Top 5 students loan providers

If you have a dream to pursue your higher education but face shortage of funds here is the details of top 5 nationalized bank loan offers for you.


State bank of India offers term loan to students for pursuing higher study in India and abroad.


- Flexible loan repayment period (up to 15 years)

- 12 months holiday repayment.

- No special charges like processing fees or any upfront charges levied on student loan

Rate of interest 10.15 % upto 7.5 lakhs and 10.90% above 7.5 lakhs

courses covered

a. Studies in India:

Graduation, Post-graduation including regular technical and professional Degree/Diploma courses conducted by colleges/universities approved by UGC/ AICTE/IMC/Govt. etcRegular Degree/ Diploma Courses conducted by autonomous institutions like IIT, IIM etc

Teacher training/ Nursing courses approved by Central government or the State Government.

Regular Degree/Diploma Courses like Aeronautical, pilot training, shipping etc. approved by Director General of Civil Aviation/Shipping/ concerned regulatory authority

b. Studies abroad:

Job oriented professional/ technical Graduation Degree courses/ Post Graduation Degree and Diploma courses like MCA, MBA, MS, etc offered by reputed universities

Courses conducted by CIMA (Chartered Institute of Management Accountants) - London, CPA (Certified Public Accountant) in USA etc.


Ministry of Human resource development offers special subsidy scheme student loan for economically weaker section os people who annual income is up to 4.5 lacs from all sources. The subsidy is allowed for studying professional and technical courses from recognized institutions in India. This subsidy is allowed only once and the nodal bank is Canara bank.

Income Limit Proof The benefits of the Scheme would be applicable to those student belonging to economically weaker sections, with an annual gross parentalfiamily income upper limit of Rs. 4.5 lacs per year (from all sources). Income proof shall be required from the students from such public authorities which are authorised by the State Governments for certification of income status for this Scheme, including Central and State Sector Schemes. The present scheme is intended to cater-to the needs of students belonging to economically weaker sections with prescribed upper parental gross income limit of the family from all sources, which is based on economic index and not on social background. The scheme is independent of any other schemes which may cater to EWS.


On 15th August 2015, Government of India launched a common website from where students can apply for educational loan in multiple banks. Vidya Lakshmi portal is a common

Vidya Lakshmi is an educational loan portal is managed by NSDL, e-governance Mumbai. Through this portal students can access educational loan. This portal is connected to the scheduled banks. The portal is a gateway through which students can apply for educational loan. This portal also provides tracking facility to the students right from applying for a loan to it’s progress and sanction.


BOI Star Education Loan: The Star Education Loan is provided for students who wish to pursue higher studies in India and abroad.

BOI Star Vidya Loan: This exclusive education loan scheme is for students who have secured an admission at premier educational institutions in India like IITs and IIMs.

Expenses Considered for BOI Education Loan:

For both the schemes, the expenses covered by the loan are as follows:

Fees payable to college, school or hostel

Cost of uniform, books, instruments and equipment Examination fee, library fee and laboratory fee as applicable

Caution deposit, building fund and refundable deposit supported with authorized bills

Any other coursework related expenses like cost of study tour and project work

Also, for students who avail the Bank of India Star Education loan for studies abroad, travel expenses or passage money will be covered.

Amount of Education Loan:

BOI Star Education Loan: As subject to repayment capacity, a maximum of Rs.10 lakh is offered for studies in India. For studies abroad, loans up to Rs.20 lakh are offered.


An Indian Bank educational loan helps individuals to cover costs involving college fees, hostel fees, exam fees, books and equipment fees, travel or passage money for overseas education and other student expenses.

Rate of Interest:

Indian Bank offers education loans at a floating interest rate of 12.50% per annum with a concession of 0.50% on the interest rate under the IBA scheme for female students.

Loan Margin:

Borrowers are not required to cover any amount as loan margin for education loans taken up to Rs 4 lakhs. For any loan above Rs 4 lakhs, Indian Bank requires borrowers to bring in a loan margin amount of up to 5% for studies in India and up to 15% for overseas education.

Quantum of Loan:

Indian Bank sanctions loan amounts up to Rs 15 lakhs for admissions in India and up to Rs 25 lakhs for students applying for institutions abroad.

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