Education Loan

Education Loan

Education loan is the most convenient way of supporting your child's education. You can now easily fund most education-related expenses including fees, boarding & lodging, air travel, insurance premiums, and computers etc.
Contact details for Interest Subsidy & Credit Guarantee —Email- , Phone- 0487-7107258/259

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  • Pay admission and tuition fee
  • Purchase books, study material, equipment and instruments
  • Pay hostel fees and boarding charges
  • For studies abroad, fund expenses of air travel, incidental charges, purchase of outfits (clothing & other equipment)
  • Fund other education-related expenses such as examination, library and laboratory fee, uniforms, caution deposit, building fund or refundable deposits supported by Institution bills and receipts, up to 10% of the total tuition fees for the entire course
  • Purchase computers needed for the course.
  • Insurance premium for student borrower
  • Any other expense in relation to the course - study tours, project work, thesis etc.


  • The Ministry of HRD has launched Central Government scheme of Interest Subsidy on educational loans for economically weaker sections of the society.
    The students should satisfy all the following parameters:
    • Secured admission to any of the approved courses, after Class XII, in technical and professional streams from recognized institutes in India only.
    • The student should belong to Economically Weaker Section (EWS) with an annual gross family income not exceeding Rs.4.50 Lakh.
  • The other features of the scheme are as follow:
    • Subsidy for loan amount up to Rs.7.50 Lakhs (even if loan is more than Rs.7.50 Lakhs).
    • Student to submit proof of income from the competent authority appointed by the state government.
    • Scheme applicable for disbursements from the academic year 2009 (even if the loan was sanctioned earlier).
    • Subsidy for the course and moratorium period only.
    • Student will be eligible for interest subsidy only once either for the first undergraduate degree course or the post graduate degree / diploma course in India.


  • The Ministry of HRD, GOI has launched a scheme of Interest Subsidy on educational loans for economically weaker sections of the society.
  • The students who satisfy all the following parameters would only be eligible for the interest subsidy:
    • The scheme is applicable for inland studies only.
    • The student should secure admission after Class XII in any of the professional/technical courses approved by NAAC accredited Institutions or Professional Technical Programmes accredited by NBA or Institutions of National Importance or Central Funded Technical Institutions (CFTIs).
    • Those Professional Institutions /Programmes, which do not come under the ambit of NAAC or NBA, would require approval of the respective regulatory body viz, approval of Medical Council of India for Medical Courses, Nursing Council of India for Nursing Courses, Bar Council of India for Law etc.
    • Under CSIS scheme, only those education loans are eligible which are sanctioned without any collateral security or third party guarantee and subsidy is available up to a maximum amount of Rs.7.50 lakh irrespective of the sanction amount
    • Annual gross parental/ family income from all sources should not exceed Rs.4.50 Lakh.
    • The student should furnish the income certificate issued by competent authority appointed by the respective State Governments (such as Tehsildar) and submit the same to the branch from where the loan is availed and also execute the documents as required.
  • Aadhaar number is mandatory for claiming the subsidy.
  • The interest subsidy is towards the interest charged in the loan account during the course and moratorium period only.


For higher studies in India:

  • Students of Indian nationality (whether minor or major)
  • Parents can also apply jointly with the student and facilitate repayment through existing sources of income

Courses applicable:

  • Graduate and post-graduate degree/diploma courses in computer science, engineering, medicine, dental science, pharmacy, agricultural and veterinary sciences
  • Post-graduate courses in arts, general science, commerce, and management (from recognized colleges and universities)
  • Post graduate diploma in computer application from reputed institutes such as NIIT, APTECH, BITECH, SSI etc.

For studies abroad:

  • Indian National over 18 years of age
  • The applicant should produce a copy of the Result of Qualifying/ Mandatory examination such as TOEFL, SAT, GRE, AGRE, GMAT etc. together with a copy of valid passport, proof of Admission to the college or university and a copy of the Visa / Form I-20

Courses applicable (for courses abroad)

  • Under-graduate courses in biological & natural sciences, computer sciences, engineering
  • Post-graduate courses in the above disciplines and business administration (Applicants should submit a brief report on the prospects of the course.)

Academic background (for India and abroad)

  • Applicant/student should have passed the qualifying examination securing a position eligible for admission to the course opted for study.

Duration of course

  • Courses within India – 5 years
  • Courses abroad – 3 years

Holiday period

  • Duration of the course plus 6 months or getting a job, whichever is earlier


  • Up to Rs. 4 lakhs - No security
  • Above Rs. 4 lakhs and upto Rs.7.5 lakh- Besides the parent(s) executing the documents as joint borrower(s) , collateral security in the form of suitable third party guarantee will be taken
  • Above Rs. 7.5 lakhs - Tangible collateral security of full value of loan acceptable to bank, along with the assignment of future income of the student for payment of installments.


  • Photocopies of all certificates from previous examinations (SSC onwards)
  • A certificate from the College/University authorities stating that the student is continuing education, should be submitted every year.
  • Please click here for loan agreement copy


  • Please click here for detailed Schedule of Charges for Loans and Advances
  • Please click here for detailed Schedule of Charges of Savings Account
  • Please click here for loan agreement copy