How a study loan in India could help in pursuing higher education

Riya had always dreamed of becoming an aerospace engineer. From building model rockets as a child to securing admission to a top university, every step brought her closer to her goal. Her excitement knew no bounds as she imagined the new experiences, the knowledge she would gain, and the opportunities that awaited her.

For Riya and countless students in India, pursuing higher education is more than just earning a degree—it is the gateway to new possibilities, global exposure, and personal growth. It opens doors to prestigious careers, cutting-edge research, and the chance to make a real impact. The journey to success begins with the right education, and today, students have more opportunities than ever to study at the best institutions, both in India and abroad. An education loan in India can provide the financial support to make these dreams a reality. With access to the right funding, students can focus on their goals without hesitation.

Let’s explore study loans in India and how they can help make your academic journey smoother and more achievable.

The rising cost of education in India
 

Higher education is an investment, but it comes with significant costs. Engineering, medical, management and other professional courses at reputed institutions require substantial financial resources.

In India, tuition fees for undergraduate courses at private universities range between ₹1 lakh and ₹5 lakhs annually, with some institutions charging up to ₹25 lakh for specialised courses like engineering and medicine. Postgraduate programs can be even more expensive, often exceeding ₹6 lakh per year. For students planning to study abroad, expenses can go beyond ₹50 lakh when factoring in tuition, accommodation, and living costs.

As the cost of education continues to rise, an education loan in India is often the best way to bridge the gap. It enables students to pursue higher education without draining the family’s savings or taking on high-interest debt.

Why is an education loan a better choice?
 

When financing higher education, students and parents often explore multiple options. Let’s compare an education loan in India with other common funding methods –

1. Family savings
 

Relying entirely on family savings can be difficult, especially when other financial responsibilities, such as home loans, medical expenses, and retirement planning, require attention. Parents often hesitate to draw on their savings, knowing that emergencies may arise at any time.

2. Personal loans
 

Personal loans are typically not designed for educational purposes. This means they often come with higher interest rates and less flexibility. The repayment terms can also be stricter, adding unnecessary pressure on students and families.

3. Loans from friends and relatives
 

Borrowing from friends or family may sound easy, but it can strain relationships and cause stress if repayment becomes difficult.

On the other hand, an education loan in India is a specialised financial product designed to cover the costs of pursuing higher education. With lower interest rates, flexible repayment terms, and the ability to cover a wide range of expenses, it stands out as the most effective option.

IDFC FIRST Bank Education Loans exemplify these benefits, offering tailored solutions to support your educational aspirations. They provide an education loan of up to ₹1.5 crore with collateral as well as collateral-free funds of up to ₹75 lakhs, covering over 35,000 courses across 4,500+ universities globally. In addition, IDFC FIRST Bank offers up to 100% financing with flexible repayment options. It makes pursuing higher education more accessible without financial strain.

How an education loan can benefit students
 

An education loan in India does more than just finances education. It empowers students by giving them financial independence and the confidence to focus entirely on their studies. Here are some of the benefits of education loans –

1. No immediate financial pressure
 

With an education loan in India, students do not need to rely on family savings or part-time jobs to cover tuition fees, living expenses, or other educational costs. A loan can help them focus solely on their studies, as their financial needs are addressed upfront. This allows them to excel academically without being distracted by concerns.

2. Access to resources without restrictions
 

When a student loan in India addresses financial concerns, students can access additional resources like specialised study materials, extra courses, or even a laptop to support their learning. This opens more opportunities for academic enrichment without compromising the quality of education due to financial constraints.

3. Opportunity to choose the best courses
 

An education loan in India gives students the flexibility to choose their course or university based on their academic interests rather than on what they can afford. Without financial limitations, they can focus on pursuing the course that aligns with their long-term career goals, which can significantly enhance their academic performance and professional prospects.

Key features of an education loan in India
 

An education loan in India has several advantages that make it a preferred choice for students and parents, such as –

1. Flexible repayment options

Most banks offer a moratorium period, which means students do not have to start repaying the loan immediately. They can begin repayment after completing their course, allowing them time to secure a job.

2. Interest subsidies for eligible students

Government schemes provide interest subsidies to students from economically weaker sections, making repayment easier.

3. Tax benefits on interest paid

Under Section 80E of the Income Tax Act, borrowers can claim a tax deduction on the interest paid on their study loan in India. It reduces the overall financial burden.

Common concerns about education loans in India
 

Many students and parents hesitate to take out an education loan due to concerns about repayment and interest rates. Let’s address these concerns quickly.

1. Concern 1 – What if I struggle with repayment?

IDFC FIRST Bank offers flexible repayment options. With a moratorium period of 6-12 months after course completion, students get enough time to find a job before they begin repayment.

2. Concern 2 – How much interest will I have to pay?

The interest rate on an education loan in India ranges between 9% and 12%, which is lower than personal loans.

3. Concern 3 – Will the loan cover all my expenses?

Yes, an education loan in India covers not just tuition fees but also living expenses, travel, books, and other essential costs.

Who can apply, and what an education loan covers
 

Let’s explore the eligibility of IDFC FIRST Bank Education Loans. To qualify for an education loan in India, a student must:

1. Be an Indian National (includes non-resident Indian (NRI))
2. Be 18 years old or above
3. Have secured admission to their desired institution/course
4. opt for a pre-admission sanction in case they have not secured admission yet

IDFC FIRST Bank Education Loans cover:

1. Tuition fees
2. Travel expenses (for overseas education)
3. Books, study materials, laptops, and uniforms
4. Insurance
5. Hostel and accommodation costs
6. Other necessary academic costs

How to apply for an education loan in India
 

The process of applying for an education loan application is simple and hassle-free with IDFC FIRST Bank, which offers a smooth digital application process. Here are some steps explaining how to get a student loan –

1. Step 1 – Gather the required documents.

Commonly required documents include – 

a. Admission letter from a recognized institution 

b. KYC documents (Aadhaar, PAN, etc.) 

c. Income proof of co-applicant 

d. Course fee structure 

2. Step 2 – Submit the study loan application.

Students can apply online through the IDFC FIRST Bank Website or the Mobile Banking App.

3. Step 3 – Loan approval and disbursement.

Once the application is approved, the loan amount is disbursed directly to the university. IDFC FIRST Bank simplifies this process, ensuring quick approvals. 

Take the first step towards a secure future

Higher education is an investment in the future, and financial constraints should not hold anyone back. An education loan in India provides the necessary support to help students achieve their academic and career goals without financial strain.

Explore eligibility and apply online for the IDFC FIRST Bank Education Loan today. Secure your future with the right financial support for your education.