Invest in Your Future with Smart Education Loans
Achieve your academic goals with reliable education loan solutions designed for studies in India and abroad. We provide financial support that covers tuition, living expenses, and other educational costs, ensuring you can focus on your future without financial stress.
Why Choose Education Loans ?
Our education loans are designed to support students at every stage of their academic journey. Whether you are pursuing undergraduate, postgraduate, or professional courses, we offer flexible funding options, simple processing, and structured repayment plans to make higher education accessible and affordable.
- Loan amount up to ₹1 Crore
- Competitive interest rates
- Flexible repayment tenure
- Moratorium during study period
- Covers all education-related expenses
- Minimal documentation process
Education Loan Benefits
100% Financing
Get complete financial support covering tuition fees, accommodation, travel, and study materials.
Quick Processing
Simple documentation and faster approval ensure timely financial support.
Flexible Repayment
Repay comfortably with extended tenure and moratorium period after course completion.
No Prepayment Charges
Repay your loan early without any additional cost or penalty.
Eligibility Criteria
- Indian Citizenship: Applicant must be an Indian citizen
- Admission Status: Secured admission in a recognized institution
- Academic Record: Good academic background
- Co-applicant: Parent/Guardian as co-applicant or guarantor
- Age: Minimum 18 years (varies by bank)
- Financial Standing: Parent's financial capacity to service the loan
Eligible Courses
- Undergraduate Programs: B.Tech, BE, MBBS, BDS, BBA, BCA, BA, BSc, BCom, etc.
- Postgraduate Programs: MBA, MCA, MS, MTech, MD, MDS, MA, MSc, MCom, etc.
- Professional Courses: CA, CS, CMA, Law, etc.
- Vocational/Skill Development Courses: Approved by recognized authorities
- Foreign Education: Programs at recognized universities abroad
- Specialized Courses: Aviation, Hotel Management, Fashion Design, etc.
Required Documents
Identity & Address Proof
- Aadhaar Card
- PAN Card (of student and co-applicant)
- Passport (mandatory for foreign education)
- Voter ID Card
- Driving License
- Utility bills for address proof
Academic Documents
- Mark sheets of qualifying examinations
- Admission letter from college/university
- Fee structure of the course
- Scholarship details (if any)
- Entrance exam score cards (GRE, GMAT, etc.)
- Visa approval (for foreign education)
Financial Documents
- Income Tax Returns (last 2 years) of parents/guardian
- Form 16 (for salaried co-applicants)
- Last 6 months' bank statements
- Salary slips (last 3 months) for salaried co-applicants
- Business proof for self-employed co-applicants
Collateral Documents (for loans > ₹10 Lakhs)
- Property documents (if property is provided as collateral)
- Fixed Deposit Receipts
- Life Insurance Policies
- Mutual Fund statements
- Share certificates
- Other asset proof as acceptable to the lender
Interest Rates & Charges
Loan Amount
₹10 Lakhs - ₹1 Crore
- For Study in India: Up to ₹50 Lakhs
- For Study Abroad: Up to ₹1 Crore Covers tuition fees
- Hostel/accommodation expenses
- Exam/library/laboratory fees
- Books and equipment
- Travel expenses
- Insurance premium
Interest Rates
9.00% - 14.00%
- For Loans up to ₹10 Lakhs: 9.00% - 11.50%
- For Loans above ₹10 Lakhs: 10.50% - 14.00% Fixed & floating rate options
- Concessions for female students
- Interest subsidy schemes available
- Special rates for premier institutions
- Competitive rates from multiple banks
- Interest accrues during study period
Repayment Terms
Up to 15 Years
- Moratorium Period: Course Duration + 6-12 months
- Flexible EMI Options Repayment starts after moratorium period
- Step-up EMI options available
- No prepayment/foreclosure charges
- Interest servicing during study (optional)
- Extended tenure for higher loan amounts
- Co-applicant shares repayment responsibility
Frequently Asked Questions
Can I get an education loan without collateral?
Yes, most banks offer education loans up to ₹10 Lakhs without any collateral security. For loans above ₹10 Lakhs, collateral security is generally required. However, the exact limit may vary from bank to bank. We help you find the best option based on your specific needs.
What is the maximum loan amount I can get for studying abroad?
For education abroad, you can get loans up to ₹1 Crore depending on the course, university, and your financial profile. The loan amount is determined based on factors like the reputation of the institution, course duration, co-applicant’s income, and the collateral provided.
Do I need to start repaying the loan immediately after approval?
No, education loans come with a moratorium period which includes the course duration plus 6-12 months after course completion or getting a job, whichever is earlier. During this period, you only need to pay the simple interest if you choose to. The principal repayment starts after the moratorium period.
What tax benefits are available on education loans?
Under Section 80E of the Income Tax Act, you can claim a deduction for the interest paid on an education loan without any upper limit. This deduction is available for a maximum period of 8 years from the date you start repaying the loan. However, there is no tax benefit on the principal repayment.
Can I apply for an education loan before getting admission?
You can initiate the loan process before securing admission, but the final approval and disbursement will only happen after you provide the admission letter. We recommend starting the loan process early to understand your eligibility and required documentation, which can save time once you receive the admission letter.
Is there any processing fee for education loans?
Most banks charge a processing fee ranging from 0.5% to 2% of the loan amount, with some having a maximum cap. At Arav Digital Fincare, we help you find banks with the lowest or zero processing fees. Some banks also offer processing fee waivers during promotional periods or for specific courses/institutions.