{"id":14494,"date":"2026-06-15T20:40:45","date_gmt":"2026-06-15T15:10:45","guid":{"rendered":"https:\/\/www.ruloans.com\/blog\/?p=14494"},"modified":"2026-06-16T10:50:11","modified_gmt":"2026-06-16T05:20:11","slug":"education-loan-in-india-2026","status":"publish","type":"post","link":"https:\/\/www.ruloans.com\/blog\/education-loan-in-india-2026\/","title":{"rendered":"Education Loan in India: Complete Guide to Apply Online in 2026"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">An education loan is a financial product offered by banks and NBFCs that helps students fund higher education expenses, including tuition fees, accommodation, books, travel, and equipment. Repayment typically begins after course completion plus a moratorium period, allowing students time to find employment before their first EMI falls due.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Education has become one of the most significant financial commitments a family makes. A professional undergraduate degree at a top private institution in India can cost \u20b98\u201320 lakh over four years. A postgraduate programme abroad can exceed \u20b950\u201380 lakh when tuition, living expenses, and airfare are combined. Education loans were designed specifically to bridge this gap, allowing students to study now and repay after they earn.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Unlike a personal loan, a student loan is specifically structured around the academic lifecycle. The education loan interest rate is lower, the tenure is longer (up to 15 years), and repayment begins only after a moratorium period, typically the course duration plus 6 to 12 months. Many students also refer to it as a study loan because it is purpose-built for academic funding.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Key Takeaway:<\/strong> An education loan is not a burden, it is a structured investment in a student&#8217;s earning capacity, with repayment designed to begin only after the student is employed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How Does an Education Loan Work in India?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A student or parent applies for an education loan by submitting admission proof, academic records, and financial documents. The bank sanctions the loan, disburses funds directly to the institution (or the student for living\/travel expenses), and charges interest during the moratorium period. Repayment of principal plus interest begins after the course ends.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here is the step-by-step lifecycle of an education loan in India:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Application:<\/strong> The student (borrower) and parent\/guardian (co-applicant) apply at a bank, NBFC, or online via the PM Vidyalaxmi portal.<\/li>\n\n\n\n<li><strong>Sanction:<\/strong> The lender evaluates academic profile, institution, co-applicant&#8217;s income, credit score, and collateral (if required).<\/li>\n\n\n\n<li><strong>Disbursement:<\/strong> Funds are disbursed directly to the institution in tranches (semester-by-semester) or as a lump sum.<\/li>\n\n\n\n<li><strong>Moratorium Period:<\/strong> The student pays only simple interest (or nothing, under certain subsidy schemes) during the course and for 6\u201312 months after completion.<\/li>\n\n\n\n<li><strong>Repayment Phase:<\/strong> EMIs covering principal + interest begin after the moratorium ends, spread over 5\u201315 years.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Key Takeaway:<\/strong> Disbursement goes directly to the institution in most cases, reducing the risk of funds being misused and giving lenders confidence in the end use.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Who Can Apply for an Education Loan in India?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Any Indian citizen aged 18\u201335 years who has secured admission to a recognised institution in India or abroad for an undergraduate, postgraduate, diploma, or professional course can apply for an education loan. A co-applicant (parent, spouse, or sibling) is mandatory at most lenders.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Eligibility Criteria at a Glance<\/strong><\/h4>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Criterion<\/strong><\/td><td><strong>Requirement<\/strong><\/td><\/tr><tr><td>Nationality<\/td><td>Indian citizen<\/td><\/tr><tr><td>Age<\/td><td>18\u201335 years (varies by lender)<\/td><\/tr><tr><td>Academic Qualification<\/td><td>Minimum 10+2 pass (or graduation for PG loans)<\/td><\/tr><tr><td>Admission<\/td><td>Confirmed admission to a recognised institution<\/td><\/tr><tr><td>Co-applicant<\/td><td>Mandatory (parent, guardian, spouse, or sibling)<\/td><\/tr><tr><td>Co-applicant Income<\/td><td>Stable income source required<\/td><\/tr><tr><td>Credit Score (Co-applicant)<\/td><td>700+ preferred<\/td><\/tr><tr><td>Collateral<\/td><td>Required above \u20b97.5 lakh (public banks); not always required at NBFCs<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Courses Covered<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Most lenders fund the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Undergraduate degrees (B.Tech, MBBS, B.Com, B.A., B.Sc.)<\/li>\n\n\n\n<li>Postgraduate degrees (M.Tech, MBA, M.Sc., LLM)<\/li>\n\n\n\n<li>Professional and vocational courses (CA, CFA, ACCA)<\/li>\n\n\n\n<li>Diploma courses of 6 months or longer<\/li>\n\n\n\n<li>Doctoral and research programmes<\/li>\n\n\n\n<li>Courses at foreign universities in the USA, UK, Canada, Australia, Germany, and more<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Key Takeaway:<\/strong> A co-applicant is not optional, it is mandatory. Their income and credit profile significantly determine how much loan you get and at what education loan interest rate.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Also Read:<\/strong> <a href=\"https:\/\/www.ruloans.com\/blog\/collateral-vs-non-collateral-education-loans-which-is-right-for-you\/\" target=\"_blank\">Collateral vs Non-Collateral Education Loans: Which Is Right for You?<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How Much Education Loan Can I Get?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Education loan amounts in India range from \u20b950,000 to \u20b91.5 crore, depending on the lender, course, institution, <a target=\"_blank\" href=\"https:\/\/www.ruloans.com\/blog\/collateral-vs-non-collateral-education-loans-which-is-right-for-you\/\">collateral offered<\/a>, and co-applicant&#8217;s income. Public sector banks offer up to \u20b91.5 crore for studies abroad. NBFCs offer higher unsecured loan limits for premium institutions.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Loan Amount Limits by Lender Type<\/strong><\/h4>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Lender<\/strong><\/td><td><strong>Studies in India (Max)<\/strong><\/td><td><strong>Studies Abroad (Max)<\/strong><\/td><\/tr><tr><td>SBI<\/td><td>\u20b930 lakh (unsecured); higher with collateral<\/td><td>\u20b91.5 crore (Global Ed-Vantage)<\/td><\/tr><tr><td>Bank of Baroda<\/td><td>\u20b940 lakh+ (with collateral)<\/td><td>\u20b980 lakh+<\/td><\/tr><tr><td>PNB<\/td><td>\u20b920 lakh (unsecured for premier institutes)<\/td><td>\u20b940 lakh+<\/td><\/tr><tr><td>HDFC Credila<\/td><td>Up to \u20b975 lakh (unsecured for select profiles)<\/td><td>No upper cap (secured)<\/td><\/tr><tr><td>Avanse<\/td><td>Up to \u20b950 lakh (unsecured)<\/td><td>Up to \u20b975 lakh<\/td><\/tr><tr><td>Axis Bank<\/td><td>Up to \u20b940 lakh<\/td><td>Varies by programme<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>What Determines Your Loan Amount?<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Institution ranking:<\/strong> IIT, IIM, NIT, AIIMS admissions typically fetch higher sanctions.<\/li>\n\n\n\n<li><strong>Course fee structure:<\/strong> Documented fees are the primary basis.<\/li>\n\n\n\n<li><strong>Co-applicant income:<\/strong> Higher income = higher eligibility.<\/li>\n\n\n\n<li><strong>Collateral value:<\/strong> Property, FD, or NSC pledged as security increases limits significantly.<\/li>\n\n\n\n<li><strong>Credit history:<\/strong> A clean CIBIL record for the co-applicant improves the sanction.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Key Takeaway:<\/strong> If you need more than \u20b97.5 lakh, expect collateral requirements at most public banks. NBFCs like HDFC Credila and Avanse offer higher unsecured limits for students admitted to top-ranked institutions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What Expenses Does an Education Loan Cover?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">An education loan covers tuition fees, hostel fees, examination fees, books, equipment, travel expenses (including airfare for study abroad), and other course-related costs. Living expenses, uniforms, and computer or laptop purchases may also be covered if required for the course.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Most banks follow the IBA (Indian Banks&#8217; Association) model for what is fundable:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Tuition fees<\/strong> \u2014 the largest component, paid directly to the institution<\/li>\n\n\n\n<li><strong>Hostel and accommodation<\/strong> \u2014 on-campus or off-campus (with documentation)<\/li>\n\n\n\n<li><strong>Books, stationery, and study materials<\/strong><\/li>\n\n\n\n<li><strong>Examination and library fees<\/strong><\/li>\n\n\n\n<li><strong>Travel expenses<\/strong> \u2014 including a return air ticket for study abroad loans<\/li>\n\n\n\n<li><strong>Laptop or computer<\/strong> \u2014 if required by the institution for the course<\/li>\n\n\n\n<li><strong>Lab or equipment fees<\/strong><\/li>\n\n\n\n<li><strong>Caution deposit<\/strong> (one time, refundable \u2014 most banks fund this)<\/li>\n\n\n\n<li><strong>Other course-specific expenses<\/strong> as certified by the institution<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>What Is Typically Not Covered?<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Personal expenses (clothing, entertainment, dining out)<\/li>\n\n\n\n<li>Visa application fees (some NBFCs cover this; most public banks do not)<\/li>\n\n\n\n<li>Pre-admission coaching fees<\/li>\n\n\n\n<li>Expenses not directly related to the sanctioned course<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Key Takeaway:<\/strong> Always get a detailed fee structure letter from your institution. Banks disburse based on documented expenses. Undocumented claims will be rejected.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What Is the Education Loan Interest Rate in 2026?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Education loan interest rates in India in 2026 range from 8.25% to 16% p.a, depending on the lender, course, institution, loan amount, and whether collateral is provided. Public sector banks offer the lowest starting rates, while NBFCs charge higher rates in exchange for faster approvals and greater flexibility.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Bank-Wise Education Loan Interest Rate Comparison (2026)<\/strong><\/h4>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Lender<\/strong><\/td><td><strong>Interest Rate (p.a.)<\/strong><\/td><td><strong>Loan Type<\/strong><\/td><td><strong>Collateral<\/strong><\/td><\/tr><tr><td>SBI (Student Loan)<\/td><td>8.30%\u201310.90%<\/td><td>Domestic + Abroad<\/td><td>Required above \u20b97.5L<\/td><\/tr><tr><td>Bank of Baroda<\/td><td>9.15%\u201312.50%<\/td><td>Domestic + Abroad<\/td><td>Required above \u20b97.5L<\/td><\/tr><tr><td>PNB Saraswati \/ Udaan<\/td><td>9.20%\u201311.50%<\/td><td>Domestic + Abroad<\/td><td>Required above \u20b97.5L<\/td><\/tr><tr><td>Bank of India (Star Vidya)<\/td><td>From 8.25%<\/td><td>Domestic<\/td><td>Varies<\/td><\/tr><tr><td>HDFC Credila (Secured)<\/td><td>From 9.95%<\/td><td>Domestic + Abroad<\/td><td>Required<\/td><\/tr><tr><td>HDFC Credila (Unsecured)<\/td><td>From 11.25%<\/td><td>Abroad (select profiles)<\/td><td>Not required<\/td><\/tr><tr><td>Avanse<\/td><td>11%\u201314%<\/td><td>Domestic + Abroad<\/td><td>Not required (select)<\/td><\/tr><tr><td>Axis Bank<\/td><td>Repo-linked (varies)<\/td><td>Domestic + Abroad<\/td><td>Varies<\/td><\/tr><tr><td>ICICI Bank<\/td><td>10.5%\u201314%<\/td><td>Domestic + Abroad<\/td><td>Varies<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Rates are indicative as of June 2026 and subject to change. Confirm with the respective lender before applying.<\/em><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Do You Know?<br><\/strong> According to RBI data, India&#8217;s outstanding education loan portfolio crossed \u20b91 lakh crore in 2024\u201325 \u2014 and grew by <strong>95.83% in absolute terms between March 2019 and March 2025<\/strong>. The Ministry of Finance further reported that Public Sector Banks disbursed education loans to <strong>7,36,580 students in FY 2023\u201324<\/strong>, up from 6,29,594 in FY 2022\u201323 \u2014 a 17% annual growth in loan accounts. Despite this surge in credit, the number of active loan accounts has actually tightened, meaning each approved borrower is borrowing more. This is why lender comparison and documentation accuracy matter more than ever before you apply.<br>\ud83d\udcce <strong>Source:<\/strong> <a href=\"https:\/\/1finance.co.in\/blog\/education-loan-in-india-rising-cost-of-education-why-you-need-a-financial-plan\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">1Finance \u2014 Education Loan Boom: Rising Cost of Education in India<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Fixed vs Floating Education Loan Interest Rate: Which Is Better?<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">All public sector bank education loans are MCLR-linked (floating). NBFCs like HDFC Credila offer both fixed and floating options \u2014 fixed-rate loans provide predictability for abroad loans where repayment spans 10\u201315 years.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Floating rate:<\/strong> Moves with the RBI repo rate. When rates fall, your EMI reduces. The RBI repo rate stands at 5.25% as of June 2026.<\/li>\n\n\n\n<li><strong>Fixed rate:<\/strong> EMI is locked throughout the tenure. Preferred for longer repayment horizons where budgeting certainty matters.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Interest Concessions Available<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Girl students:<\/strong> Most public sector banks offer a 0.5% concession for female borrowers.<\/li>\n\n\n\n<li><strong>Prompt interest servicing:<\/strong> SBI offers a 1% concession for the full tenure if interest is serviced promptly during the moratorium period.<\/li>\n\n\n\n<li><strong>Government subsidy (PM Vidyalaxmi):<\/strong> Families with annual income up to \u20b94.5 lakh are eligible for 100% interest subsidy under CSIS; families earning up to \u20b98 lakh are eligible for 3% interest subvention on loans up to \u20b910 lakh during the moratorium period.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Key Takeaway:<\/strong> Even a 1% difference in education loan interest rate on a \u20b910 lakh loan can change total repayment by \u20b910,000\u2013\u20b915,000 over the full loan period. Always compare total interest outgo, not just the EMI amount.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Also Read: <\/strong><a href=\"https:\/\/www.ruloans.com\/blog\/tips-to-get-a-low-interest-rate-on-your-education-loan\/\" target=\"_blank\">Tips to Get a Low Interest Rate on Your Education Loan<\/a>&nbsp;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Can I Get an Education Loan Without Collateral?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. Education loans up to \u20b97.5 lakh are available without physical collateral at all public sector banks under the CGFSEL (Credit Guarantee Fund Scheme for Education Loans). Several NBFCs offer collateral-free loans up to \u20b950\u201375 lakh for students admitted to top-ranked institutions. Above \u20b97.5 lakh at public banks, tangible collateral is typically required.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Collateral Rules at Public Sector Banks<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Loans up to \u20b94 lakh: No collateral or guarantee required. Loans from \u20b94 lakh to \u20b97.5 lakh: A third-party guarantee is required (co-borrower with income). Above \u20b97.5 lakh: Tangible collateral is required \u2014 such as immovable property, fixed deposit, NSC, LIC policy, or government securities. The CGFSEL provides a 75% guarantee to the bank in case of default, which is why banks are willing to lend unsecured below this threshold.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Collateral-Free Options at NBFCs<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Public sector banks lend up to \u20b97.5 lakh without collateral, but NBFCs like HDFC Credila, Avanse, and Leap Finance will lend \u20b920 lakh or more without collateral, depending on university ranking and academic background.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Secured vs Unsecured Education Loan Comparison<\/strong><\/h4>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Feature<\/strong><\/td><td><strong>Secured Loan<\/strong><\/td><td><strong>Unsecured Loan<\/strong><\/td><\/tr><tr><td>Collateral Required<\/td><td>Yes (property, FD, NSC)<\/td><td>No<\/td><\/tr><tr><td>Interest Rate<\/td><td>Lower (8.25%\u201310.90%)<\/td><td>Higher (11%\u201315%)<\/td><\/tr><tr><td>Loan Amount<\/td><td>Higher (up to \u20b91.5 crore)<\/td><td>Limited (\u20b97.5L\u2013\u20b975L)<\/td><\/tr><tr><td>Processing Speed<\/td><td>Slower<\/td><td>Faster<\/td><\/tr><tr><td>Best For<\/td><td>Larger loan needs<\/td><td>Quick disbursement needs<\/td><\/tr><tr><td>Government Subsidy Eligibility<\/td><td>Yes (IBA member banks)<\/td><td>Not eligible<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Important:<\/strong> Government interest subsidy schemes apply only to IBA member bank loans, not NBFCs. If your family income qualifies you for a subsidy, taking a loan from an NBFC means you lose that benefit entirely.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What Is the Moratorium Period? (Explained with Example)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The moratorium period is a repayment holiday during which the borrower is not required to pay EMIs. For education loans, this typically covers the full course duration plus 6\u201312 months after completion, giving the student time to find employment. Only simple interest may be charged during this period.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Example: How Moratorium Works on a \u20b910 Lakh Study Loan<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Loan Amount:<\/strong> \u20b910,00,000<\/li>\n\n\n\n<li><strong>Interest Rate:<\/strong> 9.5% p.a.<\/li>\n\n\n\n<li><strong>Course Duration:<\/strong> 2 years<\/li>\n\n\n\n<li><strong>Moratorium Period:<\/strong> 2 years (course) + 6 months = 2.5 years<\/li>\n\n\n\n<li><strong>Interest accrued during moratorium (simple):<\/strong> \u20b910,00,000 \u00d7 9.5% \u00d7 2.5 = \u20b92,37,500<\/li>\n\n\n\n<li><strong>Total principal at repayment start:<\/strong> \u20b912,37,500 (if interest is added to principal)<\/li>\n\n\n\n<li><strong>Repayment Tenure:<\/strong> 10 years<\/li>\n\n\n\n<li><strong>Approx. EMI:<\/strong> \u20b915,900\u2013\u20b916,200 per month<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Pro Tip:<\/strong> Pay the simple interest every month during the moratorium period. This prevents interest from being added to the principal, significantly reducing total repayment cost on your student loan.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>EMI Examples: \u20b910L, \u20b925L, and \u20b950L Loans<\/strong><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>\u20b910 Lakh Study Loan at 9.5% for 10 Years<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>EMI: approximately <strong>\u20b912,940\/month<\/strong><\/li>\n\n\n\n<li>Total Repayment: approximately \u20b915.5 lakh<\/li>\n\n\n\n<li>Total Interest: approximately \u20b95.5 lakh<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>\u20b925 Lakh Education Loan at 10.5% for 12 Years<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>EMI: approximately <strong>\u20b930,100\/month<\/strong><\/li>\n\n\n\n<li>Total Repayment: approximately \u20b943.3 lakh<\/li>\n\n\n\n<li>Total Interest: approximately \u20b918.3 lakh<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>\u20b950 Lakh Study Abroad Loan at 11.25% for 15 Years<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>EMI: approximately <strong>\u20b957,800\/month<\/strong><\/li>\n\n\n\n<li>Total Repayment: approximately \u20b91.04 crore<\/li>\n\n\n\n<li>Total Interest: approximately \u20b954 lakh<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Planning Insight:<\/strong> For study abroad loans, a 0.5% reduction in education loan interest rate on \u20b950 lakh over 15 years saves approximately \u20b94\u20135 lakh in total interest. Collateral negotiation matters enormously.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Also Read:<\/strong> <a href=\"https:\/\/www.ruloans.com\/blog\/the-importance-of-early-planning-for-education-loan-repayment\/\" target=\"_blank\">The Importance of Early Planning for Education Loan Repayment<\/a>&nbsp;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How to Apply for an Education Loan Online in 2026?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Students can apply for an education loan online through the PM Vidyalaxmi portal (pmvidyalaxmi.co.in), individual bank websites, NBFC portals, or through loan marketplaces like Ruloans. The PM Vidyalaxmi portal allows a single application to be sent to up to three banks simultaneously, making <a target=\"_blank\" href=\"https:\/\/www.ruloans.com\/education-loan\/\">education loan apply online<\/a> faster and simpler than ever before.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Step-by-Step: Education Loan Apply Online Process<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Step 1 \u2014 Calculate your requirement<\/strong><strong><br><\/strong> Add up all documented expenses: tuition fees, hostel, books, travel, and laptop. Get a formal fee structure letter from your institution.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Step 2 \u2014 Check your eligibility<\/strong><strong><br><\/strong> Use an online education loan eligibility calculator. Key inputs: loan amount, co-applicant&#8217;s income, institution name, course type, and any collateral available.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Step 3 \u2014 Compare lenders<\/strong><strong><br><\/strong> Use Ruloans to compare education loan interest rates across 275+ banks and NBFCs in a single place. Identify the best combination of rate, speed, and collateral requirement for your study loan needs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Step 4 \u2014 Apply<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Via PM Vidyalaxmi Portal:<\/strong> Go to pmvidyalaxmi.co.in, complete the Common Education Loan Application Form (CELAF), and submit to up to three banks. The platform integrates 40+ banks and multiple loan schemes into a single application system \u2014 the fastest way to education loan apply online in India.<\/li>\n\n\n\n<li><strong>Via Ruloans:<\/strong> Apply through Ruloans&#8217; platform with guidance from a loan expert who coordinates with the right lender for your profile.<\/li>\n\n\n\n<li><strong>Via the lender&#8217;s website:<\/strong> Apply directly on the bank or NBFC&#8217;s portal with your documents.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Step 5 \u2014 Document submission<\/strong><strong><br><\/strong> Upload or submit all required documents (see Document Checklist below).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Step 6 \u2014 Sanction and disbursement<\/strong><strong><br><\/strong> The lender verifies documents and issues a sanction letter. Disbursement is made directly to the institution per semester or as agreed.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Document Checklist for Education Loan Apply Online<\/strong><\/h4>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Document Category<\/strong><\/td><td><strong>Documents Required<\/strong><\/td><\/tr><tr><td>Identity Proof<\/td><td>Aadhaar card, PAN card, passport<\/td><\/tr><tr><td>Address Proof<\/td><td>Aadhaar, utility bill, rent agreement<\/td><\/tr><tr><td>Academic Records<\/td><td>10th and 12th marksheets, graduation transcripts (for PG loans), entrance exam scores (GRE, GMAT, IELTS, TOEFL)<\/td><\/tr><tr><td>Admission Proof<\/td><td>Admission offer letter from the institution<\/td><\/tr><tr><td>Fee Structure<\/td><td>Detailed fee structure from the institution<\/td><\/tr><tr><td>Co-applicant Income<\/td><td>Latest 3 months&#8217; salary slips, 2 years&#8217; ITR, Form 16 (for salaried); 2\u20133 years&#8217; ITR and business proof (for self-employed)<\/td><\/tr><tr><td>Bank Statements<\/td><td>Last 6 months&#8217; bank statements (co-applicant)<\/td><\/tr><tr><td>Collateral Documents<\/td><td>Property documents, FD receipt, NSC certificate (if applicable)<\/td><\/tr><tr><td>Photographs<\/td><td>Passport-size photographs<\/td><\/tr><tr><td>Study Abroad (additional)<\/td><td>Visa documents, travel itinerary (if available)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Study Abroad Education Loans: What You Need to Know<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Indian students can get education loans to study in the USA, UK, Canada, Australia, Germany, Ireland, New Zealand, Singapore, and most other countries. Loan amounts go up to \u20b91.5 crore at SBI. Living expenses, tuition, airfare, and health insurance are typically covered. For many families, a study loan for abroad is the only viable way to fund international higher education.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Study in India vs Study Abroad: Education Loan in India Comparison<\/strong><\/h4>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Parameter<\/strong><\/td><td><strong>Study in India<\/strong><\/td><td><strong>Study Abroad<\/strong><\/td><\/tr><tr><td>Maximum Loan<\/td><td>\u20b930\u201340 lakh (public banks)<\/td><td>\u20b91.5 crore (SBI Global Ed-Vantage)<\/td><\/tr><tr><td>Interest Rate<\/td><td>8.30%\u201312%<\/td><td>9.5%\u201314%<\/td><\/tr><tr><td>Collateral Threshold<\/td><td>\u20b97.5 lakh<\/td><td>\u20b97.5 lakh (but higher amounts needed)<\/td><\/tr><tr><td>Margin Money<\/td><td>0% (up to \u20b94L); 5% (India); 15% (abroad)<\/td><td>15% of total cost<\/td><\/tr><tr><td>Expenses Covered<\/td><td>Tuition, hostel, books<\/td><td>Tuition, accommodation, airfare, travel, health insurance<\/td><\/tr><tr><td>Repayment Tenure<\/td><td>Up to 15 years<\/td><td>Up to 15 years<\/td><\/tr><tr><td>Government Subsidy<\/td><td>Available (IBA bank loans)<\/td><td>Not available (CSIS applies to India only)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Country-Wise Indicative Education Costs (2026)<\/strong><\/h4>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Country<\/strong><\/td><td><strong>Average Annual Tuition (INR)<\/strong><\/td><td><strong>Average Living Cost\/Year (INR)<\/strong><\/td><\/tr><tr><td>USA<\/td><td>\u20b925\u201350 lakh<\/td><td>\u20b912\u201318 lakh<\/td><\/tr><tr><td>UK<\/td><td>\u20b920\u201335 lakh<\/td><td>\u20b910\u201314 lakh<\/td><\/tr><tr><td>Canada<\/td><td>\u20b915\u201328 lakh<\/td><td>\u20b98\u201312 lakh<\/td><\/tr><tr><td>Australia<\/td><td>\u20b918\u201330 lakh<\/td><td>\u20b99\u201313 lakh<\/td><\/tr><tr><td>Germany<\/td><td>\u20b91\u20135 lakh (public universities)<\/td><td>\u20b97\u201310 lakh<\/td><\/tr><tr><td>Ireland<\/td><td>\u20b915\u201325 lakh<\/td><td>\u20b99\u201312 lakh<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Indicative estimates. Actual costs vary by institution and city.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Key Takeaway:<\/strong> For study abroad, NBFCs offer faster processing and higher unsecured limits. But if your family qualifies for government subsidies, take a loan from an IBA member bank \u2014 the interest saved on your study loan can be significant.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Do You Know?<br><\/strong> Education inflation in India is running at <strong>10\u201312% annually<\/strong>, more than double the country&#8217;s general consumer inflation rate. Private college undergraduate fee hikes range from <strong>7\u201315% per year<\/strong>, with some institutions hiking fees by over 20% in a single academic year. At the postgraduate level, IIM programmes that cost \u20b93\u20135 lakh in the early 2000s now cost \u20b925\u201328 lakh. If this pace continues, the cost of a professional degree in India could be <strong>3\u20134 times higher by 2040<\/strong> than it is today. Meanwhile, over <strong>1.8 million Indian students<\/strong> were studying abroad in 2025, the highest number on record, projected to spend <strong>USD 70 billion<\/strong> on overseas education that year alone.<br>\ud83d\udcce <strong>Sources:<\/strong><a href=\"https:\/\/indiamacroindicators.co.in\/resources\/blogs\/how-much-does-an-indian-degree-cost\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">IndiaMarcoIndicators \u2014 How Much Does an Indian Degree Cost?<\/a><a href=\"https:\/\/www.y-axis.com\/news\/record-1-8-million-indian-students-now-studying-abroad-in-2025-with-canada-and-uk-leading\/\" target=\"_blank\" rel=\"noopener\">Y-Axis \u2014 Record 1.8M Indian Students Abroad in 2025<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Government Schemes for Education Loans in India (2026)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The Indian government operates two key education loan support schemes \u2014 the PM Vidyalaxmi scheme and the Central Sector Interest Subsidy (CSIS). Together, they provide collateral-free loans and interest subsidies for eligible students pursuing education loan in India from recognised institutions.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>PM Vidyalaxmi Scheme<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">The PM Vidyalaxmi Scheme provides collateral-free and guarantor-free education loans up to \u20b910 lakh to meritorious students admitted to India&#8217;s top 860+ Quality Higher Education Institutions (QHEIs), with a 3% interest subvention for families earning up to \u20b98 lakh annually.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Applies to IITs, IIMs, NITs, AIIMS, central universities, and top NIRF-ranked institutions<\/li>\n\n\n\n<li>Approximately 22 lakh students annually can receive collateral-free loans under this scheme; around 1 lakh students from economically weaker families will receive the 3% interest subsidy<\/li>\n\n\n\n<li>Apply at: <strong>pmvidyalaxmi.co.in<\/strong><\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Central Sector Interest Subsidy (CSIS)<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Full interest subsidy during moratorium for families earning up to \u20b94.5 lakh annually<\/li>\n\n\n\n<li>Available only on loans taken from IBA-member banks for recognised courses in India<\/li>\n\n\n\n<li>Aadhaar mandatory for availing subsidy<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Which Bank Is Best for an Education Loan in India?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">There is no single best bank \u2014 the right lender for your education loan in India depends on your loan amount, course, institution, need for speed, and availability of collateral. Public sector banks offer lower rates; NBFCs offer faster approvals and higher unsecured amounts.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Public Bank vs Private Bank vs NBFC<\/strong><\/h4>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Parameter<\/strong><\/td><td><strong>Public Banks (SBI, BOB, PNB)<\/strong><\/td><td><strong>Private Banks (ICICI, Axis, HDFC)<\/strong><\/td><td><strong>NBFCs (Credila, Avanse)<\/strong><\/td><\/tr><tr><td>Interest Rate<\/td><td>8.25%\u201311%<\/td><td>10%\u201314%<\/td><td>9.75%\u201315%<\/td><\/tr><tr><td>Processing Speed<\/td><td>2\u20136 weeks<\/td><td>1\u20133 weeks<\/td><td>7\u201315 days<\/td><\/tr><tr><td>Collateral Required<\/td><td>Above \u20b97.5 lakh<\/td><td>Above \u20b97.5 lakh (varies)<\/td><td>Not always (up to \u20b975L)<\/td><\/tr><tr><td>Government Subsidy<\/td><td>Yes<\/td><td>Yes (IBA members)<\/td><td>No<\/td><\/tr><tr><td>Tax Benefit (Sec 80E)<\/td><td>Yes<\/td><td>Yes<\/td><td>Yes<\/td><\/tr><tr><td>Max Loan Amount<\/td><td>\u20b91.5 crore<\/td><td>\u20b940\u201375 lakh<\/td><td>No cap (secured)<\/td><\/tr><tr><td>Processing Fee<\/td><td>Nil up to \u20b920L (SBI)<\/td><td>0.5%\u20132%<\/td><td>1%\u20132%<\/td><\/tr><tr><td>Best For<\/td><td>Lowest rate, larger amounts<\/td><td>Balance of speed and rate<\/td><td>Speed, collateral-free<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Education Loan vs Personal Loan: Which Should You Choose?<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Always prefer an education loan over a personal loan for funding higher education. Education loans offer lower interest rates, longer repayment tenures, a moratorium period, <a target=\"_blank\" href=\"https:\/\/www.ruloans.com\/blog\/5-things-to-know-about-tax-benefits-on-education-loans-in-2023\/\">tax benefits under Section 80E<\/a>, and government subsidy eligibility, none of which a personal loan provides.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Feature<\/strong><\/td><td><strong>Education Loan<\/strong><\/td><td><strong>Personal Loan<\/strong><\/td><\/tr><tr><td>Interest Rate<\/td><td>8.25%\u201315% p.a.<\/td><td>10.5%\u201324% p.a.<\/td><\/tr><tr><td>Repayment Tenure<\/td><td>Up to 15 years<\/td><td>Up to 5\u20137 years<\/td><\/tr><tr><td>Moratorium Period<\/td><td>Yes (course + 6\u201312 months)<\/td><td>No<\/td><\/tr><tr><td>Tax Benefit<\/td><td>Yes \u2014 Section 80E<\/td><td>No<\/td><\/tr><tr><td>Collateral<\/td><td>Not required below \u20b97.5L<\/td><td>Not required<\/td><\/tr><tr><td>Government Subsidy<\/td><td>Yes (eligible profiles)<\/td><td>No<\/td><\/tr><tr><td>Purpose Restriction<\/td><td>Education-specific<\/td><td>Unrestricted<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Key Takeaway:<\/strong> A personal loan for education should be considered only when the student does not qualify for an education loan, typically for short-term courses not recognised by banks.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Also Read:<\/strong> <a href=\"https:\/\/www.ruloans.com\/blog\/5-things-to-know-about-tax-benefits-on-education-loans-in-2023\/\" target=\"_blank\">5 Things to Know About Tax Benefits on Education Loans<\/a>&nbsp;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Why Do Education Loans Get Rejected? (And How to Avoid It)<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Education loan applications are rejected most commonly due to a low co-applicant CIBIL score, admission to an unrecognised institution, insufficient income proof, incomplete documentation, or a loan amount that exceeds documented course expenses. Each rejection reason has a direct fix \u2014 knowing them in advance dramatically improves approval chances.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Education Loan Rejection Reasons \u2014 And How to Fix Them<\/strong><\/h4>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Sr. No<\/strong><\/td><td><strong>Rejection Reason<\/strong><\/td><td><strong>Why It Causes Rejection<\/strong><\/td><td><strong>How to Fix It<\/strong><\/td><\/tr><tr><td>1<\/td><td>Co-applicant CIBIL score below 650<\/td><td>Banks see a low score as high default risk<\/td><td>Clear existing dues, close overdue accounts, and wait 3\u20136 months for the score to improve before applying<\/td><\/tr><tr><td>2<\/td><td>Existing loan default by co-applicant<\/td><td>Active default signals inability to repay<\/td><td>Settle the defaulted loan, obtain a NOC from the lender, and allow 6\u201312 months before reapplying<\/td><\/tr><tr><td>3<\/td><td>Institution not recognised by UGC \/ AICTE \/ MCI<\/td><td>Banks only fund approved institutions<\/td><td>Confirm institutional recognition before applying; switch to a UGC\/AICTE-approved institution if possible<\/td><\/tr><tr><td>4<\/td><td>Course not on the lender&#8217;s approved list<\/td><td>Some courses (short-term, online, unaccredited) are excluded<\/td><td>Check the lender&#8217;s approved course list; apply to an NBFC if the bank rejects the course type<\/td><\/tr><tr><td>5<\/td><td>Loan amount exceeds documented course fees<\/td><td>Banks fund actual, documented expenses \u2014 not estimates<\/td><td>Get a detailed, official fee structure letter from the institution and request only the documented amount<\/td><\/tr><tr><td>6<\/td><td>Conditional admission offer letter<\/td><td>Banks require a confirmed, unconditional offer<\/td><td>Apply for the loan only after receiving the final admission letter, not a provisional one<\/td><\/tr><tr><td>7<\/td><td>Insufficient co-applicant income<\/td><td>Lender calculates repayment capacity based on income<\/td><td>Add a second co-applicant with stable income, or reduce the loan amount to match income eligibility<\/td><\/tr><tr><td>8<\/td><td>Irregular or undocumented income (self-employed co-applicant)<\/td><td>Banks need consistent income evidence over 2\u20133 years<\/td><td>Provide 2\u20133 years of ITR filings, audited accounts, and GST returns to establish income history<\/td><\/tr><tr><td>9<\/td><td>Incomplete or inconsistent documents<\/td><td>Missing or mismatched documents trigger automatic rejection<\/td><td>Use the full document checklist; ensure all names, dates, and figures match across every document<\/td><\/tr><tr><td>10<\/td><td>Collateral value insufficient<\/td><td>For loans above \u20b97.5 lakh, the pledged asset must cover the loan<\/td><td>Get a professional property valuation; offer an FD or additional asset to bridge the collateral gap<\/td><\/tr><tr><td>11<\/td><td>Co-applicant already has high loan obligations<\/td><td>Existing EMIs reduce the bank&#8217;s assessment of repayment capacity<\/td><td>Reduce existing loan burden before applying, or add a second income-earning co-applicant<\/td><\/tr><tr><td>12<\/td><td>No credit history for co-applicant<\/td><td>Banks cannot assess risk without a credit record<\/td><td>Build credit history with a credit card or small loan 6\u201312 months before applying<\/td><\/tr><tr><td>13<\/td><td>Mismatch between institution name on documents<\/td><td>Any discrepancy raises fraud flags<\/td><td>Ensure the institution name is identical across admission letter, fee structure, and all ID documents<\/td><\/tr><tr><td>14<\/td><td>Applying to wrong lender for the profile<\/td><td>Some banks do not fund certain countries, courses, or institutions<\/td><td>Research lender-specific lists; use Ruloans to match your profile to the right lender from 275+ options<\/td><\/tr><tr><td>15<\/td><td>Study abroad loan without valid visa (some lenders)<\/td><td>Certain lenders require visa confirmation before disbursement<\/td><td>Apply early; many banks issue a sanction letter first \u2014 disbursement follows visa approval<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Education Loan Approval Checklist<\/strong><\/h4>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Checkpoint<\/strong><\/td><td><strong>Status to Aim For<\/strong><\/td><\/tr><tr><td>Co-applicant CIBIL score<\/td><td>700 or above<\/td><\/tr><tr><td>Admission letter<\/td><td>Final and unconditional<\/td><\/tr><tr><td>Institution recognition<\/td><td>UGC \/ AICTE \/ MCI \/ NAAC approved<\/td><\/tr><tr><td>Loan amount vs documented fees<\/td><td>Loan \u2264 Total documented expenses<\/td><\/tr><tr><td>Income proof<\/td><td>3 months&#8217; salary slips + 2 years&#8217; ITR<\/td><\/tr><tr><td>Bank statements<\/td><td>6 months&#8217; statements showing regular income<\/td><\/tr><tr><td>Collateral documents<\/td><td>Complete and legally clear (for loans above \u20b97.5 lakh)<\/td><\/tr><tr><td>Document consistency<\/td><td>All names, addresses, and figures match across all documents<\/td><\/tr><tr><td>Existing loan defaults<\/td><td>None \u2014 all dues cleared<\/td><\/tr><tr><td>Co-applicant loan obligations<\/td><td>Existing EMIs leave sufficient repayment capacity<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Key Takeaway:<\/strong> Most education loan rejections are preventable. A CIBIL check, a document audit, and a lender-profile match, done before you education loan apply online, eliminate the most common rejection triggers. Apply through Ruloans to get expert guidance on which of the 275+ lenders is the best fit for your specific academic and financial profile, maximising your approval chances from the first application itself.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How to Apply for an Education Loan Through Ruloans<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Ruloans is India&#8217;s leading loan distribution platform with access to 275+ banks and NBFCs across 4,000+ cities. With 25+ years of experience and over \u20b91.4 lakh crore in loans disbursed, Ruloans gives you a single point of comparison for <a target=\"_blank\" href=\"https:\/\/www.ruloans.com\/education-loan\">education loan<\/a> in India across the country&#8217;s top lenders.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>How Ruloans helps:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Compare education loan offers from multiple lenders on a single platform<\/li>\n\n\n\n<li>Expert guidance on which lender is right for your profile, institution, and loan amount<\/li>\n\n\n\n<li>Real-time loan application tracking via <a target=\"_blank\" href=\"https:\/\/ruconnect.ruloans.com\/\" rel=\"noopener\">Ruconnect <\/a>\u2014 India&#8217;s best B2B loan distribution channel partner app<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Apply online at <a target=\"_blank\" href=\"https:\/\/www.ruloans.com\/education-loan\">Ruloans education loan<\/a> or download the <a target=\"_blank\" href=\"https:\/\/ruconnect.ruloans.com\/\" rel=\"noopener\">Ruconnect App<\/a> to get started.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Hidden Charges to Watch Out For in Education Loans<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Before you sign, review these often-overlooked costs:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Charge<\/strong><\/td><td><strong>What It Is<\/strong><\/td><td><strong>Typical Amount<\/strong><\/td><\/tr><tr><td>Processing Fee<\/td><td>One-time fee at loan origination<\/td><td>Nil (public banks up to \u20b920L); 1%\u20132% (NBFCs)<\/td><\/tr><tr><td>Margin Money<\/td><td>Your own contribution<\/td><td>0% (up to \u20b94L); 5% (India); 15% (abroad)<\/td><\/tr><tr><td>Prepayment Penalty<\/td><td>Fee for repaying before tenure ends<\/td><td>Nil (most lenders post-RBI circular)<\/td><\/tr><tr><td>Loan Rescheduling Fee<\/td><td>Fee for changing repayment schedule<\/td><td>\u20b9500\u2013\u20b92,000<\/td><\/tr><tr><td>Stamp Duty<\/td><td>State-specific on loan agreement<\/td><td>Varies by state<\/td><\/tr><tr><td>Insurance Premium<\/td><td>Life insurance on the loan<\/td><td>Optional but recommended<\/td><\/tr><tr><td>Currency Conversion Risk<\/td><td>For study abroad loans<\/td><td>Rate fluctuation risk<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Section 80E Tax Benefit on Education Loans<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The interest paid on an education loan is fully deductible under <a target=\"_blank\" href=\"https:\/\/www.ruloans.com\/blog\/5-things-to-know-about-tax-benefits-on-education-loans-in-2023\/\">Section 80E of the Income Tax Act<\/a> for up to 8 years from the year repayment begins. There is no upper cap on the deduction amount. This applies to loans taken for yourself, your spouse, children, or a student for whom you are a legal guardian.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This tax benefit is available only on the interest component of the EMI, not the principal. It applies to education loans from banks and notified financial institutions \u2014 not from family or friends.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Example:<\/strong> If your annual interest payment is \u20b91,20,000 and you are in the 30% tax slab, you save \u20b936,000 in taxes every year for up to 8 years.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Also Read:<\/strong> <a href=\"https:\/\/www.ruloans.com\/blog\/5-things-to-know-about-tax-benefits-on-education-loans-in-2023\/\" target=\"_blank\">5 Things to Know About Tax Benefits on Education Loans<\/a>&nbsp;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Conclusion: Making the Right Education Loan Decision in 2026&nbsp;<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The right education loan does not just fund a degree, it funds a future. Before you apply, compare at least three lenders, check your government subsidy eligibility under PM Vidyalaxmi or CSIS, and pay simple interest during the moratorium to keep your repayment manageable.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You do not need to visit multiple banks or fill multiple forms. Ruloans gives you access to 275+ banks and NBFCs on a single platform, with expert guidance and 100% on-time payouts backed by 25+ years of experience and \u20b91.4 lakh crore disbursed across India.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Your education deserves the right funding. Apply for an education loan through Ruloans today.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">FAQ<\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1781536538092\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>1. Can I get an education loan if my parents are self-employed with no ITR?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>It is difficult but possible. Some NBFCs accept bank statements, GST returns, or business proof as income evidence in place of ITR. Public sector banks typically require at least 2\u20133 years of filed ITR. If income documentation is weak, offering collateral significantly improves approval chances.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1781536554839\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>2. Will taking an education loan affect my parents&#8217; CIBIL score?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes. Since parents are co-applicants, the education loan appears on their credit report. Timely repayment improves their score; missed EMIs damage it. Parents should check their CIBIL score before applying and ensure no existing defaults are active.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1781536572711\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>3. Can I get an education loan if I have a gap year after 12th or graduation?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, a gap year does not automatically disqualify you. Banks assess the reason for the gap. If you have a valid explanation \u2014 health, family reasons, exam preparation \u2014 and hold a confirmed admission letter, most lenders will still process your application.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1781536589144\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>4. What happens to my education loan if I drop out mid-course?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The moratorium period ends immediately upon dropping out. Repayment begins within 6 months of discontinuation. The full outstanding amount including accrued interest becomes due. Inform your bank immediately \u2014 some lenders offer restructuring options in genuine hardship cases.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1781536621566\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>5. Can I top up my education loan if my fees increase mid-course?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes. Most banks allow a top-up on an existing education loan if there is a documented increase in fees \u2014 such as a fee revision letter from the institution. The additional amount is subject to the original eligibility criteria and collateral availability.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1781536639715\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>6. Does the college or university ranking affect my education loan eligibility?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Significantly. Students admitted to IITs, IIMs, NITs, AIIMS, and top NIRF-ranked institutions get faster approvals, higher unsecured loan limits, and sometimes lower interest rates. NBFCs in particular adjust both the loan amount and rate based on institution ranking and course employability.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1781536657713\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"> <strong>7. Can I repay my education loan while still studying?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p> Yes. You are not required to wait until the moratorium period ends. Paying simple interest \u2014 or even partial principal \u2014 during the course reduces total interest outgo significantly. There is no prepayment penalty on floating rate education loans post the RBI circular.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1781536671724\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>8. What if I go abroad for a job after completing my course \u2014 can I still repay my Indian education loan?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes. You can repay your Indian education loan through NRE or NRO accounts, international wire transfers, or by authorising a family member to pay EMIs from an Indian account. Inform your bank about your location change and update contact details to avoid communication gaps.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1781536686110\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>9. Can a single parent be a co-applicant for an education loan?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes. A single parent \u2014 whether divorced, widowed, or separated \u2014 can serve as a co-applicant provided they have a stable, documented income source and a satisfactory credit profile. The bank assesses income and repayment capacity, not marital status.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1781536709687\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>10. If I get a scholarship after the loan is disbursed, do I have to return the money?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Not necessarily. If the scholarship covers future semester fees, the bank will adjust disbursements accordingly \u2014 meaning the remaining tranches may be reduced. However, amounts already disbursed and utilised for documented expenses do not need to be returned. Notify your bank and institution immediately when a scholarship is awarded.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n<div class=\"sabox-plus-item\"><div class=\"saboxplugin-wrap\" itemtype=\"http:\/\/schema.org\/Person\" itemscope itemprop=\"author\"><div class=\"saboxplugin-tab\"><div class=\"saboxplugin-gravatar\"><img class=\"lazyload\" decoding=\"async\" src=\"data:image\/svg+xml,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%27100%27%20height%3D%27100%27%20viewBox%3D%270%200%20100%20100%27%3E%3Crect%20width%3D%27100%27%20height%3D%27100%27%20fill-opacity%3D%220%22%2F%3E%3C%2Fsvg%3E\" data-orig-src=\"https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2026\/04\/RULOANS-LOGO-JPEG-scaled.jpg\" width=\"100\" height=\"100\" alt=\"\" itemprop=\"image\" title=\"\"><\/div><div class=\"saboxplugin-authorname\"><a href=\"https:\/\/www.ruloans.com\/blog\/author\/admin\/\" class=\"vcard author\" rel=\"author\"><span class=\"fn\">Ruloans Team<\/span><\/a><\/div><div class=\"saboxplugin-desc\"><div itemprop=\"description\"><p><em>Every article on Ruloans is researched, written, and verified by a team of former bankers, certified financial planners, DSA industry veterans, and lending compliance specialists with over 25 years of hands-on experience in India&#8217;s loan distribution landscape. From decoding home loan eligibility and EMI planning for borrowers, to guiding DSA partners on commissions, registrations, and building a lending business \u2014 our content is grounded in real industry expertise, fact-checked against live RBI guidelines and current bank and NBFC policies, and built to help you make confident financial decisions.<\/em><\/p>\n<\/div><\/div><div class=\"clearfix\"><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>An education loan is a financial product offered by banks  [&#8230;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":""},"categories":[77],"tags":[449,1638,1636,1639,1048,1637],"class_list":["post-14494","post","type-post","status-publish","format-standard","hentry","category-education-loan","tag-education-loan","tag-education-loan-apply-online","tag-education-loan-in-india","tag-education-loan-interest-rate","tag-student-loan","tag-study-loan"],"rttpg_featured_image_url":null,"rttpg_author":{"display_name":"Ruloans Team","author_link":"https:\/\/www.ruloans.com\/blog\/author\/admin\/"},"rttpg_comment":0,"rttpg_category":"<a href=\"https:\/\/www.ruloans.com\/blog\/education-loan\/\" rel=\"category tag\">Education Loan<\/a>","rttpg_excerpt":"An education loan is a financial product offered by banks [...]","_links":{"self":[{"href":"https:\/\/www.ruloans.com\/blog\/wp-json\/wp\/v2\/posts\/14494","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ruloans.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ruloans.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ruloans.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ruloans.com\/blog\/wp-json\/wp\/v2\/comments?post=14494"}],"version-history":[{"count":5,"href":"https:\/\/www.ruloans.com\/blog\/wp-json\/wp\/v2\/posts\/14494\/revisions"}],"predecessor-version":[{"id":14500,"href":"https:\/\/www.ruloans.com\/blog\/wp-json\/wp\/v2\/posts\/14494\/revisions\/14500"}],"wp:attachment":[{"href":"https:\/\/www.ruloans.com\/blog\/wp-json\/wp\/v2\/media?parent=14494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ruloans.com\/blog\/wp-json\/wp\/v2\/categories?post=14494"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ruloans.com\/blog\/wp-json\/wp\/v2\/tags?post=14494"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}