Education is one of the biggest investments in your future. With rising tuition costs in India and abroad, many students and parents look for education loans to finance higher studies. The good news is that banks, private banks, and NBFCs in India offer flexible education loan options.
In this guide, we’ll cover interest rates, eligibility, benefits, and types of education loans you should know before applying.
🔹 What is an Education Loan?
An education loan is a financial product offered by banks and NBFCs that helps students cover:
- Tuition fees 🎓
- Books and study materials 📚
- Hostel or living expenses 🏠
- Travel expenses (for study abroad) ✈️
The loan can be secured (with collateral) or unsecured (without collateral) depending on the amount and profile.
🔹 Interest Rates on Education Loans in India (2025)
The interest rate depends on the bank, applicant profile, and loan type.
- Public Sector Banks: 8% – 10%
- Private Banks & NBFCs: 10% – 14%
- Study Abroad Loans: May attract slightly higher rates
👉 Some banks offer lower rates for female students and reputed institutions.
🔹 Types of Education Loans in India
- Secured Education Loan – Requires collateral such as property, FD, or gold. Usually has lower interest rates.
- Unsecured Education Loan – No collateral required but interest rates are higher.
- Study Abroad Education Loan – Covers tuition, travel, and living costs for overseas education.
- Top-Up Education Loan – For additional funding when your existing loan is not enough.
🔹 Eligibility Criteria
To apply for an education loan, you need:
✅ Indian citizenship
✅ Admission to a recognized university/college in India or abroad
✅ For secured loans: Collateral proof
✅ For unsecured loans: Strong co-applicant (parent/guardian) with good CIBIL score
🔹 Repayment of Education Loan
- Moratorium Period: Most banks offer a repayment holiday during the course period + 6–12 months after completion.
- Tenure: Up to 7–15 years depending on loan type.
- EMIs: Begin after the moratorium period.
🔹 Tax Benefits on Education Loan
Under Section 80E of the Income Tax Act, the interest paid on education loans is tax deductible for up to 8 years. This makes it a smart financial option.
🔹 Why Choose Shivafinz for Education Loan Guidance?
At Shivafinz, we help students and parents with:
✔️ Free eligibility check
✔️ Guidance on secured & unsecured loan options
✔️ Faster approval process
✔️ Best-fit solutions for India and study abroad
✅ Conclusion
Education loans are a gateway to higher education and better opportunities. Whether you’re applying in India or abroad, it’s important to understand interest rates, eligibility, repayment rules, and tax benefits before taking the next step.
👉 If you are looking for education loan approval with zero rejection, connect with Shivafinz today!