What are the types of education loan?

Education loans are generally categorized into two types, secured education loans, and unsecured education loans. Secured education loans are loans that require collateral as a security in order to avail of the loan. Unsecured education loans do not have a collateral requirement.

Which loan is best for higher education?

Secured education loans available through public banks are generally the best option for financing higher education.

Who is eligible for student loans?

To avail of education loans in India, the student must be 18 or above, have secured admission into the preferred course and institution through a merit-based examination, and be an Indian citizen.

What is the limit for student loans?

The upper limit on unsecured loans is around 75 Lakhs and secured loans offer up to 1.5 crores but a few banks put no upper limit on secured loans.

What age do student loans stop?

The general age range for education loan eligibility lies between 18 to 35 in most public banks. Although with collateralized education loans, age can be overlooked to some extent. Whereas in private banks age of the applicant doesn’t matter. The maximum age of the applicant NBFCs accept is 27.

Can I get a 20 lakhs education loan without collateral?

Yes, you can get a loan of 20 Lakhs without collateral depending on your co-applicant/ financial co-applicant, your preferred course, and your university.

Do student loans depend on parents' income in India?

Yes, if your parent is your co-applicant or financial co-applicant then your parent’s income can have an effect on your education loan.

Types of Education Loans

✓ Secured and Unsecured Education Loans

✓ To study in India or Abroad

Funded By

Govt. of India

Supported By

IT Ministry, Govt. of India

1 Lakh+

Students Assisted

ZERO

Service Charge

Funded By

Govt. of India

Supported By

IT Ministry, Govt. of India

1 Lakh+

Students Assisted

ZERO

Service Charge

Types of Education Loans on the basis of Location

You can get an Education Loan to study abroad or study in India. Below are the education loan schemes to study abroad and to study in India.

Education Loan for Studies Abroad

Depending on the country you are aiming for you can get up to 75 Lacs in funding. Most banks have a preferred list of countries which commonly includes, the USA, UK, Canada, Germany, and Australia.

Parameters	Details
Loan Limit	Up to 75 lacs (Unsecured) & up to 1.5 cr (Secured)
Expenses covered	Cost of tuition/ tuition fee Academic expenses: Library fee Laboratory fee Examination fee Books Equipment Travel charges Health insurance for the applicant (If applicable) Caution fee as requested by the institution Expenses required for books/equipment/ instruments/ uniforms Equipment expenses Miscellaneous expenses
Accepted co-applicant	Parents, Parents-in-law, Spouse, Siblings
Interest rate	Non- collateralized: 12-14% Collateralized loan: 9-11%
Moratorium Period	Course duration + 1-year
Repayment Duration	Up to 60 months
Repayment policies	The interest accumulated during the period of the moratorium will be added to the principal amount and Repayment
Eligibility Criteria	The applicant must be an Indian citizen Should have gotten admission to higher education in accepted institutions abroad through merit examinations or entrance exams. Should have completed 10 +2 or a course equivalent to it.

Education Loan for Studies In India

Depending on the university or college you are planning to pursue your higher education or bachelor’s in banks can offer up to 35 lacs unsecured at an interest rate of 11%.

Parameters	Details
Loan Limit	Up to 35 Lacs (unsecured)
Expenses covered	Tuition fee for the program Educational expenses which include Laboratory fees Examination fees Library fees Expenses for travel Health insurance for the student Caution fee as requested by the institution Charges for: Uniform Textbooks Equipment Instruments Miscellaneous charges
Accepted co-applicant	Parents, Parents-in-law, Spouse, Siblings
Interest rate	Non- collateralized: 12-14% Collateralized loan: 9-11%
Moratorium Period	Course duration + 1-year
Repayment Duration	Up to 60 months (5 Years)
Repayment policies	The accumulated interest during the moratorium period will be added to the principal and repayment
Eligibility Criteria	The student needs to be an Indian national. Should have admission to higher education in accepted institutions in India through merit or entrance exams. Should have completed 10 +2 or a program/course equivalent to it.

Secured And Unsecured Education Loans

Education loans that have been secured by collateral are known as secured education loans and the ones which are not are called unsecured education loans. Keep reading to know more about the secured and unsecured education loans offered by banks in India.

Secured Education Loan

Public banks are a better choice for secured education loans because of many factors such as lower interest rates, lower processing fees, and payment of simple interest is not mandatory during the moratorium period in public banks.

Parameters	Details
Loan Limit	Upto 1.5 crores
Expenses covered	Tuition fees, Accommodation charges, Cost of books, uniforms, Laboratory, and Library fees
Eligible courses	MBA, Master’s, Bachelor, Ph.D., professional and vocational courses
Interest rate	Starts at 10.25%
Moratorium Period	The total duration of the course + 6 months
Repayment Duration	Up to 15 years
Repayment policies	Payment of interest during the moratorium period is not mandatory
Eligibility Criteria	Applicant should be a citizen of India Applicant should be 18 or older Should have received admission through qualifying for the required entrance exam
Types of Collateral	Immovable property: House, Flat, Non- agricultural land Liquid security: Fixed deposit, Government bonds, LIC policies
Value of collateral (In case of a collateralized loan)	Immovable property - 1.25 times the loan amount Liquid security - 1.1 times the loan amount

Top banks that provide secured education loan

State Bank of India
Bank of Baroda
Karur Vysya Bank
IDFC Bank
Axis Bank
ICICI Bank
IDFC Bank
HDFC Credilla
Incred
Avanse
Auxilo

Unsecured Education Loan

Generally, private banks and NBFCs are preferred for unsecured education loans as public banks mostly do not offer unsecured education loans. You can avail of upto 60 Lakhs with interest rates starting from 11% from a private bank or NBFC

Parameter	Details
Loan Limit	Up to 60 lacs
Expenses covered	Tuition fees Accommodation charges Cost of books Uniforms Laboratory and Library fees
Eligible courses	MBA Master’s, Bachelor, Ph.D., professional and vocational courses
Interest rate	Starts from 11%
Moratorium Period	The total duration of the course + 6 months/1-year
Repayment Duration	Upto 10 years including the moratorium
Repayment policies	During the moratorium period, simple/ partial simple interest is to be paid.
Eligibility Criteria	The student must be a resident citizen of India The student must be 18 years or older The student must have received the admission through merit.

Top banks that provide unsecured education loans

IDFC First bank
Axis Bank
ICICI Bank
Avanse
Auxilo
Incred
HDFC Credila
EliteScholars

On the basis of the Course of Education

Many banks in India provide education loans to finance various courses. Below mentioned are the details of a few of them.

Education Loans for Post-Graduation Degrees

These loans are given out to students who want to pursue their higher education in India or overseas. Students should have finished their bachelor's in order to be qualified to avail of these loans. The course duration needs to be less than or equal to 2 years

Education Loans for Undergraduate Degrees

These loans are given to students who wish to pursue their undergraduate or bachelor's degree abroad or inland. Most banks generally prefer to give out loans to students trying for their bachelor’s in any of the STEM (Science, Technology, Engineering, and Mathematics) Courses.

Education Loans for Professional/ Vocational courses

Individuals wishing to advance further in their career after working for a few years. Many public, and private banks, and NBFCs offer various schemes for such individuals such as State bank of India, Bank of Baroda, Union Bank of India, Karur Vysya bank, etc

Repayment of Education loans

We are going to assume that the student is going for an unsecured education loan of 50 Lacs. The average interest rate for an education loan is around 11%. As unsecured loans are given by private banks and NBFCs simple interest is charged during the moratorium period. Considering the above-mentioned criteria, your EMI repayment schedule would look something like this

Loan amount: 50,00,000
Rate of Interest: 11.25%
Repayment tenure: 10 Years
Grace period: 6 months

Repayment cycle	EMI	Interest portion	Principal portion	Loan Outstanding
End of 1st year	69584	44420	25164	4712986
End of 2nd year	69584	41439	28146	4391966
End of 3rd year	69584	38104	31481	4032908
End of 4th year	69584	34374	35211	3631308
End of 5th year	69584	30202	39383	3182123
End of 6th year	69584	25535	44049	44049
End of 7th year	69584	20316	49268	2117782
End of 8th year	69584	14478	55106	1489266
End of 9th year	69584	7949	61635	786280
End of 10th year	69584	646	68938	0

WeMakeScholars is committed to delivering comprehensive and trustworthy services to students, and we aim to make the loan application process more effortless by offering post-sanction aid.

Frequently Asked Questions

Education loan questions, answered

Education loans are generally categorized into two types, secured education loans, and unsecured education loans. Secured education loans are loans that require collateral as a security in order to avail of the loan. Unsecured education loans do not have a collateral requirement.
Secured education loans available through public banks are generally the best option for financing higher education.
To avail of education loans in India, the student must be 18 or above, have secured admission into the preferred course and institution through a merit-based examination, and be an Indian citizen.
The upper limit on unsecured loans is around 75 Lakhs and secured loans offer up to 1.5 crores but a few banks put no upper limit on secured loans.
The general age range for education loan eligibility lies between 18 to 35 in most public banks. Although with collateralized education loans, age can be overlooked to some extent. Whereas in private banks age of the applicant doesn’t matter. The maximum age of the applicant NBFCs accept is 27.
Yes, you can get a loan of 20 Lakhs without collateral depending on your co-applicant/ financial co-applicant, your preferred course, and your university.
Yes, if your parent is your co-applicant or financial co-applicant then your parent’s income can have an effect on your education loan.

*Interest rates and limits shown are indicative samples and change with RBI policy, lender approval, collateral and applicant profile. Replace with live figures before publishing. T&C apply.

Direct vs. WeMakeScholars

The same loan, handled two ways

Category	Direct with Bank	Via WeMakeScholars
Application Support	Branch visits and tedious follow-ups	Dedicated financial officer for timely updates and online coordination
Bank and Scheme Selection	Restricted to the selected bank	Compare options from 20+ lenders
Post-Sanction Support	Limited support	Dedicated post-sanction team
Cashback and Offers	No offers or rewards	Cashback up to ₹3,000

Financial Tools

Calculators For Your Need

Education Loan Calculator

Loan Amount

1L1Cr

Rate of Interest

9.5%15%

Loan Tenure

1Y10Y

Course Duration

1Y5Y

Get The Deal

This calculator is a self-help tool for illustrative purposes only. Figures shown above are indicative, and actual values may differ based on the applicant's profile. All loans are subject to the bank's policy and approval.

Real students, real stories

Trusted By Thousands Of Dreamers

WHAT STUDENTS WROTE ON THEIR OWN PLATFORMS

“I’m extremely happy to share that my education loan from Credila has been successfully sanctioned. I would like to sincerely thank the entire WeMakeScholars (WMS) team for their support and guidance throughout my loan process. A special thanks to my financial officer, Ms. Vaishnavi Pothula, for her excellent support throughout the entire journey. She patiently explained the loan process, helped me understand the requirements, cleared all my doubts, and guided me at every step until my education loan process was successfully completed with Credila. The entire process was handled in a very professional, transparent, and organised manner. Whenever I had a question or concern, Vaishnavi was available to provide a prompt response and guide me in the right direction. Her continuous support made the loan process much easier and gave me confidence throughout the journey. I truly appreciate the efforts of WeMakeScholars and Credila in helping me arrange the financial support required for my higher education abroad. The guidance and assistance I received made what initially seemed like a complicated process much smoother. I would especially like to thank Ms. Vaishnavi Pothula for her dedication, patience, and constant assistance. I’m grateful for all the support provided to me during my education loan journey. I would definitely recommend WeMakeScholars to students who are planning to pursue higher education in India or abroad and are looking for professional guidance with their education loan process. Thank you once again to WeMakeScholars, Credila, and especially Ms. Vaishnavi Pothula for all the support. — Mohammad Rahmath Nawaz #WeMakeScholars #Credila #EducationLoan #StudyAbroad #HigherEducation #StudentLoan #WMS”
MR
Mohammad Rahmath NawazAndhra Pradesh · Flinders University

“I’m really happy to share my experience with Aarfa and the WeMakeScholars team during my education loan process. Getting an education loan can be quite stressful, especially when there are so many documents, formalities, and follow-ups involved. I was initially quite confused about the process, but having Aarfa guide me through it made things much easier. Aarfa was always approachable whenever I had questions or needed clarification. She explained the requirements clearly, helped me understand the next steps, and kept me updated about the progress of my application. Even when I had concerns or felt unsure about the process, she took the time to guide me rather than leaving me to figure everything out on my own. I’m especially happy that my loan was finally sanctioned. Reaching this stage was very important for me, and I truly appreciate the effort and support I received along the way. I would also like to appreciate the WeMakeScholars team for making the overall loan journey more organised and manageable. Having a team that understands the education loan process and helps with the documentation and coordination can make a real difference, particularly when you are already dealing with the pressure of planning your studies abroad. Based on my experience, I would strongly recommend Aarfa and WeMakeScholars to students who are looking for guidance with their education loan. If you are feeling confused or overwhelmed by the loan process, having the right guidance can save you a lot of time and unnecessary stress. Thank you, Aarfa, and the entire WeMakeScholars team, for your support and for helping me reach this important milestone. ❤️”
HK
Harpreet Kaur BhandariDelhi · Victoria University of Wellington

“I had a wonderful experience with WeMakeScholars while securing my education loan. The entire process was smooth, transparent, and well-guided from start to finish. A special thanks to Uday, my post sanctions officer, who has been incredibly supportive throughout the journey. He helped me with each and every step, patiently answered all my queries, and ensured that I clearly understood the process at every stage. His dedication, prompt responses, and constant guidance made what could have been a stressful experience much easier and hassle-free. I truly appreciate the effort and commitment shown by Uday and the WeMakeScholars team. I would highly recommend WeMakeScholars to any student looking for assistance with education loans. Thank you for your excellent support and service! ”
PV
Pooja Vinayak DabholkarMumbai 1 · Middlesex University London

“During my study abroad journey I had a great experience with my counselor, Rahul, at WeMakeScholars for the process of loan sanction and disbursal. He was extremely helpful and supportive throughout my loan disbursement journey. He patiently cleared all my doubts, guided me through the loan process, and helped me understand the requirements and procedures clearly. His professional approach, timely responses, and genuine willingness to help made the entire process much easier and less stressful for me. I truly appreciate his dedication and guidance, and I would highly recommend WeMakeScholars to anyone planning to study abroad.”
K
KinshukBihar · Asia Pacific University of Technology and Innovation (APU)

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