Education loans, explained the way a counsellor would
An education loan is a long financial commitment made at a stressful moment. This page covers what actually decides your outcome: your profile, your collateral position and your lender's policy.
The four decisions that shape your loan
Secured or unsecured
Pledging property or a deposit usually lowers your rate and raises your limit. Going collateral-free is faster but costs more over the tenure. Compare total cost, not just the rate.
Bank or NBFC
Banks run scheme-based products with regulated pricing and long tenures. NBFCs underwrite faster and are more flexible on study-abroad profiles, generally at higher pricing.
Who co-applies
The co-applicant's documented income and credit history influence both your sanctioned amount and your rate. A well-documented modest income often beats an undocumented larger one.
How interest is handled during study
If simple interest accrues and is not serviced, it capitalises and raises your EMI. Servicing interest during the course is often the cheapest lever available to a student.
Loan types
Study in India
Domestic programmes with predictable fee structures and scheme-based bank funding.
Study Abroad
Funding tuition, living costs and travel across seven major destinations.
Without Collateral
Collateral-free routes for eligible courses and universities, usually at higher pricing.
With Collateral
Secured loans against property or deposits, typically the lowest-cost option.
Bank Education Loans
Scheme-driven products with regulated pricing and long tenures.
NBFC Education Loans
Faster, more flexible underwriting for study-abroad profiles.
By destination
By course
What happens after you apply
- 01
Tell us about your plans
Course, country, budget and timeline.
- 02
Understand your profile
Academics, co-applicant income and collateral position.
- 03
Shortlist suitable lenders
Only lenders whose policy fits your case.
- 04
Compare your options
Rate, tenure, moratorium, fees and total cost side by side.
- 05
Complete documentation
A checklist tailored to the lender you choose.
- 06
Submit application
Filed accurately, with follow-through on queries.
- 07
Sanction
Review the sanction letter terms before you accept.
- 08
Disbursement
Funds released to your institution as per schedule.
Preliminary assessment only. Final eligibility, interest rate and loan terms are determined by the lender.