Education Loan
Best Student Loan In Odisha For 2025
- How to choose the right education loan
- How to lower rates on student loan
- Best education loan interest rates, charges, and eligibility
Education loans are a type of financial aid designed to help students and their families cover the costs of higher education, including tuition fees, books, supplies, and living expenses. These loans are typically offered by banks, credit unions, and government agencies, and can be used to finance undergraduate, graduate, and professional degree programs.
Here’s what the loan amount will cover:
- Tuition Fees: Education loans usually cover tuition fees charged by the educational institution for the academic program.
- Books and Study Materials: The cost of textbooks, reference materials, and other study resources required for the course may be included in the loan amount.
- Laboratory and Examination Fees: Expenses related to laboratory facilities, equipment, and examination fees are often covered by education loans.
- Accommodation: Many education loans include provisions for covering accommodation expenses, such as hostel or dormitory fees, or off-campus housing rent.
- Living Expenses: Loans may provide funds to cover living expenses, including meals, transportation, utilities, and personal expenses, especially for students living away from home.
- Travel Expenses: Some education loans offer coverage for travel expenses incurred during the course of study, such as commuting to and from the educational institution or participating in internships or study abroad programs.
- Laptop or Computer Purchase: In the digital age, many educational programs require students to have access to computers or laptops. Some education loans may allow funds to be used for purchasing electronic devices necessary for academic purposes.
- Health Insurance: Education loans may include provisions for health insurance coverage to ensure students have access to medical care during their studies.
Miscellaneous Expenses: Other educational expenses, such as project work, research expenses, study tours, or participation in extracurricular activities, may also be covered by education loans.
There are several types of education loans that students can avail to finance their higher education. These loans typically vary based on the type of course, country of study, and loan provider. Here are the main types of education loans:
- Undergraduate Education Loans
- Meant for students pursuing a bachelor’s degree.
- These loans cover tuition fees, accommodation, and other related expenses.
- Interest rates are generally lower for undergraduate students.
- Graduate Education Loans
- For students pursuing post-graduate or master’s degree programs.
- Graduate loans often come with higher loan amounts and sometimes higher interest rates.
- Professional Education Loans
- For students in professional courses like medical, law, engineering, or business.
- These loans tend to have a higher limit, as professional courses can be more expensive.
- Career Development Loans
- Meant for students or professionals who want to take short-term courses, skill enhancement, or career development programs.
- These loans are typically smaller than full-time education loans.
- International Education Loans
- For students planning to study abroad.
- These loans cover a wide range of expenses including tuition, living costs, travel, and insurance.
- Interest rates and terms vary based on the destination country.
- Parents Loan
- A loan taken by parents or guardians on behalf of their child’s education.
- Parents are responsible for repaying the loan instead of the student.
- Loan for Part-time/Distance Education
- Designed for students pursuing part-time or distance education courses.
- Usually, these loans cover tuition fees and other course-related expenses.
- Refinancing Education Loans
- Once students graduate and have multiple loans, they can refinance or consolidate these loans into one with a potentially lower interest rate.
- State Government Education Loans
- Some state governments offer loans at a lower interest rate for students pursuing higher education.
- These may be available to students in need based on merit or income criteria.
- Education Loans for Vocational Courses
- These loans are for vocational or skill-development courses that typically have a shorter duration.
- Age: Typically, borrowers must be within a certain age range, often between 18 to 21 years.
- Citizenship or Residency: Borrowers must be citizens or legal residents of the country where they are applying for the loan.
- Academic Institution: The educational institution must be accredited and recognized by relevant authorities.
- Course of Study: Borrowers must be enrolled in an eligible program, such as undergraduate, graduate, or professional degree programs.
- Enrollment Status: Usually, borrowers must be enrolled on at least a half-time basis.
- Creditworthiness: Lenders may consider the borrower’s credit history and may require a co-signer for those with limited credit history.
- Income: Some lenders may assess the borrower’s income or ability to repay, especially for private education loans.
- Co-signer: A co-signer with good credit standing may be required for borrowers with limited credit history or income.
- Loan Amount: Maximum loan amount may depend on factors such as cost of attendance and program of study.
- Documentation: Borrowers need to provide proof of enrollment, identification, income verification, and other relevant documents.
- Loan Purpose: Loans must be used for educational expenses such as tuition, books, and living expenses.
- Loan Repayment: Borrowers must agree to the loan terms, including interest rates, repayment schedule, and consequences of default.
- The candidate applying for the loan must be a resident of India.
- He/she must have confirmed admission to recognised educational institutes in India or abroad.
- The age of the candidate must fall within the bracket of 18 to 35 years during loan application.
- He/she must be undergoing a graduate/postgraduate degree or a PG diploma.
- The applicant should have secured admission to a college or university affiliated with University Grants Commission (UGC)/All India Council for Technical Education (AICTE)/Govt. etc.
- Students pursuing full-time courses require a co-applicant who can be either a parent/guardian or spouse/in-laws (in case of married candidates).
- The co-applicant must have a regular source of income.
- A strong academic record facilitates speedy loan approval.
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Wide Range of Loan Options: SBI offers multiple types of educational loans catering to different needs, including SBI Student Loan Scheme, SBI Global Ed-Vantage, SBI Scholar Loan, and Skill Loan Scheme. Each has specific features tailored for students pursuing studies in India or abroad.
Competitive Interest Rates: SBI provides interest rates that are often competitive compared to other banks. Special rates are available for premier institutions, and female students usually receive an additional discount.
No Processing Fees for Some Loans: Loans for premier institutions under the SBI Scholar Loan scheme often come with zero processing fees, making it easier for students to apply without upfront costs.
Flexible Repayment Options: SBI offers flexible repayment tenures, typically starting after the completion of the course. This can go up to 15 years depending on the loan scheme, which reduces the burden on students in the initial years of their careers.
Higher Loan Amounts for Overseas Studies: For students studying abroad, SBI’s Global Ed-Vantage scheme provides loans up to ₹1.5 crore, enabling students to pursue higher education in prestigious global universities without worrying about immediate finances.
Quick Processing for Premier Institutions: SBI’s tie-ups with many premier educational institutions in India ensure faster processing and sanctioning of loans, which makes it an ideal choice for students admitted to top-tier institutions.
Interest Subsidy Schemes: SBI participates in various government subsidy schemes like the Central Sector Interest Subsidy Scheme (CSIS), which benefits economically weaker students by providing interest subsidies during the moratorium period.
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Affordable Interest Rates: PNB offers competitive interest rates, with concessions for female students and those from economically weaker sections.
Comprehensive Loan Schemes: Multiple loan options like PNB Saraswati, PNB Pratibha, and loans for vocational courses cater to a wide variety of educational needs, both in India and abroad.
No Processing Fees: No processing charges for loans up to ₹4 lakh, making it cost-effective for smaller loan amounts.
Flexible Repayment Terms: Repayment tenure up to 15 years with easy EMI options after the moratorium period.
High Loan Amount for Premier Institutions: Up to ₹1 crore for domestic studies and ₹1.5 crore for overseas studies under the PNB Pratibha scheme.
Government Subsidy Support: Eligibility for various interest subsidy schemes under the Government of India for economically weaker students.
Quick Disbursement for Elite Institutions: Fast-track processing for students in top-tier institutions.
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Attractive Interest Rates: Competitive rates for both domestic and international studies, with customized plans for higher studies abroad.
Higher Loan Amounts: Loans up to ₹1 crore for overseas education, covering tuition, travel, and living expenses.
Minimal Documentation: Simplified application process with minimal paperwork, ensuring faster approval and disbursement.
Flexible Repayment Options: Repayment tenure up to 10 years, with options to start repayment after course completion.
Specialized Loan Schemes: Tailored loan schemes for students attending premium institutions globally.
No Collateral for Smaller Loans: Loans up to ₹7.5 lakh without collateral, making it accessible for a wide range of students.
Digital Application: Easy online application and tracking through the bank’s digital platform, ensuring a smooth experience.
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Low Interest Rates: Competitive rates with concessions for female students and those from economically weaker backgrounds.
Wide Loan Coverage: Up to ₹1.5 crore for overseas studies and ₹80 lakh for domestic education, covering tuition, living expenses, and travel.
Multiple Loan Schemes: Options like Baroda Vidya (school education), Baroda Gyan (higher studies in India), and Baroda Scholar (overseas studies) cater to various needs.
No Processing Fees: No processing charges for loans up to ₹7.5 lakh.
Flexible Repayment Terms: Repayment tenure up to 15 years, with a moratorium period during the study.
Government Subsidy Schemes: Eligible for interest subsidies under government schemes for economically weaker students.
Collateral-Free Loans: Loans up to ₹4 lakh without collateral, making it accessible for many students.
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Competitive Interest Rates: Attractive rates with discounts for female students and those from economically weaker sections.
High Loan Amounts: Up to ₹1.5 crore for overseas education and ₹50 lakh for domestic studies, covering tuition, living expenses, and other costs.
Diverse Loan Schemes: Various options such as BOI Star Education Loan for domestic and international studies, catering to different educational needs.
No Processing Fees: No processing charges for loans up to ₹7.5 lakh, making it a cost-effective option.
Flexible Repayment Terms: Up to 15 years repayment tenure with a moratorium period during the course of study.
Collateral-Free Loans: Loans up to ₹4 lakh without collateral, making it accessible for many students.
Government Schemes: Participation in government subsidy schemes to support economically weaker students.
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Affordable Interest Rates: Competitive rates with special discounts for female students and those from weaker financial backgrounds.
High Loan Limits: Up to ₹1.5 crore for overseas education and ₹50 lakh for domestic studies, covering a wide range of expenses.
Comprehensive Loan Schemes: Options like Cent Vidya for various levels of education, both in India and abroad.
No Processing Fees: Processing fees waived for loans up to ₹4 lakh, reducing initial costs.
Flexible Repayment: Up to 15 years repayment tenure with a moratorium period during the course.
Collateral-Free Loans: Available up to ₹4 lakh without collateral, making it easier for many students to qualify.
Government Subsidy Support: Participation in government schemes for interest subsidies for economically weaker students.