Education Loan Margin Money
Nil up to ₹4 lakh, 5% for India, 15% for abroad — how margin is calculated and how scholarships count.
Updated 27 September 2026 · 8 lenders trackedWhat you need to know
Margin money is your own contribution to the cost of study. Under the IBA model scheme it is nil for loans up to ₹4 lakh; above that, it is 5% for studies in India and 15% for studies abroad. It can be paid year by year in proportion to each disbursement.
Margin examples
| Total course cost | Study in | Margin | You contribute | Loan |
|---|---|---|---|---|
| ₹3,00,000 | India | 0% | ₹0 | ₹3,00,000 |
| ₹10,00,000 | India | 5% | ₹50,000 | ₹9,50,000 |
| ₹25,00,000 | India | 5% | ₹1,25,000 | ₹23,75,000 |
| ₹10,00,000 | Abroad | 15% | ₹1,50,000 | ₹8,50,000 |
| ₹40,00,000 | Abroad | 15% | ₹6,00,000 | ₹34,00,000 |
IBA model scheme; nil margin when the requirement is up to ₹4 lakh. Scholarships and assistantships count towards your margin, and the margin can be brought in year by year in proportion to disbursements. Some schemes (SBI Scholar, Canara Vidya Turant, Credila) finance 100%.
Lender variations
| Scheme | Margin |
|---|---|
| SBI Student Loan | Nil up to ₹4 lakh; 5% / 15% above |
| SBI Scholar Loan | Nil — 100% finance |
| Bank of Baroda Scholar | Nil up to ₹4 lakh; 15% for ₹4–7.5 lakh; above ₹7.5 lakh nil (premier) / 10% |
| Canara Vidya Turant | Nil |
| Credila | Nil |
Frequently asked questions
Do scholarships count towards margin?
Yes. Under the IBA scheme scholarships and assistantships are counted as part of the margin.
Can margin money come from another loan?
Banks expect it from own funds, scholarships or family; it should not be borrowed from another lender.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.