Why Education Loans Are Essential
Benefits of Education Loans
- Financial Accessibility: Up to 100% coverage of expenses
- Tax Benefits: Deduction under Section 80E
- Building Credit History: Improves future financial prospects
- Preserving Assets: Unsecured options available
Types of Education Loans
Secured vs Unsecured Loans
| Feature | Secured Loan | Unsecured Loan |
|---|---|---|
| Collateral | Required | Not required |
| Max Amount | ₹1.5 crore+ | ₹40-75 lakhs |
| Interest Rate | 7.5-10.5% | 10.5-14% |
| Processing | Longer | Faster |
Top Banks for Study Abroad Loans
| Bank | Max Loan | Interest Rate | Key Features |
|---|---|---|---|
| SBI | ₹1.5 crore | 9.5-11.5% | Widest network |
| HDFC Credila | ₹1 crore | 10-13% | Specialized in education |
| Axis Bank | ₹75 lakhs | 10.5-13.5% | Quick processing |
| ICICI Bank | ₹1 crore | 10.5-12% | Flexible repayment |
International Lenders
| Lender | Max Loan | Interest Rate | Key Features |
|---|---|---|---|
| Prodigy Finance | $100,000 | 11-13% | No cosigner |
| MPower | $100,000 | 8-12% | No collateral |
| MPOWER Financing | $100,000 | 7.52-14.98% | Visa support |
Documents Required
Academic Documents
- Admission letter from university
- Mark sheets (10th, 12th, graduation)
- Test scores (IELTS, GRE, GMAT)
Financial Documents
- Last 3 years' income proof
- Bank statements (6 months)
- Property documents (if secured)
- IT returns
Identity Documents
- Passport
- Aadhar card
- PAN card
- Photographs
Loan Application Process
- Research: Compare lenders and terms
- Pre-Approval: Check eligibility
- Documentation: Gather all papers
- Application: Submit to lender
- Verification: Bank review
- Sanction: Receive approval letter
- Disbursement: Funds transferred
Last Updated: February 2026
