Higher education in the 21st century is not affordable for everyone. It can cost a fortune to get a quality education from reputed institutions. However, many financial institutions in India offer education loans to interested students. These loans have favorable terms, which allows higher studies aspirants to pursue their education without worrying about repayment during the course. Taking an education loan is among the best ways to finance your higher education. Let’s take a quick look into what education loans entail and the best financial institutions providing loans for education in India.
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What is an education loan?
An education loan is for students who wish to pursue higher education from reputed colleges/universities. It covers expenses related to higher education, including tuition fees, books, supplies, etc. It also covers the living and travel costs in some cases. One of the best features of an education loan is that borrowers don’t have to repay the loan amount during their education tenure. The EMI period starts only after the education is completed. One can easily opt for a
Nowadays, if you want an education loan, apply online and get quick approval and sanction by the financial institution.
Best financial institutions for education loans in India
Over the last decade, the financial services domain has undergone a sea change. Many new financial institutions have entered this space to offer attractive financial products for new-age customers. Today, multiple reputed financial institutions are offering Personal Loans for education in India. Here’s a list of the best lending institutions.
- Clix Capital
Clix Capital has established itself among the most reputed financial institutions in India. It best Personal Loan for education online. The amount provided through this loan is up to INR 25,00,000. The loan amount can be repaid through flexible EMIs between 12 to 48 months. Moreover, this loan doesn’t require any collateral from the borrower.
2. IDBI Bank
The IDBI bank offers education loans for studying in India and abroad. The maximum loan amount offered for studies in India is INR 20,00,000. However, for institutes abroad, the cap is INR 30,00,000. The repayment period for this loan can extend up to 15 years. However, collateral is needed for any loan amount exceeding INR 7,50,000.
3. HDFC Bank
HDFC Bank offers education loans for domestic and foreign institutes. The maximum loan amount provided for education in India is INR 20,00,000. However, there is no specific cap on the loan amount for foreign education.
4. Axis Bank
Axis bank offers one of the highest loan amounts for education loans, up to INR 75,00,000. It finances education-related expenses for graduate and post-graduate courses. However, students applying for this education loan must have a minimum of 50% marks in the HSC or graduation.
5. Union Bank of India
The Union Bank of India has four different education loan categories and offers need-based finance. No processing fee is levied on the education loan regardless of the loan amount borrowed.
6. State Bank of India
The State Bank of India offers education Skyward Fbisd loans to students up to INR 1,50,00,000 for foreign education. This loan is provided for professional courses and technical degrees with high employability.
7. Punjab National Bank
There is no limit on the maximum education loan amount offered by the Punjab National Bank. However, it considers the repayment capacity of the applicants before processing the loan amount.
8. ICICI Bank
ICICI bank enables students to get a maximum loan amount of up to INR 1,00,00,000. However, for domestic institutes, the cap is at INR 50,00,000.
9. Canara Bank
Canara Bank offers need-based education loans to prospective borrowers pursuing higher education. The loan is mostly offered for skill development, vocational education and training.
10. Bank of Baroda
Bank of Baroda provides loans for both school and college education. However, the loan amount for school education is capped at INR 4,00,000 and up to INR 80,00,000 for higher education.
Summary
The cost of higher education has increased significantly over the past few decades. However, many reputed financial institutions have helped people complete higher studies through affordable personal loan. You can refer to this quick guide to India’s top 10 financial institutions for education loans.
