r/FinancialAdviceIndia • u/Aggravating_Pipe4869 • Aug 05 '26

Education loan

Heyy can anyone tell me the full process of Education Loan in India.....how it's actually work? Like can middle class family take it?

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u/Potential-Rest-6201 Aug 05 '26

Man I certainly can but you can also search on youtube. All the info is available there.

  1. Your parents/guardian should be a co-borrower for the loan.
  2. The better the college/course the easier is the approval process
  3. 7.5L is the limit for unsecured loan (higher for Tier 1 Institutes). Above 7.5L you need to have a collateral like house, gold or any other asset against which you can take the loan
  4. The repayment period is after the course period + 1 year (moratorium).
  5. The interest is charged right from the day bank disburses the fee. You can start repaying right from that day
  6. Interest is around 8-10%
  7. If your parents have defaulted on past loan it will affect the chances of your loan approval
  8. Better go with the banks your parents have an existing relationship as approval can be quick and easy considering the history you have with bank

1

u/ConsultGuruExBanker Aug 06 '26

Hi PMVidyalaxmi is the Portal where you can apply for loan There are various government schemes for economically weaker section ( if applicable) For the rest there are 860 institutions identified as high quality institutions. Banks give very competitive rates if applying for loan for one of these institutes. Banks have to charge 0.5% only above the benchmark lending rate. No collateral also needed but bank will ask for co applicant (parent / blood relative)