Education Loans & Financial Aid

Plan your education finances with confidence. Compare loan types from PSBs, Private Banks and NBFCs, explore government-backed schemes, and estimate monthly EMIs with our calculator.

₹70,282 Cr

Total Loans Disbursed (2023-14)

4.33 Cr

Students Enrolled (2021-22)

24%

NBFC Market Share

Compare Loan Types How to Apply (Loans) How to Apply (Scholarships)

EMI Calculator

5,245,000
26 years
7.5%
₹ 38,257 /mo
₹ 5,245,000
₹ 6,691,315
₹ 11,936,315

Payment Breakup

Principal
Interest

Government Education Loan Schemes

Comprehensive government support to make education accessible for all students

Credit Guarantee Fund (CGFSEL)

75% government guarantee on loans up to ₹7.5L without collateral

75% Government Guarantee
₹7.5L Max Coverage
No collateral required
Available for all banks
Risk reduction for lenders

Central Sector Interest Subsidy (CSIS)

Full interest subvention during study period for students with family income below ₹4.5L

100% Interest Waiver
₹4.5L Income Limit
Full interest subvention
During study period
For economically weaker students

PM Vidyalakshmi Portal

Official Government Portal for Education Loan Applications

The PM Vidyalakshmi Portal is the Government of India's single-window platform for students seeking education loans. It provides access to 38+ registered banks and 86+ loan schemes, making the application process transparent and student-friendly.

38+ Registered Banks
86+ Loan Schemes
24/7 Online Access
Single application form for multiple banks
Real-time application tracking
Interest subvention schemes
No processing fees
Visit Official Portal

This is the official Government of India portal. No payments are required for applications.

Understanding Different Loan Types

Public Sector Banks (PSBs)

Government-backed loans with subsidies and guarantees

₹7.5L Collateral-Free Limit
7.5% - 11.15% Interest Rate Range
15-30 days Processing Time

Advantages

  • Collateral-free loans up to ₹7.5L under government guarantee
  • Lowest interest rates in the market
  • Government subsidies available (CSIS & CGFSEL)
  • No academic score requirements
  • Flexible repayment options
  • Applying

Limitations

  • Longer processing time (15-30 days)
  • Manual documentation and verification required
  • Limited digital experience
  • Higher NPA rates due to riskier borrowers
  • Applying

Major PSB Lenders

State Bank of India (SBI)
8.15% - 11.15% Up to ₹1.5Cr (Study Abroad)
Punjab National Bank (PNB)
Starting at 8.55% Up to ₹20L (Study Abroad)
Bank of Baroda (BoB)
7.90% - 11.70% Up to ₹1.5Cr (Study Abroad)

Private Sector Banks

Efficient digital banking with higher loan amounts

₹1Cr+ Max Loan Amount
10.5% - 15.2% Interest Rate Range
7-15 days Processing Time

Advantages

  • Faster processing and approval
  • Higher loan amounts available
  • Better digital experience and online services
  • Flexible collateral options
  • Premium customer service
  • Applying

Limitations

  • Higher interest rates compared to PSBs
  • Stricter eligibility criteria
  • Collateral requirements for larger amounts
  • Higher processing fees
  • Applying

Major Private Bank Lenders

ICICI Bank
10.85% - 12% Up to ₹1Cr
Axis Bank
13.7% - 15.2% Up to ₹1Cr
HDFC Bank
Starting at 10.50% Up to ₹3Cr

Non-Banking Financial Companies (NBFCs)

Fast, digital-first lending with specialized education focus

₹1Cr+ Max Loan Amount
9.5% - 14% Interest Rate Range
3-7 days Processing Time

Advantages

  • Fastest processing time (3-7 days)
  • Completely online application process
  • Lowest NPA rates in the industry
  • Specialized education loan expertise
  • Flexible repayment during moratorium
  • Applying

Limitations

  • Higher interest rates than PSBs
  • Strict academic requirements and scores
  • Higher co-applicant income requirements
  • Limited government subsidies
  • Applying

Major NBFC Lenders

Credila
10.5% - 13% Up to ₹75L
Avanse
9.5% - 14% Up to ₹50L
InCred
10% - 13.5% Up to ₹80L

Education Loan Market Insights

Key statistics and trends shaping India's education loan landscape

Market Growth

Rapid expansion of education financing

26.5%
GER Increase
2014-22
24%
NBFC Market Share
Current
43.3%
NBFC Growth Rate
Annual

Performance Comparison

Asset quality across different lenders

0.08%
Credila NPA Rate
Excellent
13.86%
PNB NPA Rate
High Risk
₹26.28L
Avg NBFC Ticket Size
Premium

Regional Distribution

Geographic spread of loan distribution

54%
Southern States
Dominant
Low
North Eastern States
Under-served
35%
Application Rejection Rate
High

How to Apply for Education Loans

1

Check Eligibility

Verify your course, institution, and financial requirements meet the loan criteria

2

Choose Lender

Compare interest rates, processing fees, and terms from different lenders

3

Gather Documents

Prepare admission letter, fee structure, income proof, and identity documents

4

Submit Application

Fill the application form online or visit the bank branch

5

Loan Disbursement

After approval, the loan amount is disbursed directly to your institution

Detailed Loan Comparison

Lender Type Interest Rate Processing Fee Max Amount Collateral Processing Time NPA Rate
SBI (PSB) 8.15% - 11.15% ₹1,000 ₹1.5Cr Required >₹7.5L 15-30 days High
ICICI Bank 10.85% - 12% ₹1,500 ₹1Cr Required 7-15 days 5.78%
Credila (NBFC) 10.5% - 13% ₹2,000 ₹75L Required >₹10L 3-7 days 0.08%
Avanse (NBFC) 9.5% - 14% ₹2,500 ₹50L Required >₹10L 3-7 days 0.53%