Education Loan
Planning higher studies in India or abroad? An education loan can help cover tuition fees and other eligible study expenses without requiring you to pay the full cost upfront. Through SwipeLoan, you can compare education loan options from ₹2 lakh to ₹2 crore across 100+ RBI-registered NBFCs, including secured and collateral-free options where available. You can check your eligibility online and review relevant lender options before deciding where to apply. SwipeLoan is a marketplace, not a lender, so the lending partner makes the final decision on your loan amount, interest rate, fees and repayment terms.
₹2 lakh to ₹2 crore
Explore education loan options for higher studies in India or abroad, subject to lender criteria.
Secured and collateral-free options
Compare available options based on the loan amount, course, institution and borrower profile.
Moratorium-based repayment
Many education loans allow repayment to begin after the course and a grace period, depending on the lender.
Free eligibility check
Check available options before submitting a formal application
Instant Education Loan
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What Is an Education Loan?
An education loan is designed to help students and families pay for higher education in India or abroad. Depending on the lender and course, the loan may cover tuition fees, admission and examination charges, hostel or accommodation costs, books, equipment, travel and other approved education-related expenses.
The main difference between an education loan and many other types of borrowing is the moratorium period. Repayment may begin after the course is completed and a lender-defined grace period ends. That can make higher education more manageable while the student is still studying.
However, a moratorium does not automatically mean that interest stops. Interest may continue to accrue on amounts already disbursed, and the way that interest is handled can materially change the total cost of the loan.
What makes an education loan different?
- The student is usually the primary borrower, while a parent or another eligible person may act as co-applicant.
- Funds are commonly disbursed in stages, based on the institution’s fee schedule and the lender’s terms.
- The institution and course can affect eligibility, pricing and collateral requirements.
- Collateral may or may not be required, depending on the lender, loan amount and product.
**What SwipeLoan is, plainly:** SwipeLoan is an AI-powered credit-matching loan marketplace and Lending Service Provider. We do not lend money, set interest rates or approve loans. Your loan agreement is with the RBI-registered partner lender.
The Education Loan Moratorium — How It Works
The moratorium is one of the most important parts of an education loan, and it is also one of the easiest parts to misunderstand.
What is a moratorium period?
A moratorium is a period during which the student generally does not make regular EMIs. Depending on the lender, it may cover the study period plus a grace period after the course. The exact duration is lender-specific and should be checked in the loan agreement and Key Fact Statement.
The important point is simple:
Deferred EMI payments do not necessarily mean deferred interest.
Interest can start accruing as each loan amount is disbursed. For a course where money is released semester by semester or year by year, the interest calculation may therefore build over time rather than starting on the full sanctioned amount on day one.
Should you pay interest during the study period?
Where the lender allows it and the family can comfortably afford it, paying the accruing interest during the course can reduce the amount that eventually becomes part of the principal. That can lower the EMI and the overall repayment cost.
Before choosing an education loan, ask the lender:
- When does interest start accruing?
- Is interest during the moratorium serviced separately or capitalised?
- Is the calculation simple interest or based on another method?
- Is there any concession for servicing interest during the moratorium?
- When exactly does regular EMI repayment begin?
Why the moratorium changes the total cost
For illustration, consider a ₹20,00,000 education loan at 10.5% p.a., disbursed in stages over a four-year course, followed by a six-month grace period and then a 10-year repayment period:
| Pay interest during the course | Let it capitalise | |
|---|---|---|
| Interest accrued during moratorium | ₹6,30,000 | ₹6,30,000 added to principal |
| Principal at EMI start | ₹20,00,000 | ₹26,30,000 |
| Monthly EMI | ₹26,987 | ₹35,488 |
| Illustrative repayment cost after EMI starts | Lower | Higher |
This is an illustration, not a lender quotation. Actual figures depend on the amount and timing of disbursals, interest rate, moratorium and repayment terms.The lesson is more important than the exact example: compare education loan offers on total cost, not only on the advertised interest rate.
What Does an Education Loan Cover?
An education loan may cover more than just tuition. The exact expenses eligible for financing depend on the lender and the course.
| Category | Commonly considered expenses |
|---|---|
| Tuition and institutional fees | Course fees, admission, registration, examination and other institutional charges |
| Hostel and accommodation | Hostel fees and, where permitted, approved accommodation expenses |
| Books and study material | Textbooks, reference material and other course-related supplies |
| Equipment | Laptop, instruments, tools or other equipment required for the course |
| Travel | Approved travel or airfare for eligible study-abroad programmes |
| Deposits | Certain institution-related deposits, generally against supporting documents |
| Project and academic expenses | Study tours, thesis, project or laboratory costs where permitted |
| Insurance | Insurance premium where it forms part of the lender's approved education-loan structure |
For study abroad, ask the lender exactly which living and travel costs are eligible and how disbursals are handled in foreign currency.
Courses and Institutions Covered
Education loans can be used for many recognised higher-education programmes, but approval is not based on the course name alone. Lenders may also assess the institution, programme type, academic record and the student’s future earning potential.
Courses in India
Depending on the lender, eligible programmes can include undergraduate and postgraduate courses, professional and technical programmes, medicine, engineering, management, law, architecture, doctoral programmes and other recognised higher-education courses.
Courses abroad
Study abroad education loans may cover recognised undergraduate, postgraduate, doctoral, professional and selected certificate programmes at eligible overseas institutions.
What can affect eligibility?
- Whether the institution is on the lender’s approved list
- Whether the course is full-time and recognised
- Academic performance and admission status
- Course duration and expected employability
- Whether the lender supports domestic or overseas education
- Whether collateral or a co-applicant is required
Part-time, distance, online and short-duration programmes may have different eligibility rules. Always check the specific course and institution with the lender before relying on an education loan.
Education Loan Eligibility Criteria
Eligibility depends on the lender, the course and the applicant profile. In most cases, the lender assesses both the student and the co-applicant.
The student
| Factor | What lenders may consider |
|---|---|
| Nationality | Indian citizenship and any additional criteria for NRIs or other applicant categories |
| Age | Lender-specific age requirements [VERIFY exact bands] |
| Admission | Confirmed admission to an eligible and recognised institution |
| Academic record | Previous academic performance and, where relevant, entrance-exam results |
| Course and institution | Whether the programme and institution meet lender policy |
The co-applicant
| Factor | What lenders may consider |
|---|---|
| Relationship | Parent, guardian or another permitted relationship depending on lender policy |
| Income | Stable, documented income to support repayment after the moratorium |
| Credit profile | Credit history and repayment behaviour are important to the lender's assessment |
| Existing obligations | Current EMIs and other financial commitments |
| Employment stability | Continuity of employment or business income |
A student’s admission may make the course eligible, but the co-applicant’s ability to support the repayment obligation is often an important part of the credit decision.
Documents Required for an Education Loan
- Identity and address proof
- Age proof, where required
- Academic mark sheets and certificates
- Entrance examination scorecard, where applicable
- Passport for study abroad, where applicable
- Passport-size photographs
Co-applicant documents
- Identity and address proof
- Income proof
- Salary slips and Form 16 for salaried applicants, where required
- ITRs and financial statements for self-employed applicants, where required
- Bank statements
- Details of existing loans and financial obligations
Course and institution documents
- Admission letter or confirmation
- Detailed fee structure
- Scholarship or assistantship details, where applicable
- Cost-of-attendance estimate for overseas education
- Other documents requested by the institution or lender
Collateral documents
If security is required, the lender may ask for ownership documents, valuation reports, title documents, encumbrance information and other property-related records.
The documentation required for an education loan depends on the lender, course, loan amount and whether collateral is offered
Education Loan EMI Calculator
*(Interactive calculator widget sits here. Include loan amount, interest rate, tenure and, ideally, a moratorium input so users can understand the impact of accrued interest.)*
An education loan EMI calculator can help you estimate your monthly repayment before you commit. Enter the loan amount, applicable interest rate and repayment tenure to see an estimated EMI and total interest.
Education loans need one additional calculation: the moratorium. If interest is not serviced during the study period, the amount capitalised into the principal can increase the EMI after the course.
Education Loan EMI Formula
EMI = [P × R × (1 + R)^N] ÷ [(1 + R)^N − 1]
Where:
- P = Principal outstanding when EMI repayment begins
- R = Monthly interest rate
- N = Number of monthly instalments
Personal Loan EMI Calculator
Calculate your monthly loan payment
Your Monthly EMI Payment
₹16,134
Education Loan EMI Reference Table (illustrative at 10.5% p.a.)
| Loan Amount | 5 years | 7 years | 10 years | 15 years |
|---|---|---|---|---|
| ₹4,00,000 | ₹8,598 | ₹6,744 | ₹5,397 | ₹4,422 |
| ₹7,50,000 | ₹16,120 | ₹12,646 | ₹10,120 | ₹8,290 |
| ₹15,00,000 | ₹32,241 | ₹25,291 | ₹20,240 | ₹16,581 |
| ₹20,00,000 | ₹42,988 | ₹33,721 | ₹26,987 | ₹22,108 |
| ₹40,00,000 | ₹85,976 | ₹67,443 | ₹53,974 | ₹44,216 |
| ₹75,00,000 | ₹1,61,204 | ₹1,26,455 | ₹1,01,201 | ₹82,905 |
Illustrative calculations only. Actual EMI depends on the lender’s interest rate, the principal outstanding when repayment begins, the disbursal schedule and the repayment tenure.
Choosing an education loan tenure
A longer tenure can make the monthly EMI easier to manage, but it usually increases the total interest paid. A shorter tenure generally reduces total interest but increases the monthly repayment.
For education loans, consider the likely starting income after the course, not only the income you expect several years later. Also compare the lender’s moratorium and prepayment terms before choosing a long repayment period.
Education Loan Fees and Charges
The interest rate is only one part of the cost. Depending on the lender and product, an education loan may include:
| Charge | What it means |
|---|---|
| Processing fee | A fee charged for processing the application; the amount varies by lender and product |
| Prepayment / foreclosure | Charges, where applicable, for repaying the loan early; check the lender's terms and KFS |
| Penal charges | Charges that may apply when an instalment is overdue |
| Legal and valuation charges | May apply when collateral is offered |
| Documentation and stamp duty | Charged as applicable under the lender's process |
| Insurance premium | May be offered or included depending on the lender; check whether it is optional and how it is priced |
| Forex/remittance charges | May arise when funds are transferred for overseas education |
| GST | May apply to applicable fees and charges |
Review the Key Fact Statement and loan agreement before accepting the loan so you understand the full cost.
Government Schemes for Education Loans
Government-supported education-loan programmes can be useful for eligible students, particularly where the main concern is interest support, collateral or access to formal education finance.
PM-Vidyalaxmi
PM-Vidyalaxmi is a central government initiative announced in 2024 to support eligible students pursuing higher education at specified institutions, including provisions relating to education-loan access, collateral-free or guarantor-free lending for eligible cases, and interest support for qualifying income groups.
Central Sector Interest Subsidy Scheme (CSIS)
The Central Sector Interest Subsidy Scheme has historically provided interest support during the moratorium for eligible students from economically weaker sections pursuing professional or technical education in India
Other support worth checking
- State-level education-loan subsidy programmes
- Scholarships offered by universities and institutions
- Fellowships and assistantships
- Other government or institutional interest-support programmes
A scholarship or grant can reduce the amount you need to borrow, which can reduce both your EMI and total interest cost.
What If You Don't Get a Job After the Course?
Education-loan repayment does not automatically disappear because a job takes longer to find. The loan agreement continues to apply, which is why repayment planning should start before you borrow.
If employment is delayed:
- Contact the lender early. Do not wait until several EMIs are overdue.
- Ask whether the lender offers any permitted repayment relief or restructuring options. Any change is subject to lender policy.
- Discuss a tenure extension if a lower EMI would make repayment more manageable.
- Understand the co-applicant’s responsibility. The co-applicant can also be affected if repayments are missed.
- Avoid taking expensive new debt simply to keep an old EMI running. A new personal loan may increase the overall cost of borrowing.
Before choosing a large education loan, model the expected EMI against a realistic starting salary after tax and basic living expenses. This is especially important for study-abroad loans, where salary, rent, taxes and currency movements can materially change affordability.
How to Apply for an Education Loan via SwipeLoan
- Share your study details. Enter information such as the course, institution, country, loan requirement and expected cost.
- Add co-applicant information. Provide the income, employment and existing-obligation details needed for lender matching.
- We match your profile with relevant lending partners. SwipeLoan compares your information against partner criteria across its network of RBI-registered lenders.
- Review available loan options. Compare the lenders, loan amounts, interest rates, tenure, collateral requirements and other disclosed terms available to you.
- Choose where to apply. You decide which lender or offer you want to pursue.
- Complete the lender’s application. Submit the required documents and complete any verification requested by the lender.
- Sanction and disbursal. The lending partner makes the final credit decision and typically disburses approved education-loan amounts according to the lender’s process and the institution’s fee schedule.
Why comparing first can help
Education-loan eligibility can differ because lenders may have different approved-institution lists, course policies, collateral requirements and co-applicant criteria.
Applying to several lenders without first understanding those differences can lead to unnecessary formal applications and hard enquiries. Comparing available options first can help you focus on lenders whose criteria appear more relevant to your profile.
Start early for study abroad. A loan sanction letter may be needed as part of the broader admission and visa process, so work backwards from the university payment and visa deadlines.
