How Much Education Loan Can I Get
How Much Education Loan Can I Get
Blog Article
An explanation of education loan limits: how much may you borrow?
Introduction
Education loans have become an essential financial tool for students hoping to pursue higher education due to the escalating expense of education both in India and elsewhere. How Much Education Loan Can I Get? Planning your academic and financial future requires understanding the maximum amount you can borrow through an education loan, regardless of whether you're pursuing an engineering degree in India or an MBA elsewhere.
However, how are these boundaries determined? How do secured and unsecured loans differ from one another? In 2025, how much do you anticipate getting from banks and NBFCs? This article helps you understand how much you can borrow based on your course, institution, and financial background by breaking down the several elements that affect loan limitations.
How Does the Education Loan Limit Get Set?
The maximum amount that a bank or lender will give depends on several factors:
- Course Type
Higher loan amounts are available for professional programs like engineering, medicine, law, and management.
- Study Location
- Loan caps for domestic Collegeing are generally lower.
- Because tuition and living expenses are higher in study abroad programs, larger loan amounts are possible.
- Institute Reputation
Higher limitations are typically applied to Institute Reputation Loans for students attending prestigious universities (such as IITs, IIMs, NITs, or global universities)
- Collateral
- Banks typically offer unsecured loans up to ₹7.5 lakh without security.
- With collateral (secured loans): Depending on the value of the pledged asset, the maximum amount is ₹50 lakh.
- Income and Credit Score of the Co-Applicant
An excellent credit history and a higher, steady salary raise the likelihood of a loan being approved.
Typical Education Loan Limits in 2025
| Loan Category | Maximum Loan Amount |
| Indian education (unsecured) | Up to ₹7.5 lakh |
| Indian education (with collateral) | ₹10 lakh – ₹20 lakh |
| Overseas education (unsecured) | ₹7.5 lakh – ₹10 lakh (rare) |
| Overseas education (with collateral) | ₹20 lakh – ₹50 lakh or more |
- The Indian Banks' Association (IBA) model is followed by public sector banks (SBI, PNB, and Canara): up to ₹7.5 lakh without collateral and up to ₹30 lakh or more with collateral.
- How Much Education Loan Can I Get from a Private Lender or NBFC? Depending on repayment capabilities, it might provide even larger loans for overseas study, along with further flexibility.
Advice for Increasing Your Borrowing Cap
- Select respected and well-known institutions.
- Apply with a co-applicant who has good credit.
- Provide accurate and thorough documentation.
- For larger sums, think about providing collateral (real estate or FDs).
- To apply to several lenders in one location, use the Vidya Lakshmi Portal.
Conclusion
How Much Education Loan Can I Get? Prior to organizing your academic path, it is essential to comprehend the boundaries of your education loans. Without collateral, students can borrow up to ₹7.5 lakh in 2025.₹50 lakh or more with security, contingent on many qualifying criteria. You have a better chance of getting the entire amount required for your ideal College if you are ready academically, financially, and with the appropriate documentation.
Knowing how much you can borrow enables you to make informed plans, steer clear of financial snags, and concentrate solely on your academic performance, whether you're studying in India or overseas. Report this page