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Everything You Need to Know About Education Loan Schemes for Premier Institutes

Risha Sinha Risha Sinha
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Everything You Need to Know About Education Loan Schemes for Premier Institutes

As the cost of education for graduate as well as postgraduate courses is rising day by day, it is difficult to raise funds for education. Keeping this into consideration, Indian banks run various education loan schemes. Almost all the banks are offering student loans to those with a good track record of performance in the academic field and the average loan limit is nearly INR 20 Lakhs. However, if you are an IIM aspirant then this amount won’t be sufficient for you. There are some banks like SBI, PNB, Indian Bank, etc. which offer special loan facilities for students qualified for admission at premier institutes like IIMs, IITs, NITs, etc.

Indian Institute of Management and Indian Institute of Technology are undoubtedly some of the finest institutes in India but some of them have the steepest tuition fees for their flagship programmes. In the past few years, there has been a lot of hikes in their tuition fees. 5-17% hike in the tuition fee is quite common every year. So, education loans are really essential to cover up the cost of these prestigious institutions. 

Features of Premier Education Loans:

  • The maximum loan limit ranges from INR 20 Lakhs to INR 40 Lakhs.
  • The repayment of the loan can be done after the moratorium period gets over.
  • Most of these loans do not require collateral. Parents will be required to become a guarantor/co-borrower.
  • The payback period will be around 15 years. 
  • Loan Margin is also very low or nil.
  • Tax Benefits can also be availed on the EMI paid under Section 80E of the Income Tax Act.
  • For female students, there will be a concession rate of 0.5%.

Below we have described some of the education loan schemes for premier colleges:

1. SBI Scholar Loan Scheme

SBI Scholar Loan scheme offers loans to different categories of institutes. The loan amount and their respective interest rates are described in the table below:

Category of InstitutesLoan AmountInterest
AAINR 40 Lakhs8.75% for an amount up to INR 30 Lakhs
AINR 20-30 Lakhs9.05%
BINR 20 Lakhs10.20%

2. PNB Pratibha Loan Scheme

The PNB Pratibha Loan Scheme aims at providing financial support to the meritorious students who are getting admission to Premier Institutes in India.

  • Maximum Loan Amount: INR 15 Lakhs
  • Repayment Period: Up to 15 years
  • Interest Rate: Depends upon the repayment period

3. Bank of Baroda Premier Institutes Loan Scheme

Bank of Baroda Premier Institutes Loan scheme offers the education loan to the students who have secured admission into prestigious institutions like IITs, IIMs, NITs, etc in India. The loan amount depends on the categorization of the institute (AA, A, B, C). The base rate of interest is 9.40% and the RoI will be charged according to the categories of college.

Maximum Loan AmountCollateral Requirement
INR 40 LakhsNo 
INR 80 LakhsCollateral equivalent to the loan amount

4. Canara Bank Vidya Turant Loan Scheme

The main objective of Vidya Turant Loan Scheme is to assist the needy and meritorious students who are in need of education loans who are pursuing higher studies in reputed educational institutions.

  • Loan Margin: 5%
  • Maximum Loan Limit: INR 36 Lakhs
  • Repayment Period: 15 years
  • Rate of Interest: 8.90%

5. Indian Bank Prime Loan Scheme

In the IB Prime Loan Scheme, the base rate of interest is 9.45% and the RoI will be charged according to the categories of college.

  • Maximum Loan Limit: INR 35 Lakhs
  • Loan Margin: Nil

6. Synd Super Vidya Loan Scheme

Synd Super Vidya Loan Scheme of Syndicate Bank also provides financial support to deserving/meritorious students for pursuing higher education in reputed Business Schools/ Technical / Professional Institutes in India.

  • Loan Margin: 5%
  • Maximum Loan Limit: INR 20 Lakhs

7. Cent Vidyarthi IIMs Loan Scheme 

Cent Vidyarthi IIMs Loan Scheme offers education loans to the students who have secured admission in IIMs and 4 other reputed institutions namely SPJIMR, XLRI, XIMB, and MDI.

  • Maximum Loan Limit: INR 30 Lakhs
  • Collateral: Nil

The interest rate for premier education loans is comparatively lesser than the interest rates for other colleges. The banks are willing to cover almost all the expenses and that too on zero margins. So, don’t think about giving up on your dreams to pursue higher education at prestigious colleges, banks are here to help you out.