With education costs skyrocketing in India and abroad, student loans have become essential for millions of families.
Whether your child dreams of an IIT, AIIMS, IIM, or a global university, a well-structured education loan can be a smart way to fund their future — without draining your savings.
This blog is a complete guide for both parents and students, breaking down everything you need to know before applying for a student loan in 2025.
What is a Student Loan?
A student loan or education loan is a financial product designed to help students pay for tuition, hostel fees, books, travel, and living expenses.
Repayment typically starts after the course is completed, making it ideal for families looking to invest in quality education.
Who Can Apply for a Student Loan?
Student Eligibility:
Indian citizen aged 18–35
Secured admission in recognized institute in India or abroad
Merit-based or management quota students eligible
Co-applicant (usually parent/guardian) Criteria:
Stable income or financial backing
Good credit history improves approval chances
Documents Required
For Student:
Aadhaar, PAN, Passport (if studying abroad)
Admission letter from institution
10th & 12th mark sheets
Entrance exam results
For Parent/Co-applicant:
PAN & Aadhaar
Income proof (salary slips, ITR, Form 16)
Bank statements (last 6 months)
Address proof
How Much Loan Can You Get?
| Loan Type | Amount Range | Collateral |
|---|---|---|
| Studies in India | ₹50,000 – ₹10 lakh | Usually not needed up to ₹7.5L |
| Studies Abroad | ₹10 lakh – ₹50 lakh+ | Collateral often needed above ₹7.5L |
With platforms like Vizzve, parents and students can compare collateral-free options too.
Moratorium Period – Pay Later, Not Now
You don’t need to repay immediately!
Most lenders give a moratorium period:
Course duration + 6 months to 1 year
Interest may accrue but can be paid later or in part
This helps students focus on studies without financial pressure.
Tips for Parents
💼 Compare interest rates from banks and NBFCs
📉 Check for prepayment charges or hidden fees
👩👦 Be involved – you’re often the co-borrower
🧾 Maintain good credit score – it affects approval
🏦 Consider education-specific NBFCs or platforms like Vizzve for better rates
Benefits of Student Loans in India
✅ 1. 100% Tax Deduction
Under Section 80E of the Income Tax Act, interest paid on education loans is fully tax-deductible.
✅ 2. Flexible Repayment
EMIs can start after education, giving time to settle into a job.
✅ 3. Builds Credit History
Helps young adults develop financial discipline and credit profile.
What About Loan Repayment?
Repayment terms vary but usually span 5–15 years. Options include:
Step-up EMIs: Start low, increase with income
Simple interest during course: Keep interest low
Full moratorium: Pay nothing till job starts (but more interest accumulates)
🎓 Vizzve tip: Begin paying interest during study if possible – it lowers the burden later.
FAQs
1. Is a student loan better than using savings?
Yes, because you get tax benefits and keep your savings for emergencies or investments.
2. Can I apply for multiple loans?
Yes, especially if studying abroad. But keep your total liability realistic and manageable.
3. Do all loans need collateral?
No. Loans up to ₹7.5L generally don’t need collateral. Above that, property or FD may be required.
4. Can I get a loan without a co-applicant?
Unlikely. Most lenders want a parent or guardian as co-signer, especially for undergraduates.
Final Thoughts
Education is one of the best investments — and student loans make it accessible without sacrificing your financial security.
With smart planning, reliable co-borrowers, and transparent platforms like Vizzve, your child can focus on learning, not worrying about money.
💬 Need help planning an education loan that fits your goals?
👉 Explore student loan options on Vizzve today.
Published on : 26th July
Published by : SMITA
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