Basics
Education loans cover tuition and related costs. Banks consider the course, institution, co-applicant income and, for larger amounts, collateral.
Government support
| Scheme | Notes |
|---|---|
| Vidya Lakshmi portal | Compare and apply to multiple banks |
| PM-Vidyalaxmi | Collateral-free support for students in eligible quality institutions |
| Interest subsidy schemes | For eligible income groups |
| State schemes | e.g., Bihar Student Credit Card |
Talk to an experienced counsellor. Online across India, centres in Nashik, Pune and Patna.
What loans usually cover
Tuition fees, hostel and mess charges, exam and library fees, books and equipment, a laptop if required by the course, and travel costs for study abroad. Check the bank's list.
Choosing a lender
Compare interest rate, processing fees, collateral rules, moratorium period, margin money and prepayment conditions. Public sector banks often have competitive rates for recognised institutions.
Repayment smartly
Start paying interest during the course if possible to reduce the total burden. Build a budget for repayment before you choose an expensive course.
Questions to ask the bank
- What is the interest rate and is it fixed or floating?
- Is there collateral or a third-party guarantee required for my amount?
- What is the moratorium period and is interest charged during it?
- Are there processing or prepayment charges?
- Which expenses are covered and how is money disbursed (to college or to me)?
- Is the course and institution on the approved list?
Write the answers down and compare at least two banks before deciding.
Tips
Borrow only what you need, understand the moratorium and repayment schedule, and compare interest rates.
Amounts, eligibility and deadlines change. Always check the official portal before applying.
Frequently asked questions
Do I need collateral?
Smaller loans and some schemes do not; larger loans may.
When does repayment start?
Usually after the course plus a moratorium period.
Can I get a loan for studying abroad?
Yes, many banks offer such loans.
Can parents be co-borrowers?
Yes, parents or guardians are usually co-applicants.
General guidance only. Exam dates, eligibility, fees and scholarship amounts change every year: always check the official website before you apply.