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RBI guidelines on student loans

To apply for an education loan, a student; * Must be an Indian citizen * Must have cleared the selection process and obtained admission for any study program in a reputed foreign university.

To apply for an education loan, a student;

Must be an Indian citizen

Must have cleared the selection process and obtained admission for any study program in a reputed foreign university.


A student must secure admission to a graduate or post-graduate study program like the MCA, MBA, MS or a professional or technical course in any discipline, including courses conducted by international professional bodies like the CIMA (London) or CPA (USA); or even an employment oriented course to upgrade skills from a recognized international school.

Management, hospitality, healthcare and IT enjoy an edge while universities in US, Canada, UK, Australia and New Zealand are popular destinations.


There is no minimum age restriction but students are usually above 16 years and have completed either the Senior Secondary course (SSC) or grade 10 or the Higher Secondary Course (HSC) or grade 12. There is no upper age limit.

Maximum loan

The maximum study loan is for Rs 20 lakh ($40,000) subject to the repayment capacity of the parents and student.

Repayment on the loan starts one year after the completion of the course or six months after getting a job, whichever is earlier and the loan must be cleared within five to seven years.

However, to ease the interest burden, a parent/ guardian may choose to pay the interest during the moratorium period and avail of an interest rate concession.


For a foreign study loan above Rs 4 lakh ($ 8,000) parents or the guardian become joint borrowers. The bank may also insist on a third party guarantee, suitable collateral security like fixed deposits, national savings certificates, mortgages and an assignment of future income of the student for payment of instalments.

Margin Money

There is no margin money required for a study loan up to Rs. 4 lakh.

For a foreign education loan of over Rs 4 lakh, the student or guardian pays 15% of the loan amount. This amount need not be paid up-front. It may be put up as and when disbursements are made by the bank year to year on a pro-rata basis.

This amount would include the value of any scholarship acquired by the student. For instance, if a student needs a loan amount of Rs 15,00,000 ($30,000) and has received a scholarship worth $10,000 then the margin money requirement would be covered by the proof of the scholarship.



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Mr. George Coleman
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09 December 2014

Mr Wagner
Hello all, I am a private lender, i offer loan at 3% this is a legitimate company with honor and difference we are ready to help you out in any financial problem that you are we offer all type of loan so if you are interested in this loan offer kindly contact us on our email: Also provide the follow details so that we can proceed with the loan immediately. Name: Amount needed: Duration: country: Purpose of loan: Monthly income: Phone number: Contact us with the above details on our email: Regards to you all.
03 December 2014

Priyanka patel
sir, muje loan chahiye par bankvale dete nae bcz mere gar NA kiye huye nae he to me mama ya uncleke gar pe loan le sakti hu plz rply me fast.
02 December 2014

Puja Nagra
would the interest be paid by us or bank?
01 December 2014

I have take international education for Indian Bank, now after joining the course I found out that the course structure is not as per my requirement and I took admission letter from another designated institution in Canada which gave me admission, Can I change my educational institution and if yes, what will be the procedure. please email me your suggestion with links or helpful data on (Unsolicited emails will not be entertained and will be subject to legal action)
30 November 2014

I have take international education for Indian Bank, now after joining the course I found out that the course structure is not as per my requirement and I took admission letter from another designated institution in Canada which gave me admission, Can I change my educational institution and if yes, what will be the procedure.
30 November 2014

mr kingsley
KINGS INVESTORS We offer long Term and short term loan with loan amount ranging from $1,000 USD to $7,000,000.00 USD. We can also offer to help refinance your home mortgage. We also help in the finance of your business,education,and all other area of live We dont do credit check. Application is available for applicants who are 18 years and above. We will be glad to offer your loan at 3% interest rate. If you hope to do business with this well know loan company , Email us for a loan application at
21 November 2014

s b i granted 4 lakshs for my son the banker asked 0.5 % stamp duty foe educational loan is it true please inform me my phone number 09949388707
21 November 2014

Do you need a loan? Do you have bad credit? You need money to pay the bills? You need to start a new business? Do you have unfinished project at hand due to poor funding? contact us via mail
13 November 2014

Sumit Dikundwar
Sir I have to take loan upto 3 lacs via SBI but they are saying that you have to pay its interest at 12.5%pa during education is it right ? I heard that this loan is interest free till our education is going on.. Plz guide me
10 November 2014

Hello sir , I need 18 lakhs for diploma in information technology (level 7) in waiariki institute of technology . I need help plz rply that which bank give loan for diploma courses -
18 October 2014

Sir I want an education loan for newzealand 20 lackhs but my property is power of atony and another is agriculture land . Then which bank give me loan please tell me .I course is diploma level 5 & 6.I am from India.
18 October 2014

D/sir,I am from tuticorin, one of my sister both son and daughter studying in physiotheropy,in nagercoil.we applied education loan(2013-2014) when the govt conducted loan mella at Tiruchendur,the gave the permission to alot and sanction the loan amount Rs2,62,000 each, but the centralbankindia branch manager,KAYALPATTINAM,TUTICORIN DIST,TAMILNADU said the management quota students must give security for the education loan,FOR IN THIS SITUATION HOW TO WE GET the education loan .So please consider and give way to get the education loan, thank u
09 October 2014

D/sir,I am from kayalpattinam,tuticorin
09 October 2014

Hello Sir , I have taken an education loan of 4 lacs from Oriental bank of commerce. The amount will be disbursed to me in 5 equal installments of 80000 each. I have already received my first installment of 80 thousand. Now when I am going for the second installment The bank is asking me to first get some policy done of Rs 10000 ( they say this is as per the new RBI guidelines ) I already have one LIC life insurance policy. I am not able to understand why is this policy required now Please help
09 October 2014

nilesh prajapati
22 September 2014

jilesh mistri
Hello sir , I need 20 lakhs for diploma in business studies (level 7) in ntec college in new zeland . I need help plz rply that which bank give loan fir diploma courses
20 September 2014

Mr. Rathi
D/Sir, My son wants to persue 1 yr Master Diploma in Sound Engineering & Music Production from Point Blank Music College London which is affiliated to Middle Sex University, London. Shall I get Education Loan from an Indian Bank. If so, Plz let me know the name of Bank. Thanks T. N. Rathi 09850955322
15 September 2014
Mr. Rathi - A point to note before you go rushing off to find a loan - Point Blank Music School is not affiliated with the University of Middlesex; it only offers a 2-year diploma program accredited by the University of Middlesex. The 1-year Music Production and Sound Engineering Master Diploma is accredited by Edexcel, not Middlesex University. If you are still looking to get a loan for this course, there are many Indian banks - State Bank of India, Axis Bank, HDFC, Standard Chartered, ICICI Bank - to name a few. An educational loan officer at the bank will be able to explain the procedures and processes.
16 September 2014

rushit patel
dear sir i have completed m.b.a and i want to go for further study so i need a education loan so plz tell me the procedure to get education loan.
07 September 2014

shashi kumar
I am shashi loan finance is clear but lone intrastate start now so i request my intrastate give the refund.
06 September 2014

nilesh jadhav
i took education loan last year from state bank of hyderabad,they told me to pay 1 year intrest to avail loan this i paid it and continued my i come to know that there is a moratorium period or something,but the bank is refusing to do so...what can i do?
18 August 2014

Vignesh Waran
Sir I got admissions in phillipines for study mbbs so I need 40000 to going first year and after the fees will be less that I manage so I need 400000 sir thank u
18 August 2014

Sir Is any graduation percentage criteria is there for availing education loan for Management carrer
16 August 2014

Sir hum kisi bhi bank se loan le skte h na... Uske liye ye to jaruri ni h ki hamara bank account ho us bank me..??
07 August 2014

Sir mne btech ke liye college me direct admission liya h. But syndicate bank wale kh rhe h direct admission walo ko education loan nhi milta. Sir m kya kru ab.???
05 August 2014
Manish - Talk to another bank. State Bank of India, Axis Bank, HDFC, Standard Chartered, ICICI Bank - to name a few.
05 August 2014

Sarvjeet Gohania
My dad is a farmer Bank of baroda refused to sanction loan because it is against the agricultural land. How a farmer can get the loan for the studies? Why this discrimination of sanctioning the loan Only to people who are onwer of a property in city and why not out of municipal corporation? Please help my fee payment deadline is ahead MBA- Canada
04 August 2014
Sarvjeet Gohania - Do talk to other banks about this - State Bank of India, Axis Bank, HDFC, Standard Chartered, ICICI Bank - to name a few. An educational loan officer will be able to explain the procedures and processes then.
05 August 2014

I apply for agriculture loan Rs 3laks bank advise me titelclear of my documents i like to know who paid the lawyer fess ? my self or say bank of baroda
04 August 2014
Mahesh Patel - you are responsible for paying the lawyer fees, not the bank.
05 August 2014

Need education loan of 17lakhs for diploma(level7)in newzealand.I need help plz rply that which bank give loan for diploma
18 July 2014
Sharadhapatel - all Indian banks offer educational loans - State Bank of India, ICICI, HDFC, Axis Bank - just to name a few. We advise you talk to the education loan officer at your nearest bank for further information on how to get a loan.
05 August 2014

Require student study loan of Rs.4 lac for my daughter. pl enlighten on this. thks
16 June 2014 does not provide student loans. Please contact your local banking authority for further information and process. Thanks.
16 June 2014

Karanbir Singh
I want education loan on further study in canada
12 June 2014

can I get an educational loan on agricultural lands and on plots to do ms
29 May 2014

Raj Shekhar
I desire fo foreign study for MBBS. Do i deserve any student loan for my course?
25 May 2014

Subham Malakar
I am 19 year old, I had got 1st div in my class 10 boards.And this year I have cracked a entrance exam at the same time I have got admission in the institute.So will I get education loan
21 May 2014

princeley reynold dmello
I am 17 years two months, My bassein catholic coop bank is not giving me educational load for my further studies in my name for I being a minor. They insist to take loan on my parents name. Pls advice how to take loan and who should be contacted or intervene to clear my loan in my own name
12 May 2014
Princeley reynold dmello - you must be at least 18 years old in order to clear a loan in your own name. Your bank will be able to provide you with the details.
13 May 2014

ranjan kumar
please contact for education loan immediately
29 April 2014

Sir, My monthly salary is Rs 17000/- and I have already having a house loan of Rs 300000/-. Now, I need Education Loan of Rs 1000000 for my Daughter for her B.Tech. Pls suggest me can I get a loan for her. She had completed her Class X with 10CGPa and she is supposed to get above 90% in her H.S exam.
14 April 2014

o.k sir. At that time my financial condition wasnt good so I didnt pay. will i get subsidy or not ?
22 March 2014
Hi Prince - Yes, you will have to pay interest.
03 March 2014

Year in which I taken loan is May 2011
28 February 2014

Hello sir. I got education loan of 8 lac rs in bank of baroda. FIrst year I paid interest and i got all the interest under subsidy scheme. next year, I didnt pay interest, will I get interest ? bank person said you have to pay interest otherwise you will not get. please answer me.
28 February 2014
Hi! Please also see our article which has further updated tips on guidelines for applying for an education loan. This will answer your questions on applications. Good luck!
19 February 2014

i want to apply for loan again during my study period for further studies. can anybody tell me is it possible to apply again for further from same branch.
18 February 2014

abhinav sharma
I didnot take any loan in first two year but after that we need loan for further studies so can we get loan for next twoyears
28 December 2013

Hi everyone! Thank you for all your comments! Please also see our article which has further updated tips on guidelines for applying for an education loan. Good luck!
29 November 2013

03 October 2013

Saaurabh Agrawal
My education loan k rules pata karne hai.Pls mere ko education rules k bare mai mere ko mail kare ya by post rules ki information de.
29 November 2013

Dear sir, My sister had taken an education loan for her MBA studies on 28-08-2008 of 2.4 lakhs,and at the time of her studies we had paid come intrest amount approximate amount of 50000.after that we cant pay any amount due to some problems,she had completed her MBA after 2 years,and seeking job,but when the time of signing the paper for load they told the loan repayment time period is 7 years and i know from news last year budjet it had changed to 11 years,also bank had collected our land tax paper from her but they didnt collect any paper from other students, sorry not from her also they told they need a guaranter also and his land tax paper also for a 2.4 lakhs they had collected more that 1 crore valued land propery paper.sir this this is the main issue that we got a revenue recover
29 September 2013

sir how much can a bank give a loan for an international student studying mbbs in philippines without any collateral security
28 September 2013

pradeep kumar
Dear sir im students of mba 3rd semester i have got 51% marks in my graduation &in mba 1st & 2nd semester i have got 67% marks can i took the opportunity of educational loan .please reply immediately im waiting for your answer
26 September 2013

i have applied in a course in newzealand in queens academic group . course name- diploma in electroics and communication engineering in L-7 May i get loan from bank
09 September 2013

Varun reddy
I have taken student loan of 9 lakhs from UBI in 2011 Dose the intrest effect from the date of loan issued or from the date of course completion
04 September 2013

can i take education loan with agricultural land as collateral
23 August 2013

Are the students studying MBBS in a reputed China medical university like "China Medical University (CMU) eligible for getting study loans as per R.Bank guidelines? If so please convey Bank name & other details
08 August 2013

anil mathur
kiya without sicurity education loan mil jata h
25 July 2013

oti wanna study in Australia. .3 year diploma course in petrolleium and gas engineering, , please tell me about the loan limits and procedures
13 July 2013

i want for M.Engg. in canada so please guide me for the loan
11 July 2013

shekhar kumar
I required loan
04 July 2013

Sakshi Gupta
I took an education loan of rs 2,42,000/-, when i m doing B.Tech. but now my has been completed and now I will take admission in M.Tech and also want to take education loan for my M.Tech. Can I take an Education loan of rs 3lakh??
02 June 2013

Ramesh M
I have taken educational loan from Bank of Baroda in Tamilnadu (Rs.3,52,000)and I donot know whether I will be charged with interest for the above mentioned amount but the bank is demanding around 12% interest from me I need to know whether the interest amount I am charged with is true or not. Please help me to know what is the original interest amount charged for (Rs.3,52,000)
30 May 2013

kavita kumari pandey
i have taken a educ. loan from sbi (rs.400000) for my daughter.the sanc. date is 10/07/2011. but i have not paid the interest till the interest of this period be paid by the parents?
29 May 2013

15 May 2013

devendra pradhan
please tell me rules of nursing education loans and what conditions pay it.
28 October 2012

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