For most Indian families, funding an overseas education requires a combination of savings, scholarships, and loans. Education loans are a legitimate and widely used financial instrument, but the process of securing one, understanding its terms, and repaying it strategically requires clear information that is often hard to find in one place.
There are two main categories:
Collateral can be immovable property (land or building), fixed deposits, or government bonds. Secured loans offer significantly lower interest rates, typically 8.5 to 11% per annum from nationalised banks in 2024 to 25.
For loan amounts typically up to ₹40 to 75 lakhs depending on the lender and destination. Interest rates are higher, usually 11 to 14% from banks; higher from NBFCs. However, NBFCs sometimes offer faster processing and more flexible documentation.
Note: Interest rates change periodically. Always verify current rates directly with the lender before applying.
Education loans from Indian banks typically cover:
What is generally NOT covered: personal expenses beyond the cap, co-curricular activities, short courses unrelated to the main programme, and non-academic subscriptions.
The standard process involves the following steps:
An education loan is a significant financial commitment, but with the right information and planning, it is a manageable one. The Acadevo's 360° Solutions team connects students with lending partners, assists with document preparation, and ensures you understand the terms before you commit. Speak to us early, loan processing takes time and should not delay your admission process.
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