Higher education is no longer a luxury; it is a requirement. However, as tuition, room and board, and textbooks become more expensive, it is hard to fund your dreams. And this is when the education loans are involved. Whether it is a trip to India or any other country, a student loan is the means with which to get a quality education anywhere without feeling burdened financially.
At Gullak, we make it simple and clear the jargon, hold your hand, and step by step come with the best education loan for the future.
What is an Education Loan?
An Education Loan is a financial product that assists students in meeting the fees of college-level education. It may include:
- Tuition Fees
- Exam, Library, and Lab Fees
- Travel & Living Expenses
- Books, Laptops, and Study Materials
- Hostel or Accommodation Charges
- Insurance Premiums (for overseas students)
An Education Loan may be availed for a graduate-level course, a postgraduate diploma course, or a vocational course in India or abroad.
Why Take an Education Loan?
Educational loans do not only involve taking loans, but also an investment in the future. So here is why they are a good bet:
- Enables higher studies without burdening your family
- Preserves your savings or fixed deposits
- Offers flexible repayment after course completion
- Builds your credit profile early in life
- Comes with tax benefits under Section 80E
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Courses Eligible for Education Loans
Lenders cover a wide range of academic programs:
In India:
- UG/PG Degrees (Engineering, MBBS, BBA, MBA, etc.)
- Diploma & Certificate Courses (AI, UX, Film, etc.)
- Govt-approved or UGC/AICTE-recognized programs
Abroad:
- Full-time UG/PG Degrees (STEM, Management, Arts)
- Specialized Courses in Ivy League or Top 200 global universities
- PhD & Research Programs
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Top Education Loan Providers in India (2025)
| Lender | Loan Amount | Interest Rate (p.a.) | Max Tenure |
| SBI Global Ed-Vantage | Up to ₹1.5 Cr | 8.5% – 10.5% | Up to 15 yrs |
| HDFC Credila | Up to ₹75 Lakhs | 11% – 13% | 10–15 yrs |
| Bank of Baroda | Up to ₹1 Cr | 8.85% onwards | 15 yrs |
| Axis Bank | ₹50,000 – ₹40 Lakhs | 9.7% – 13.5% | Up to 15 yrs |
| Avanse | Up to ₹75 Lakhs | 10% – 13.5% | 10 – 15 yrs |
| ICICI Bank | ₹50,000 to ₹1 Cr+ | 10.5% onwards | 10 – 12 yrs |
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Education Loan Eligibility Criteria
Every lender may have specific requirements, but most will ask for:
- Student must be an Indian national (18–35 years)
- Admission to a recognized course/institution
- Co-applicant (parent/spouse/guardian) with steady income
- Good academic background and career prospects
The creditworthiness of the co-applicant significantly affects the loan approval and interest rate.
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Documents Required for Education Loans
Student Documents:
- KYC – Aadhaar, PAN, Passport (for abroad)
- Admission letter from college/university
- Mark sheets (10th, 12th, UG)
- Fee structure
- Entrance exam scores (CAT, GRE, IELTS, etc.)
Co-applicant Documents:
- Income proof (Salary slips, ITR, Form 16)
- Bank statements
- ID and address proof
- Proof of relationship to the student
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Secured vs Unsecured Education Loans
| Type | Secured Loan | Unsecured Loan |
| Collateral Required | Yes (property, FD, LIC, etc.) | No |
| Loan Amount | ₹10 Lakhs – ₹1 Cr+ | Up to ₹7.5 – ₹40 Lakhs |
| Interest Rate | Lower (8.5%–10%) | Higher (10.5%–13.5%) |
| Preferred For | Abroad education | Indian colleges or high scorers |
Property/ documents are required in collateral-based loans, which enjoy better terms. Unsecured loans are quicker but have rigorous standards of approval.
Education Loan Repayment Structure
The majority of the lenders provide a moratorium period or reduction in the EMIs during the period of the course, plus 6/12 months.
Total Loan Tenure: Course Period + Moratorium + Repayment Period (up to 15 years)
Repayment Options:
- Simple Interest During Moratorium
- EMI After Moratorium
- Partial Prepayment (Optional)
Start repaying interest during study to reduce the burden later.
Tax Benefits on Education Loans
Under Section 80E of the Income Tax Act:
- Dedication to interest paid on the education loan
- No cap on amount (only interest, not principal)
- Available for 8 years from the year repayment starts
- Claimable by student or co-borrower
Example: If you pay ₹1.5 lakh in interest annually, it can be claimed as a tax deduction.
Studying Abroad? Here’s What to Know
Getting an education loan for overseas education requires a few extra steps:
- Proof of university ranking or international acceptance
- Valid passport and visa
- Admission confirmation
- Travel insurance (some lenders include it in the loan)
- Forex remittance arrangements
Countries covered: USA, UK, Canada, Australia, Germany, France, Singapore, New Zealand, and more.
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Education Loan vs Personal Loan for Studies
| Parameter | Education Loan | Personal Loan |
| Purpose | Specifically for studies | Any purpose |
| Interest Rate | Lower (8%–13%) | Higher (12%–24%) |
| Tenure | Longer (up to 15 years) | Short (1–5 years) |
| Moratorium | Yes | No |
| Tax Benefit | Yes (80E) | No |
Verdict: Always go for an education loan for studies — more flexible and affordable.
Tips for Getting an Education Loan Approval Easily
- Choose reputed institutes (IITs, IIMs, Tier-1 universities abroad)
- Maintain academic consistency
- Add a co-applicant with a strong income profile.
- Compare multiple lenders before applying.g
- Keep CIBIL score above 700 (for co-applicant)
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Digital Lenders & NBFCs: Fast and Student-Friendly
Want faster disbursals without too much paperwork? Try NBFCs and EdTech-backed loan providers:
- Leap Finance
- Prodigy Finance
- MPower Finance
- Auxilo
- Avanse
No collateral
Fast approval
Designed for study abroad programs
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Smart Gullak Checklist Before You Apply
Estimate your total cost of education
Calculate EMI with our Gullak Loan Calculator
Keep all academic & financial documents ready.
Check the forex exchange rates if going abroad.
Ensure the co-applicant has a strong credit history.
Final Thoughts: Invest in Education, Invest in Yourself
The education loan is not a scar; it is an investment in your earning capacity. It is the most brilliant option for financing your dreams with increasing tuition and international exposure.
At Gullak, we help you:
- Understand the loan process clearly
- Compare multiple lenders
- Calculate your EMI accurately.y
- Access up-to-date info on tax savings
- Choose the right loan for your goals.
Regardless of whether you will be an engineer, doctor, filmmaker, or researcher, we are with you throughout the whole process of your financial evolution.
Explore More Financial Guides at Gullak
- Home Loans
- Personal Loans
- SIP & Mutual Funds
- SWP – Systematic Withdrawal Plans
- Stocks & Equity
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