Invest in Your Future Without Financial Stress
An Education Loan is the smartest way to fund higher studies in India or abroad without draining your family's savings. Whether for Engineering, Medical, Management, or specialized courses, we help you secure funding that covers tuition fees, hostel charges, and even travel expenses. Focus on your grades—let the loan handle the fees.
The loan is always in the name of the student. It helps the student build their own credit score (CIBIL) from a young age.
Since students usually don't have an income, a parent, legal guardian, or sibling must be the co-applicant. Lnders check the co-borrower's financial profile (income, ITR, CIBIL) to sanction the loan.
Banks follow strict RBI guidelines based on the loan amount:
| Loan Amount | Collateral / Security Required |
|---|---|
| Up to 4 Lakhs | No Collateral, No Third-party Guarantee. Parents are joint borrowers. |
| 4 Lakhs - ₹7.5 Lakhs | Third-Party Guarantee required (usually from an earning relative or family friend) + Parents as joint borrowers. |
| Above 7.5 Lakhs | Tangible Collateral required (Property, Fixed Deposit, LIC Policy, etc.) equal to the loan value. |
Note: Loans from NBFCs (like HDFC Credila, Avanse) may offer higher collateral-free limits (up to 20-40 Lakhs) for premier institutes (IIMs, IITs) but usually at higher interest rates.
(If Loan > 7.5 Lakhs)
Interest rates are floating and linked to the Repo Linked Lending Rate (RLLR).
| Bank Type | Interest Rate Range | Processing Fee |
|---|---|---|
| Public Sector (SBI, PNB, Canara, BoB) | 8.55% - 10.50% | Low (5k-10k) or Nil for some schemes |
| Private Banks (Axis, ICICI, HDFC) | 10.50% - 13.00% | 1% - 1.5% of Loan Amount |
| NBFCs (Credila, Avanse, Auxilo) | 11.00% - 14.50% | 1% - 2% + GST |
Also known as the "Holiday Period". You do not have to pay the Principal amount while studying.
Repayment typically starts after Course Duration + 6 months to 1 year (varies by bank).
You typically get 10 to 15 years to repay the loan, making EMIs manageable.
Paying simple interest during the moratorium prevents interest from compounding and adding to your principal later.
If parents can afford it, paying just the simple interest (e.g., ₹2,000-₹3,000/month) during the course reduces the final EMI burden significantly.
Under Section 80E, the interest paid on an education loan is 100% tax-deductible for up to 8 years. This saves parents a huge amount of tax!
Most education loans have zero prepayment penalty. Whenever the student gets a bonus or hike after getting a job, use it to pay off the principal.
Profile: Rahul secures admission to an Engineering college.
Profile: Priya gets into a UK University for Masters.
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