Loan types

Types of education loan

Lenders offer several loan structures depending on your course, country and collateral. Here is how the main types differ.

Secured education loan

Backed by collateral (property, FD, securities). Typically higher loan amounts and lower interest rates.

No collateral required. A lender reviews co-applicant income and course profile before offering terms.

Designed for overseas programs; covers tuition, living, travel and one-time expenses.

For premier Indian institutes and select tier-2 colleges; supports tuition and hostel fees.

Loan in the student's name with a working co-applicant (usually parent) for repayment capacity.

Extra loan support during the program for unforeseen costs, subject to lender policy.