Education Loan in Ahmedabad
Funding for study in India or abroad, covering tuition, living costs and travel, with repayment beginning after your course ends.
What this covers
- Study in India or overseas
- Covers tuition, living costs and travel
- Moratorium through the course plus grace period
- Tax deduction on interest under Section 80E
Who qualifies
- Confirmed admission to a recognised institution
- Indian citizen, typically 18–35
- Co-applicant, usually a parent or guardian
- Collateral required above lender-set limits
Documents you will need
- Admission letter and fee schedule
- Academic records and entrance scores
- Co-applicant income and KYC documents
- Collateral documents where applicable
Share documents with your advisor directly. Never upload identity documents to a page that does not clearly tell you where they are going.
Common questions
When do repayments start?
Most education loans allow a moratorium covering the course duration plus 6–12 months. Interest usually accrues during that period, so paying simple interest while studying, where you can, materially reduces the final burden.
Is collateral always needed?
No. Loans up to roughly ₹7.5 lakh are commonly unsecured with a co-applicant. Above that, most lenders ask for collateral, although some make exceptions for premier institutions.
Does the interest qualify for tax relief?
Section 80E allows a deduction on the interest paid on an education loan for up to 8 years, with no upper limit on the amount. Confirm your own position with a tax adviser.
Does an education loan cover living costs?
Usually yes for studying abroad — tuition, living expenses, travel, insurance, a laptop and examination fees are commonly included. For domestic courses the coverage is narrower and often restricted to tuition plus limited incidentals. Check the specific inclusions, because the gap is what parents end up funding.
Who can be a co-applicant?
Normally a parent, guardian or spouse. Their income and credit record largely determine the sanction, since the student typically has no income yet. A co-applicant with a weak credit history can sink an otherwise strong application, so it is worth checking their report early.
Should I pay interest during the course?
If you can, yes. Interest accrues through the moratorium and is capitalised, so you end up paying interest on interest. Servicing even simple interest while studying reduces the final outstanding materially, and many lenders offer a small rate concession for doing so.
Is a government scheme better than a private lender?
Public sector banks under the IBA model scheme usually price lower and offer interest subsidy schemes for eligible income brackets, but are slower and stricter on collateral. Private lenders and NBFCs move faster and lend larger amounts for overseas study, at a higher rate. For most families the answer depends on the deadline as much as the cost.
What if I do not get a job after the course?
Speak to the lender before the first EMI is due, not after. Extensions of the moratorium and restructuring are possible and are handled far more sympathetically before a default than after one. A missed EMI damages both your credit record and your co-applicant's.
Is collateral required for studying abroad?
Above roughly ₹7.5 lakh most lenders ask for it, typically property or a fixed deposit. Some lenders waive collateral for admissions to a defined list of premier institutions, which is one of the few cases where the choice of university directly changes your financing terms.