Education Loan at a glance
- What it is
- An education loan finances tuition and related costs – such as living expenses, travel and study material – for higher studies in India or abroad, usually with repayment starting after the course ends.
- Who it is for
- Students admitted to recognised courses, applying together with a parent or guardian as co-borrower.
- How Early Grow helps
- We help you compare lenders, understand collateral and co-borrower requirements, and prepare admission, cost and income documents.
- Next step
- Book a free consultation or call +91 93541 57455.
Education loans for study in India and abroad
An education loan pays for higher studies – tuition and other fees, and often living, travel and equipment costs – for courses in India or abroad. The student is usually the borrower and a parent or guardian is the co-borrower. Repayment normally starts after a moratorium, which covers the course period plus a grace period set by the lender. Interest usually accrues during the moratorium.
Early Grow helps students and families compare education loans from partner banks and NBFCs and prepare the application. The lender decides the amount, the rate and the collateral required.
What an education loan can cover
- Tuition, examination, library and laboratory fees.
- Hostel or accommodation costs.
- Travel for study abroad.
- Books, equipment and a computer, if the course requires them.
- Caution deposits and other costs the institution requires, according to the lender’s policy.
Who is eligible?
- Students with confirmed admission to a recognised course and institution in India or abroad.
- A co-borrower, usually a parent or guardian, whose income and credit history the lender assesses.
- For larger amounts, collateral such as property or a fixed deposit, according to the lender’s policy. Many banks do not ask for collateral on smaller loans, but the limits vary.
Documents usually required
Student
- Admission letter and fee schedule.
- Academic records: mark sheets and entrance or test scores.
- KYC: PAN, Aadhaar and, for study abroad, a passport.
Co-borrower
- KYC, income proof (salary slips, ITRs) and bank statements.
- Collateral documents, if the lender requires collateral.
How Early Grow helps
- We look at the course, the total cost of study, and the family’s income and assets.
- We shortlist suitable lenders and explain the collateral, margin money and moratorium terms each one offers.
- We help you prepare the application and documents.
- The lender verifies the application and issues a sanction letter, which is often needed for visa applications abroad.
- The lender disburses the loan, usually straight to the institution in line with the fee schedule.
Official references
Frequently asked questions
Students with confirmed admission to a recognised course, together with a co-borrower, usually a parent or guardian. Each lender has its own list of eligible courses and institutions.
It depends on the course cost, the institution, the co-borrower’s income and any collateral offered. Lenders may also ask the family to fund part of the cost as “margin money”.
Many lenders do not require collateral for smaller loans. For higher amounts, especially for study abroad, they may ask for property, a fixed deposit or other security. The thresholds vary by lender.
Usually after the moratorium, which covers the course period plus a grace period. Paying the interest during the course, if you can, reduces the total you repay.
Income-tax law allows a deduction for interest paid on a loan for higher education, subject to conditions and for a limited number of years. Check the current rules on the Income Tax Department portal.
It varies by lender, loan amount and whether collateral is involved. Apply well before your fee and visa deadlines.
Talk to an Early Grow adviser
Tell us what you need and we will explain your options, the documents required and the next steps. The first consultation is free.