Loan Amount (₹)
Rate of Interest (P.A)
Loan Tenure (Years)
What is the eligibility for an education loan?
Different banks have different criteria but the main parameters for education loan eligibility are:
Applicant should be an Indian national
Applicant should have confirmed admission (in a university/school/college) at the time of loan application.
Applicant should be 16 to 35 years of age
Should have a co-borrower/guarantor for the loan
Should provide a collateral in the form of an FD. 5 lakhs or more
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Documents required for an educational loan
Banks will usually request the following documents:
Admission confirmation letter
Schedule of expenses for course undertaken
Scoresheet of tests qualified
Copies of foreighnexchange permit or student visa
Bank account statement for 6 months
Statement of assets and liabilities
Address proof, residence proof, age proof, 2 photographs
Documents pertaining to collateral (4 lakhs or more)
How to use the education loan EMI calculator?
Use the above education loan EMI calculator by entering your education loan amount, the interest rate and tenure to see your monthly payments.
Courses for which education loan can be applied for
Education loan is available for all courses recognised by the UGC in India and all regular overseas courses
What expenditures are covered by an education loan?
Refundable caution fee
Cost of book/uniform/other essential/travel expenses
What is the tenure of a car loan?
Many lenders limit the education loan to 10-15 lakhs for studies in India and 20-30 lakhs in case of overseas education. However, some lenders may even offer higher amounts.
Tenure of an education loan
The average tenure is between 5-7 years which may be extended to 15 years, in case of higher loan amounts.
Does an education loan have an income tax benefit?
You can get some tax benefits from an education loan. Education loans have tax benefits under section 80E of the Income Tax act. The benefit can be availed over and above of Rs 1.5 lakhs deduction allowed under section 80C. These benefits can be availed after you start paying the interest. Moreover, the deduction is available until you pay the full amount or a maximum period of 8 years.