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Why choose Bankwale?

India’s trusted online mortgage lender

  • 100% financ
  • Pre visa Disbursement
  • Without admition loan can be processed.
  • No pre closure charges
  • Part payment availability
  • Pre close option after 6 months
  • Multiple Banks & Nbfcs options

Benefits of Education Loans:

  1. Financial Independence:
    1. Education loans empower students to pursue higher education without heavily relying on family savings, thus preserving the financial security of their loved ones and allowing existing investments to continue to grow.
  2. Liquidity:
    1. By opting for an education loan, families can avoid liquidating their fixed deposits, mutual funds, or other investments, ensuring their financial stability and continued earnings from these assets.  
  3. Deferred Repayment (Moratorium Period):
    1. A significant advantage of education loans is the moratorium period. This typically covers the duration of the course plus an additional 6 months to 1 year, allowing students to focus on their studies and secure employment before commencing loan repayments.
    4.  
  4. Tax Benefits:
    1. Under Section 80E of the Income Tax Act, the entire interest paid on an education loan can be claimed as a deduction from taxable income for a maximum of 8 years, starting from the year of repayment. There is no upper limit on the interest amount that can be claimed.
  5. Wide Coverage of Expenses:
    1. Education loans generally cover a broad range of expenses beyond tuition fees. These can include hostel and mess charges, cost of books and study materials, laptop expenses, travel costs (especially for overseas education), and even refundable deposits required by the institution.  
  6. No Collateral in Many Cases:
    1. For loan amounts up to ₹7.5 lakh, many banks offer education loans without requiring any collateral, making higher education accessible to a wider range of students.  
  7. Builds Credit Score:
    1. Timely repayment of education loan EMIs helps students build a positive credit history from an early stage. A good credit score is essential for securing other loans in the future, such as home or vehicle loans.
    8.  
  8. Potential for Subsidies:
    1. The Indian government offers education loan subsidy schemes for students belonging to economically weaker sections, where the government bears the full interest during the moratorium period, provided the family income is within a certain limit (e.g., ₹4.5 lakh per annum).
    9.  
  9. Lower Interest Rates Compared to Other Unsecured Loans:
    1. Education loans generally have lower interest rates compared to other collateral-free loans like personal loans, making them a more cost-effective way to finance education. These rates are often linked to the repo rate, offering some transparency.  
  10. Convenient Application Process:
    1. Many banks offer online application facilities for education loans, making the process faster and more convenient with minimal paperwork.

General Information about Education Loans in India:

  1. Interest Rates:
    1. Interest rates on education loans vary across banks and depend on factors such as the loan amount, the course, and the institution. As of April 2025, interest rates can start from around 8.00% per annum and can go up to 16% per annum depending on the lender. Some banks may offer differential interest rates for secured and unsecured loans and may also provide concessions for female students or students from premier institutions.  
  2. Loan Amount and Tenure:
    1. The maximum loan amount can go up to ₹1 crore for studies in India and ₹3 crore for studies abroad, although it may vary based on the bank and the institution. The repayment tenure can extend up to 10-15 years for undergraduate and postgraduate courses.  
  3. Eligibility:
    1. Generally, any Indian national who has secured admission to a recognized educational institution for higher studies is eligible for an education loan. The co-applicant is usually a parent or guardian.  
  4. Expenses Covered:
    1. Besides the core academic fees, education loans can also cover living expenses, travel expenses (for overseas education), library and laboratory fees, and even the cost of books and equipment. Some banks may also finance refundable deposits.  
  5. Processing Fees and Other Charges:
    1. Banks may levy a processing fee on education loans, which can be up to 2% of the loan amount. Other charges might include administrative charges, CERSAI charges, and charges for statement of account, EMI bounce, etc. It's important to check these charges before taking the loan.  
  6. Pre-admission Sanction:
    1. Some banks offer a pre-admission loan sanction letter, which can be helpful during the admission process and for visa applications for students planning to study abroad.  
  7. Repayment:
    1. Repayment typically starts after the moratorium period in Equated Monthly Installments (EMIs). The interest accrued during the moratorium period may be added to the principal amount for EMI calculation.  
  8. Tax Benefits (Section 80E):
    1. As mentioned earlier, only the interest component of the education loan repayment is eligible for tax deduction under Section 80E. This benefit is available only to individuals and for a maximum period of 8 years from the start of repayment or until the interest is fully repaid, whichever is earlier. The loan must be taken from a recognized financial institution or a charitable institution for higher education (after senior secondary or equivalent). Loans from friends or relatives do not qualify for this deduction.

Repayment Tenure

The repayment tenure for education loans in India can vary depending on the lender and the specific loan product. However, here's a general overview:

  1. Typical Range:
    1. Generally, the repayment period for education loans extends up to 10 to 15 years after the completion of the course and the moratorium period.
  2. Moratorium Period:
    1. It's important to remember that the repayment tenure starts after the moratorium period. This period usually covers the duration of the course plus an additional 6 months to 1 year. This grace period allows students to secure employment before starting their EMI payments.

Factors Influencing Tenure:


  1. Loan Amount:
    1. Higher loan amounts might necessitate longer repayment tenures to keep the EMIs manageable.
  2. Course Type:
    1. Some banks might offer different tenures for undergraduate and postgraduate courses. For example, ICICI Bank mentions tenure of up to 10/12 years for undergraduate and 12/14 years for postgraduate courses.
  3. Lender's Policy:
    1. Each bank has its own specific policies regarding the maximum repayment period.
  4. Borrower's Preference:
    1. While banks set the maximum limit, borrowers can often choose a shorter tenure if they prefer to repay the loan faster and reduce the total interest paid.

Specific Examples:

  • Axis Bank Prime Abroad offers a collateral-free loan with a tenure of up to 15 years.  
  • HDFC Bank provides repayment tenors of up to 15 years.  
  • SBI offers a maximum repayment term of 15 years (180 EMIs) after the course period and a repayment holiday.
  • Bank of Baroda offers maximum tenures of 10-15 years for various education loan schemes.  
  • Government Schemes: Under the Educational Loan Scheme by NSFDC, the maximum repayment period is 10 years for loans up to ₹10 lakh and 12 years for loans above ₹10 lakh.  

It's advisable to discuss the available repayment tenure options with your chosen lender and select a period that aligns with your future financial plans and repayment capacity.

Frequently Ask Questions for Education Loans

Bankwale offers education loans with an interest rate starting at 10.25% per annum, subject to borrower eligibility and loan terms.

Repayment tenures range from 5 to 20 years, with a moratorium period of 6 months to 1 year after course completion. Monthly EMI payments begin after the moratorium period.

Yes, fees may include processing fees, late payment charges, and any prepayment penalties. The exact details are provided during the loan application process.

For higher loan amounts, collateral (like property) or a co-signer (typically a parent or guardian) may be required. For smaller amounts, no collateral may be needed.

Yes, Bankwale provides a 24/7 online application process for education loans, including a certified pre-approval process and easy access to quotes and refinancing options.

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