Education Loan for Studies in India
Rates, limits, collateral, premier-institute schemes and government subsidies for courses in India.
Updated 27 September 2026 · 8 lenders trackedWhat you need to know
For Indian courses, banks follow the IBA model scheme: nil margin up to ₹4 lakh, 5% above that, collateral-free up to ₹7.5 lakh and repayment up to 15 years. Students at premier institutes and PM-Vidyalaxmi institutions get far better terms, and families with lower incomes can have moratorium interest paid by the government.
Premier-institute schemes
| Scheme | Terms |
|---|---|
| Union Bank | 6.75% for IIMs; 6.85% for PM-Vidyalaxmi Tier I |
| Bank of Baroda Premier Institutions | 6.85% – 8.40%; collateral-free ₹10–40 lakh by category |
| Canara Vidya Turant | 6.85%; fully collateral-free, Cat A/B/C limits ₹50/40/30 lakh |
| SBI Scholar Loan | 6.90% – 7.65%; collateral-free up to ₹50 lakh for List AA |
| Bank of India Star Vidya | 7.00% – 8.75% |
| PNB Pratibha | 8.10% – 10.50% |
Government support for Indian courses
| Scheme | Who qualifies | Benefit |
|---|---|---|
| PM-Vidyalaxmi (approved Nov 2024) | Students admitted to Quality Higher Education Institutions: top-100 NIRF (overall, category or domain), state government institutes ranked 101–200, and all central government institutions | Collateral-free, guarantor-free loans; 75% credit guarantee on loans up to ₹7.5 lakh; 3% interest subvention during the moratorium on loans up to ₹10 lakh for family income up to ₹8 lakh (up to 1 lakh students a year, preference to government institutions and technical/professional courses) |
| CSIS — Central Sector Interest Subsidy (since 2009, part of PM-USP) | Annual gross parental income up to ₹4.5 lakh; professional or technical courses in India at NAAC/NBA-accredited institutions, Institutes of National Importance or CFTIs | Government pays the full interest during the moratorium (course + 1 year) on loans up to ₹10 lakh under the IBA model scheme; available once |
| CGFSEL — Credit Guarantee Fund Scheme for Education Loans (NCGTC) | Loans up to ₹7.5 lakh under the IBA model scheme | Guarantee to the bank so that no collateral or third-party guarantee is needed from you |
Students from families with income up to ₹4.5 lakh already get full moratorium interest paid under CSIS, so PM-Vidyalaxmi’s 3% subvention targets the next band (up to ₹8 lakh). The combined FY2026-27 allocation for PM-Vidyalaxmi, CSIS and CGFSEL is reported at ₹1,050 crore. Apply through the PM-Vidyalaxmi portal (pmvidyalaxmi.co.in).
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%.
Frequently asked questions
Is a loan available for private colleges?
Yes, for recognised courses at approved institutions. Pricing and collateral terms are better if the college is on a bank’s premier list or is a PM-Vidyalaxmi QHEI.
Can I get a loan for a medical seat under management quota?
Many banks finance recognised MBBS/MD courses; SBI’s Student Loan goes up to ₹75 lakh for medical courses at top-100 NIRF institutes. Collateral is usually needed for larger amounts at other colleges.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.