Why Choose Education Loan for Higher Education?
It is crucial to choose the right funding options when studying abroad. Banks offer education loans that are affordable and have flexible terms.
They provide you with customized repayment plans with long tenures of up to 15 years.
Banks offer a moratorium period that delays EMIs, allowing you time to settle down.
You can get funding for tuition fees, living expenses, travel, and even study materials.
Banks & Lenders Offering Education Loans
Bank Name
Loan Amount
Interest Rate
Processing Time
Processing Fee
Upto INR 2 Crore
9.95% - 12%
7 Days
0.5 - 1%
Upto INR 2 Crore
9.95% - 13.50%
10 Days
0.75 - 1%
Upto USD 200K
10.5% - 14%
7 days
100USD+ 5%
Upto INR 1.5 Crore
10.15% - 11.15%
25 days
INR 10,000
Upto INR 1.5 Crore
9.75% - 13%
14 days
0.75%
Upto INR 1.5 Crore
10% - 13%
7 days
0.85 - 1 %
Upto INR 1.5 Crore
10.50% - 13%
7 days
1%
Upto INR 1 Crore
9.95% - 12%
7 days
0.5 - 1 %
frequently asked questions
What are the eligibility criteria for an ICICI Bank education loan?
ICICI Bank education loans offer competitive interest rates. It is one of the largest private sector banks in India and offers loans up to ₹ 3 crore.
Here’s a detailed breakdown of the eligibility criteria:
- The applicant must be an Indian citizen and aged between 18 – 35 years old.
- You should have passed the 12th Board exam for UG, and graduated for PG courses
- Applicants must have received an admission from an approved university
- A good academic record is not mandatory but helps secure a loan swiftly.
What is a collateral-free loan?
You may need to offer collateral when you avail of an education loan. A collateral loan requires the pledging of an asset like a house, property, or fixed deposit. Usually, shares, mutual funds, and jewelry are not accepted as collateral.
Some banks offer collateral-free loans. Since it is riskier, banks charge a slightly higher interest rate for lack of collateral. ICICI Bank offers collateral-free education loans up to ₹ 1 crore.
How is the interest rate for an education loan determined?
Education loan interest rates are determined by a combination of factors. These include a base rate such as the repo rate and a spread.
The repo rate is the rate at which the Reserve Bank of India lends to commercial banks. Currently, it stands at 6.25%.
The spread means the extra the commercial bank charges its customers on top of the repo rate. The spread is determined by the bank’s operational cost, the customer’s creditworthiness, the type of loan, and other factors.
What are NBFCs and do they offer education loans?
Non-Banking Financial Companies (NBFCs) are financial institutions that offer educational and other loans. But they do not have a banking license. This doesn’t make any difference to the end user and taking an educational loan from an NBFC is the same as one from a bank.
These are some of the top NBFCs in India that offer educational loans:
- Credila Education Loan
- Avanse Education Loan
- Prodigy Finance Education Loan
- M-Power Education Loan
The loans they offer have the same features, such as:
- Fixed and floating interest rate
- Both collateral and collateral-free loans
- Coverage of tuition, accommodation, insurance and other expenses
- Moratorium period of 6 – 12 months after graduation
What is a moratorium period?
A moratorium period is a temporary respite of loan repayments. A postgraduate course abroad typically lasts 1-2 years. The student cannot start repaying the month after the course ends. First, they have to search and find a job, change city, work for a few months, and only then are they in a position to start paying EMIs.