lakh, is on the Prime Lending Rate (PLR), which prevails all through the sector, with no option of a floating rate structure. 

The margin money up to Rs 4 lakh is nil, but over this, some banks want margin of 15 percent for studies abroad. This component is highly negotiable. The actual disbursement (after deducting processing fees etc.) comes to about 90 percent of the loan amount and covers everything from cost of stationary to travel in case of study abroad. The disbursement is made either in one go or term-wise, in installments, directly to the college/ institution. 

Presently, no bank is financing distance education/ correspondence/ certificate courses. Some banks also seek insurance cover for all student-borrowers and insist that the parents' age should not exceed 55 years. The Bank Education Loan will be released after you get the Visa. One has to give Collateral Security of House property of market value nearing to 100% to get Educational Loan. 
Some of the Banks take LIC of the Education Loan amount of the student then one does not have to give Collateral Security. However, one has to pay premium on it. 

Documents required for Educational Loans

  • Mark sheets of the last qualifying exam.
  • Proof of admission i.e. offer letter.
  • Schedule of expenses for the program.
  • TOEFL/ GMAT/ GRE / IELTS score sheets (if any).
  • Copies of letter confirming scholarship (if any).
  • Two passport size photographs.
  • Statement of bank account for the last six months of parents.
  • Income tax returns of parents for last 3 years.
  • A brief statement of assets and liabilities of parents.
  • Proof of birth and residence of the student.



The Education Loan must be provided by a bank governed by the Reserve Bank of India. All international banks operating in India also meet these criteria.

  • Andhra Bank
  • Allahabad Bank
  • AXIS Bank Ltd
  • Bank of Baroda
  • Bank of India
  • Bank of Maharashtra
  • Bank of Punjab Ltd
  • BNP Paribas
  • Canara Bank
  • Central Bank of India
  • Centurion Bank of Punjab Ltd
  • Citibank
  • Corporation Bank
  • Dena Bank
  • Federal Bank Ltd
  • HDFC Bank Ltd
  • HSBC
  • IDBI Bank Ltd
  • Indian Overseas Bank
  • Indian Bank
  • Ing Vysya Bank Ltd
  • Indusind Bank Ltd
  • ICICI Bank
  • Jammu & Kashmir Bank Ltd
  • Karnataka Bank Ltd
  • Kotak Mahindra Bank
  • NOVA Scotia Bank
  • Oriental Bank of Commerce
  • Punjab National Bank
  • Punjab and Sind Bank
  • South Indian Bank Ltd
  • Standard Chartered Bank
  • State Bank of India
  • State Bank of Bikaner and Jaipur
  • State Bank of Hyderabad
  • State Bank of Indore
  • State Bank of Mysore
  • State Bank of Patiala
  • State Bank of Saurashtra
  • State Bank of Travancore
  • Syndicate Bank
  • UCO Bank
  • Union Bank of India
  • Vijaya Bank