How to Get Student Loan in India 2022?

Wish to apply for a Student Loan in India but don’t know how to go about it?

Well, this guide is truly going to ease the process for you if you are looking for a Student Loan For Canada, the USA, the UK, or any other foreign country that you may desire. 

Student Loan in India is available for all individuals from a range of prestigious banks of the country.

They are easy to access not only in-country but also a range of out-of-country educational courses which are certainly the primary reasons for a large number of people to apply for Student Loan in India. 

Other considerable elements about these loans include the attractive Student Loan interest rates and related repayment tenures.

You will have up to 15 years to repay your student loan amount with interest rates starting from 6.55% per annum.

There are nonetheless a lot of other things that are taken into account by both the lender as well as the borrower when applying for Student Loan For Study Abroad. 

If you wish to dig up more information about it, here’s some good news for you!

In this article, we have made everything easy for you as we answer all your questions related to applying for a Student Loan in India. 

So if you are looking for a Student Loan For Study Abroad, make sure to read this post till the end.

Education Loan for Student 

An Education Loan For Student is a unique type of loan which aims to fulfill the monetary requirements of a student and help in the completion of their course.

A range of prestigious banks as well as NBFCs, or Non-Banking Financial Companies in India provide education loans at exciting Student Loan interest rates.

There are both private as well as public sector banks offering a Student Loan in India such as SBI Student Loan and HDFC Student Loan. 

A lot of these institutions claim to lend a helping hand in the education of upcoming leaders of the country. 

Features and Benefits of Student Loan in India

  • Financing under a Student Loan in India is available up to INR 1 crore.
  • The repayment tenure for a Loan For Student can be as long as 15 years 
  • Apart from India, you can also get a Student Loan for Canada, the USA, the UK, Germany, France, or any other country in the world that you may wish to study in. 
  • Many lenders in India also disburse the loan amount even before you apply for your Student Visa.
  • Door-step service offered by banks and NBFCs for collecting the necessary documents.
  • Exciting Student Loan Interest Rates, starting from 6.55%. 
  • Children of the employees at the bank often get to enjoy some special Student Loan interest rates
  • Some banks also provide concessional Student Loan interest rates for female applicants.
  • Moratorium period for up to 12 months after the completion of your course. During this term, the student won’t be required to make any repayment for the loan.
  • Tax benefits for up to eight years on the amount of interest paid.

Let’s now look at some prestigious Indian banks (public and private) offering a Student Loan in India. 

Also read – DHFL Home Loan

Different Education Loans

There is a range of banks that offer a Student Loan in India at competitive rates of interest as well as tenures.

Nonetheless, there are only some of them that truly stand out and have become a popular choice in the country over the past few years  

The following are some of the most promising banks in India that offer an educational loan for any college in India and also a Student Loan for Canada, the USA, the UK, or any other popular foreign country: 

1. Punjab National Bank Student Loan

  • PNB Student Loan interest rates: 7.55% to 10.65%
  • Maximum Student Loan amount: Need-Based
  • Maximum Loan Repayment Tenure: 15 Years
  • Collateral on Loan: Nil Up to INR 7.5 lakh
  • Margin money: Nil Up to INR 4 lakh
  • Apply for Student Loan at PNB if you are an Indian resident or an OCI, PIO, or a student born in a foreign country to Indian parents who wish to study in India
  • 125% Security of the student loan amount
  • Moratorium period: 6 to 12 months after the completion of the course. 

2. SBI Student Loan

  • SBI Student Loan interest rate: 7.00% to 9.30%
  • Maximum Education Loan SBI amount: INR 20 lakh (plus concessional amounts offered for female applicants). 
  • Maximum Education Loan SBI Repayment Tenure: 15 Years
  • Collateral on Education Loan SBI: Nil up to INR  7.5 lakh
  • Margin money: Nil Up to INR 4 lakh
  • Moratorium period: Up to one year after the completion of the course.
  • A second Education Loan SBI will also be available for the student for completion of higher studies.

3. Axis Bank Student Loan

  • Axis Bank Student Loan interest rates: 13.70% 
  • Maximum Student Loan amount: INR 1 Crore
  • Maximum Loan Repayment Tenure: 15 years
  • Margin money: Nil Up to INR 4 lakh
  • Depending on the profile, the applicant will be able to secure a student loan at Axis Bank even before the admission 
  • Loan disbursement within 15 working days (from the day when the bank acquires your application and necessary documents)

4. Bank of Baroda Student Loan

  • Bank of Baroda Student Loan interest rates: 7.65% to 8.35%
  • Maximum Student Loan amount: INR 80 Lakh
  • Maximum Loan Repayment Tenure: 10 to 15 Years
  • Collateral on loan: 100% Tangible Collateral Security
  • Margin money: Nil Up to INR 4 lakh
  • Bank of Baroda Student loan is available for not only higher education but from nursery class onwards.
  • A debit card (free of cost) on some selected educational loan schemes of the bank.
  • Concessional rates of interest for female applicants.

5. HDFC Student Loan

  • HDFC Student Loan interest rates: 9.55% to 13.25%
  • HDFC Student Loan maximum amount: INR 20 lakh Student Loan for Study Abroad: INR 35 lakh (in case of no collateral offered; no maximum limit if you provide collateral)
  • Maximum Loan Repayment Tenure: 15 Years
  • Collateral on loan: Nil Up to INR 7.5 lakh
  • Preferential rates of interest are offered f the students secure admission to top-ranking institutes 
  • HDFC Student Loan For Abroad covers over 950 education courses in 36 different foreign countries.
  • Co-applicant is allowed to be from a distinct city as well.

6. Tata Capital Student Loan

  • Tata Capital Student Loan interest rates: Starting from 10.99% 
  • Maximum Student Loan amount: INR 30 Lakh
  • Maximum Loan Repayment Tenure: 6 years
  • Collateral on loan: Nil up to INR 4 lakh
  • Three different EMI plans are available for the borrower to choose from. 
  • Minimal documents are required. 
  • Easy approval. 
  • Quick disbursement process

Important Note: It is worth noting that the above-mentioned Student Loan Interest Rates are effective as of January 2022 and may keep varying according to changing rules and regulations of the respective banks.  

You may either go on to choose a fixed or a floating rate of interest, based on the specific bank that you decide on. 

Student Loan in India: Eligibility Requirements


  • Citizen of India
  • Non-Indian Resident, or NRI
  • Overseas Citizen of India, or OCI
  • Person of Indian Origin, or PIO

Student born in a foreign country to Indian parents who want to study in the Indian subcontinent 

Educational Courses:

  • Undergraduate courses
  • Postgraduate courses
  • Doctoral programs and PhDs
  • Certificate programs with a duration of 6 months or above
  • Job-oriented programs

Technical, diploma, or any other professional programs

Authorized Institutes:

  • Recognized colleges, universities owned by the government 
  • Private owned colleges and universities 
  • Semi-government colleges and universities 
  • Professional institutes
  • International schools and universities 


Collateral-free Student loans in India are also available (up to a specified loan amount) 

Applicable collateral: Properties, Plots (Both residential, as well as commercial, will be acceptable), Insurance, Fixed Deposits.

Also read – Income tax benefit on Home Loan

Education loan without offering collateral

When you Apply For Student Loan in India, almost all banks and lenders are going to need you to submit collateral.

This may include any property, plot, insurance, fixed deposits, etc. 

However, you may also be able to get a student loan without offeri

ng any collateral on the loan. This is made possible with the help of the CGFEL, or Credit Guarantee Fund for Education Loan Schemes.

Under this, you get coverage of a collateral-free Student loan for up to INR 7.5 lakh.

Keep in mind that this scheme is only applicable for student loans disbursed under IBA’s Model Education Loan Scheme. 

Factors Affecting Your Student Loan Eligibility 

There are certain crucial factors that the bank takes into account while evaluating your Student Loan Eligibility.

In other words, before you Apply For Student Loan at any bank, consider the following factors well enough: 

  • The college/university and educational program you choose
  • The amount of Student loan you need
  • Your overall academic performance
  • Repayment capability of you and your family
  • Family assets
  • Yearly income

Mandatory Documents Required for Student Loan

The following is a list of all the documents that the majority of lenders need you to submit when applying for a Student Loan in India: 

  • Official Admission letter by an authorized academic institution
  • Marksheets (former education)
  • Age proof
  • Proof of Identity
  • Proof of Address
  • Signature Proof
  • Salary slips (Most recent)
  • Bank account statement of the last 6 or 12 months (depending on the bank)
  • ITR, or Income Tax Returns
  • Balanced sheet Audit
  • Turnover proof 
  • A thoroughly filled application form (including the signature)
  • Applicant’s passport-size pictures (Latest)
  • Applicable Visa (For courses abroad)

Note: Some lenders may also ask you for Document charges.

Student Loan Without Pan Card

A lot of applicants struggle with this question of whether they would be able to avail a Student Loan Without PAN Card. 

Well, a PAN card is a necessary document that needs to be submitted when applying for a Student Loan in India.

The majority of banks and other financial institutions in the country do not offer a Student Loan Without PAN Card. 

However, some banks do provide a way out. So In case, you don’t have a PAN card at the time your loan is being sanctioned, you must immediately apply for the same.

And consequently, you will need to submit a copy of your PAN card within 12 months of your Student loan disbursement. 

How to Apply For Student Loan in India

There are various ways through which you can apply for a student loan in India.

The following are the most common methods that generally remain the same across all banks: 


  • Through the official website of the bank, you wish to apply at and filling an application form.
  • By submitting a request online and letting the bank get in touch with you.


  • By visiting the nearest branch of the bank 
  • By making a phone call to the provided phone number on the website or requesting a callback 

Virtual Assistant (For some banks)

Expenditures Covered in Student Loan

The following is a list of all the expenses that most Student loans in India generally cover: 

  • Tuition fees
  • Hostel fees
  • Insurance 
  • Travel costs 
  • The expense of books, uniforms, equipment, or anything else that the program may require 
  • Examination fee, laboratory fee, library fee, etc.
  • The expense of the laptop or desktop needed for the completion of the program
  • Refundable deposits (if any)
  • Any other costs needed for the completion of the course like project works, study tours, etc.

Student Loan Repayment Procedure

The repayment process of a student loan generally begins 6 or 12 months after the completion of the course or when the student gets a suitable job.

Whichever happens first, must be considered as the favorable time to start repaying your loan amount. 

The moratorium periods for Student loans in India may vary from one bank to another.

The Student will need to repay the loan amount through EMIs.

The following are the most commonly preferred methods through which you can make the repayment of your Student loan:

  • Net banking
  • Through Cheques
  • Debit card
  • Credit card
  • Demand Draft, or DD

Also read – Union Bank Home Loan

Final Words

If you are getting obstructed in the way of your dream career just because education is too costly these days, then a Student loan can be the miracle you are waiting for.

Getting collateral-free Student loans at exciting rates of interest and for long tenures is no less than a dream come true.

We hope this guide was helpful for you and you now have a much clearer understanding of Student loans in India. 

In case you have any queries, concerns or suggestions, make sure you knock us at our Facebook page or Twitter handle. We are always ready to help you.

Frequently Asked Questions (faqs)

What is the maximum age limit on applying for a Student Loan in India?

The maximum age limit on applying for a Student Loan in India is 30 Years. 

When do you have to start repaying your loan amount?

You don’t need to start repaying your Student loan amount up until you are done with your course.

After successful completion of your course, you are going to get a grace or moratorium period for finding a suitable job for yourself. This period, for most banks, is generally between 6 and 12 months. And only after that, you will need to start repaying your Student loan amount to the bank.

Is the amount of a Student loan for Abroad and India on the same level?

No, generally Student loans for educational programs in India don’t provide the same loan amount as compared to courses abroad.

Banks and other lenders provide much higher amounts of Student Loans when applying for courses abroad. This is simply because the tuition fees, as well as other expenses in foreign countries, are usually way higher than Indian courses.

In the case of Student loans for abroad studies, is the money offered by the bank in Indian currency? 

For studying abroad, the Student loan is generally deposited directly to the academic institution in the currency of the particular country only. 

Will I be able to transfer my Study loan to some other bank in India offering a lower rate of interest?

Yes, of course. You will certainly be able to transfer your Study loan to any other bank in the country. Nonetheless, the current bank may ask you for refinancing charges.

Hence, you must keep in mind to take all terms & conditions into account when you are trying to transfer your Student loan from your existing bank to another bank. 

Is the SBI Student Loan interest rate relatively lower than other banks? What is the current Education Loan interest rate SBI? 

Compared to other private sector banks, yes, SBI Student Loan Interest Rate is way lower. In fact, it would also be fair to say that the Education Loan Interest Rate SBI is one of the lowest in the entire industry. 
The current SBI Student Loan interest rate starts from 7.00%.