EDUCATION LOAN

Fund Your Academic Dreams Without Financial Stress

Study in India or abroad — IIT, IIM, NIFT, top US/UK/Canada universities. Education loans with moratorium period during the course so you start repaying only after you graduate.

8.15%

From p.a.

₹1.5 Cr

For Abroad

Moratorium

During Course

Education Loan Snapshot

Loan Amount₹50 Lakhs

DestinationUSA / UK / Canada

Interest Rate8.15% p.a.

MoratoriumCourse + 6 Months

Tax BenefitSection 80E

RepaymentUp to 15 Years

KEY FEATURES

Why Finance Your Education Through FinGarage?

India & Abroad Courses Covered

Loans available for engineering, medical, MBA, law, arts, and vocational courses in India. For abroad, US, UK, Canada, Australia, Germany, and Singapore are widely covered.

Moratorium During Course

You don't have to pay EMIs while studying. Repayment begins after course completion plus a grace period of 6–12 months — giving you time to settle into a job first.

Interest Subsidy for Weaker Sections

Under the Central Government's Interest Subsidy Scheme (CSIS), eligible students from EWS and OBC categories receive interest subsidy during the moratorium period.

Tax Benefit Under Section 80E

The entire interest paid on an education loan is eligible for income tax deduction under Section 80E with no upper limit — for up to 8 years from the start of repayment.

Forex & Living Expenses Covered

For abroad education, the loan covers tuition, hostel, living expenses, travel, and study materials — not just tuition fees. Foreign exchange disbursals are also facilitated.

Collateral-Free Up to ₹7.5 Lakhs

Under IBA model, education loans up to ₹7.5 lakhs require no collateral. Loans above this threshold are secured through property or co-applicant guarantee.

ELIGIBILITY

Who Can Apply?

Education loans are available to Indian students admitted to recognised institutions. A co-applicant (parent or guardian) is typically required as a guarantor.

✓Indian national admitted to a recognised institution in India or abroad
✓Confirmed admission letter from the target institution
✓Co-applicant (parent or spouse) with stable income is required
✓Good academic record (60%+ in qualifying exam preferred)
✓Co-applicant CIBIL score of 650+ for better approval odds
✓Collateral required for loans above ₹7.5 lakhs (property or fixed deposit)

Documents Required

✓Admission letter from institution
✓Fee structure / cost of study document
✓KYC of student and co-applicant (Aadhaar & PAN)
✓Co-applicant income proof (salary slips / ITR)
✓Academic mark sheets (10th, 12th, graduation)
✓Bank statements of co-applicant (6 months)

THE PROCESS

How It Works

Share Course Details

Tell us the institution, course, country, and estimated cost of education. We assess the best lender options based on the institution's recognition list.

Compare Lender Offers

We present offers from SBI Scholar Loan, HDFC Credila, Axis Bank, and other education finance lenders — comparing rate, moratorium terms, and repayment flexibility.

Send Message

Upload the admission letter, fee structure, co-applicant documents, and academic certificates. Our advisor assists with any lender queries or supplementary documents.

Sanction & Disbursal

Loan is sanctioned and disbursed in tranches directly to the institution as per the fee schedule — ensuring timely payment of each semester's fees.

Frequently Asked Questions

What is the moratorium period in an education loan?

The moratorium period is the time during which you are not required to repay the principal (and sometimes interest) on your education loan. It typically covers the course duration plus 6–12 months after completion (to allow you to find employment). During this period, interest may continue to accrue — which is added to the principal or can be paid as simple interest to reduce the overall burden.

Is collateral mandatory for an education loan?

Under the IBA model, education loans up to ₹4 lakhs require no collateral or guarantor. Loans between ₹4–7.5 lakhs need a third-party guarantor. Loans above ₹7.5 lakhs require tangible collateral such as residential or commercial property, fixed deposits, or insurance policies with surrender value.

Can I get an education loan for studying abroad?

Yes, education loans are readily available for studies in the US, UK, Canada, Australia, Germany, Singapore, and many other countries. Loans for abroad can go up to ₹1.5 crore depending on the institution and lender. Specialised education finance NBFCs like HDFC Credila, Avanse, and Auxilo offer higher amounts with more flexible terms for overseas study.

What is covered under the education loan?

Education loans cover tuition fees, examination fees, library fees, hostel/accommodation charges, travel expenses (for abroad), purchase of books, equipment and instruments, and a reasonable maintenance allowance for living expenses. The exact coverage varies by lender but most major institutions cover all education-related expenses.

What is the maximum repayment period for an education loan?

Most banks offer a repayment tenure of 10–15 years after the moratorium period ends. Longer tenure means lower EMI, but more total interest paid. We recommend starting with a medium tenure and making part payments when income allows — the Section 80E tax deduction is available only for the first 8 years of repayment.