HOW MUCH EDUCATION LOAN CAN I GET

How Much Education Loan Can I Get

How Much Education Loan Can I Get

Blog Article

How Much Do Students Stand to Gain from Private vs. Public Banks?

Introduction

Whether in India or outside, education loans have become a lifeline for students hoping to continue their education. How Much Education Loan Can I Get? Given the large number of banks providing both public and private education loans, it is normal for parents and students to wonder: In comparison to a private bank, how much can I anticipate from a public one?

Although supporting student education is the goal of both sectors, there can be significant differences in loan amounts, interest rates, collateral requirements, and processing speeds.

Public Sector Banks: Conservative but Stable

For College loans, public banks such as SBI, Canara Bank, PNB, Bank of Baroda, and others use the Indian Banks' Association (IBA) model. How Much Can I Get in an Education Loan? Their lending is stable, regulated, and backed by the government.

Expected Loan Amount:


  • Up to ₹7.5 lakh without collateral (unsecured)

  • Up to ₹20–30 lakh for Indian studies and ₹50 lakh for overseas education with collateral (secured)

  • There is greater accessibility to special programs like Vidya Lakshmi, CSIS (Interest Subsidy), and Arivu Loan (Karnataka).


Advantages:

  •  Reduced interest rates, often ranging from 8.5% to 10.5%

  • Financial aid for kids from lower-income families

  • Flexible repayment terms (up to 15 years)


Cons: 

  • More paperwork and slower processing

  • rigid rule-following and reduced flexibility

  • Not all costs (such as laptops and flights) may be covered.


NBFCs and private banks: Quick and Adaptable

Education loans are provided by NBFCs such as HDFC Credila, Avanse, InCred, and others, as well as private banks like ICICI and Axis Bank, using a more market-driven methodology. They frequently make loans based on the future earning potential and profile of the student.

Expected Loan Amount:

  • Up to ₹10–15 lakh without collateral (sometimes more).

  • With Collateral: ₹30–75 lakh for prestigious foreign universities


Advantages: 

  • Online application and speedy processing

  • Greater approval rates for prestigious institutions.

  • May pay for all expenses, such as living, travel, and electronics.


Cons:



  • Higher interest rates (11% – 14% or more)


  • Processing charges and insurance are often bundled.


  • Limited or no access to government subsidy schemes


Key Comparison Table (2025)



































Feature Public Banks Private Banks/NBFCs
Max. Loan (No Collateral) ₹7.5 lakh ₹10 – ₹15 lakh
Max. Loan (With Collateral) ₹30 – ₹50 lakh ₹50 – ₹75 lakh
Interest Rate (approx.) 8.5% – 10.5% 11% – 14%
Processing Speed Moderate to slow Fast (3–7 days possible)
Subsidy Schemes Available Generally not available

Conclusion


For students from middle-class families, public banks continue to be a reliable and reasonably priced choice in 2025, particularly for those looking to study in India or at government-approved universities. How Much Education Loan Can I Get? Private banks and NBFCs, on the other hand, offer more flexibility and quicker service, which makes them perfect for time constraints or overseas education.

Based on your loan requirements, co-applicant income, speed vs. cost requirements, and eligibility for government incentives, you should make your choice. To make sure your College loan supports your goals rather than your debt, always evaluate offers, haggle over interest rates, and make sensible plans.

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