Studying abroad is a life-changing decision, but it also comes with a significant financial commitment. From tuition fees and living expenses to visa charges and travel, the total cost can feel overwhelming for many Indian families. That’s where education loans come into the picture—helping you finance your dreams without putting too much pressure on your family’s savings.
At Bimal Educon, we’ve assisted hundreds of students in securing the right education loan. Here’s a complete guide to help you understand how education loans work, what to keep in mind, and how to apply for one smoothly.
Types of Education Loans
There are mainly two types of education loans available to Indian students:
Secured Loans (With Collateral)
These loans require you to pledge a property, fixed deposit, or any other asset as security. They usually offer lower interest rates, longer repayment periods, and higher loan amounts (even up to ₹1 crore).
Unsecured Loans (Without Collateral)
These don’t need any security but come with slightly higher interest rates and shorter repayment periods. They are ideal for students who don’t have property or assets to pledge.
Eligibility Criteria
To apply for an education loan, you must:
i) Be an Indian citizen
ii) Have a confirmed admission letter from a recognised foreign university
iii) Have completed 10+2 (for UG courses) or UG degree (for PG courses)
iv) Have a co-applicant (usually a parent or guardian) with a stable income
What Expenses Are Covered?
Most banks and NBFCs (Non-Banking Financial Companies) cover:
i) Tuition fees
ii) Hostel or accommodation charges
iii) Living expenses
iv) Exam and lab fees
v) Books and equipment
vi) Travel to the destination country
vii) Insurance and visa charges
Documents Required
Typical documents include:
i) Admission letter from the university
ii) Academic records (marksheets, certificates)
iii) Identity proof (Aadhaar, PAN, passport)
iv) Address proof
v) Income proof of co-applicant
vi) Collateral documents (if applicable)
vii) Loan application form from the bank
At Bimal Educon, we guide you through the documentation process so you don’t miss anything important.
Repayment Terms
Most lenders offer a moratorium period, meaning you don’t need to start repayment until 6–12 months after your course ends. You can choose to pay simple interest during your study period or begin full repayment later. Repayment tenures typically range from 5 to 15 years.
Tips for Students
i) Compare loan interest rates across banks and NBFCs before choosing.
ii) Always check for hidden charges, processing fees, and prepayment terms.
iii) Try to apply at least 3–4 months before your visa interview.
iv) If eligible, explore government subsidies under schemes like Padho Pardesh or Dr. Ambedkar Central Sector Scheme.
How Bimal Educon Helps
We provide complete assistance in:
i) Identifying the right bank or NBFC
ii) Preparing your loan file
iii) Helping you secure collateral documents
iv) Connecting with bank officials
v) Ensuring faster loan sanction before your visa process
An education loan should not feel like a burden. With the right planning and support, it becomes a stepping stone toward a successful international career. Bimal Educon ensures you make informed financial choices so you can focus on your studies without worry.
Let your dreams fly—we’ll take care of the paperwork.
