Turn Dreams into Degrees with Loan Bazaar Education Loans

What is an Education Loan?

An education loan offers financial support to students pursuing higher education in India or abroad. It helps cover major costs such as tuition fees, hostel or accommodation charges, study materials, travel expenses (for overseas education), and other academic-related expenses. From premier institutions in India to renowned universities abroad, education loans provide the financial support necessary to fund your academic journey.

Repayment typically starts after the course completion, with many lenders offering a grace period. Loan options include collateral-free education loans, government-backed loan schemes, and loans with competitive interest rates, all of which are based on student eligibility and documentation.

Key Highlights of an Education Loan

🎓 Covers Complete Education Expenses
Cover the cost of your higher studies in India or abroad, from tuition and accommodation to books and other educational needs.

🕒 Flexible Repayment & Moratorium Period

Most lenders offer a grace period during the study tenure and an additional buffer (typically 6 months) after course completion before repayment begins.

🛡️ Collateral-Free Loan Options
Eligible students can apply for an education loan without collateral, especially for approved institutions and under specific government education loan schemes.

📊 Multiple Loan Types Available
Choose from government-sponsored education loans or private education loans, tailored to your course level–whether it’s undergraduate, postgraduate, or professional certification.

🌍 Education Loans for Abroad Studies
Specialized loans are available for students planning to study overseas, covering visa fees, travel, insurance, and living expenses.

📄 Simple Eligibility & Documentation Process
Based on the applicant’s academic background and financial profile. Check the documents required for an education loan and apply through a seamless, lender-specific process.

💡 Attractive Interest Rates
Loan terms and education loan interest rates vary by lender and profile, with several options available for low-interest and subsidised education loans under government schemes.

Types of Education Loans?

To meet diverse academic goals and financial backgrounds, lenders in the education loan market in India offer a range of loan options for students planning to study in India or abroad.

Education Loan Eligibility Criteria

To apply for an education loan in India or abroad, you must meet the following basic requirements:

•  Nationality: Must be an Indian citizen
• Age Limit: Between 18 to 35 years at the time of application
• Academic Admission: Confirmed admission to a recognized university or college (in India or abroad)
• Approved Institutions: Institution must be affiliated with UGC, AICTE, or a government-recognised body
• Course Type: Applicable for graduate, postgraduate, or PG diploma programs
• Co-applicant: Required for full-time courses – can be a parent, guardian, or spouse
• Co-applicant Income: Must have a regular income source
• Academic Background: Strong academic history is preferred for quicker approval and better education loan interest rates

Education Loan Process – Step-by-Step Guide by Loan Bazaar

• 
  Step 1:
  Let’s Find the Right Lender for You
  We start by helping you compare top banks and NBFCs based on education loan interest rates, eligibility criteria, repayment flexibility, and loan coverage–whether for studies in India or abroad.
  We’ll also assess whether you’re eligible for a collateral-free education loan or if a secured option is better suited for your profile.
  

• 
  Step 2:
  Submit Your Loan Application
  Once you’ve shortlisted a lender with our help, we assist you in filling out the application–online or offline–based on the lender’s process.
  This includes key details like your personal information, educational background, course details, and loan amount needed.
  We also guide you in gathering the correct documents like admission letters, academic records, cost estimates, and more.
  

• 
  Step 3:
  Documentation & Verification Support
  As part of the application process, we ensure your documentation is complete–be it income proof, KYC, co-applicant details, or collateral papers (if applicable).
  Lenders may initiate a verification step, and we coordinate to make this as smooth as possible. Interviews or physical verifications (if required) are also facilitated through our team.
  

• 
  Step 4:
  Approval & Sanction Letter
  Once your documents are verified, the lender reviews your application for final approval.
  You’ll receive a sanction letter outlining the approved loan amount, interest rate, repayment terms, and moratorium period, if applicable. We’re here to explain every detail so you’re clear before proceeding.
  

• 
  Step 5:
  Loan Agreement & Disbursement
  After accepting the loan terms, we help you complete the final paperwork.
  The approved loan amount is disbursed–either directly to the university or your account,based on the lender’s policy. Some institutions release funds on a semester basis, and we’ll help you track every disbursement.
  

• 
  Step 6:
  Post-Disbursement & Repayment Support
  We also guide you through the repayment process. You’ll typically start repayment after your course ends or post the moratorium period.
  Whether you pay interest-only during the course or begin full EMIs later, our team helps you plan your repayments smartly and responsibly.