Higher education loans in India
                     Higher education 
loans in India
In India, higher education and professional courses have become prohibitively expensive. 
As a result, the majority of students must take an educational loan. Currently, the Indian 
government provides educational loans through 27 banking institutions. If you are 
looking to apply for a student loan, you will need to learn about the rate of interest, tax 
benefits, repayment plans, and so on. Several documents are required, and the loan 
applications are processed in about 15 days.
The fundamentals of education loans
Students who have been accepted into graduate- or post-graduate-level career-oriented courses, such as 
medicine, engineering, or management, will be given an education loan. This loan is available to any student who 
has the necessary academic qualifications but is unable to continue their studies due to financial reasons.
This loan is available to any student who has the necessary academic qualifications but is unable to continue their 
studies due to financial reasons.
Despite being theoretically available for all higher education, the majority of education loans are granted for 
management or advanced technological degrees. Banks generally do not lend money to students studying arts. It 
is at the discretion of the bank, which frequently considers the revenue of the parents when granting loans for 
subjects where the possibility of income is low.
SBI was the first to offer educational loans. Since then, many additional banks have started to provide these 
loans.
Things to think about before applying for an education loan. You can apply for an education loan in the following 
situations:
•You must apply for a full-time course. Most banks do not lend money for part-time, distance, or correspondence 
courses. You should check with your local banks about these.
•Graduate or postgraduate courses in medicine, technology, engineering, management, architecture, and applied 
sciences, mathematics, statistics, and so on.
•Both in India and abroad, this course is offered.
•You should also be aware that student loans are tax-exempt. When it comes to repayment, consider the tax 
implications.
Educational loan eligibility:
You must be an Indian citizen.
You must have received a certain number of marks. You should have an excellent academic record.
Although some banks have a 28-year age restriction, you should not be older than 30.
You must be enrolled in a recognized institution for your course.
You must already have your admission letter in hand.
Either your parent or the co-applicant must earn enough money, or there must be enough assets in 
the family.
Eligible Education Loan Expenses:
Payable costs include tuition, housing costs, exam and library fees, reasonable costs for books and 
equipment, such as computers, international travel costs, and other costs necessary to complete the 
course.
Finance's quantum:
Rs. 10 lakhs for domestic study and Rs. 20 lakhs for international study. Banks may consider lending 
a higher amount in exceptional circumstances.
Loan Margin
A loan margin, also known as margin money, is the contribution made by students toward 
their overall expenses. Public-sector banks are most likely to comply with a minimum loan 
margin of 10%. For example, if a bank sets it loan margin at 10%, that means the bank's 
education loan will cover 90% of your total expenses, with the remaining 10% expected to be 
paid by you. Prior to the banks transferring the money to the students, you must pay your 
portion of the debt to the banks.
For loans of Rs 7.5 lakhs and above, the terms are 10 and 15 years, respectively.
According to Section 80(e) of the Indian Income Tax Act, a person can deduct the amount 
paid against the interest of a higher education loan - either for himself or for his spouse or 
children - for eight years from the year(s) he begins repaying the loan or for the duration the 
loan is in effect, whichever is greater.
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