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Education Loan FAQs

Students from various disciplines can now take their first step on the path to success and fuel their dreams for professional or technical education in India or abroad with financial assistance in the form of Education Loan offered by banks so that nothing can hinder their progress.

Almost all banks in India offer education loans on attractive interest rate and easy repayment options and hence there is a huge demand for loans to cover education expenses.

Education Loan FAQs

Different banks offer different interest rates for education loan which also vary from scheme to scheme. The student seeking education loan is advised to first check interest rates offered by different banks which will help him/her to choose the lowest among all.
Approved Educational Loan of an applicant will be disbursed in full or in suitable instalments to the educational institution or vendor of books or other instruments taking into consideration of the requirement of funds and/or fee schedule which will be assessed by the bank directly.
There are 2 different types of collateral that can be offered under education loan which are following-
Moveable Collateral - Fixed Deposit
Immoveable Collateral - House, Bungalow, Flat, Shop, Non-Agricultural Land.
Yes, he must avail loan even if he has enough money for higher studies either with him or with his parents. Following 3 points support this :
  1. Increasing cost of education
  2. Reducing financial burden on parents
  3. Income Tax Benefits under Sec 80E of income tax act
The Co-borrower is a person who agrees to co-sign and execute the loan agreement alongwith the main applicant. Family members generally become a co-borrower due to risk involved in it. Further, following points are mandatory to become a co-borrower :
  1. He should be an Indian citizen.
  2. He should provide required collateral security.
  3. He should be able to pay the interest in the moratorium | holiday period.
  4. He should be able to repay the loan with interest if the student makes any default.
Moratorium period means the sum total of the study period and grace period.
A guarantor under an education loan is required because if the applicant defaults in repayment of the loan due to any reason, the banks recover the same from the guarantor.
Student's friends cannot become co-borrower because banks' policy does not permit for the same. Only family members or guardian can become co-borrowers in an education loan application.
Student's friend cannot become the co-applicant.
The loan is available from almost all branches of different banks providing education loan.Some banks also offer onlineeducation loan facility.
Yes, he can become your co-borrower. For this purpose, he should have an NRI account and the collateral security given by him should be in India.
The time taken by most of the banks is maximum 15 working days from the date of submission of the loan application by you. Point to note here is that your loan application alongwith all the required documents have been submitted in full.
No, they cannot refuse.If any student has got admission on merit basis, he/she is eligible for education loan under IBA scheme.
You have to meet the Regional Manager of the bank from where you have taken loan, in case you have any complaint from the bank regarding not following the guidelines, delay in disbursement, harassment, etc., and submit your complaint in writing. Further, if the complaint is not resolved in certain reasonable time, you can also lodge the complaint with the Chairman of the concerned bank and also to Reserve Bank of India (RBI).
A holiday period is the maximum period provided to the student before he/she starts paying the loanís Equated Monthly Instalments (EMIs) to the bank. This period is generally between 6 months to 12 months after the student has got an employment or he has completed his course, whichever is earlier.
A bank has the option to either give whole amount of the total cost of studies or a fixed percentage of the total cost as loan. This difference between the total cost of studies and the loan given is called a margin. This margin is paid by the applicant out of his/her own pocket.

An example to understand the margin is suppose a bank offers a loan for an M.B.B.S. course and the margin is 15%. Then the bank will sanction the loan as 85% of the total cost of the course and the remaining 10% will be borne by the student directly.

Get Banks Loan Interest Rates

Abhyudaya Cooperative Bank LimitedAhmedabad Mercantile Cooperative Bank
Akola Urban Coop Bank Allahabad Bank
Allahabad Up Gramin BankAmanath Cooperative Bank Ltd. Bangalore
Andhra BankAndhra Pradesh Grameena Vikas Bank
Andhra Pragathi Grameena BankApna Sahakari Bank Limited
Arunachal Pradesh Rural BankAssam Gramin Vikash Bank
Au Small Finance Bank LimitedAxis Bank
Bandhan Bank LimitedBangiya Gramin Vikash Bank
Bank Of BarodaBank Of India
Bank Of MaharashtraBaroda Gujarat Gramin Bank
Baroda Rajasthan Kshetriya Gramin BankBaroda Up Gramin Bank
Bassein Catholic Cooperative Bank LimitedBharat Cooperative Bank (mumbai) Ltd., Mumbai
Bharati Sahakari BankBharatiya Mahila Bank Limited
Bihar Gramin BankBombay Mercantile Co Op Bank Ltd
Canara BankCapital Small Finance Bank Limited
Catholic Syrian Bank LimitedCentral Bank Of India
Central Madhya Pradesh Gramin BankChaitanya Godavari Grameena Bank
Chhattisgarh Rajya Gramin BankCitizen Credit Cooperative Bank Limited
City Union Bank LimitedCorporation Bank
Dcb Bank LimitedDena Bank
Dena Gujarat Gramin BankDhanalakshmi Bank
Dombivli Nagari Sahakari Bank LimitedEllaquai Dehati Bank
Equitas Small Finance Bank LimitedEsaf Small Finance Bank Limited
Export Import Bank Of IndiaFederal Bank
Fincare Small Finance Bank LtdG P Parsik Bank
Gramin Bank Of AryavartHdfc Bank
Himachal Pradesh Gramin BankIcici Bank Limited
Idbi BankIdfc Bank Limited
Indian BankIndian Mercantile Cooperative Bank Ltd.
Indian Overseas BankIndusind Bank
Jalgaon Janata Sahakari Bank LimitedJammu And Kashmir Bank Limited
Jammu And Kashmir Grameen BankJanakalyan Sahakari Bank Limited
Janalaxmi Coop Bank Janata Sahakari Bank Ltd
Jharkhand Gramin BankKallappanna Awade Ichalkaranji Janata Sahakari Bank Limited
Kalupur Commercial Cooperative BankKalyan Janata Sahakari Bank
Kapol Cooperative Bank LimitedKarnataka Bank Limited
Karnataka Vikas Grameena BankKarur Vysya Bank
Kashi Gomti Samyut Gramin BankKaveri Grameena Bank
Kerala Gramin BankKhamgaon Urban Co Op Bank Ltd
Kotak Mahindra Bank LimitedLangpi Dehangi Rural Bank
Laxmi Vilas BankMadhya Bihar Gramin Bank
Madhyanchal Gramin BankMahanagar Cooperative Bank
Maharashtra Gramin BankMalwa Gramin Bank
Manipur Rural BankMeghalaya Rural Bank
Mizoram Rural BankNagaland Rural Bank
Nagar Urban Co Operative BankNagpur Nagarik Sahakari Bank Limited
Narmada Jhabua Gramin BankNasik Merchants Cooperative Bank Ltd.
New India Cooperative Bank LimitedNkgsb Cooperative Bank Limited
North East Small Finance Bank LimitedNutan Sahakari Bank Ltd
Odisha Gramya BankOriental Bank Of Commerce
Pallavan Grama BankPandyan Grama Bank
Paschim Banga Gramin BankPragathi Krishna Gramin Bank
Prathama BankPravara Sahakari Bank Ltd
Puduvai Bharathiar Grama BankPunjab And Maharshtra Cooperative Bank
Punjab And Sind BankPunjab Gramin Bank
Punjab National BankPurvanchal Gramin Bank
Rajarambapu Sahakari Bank LtdRajasthan Marudhara Gramin Bank
Rajkot Nagrik Sahakari Bank LimitedRbl Bank Limited
Rupee Cooperative Bank Ltd.Sangli Urban Co Op Bank Ltd Sangli
Saptagiri Grameena BankSaraswat Cooperative Bank Limited
Sardar Bhiladwala Pardi Pepls Co BkSarva Haryana Gramin Bank
Sarva Up Gramin BankSaurashtra Gramin Bank
Shikshak Sahakari Bank LimitedSolapur Janata Sahakari Bank Limited
South Indian BankState Bank Of Bikaner And Jaipur
State Bank Of HyderabadState Bank Of India
State Bank Of MysoreState Bank Of Patiala
State Bank Of TravancoreSuryoday Small Finance Bank
Sutlej Kshetriya Gramin BankSyndicate Bank
Tamilnad Mercantile Bank LimitedTelangana Grameena Bank
The A.p. Mahesh Cooperative Urban Bank LimitedThe Akola Janata Commercial Cooperative Bank Ltd., Akola.
The Cosmos Co Operative Bank LimitedThe Goa Urban Co Op Bank Ltd
The Greater Bombay Cooperative Bank LimitedThe Jalgaon Peopels Cooperative Bank Limited
The Kapol Cooperative Bank LimitedThe Karad Urban Cooperative Bank Limited
The Mapusa Urban Coop Bank Of Goa LtdThe Mehsana Urban Cooperative Bank
The Nainital Bank LimitedThe Shamrao Vithal Cooperative Bank
The Surath Peoples Cooperative Bank LimitedThe Thane Bharat Sahakari Bank Limited
The Zoroastrian Cooperative Bank LimitedTjsb Sahakari Bank Ltd
Tripura Gramin BankUco Bank
Ujjivan Small Finance Bank LimitedUnion Bank Of India
United Bank Of IndiaUtkal Grameen Bank
Utkarsh Small Finance BankUttar Banga Kshetriya Gramin Bank
Uttar Bihar Gramin BankUttarakhand Gramin Bank
Vananchal Gramin BankVidharbha Konkan Gramin Bank
Vijaya BankYes Bank
Zila Sahakari Bank Ltd