Pursuing higher education in India or abroad often requires financial support. In 2025, students have multiple loan options — from traditional banks to government-backed schemes — designed to make education more affordable and accessible.
Top Student Loan Options in 2025
State Government Schemes
Bihar Student Credit Card (SCC): Fully interest-free loans for eligible students pursuing higher education.
Other States: Kerala, Tamil Nadu, and Uttar Pradesh offer concessional loans or interest subsidies for resident students.
Public Sector Bank Loans
Banks like SBI, PNB, and Bank of Baroda provide education loans under central government schemes.
Features include collateral-free loans up to ₹7.5 lakh and low interest rates (around 8–10%).
Private Bank Loans
HDFC, ICICI, Axis Bank offer education loans with competitive rates and flexible repayment options.
Suitable for professional courses and foreign education.
NBFC & FinTech Loans
Non-banking financial companies provide quick disbursals with minimal documentation.
Ideal for students needing faster approval, though interest rates may be higher.
Scholarships and Hybrid Loans
Some banks combine loans with scholarships or grants to reduce repayment burden.
Hybrid loans may have partial interest subsidies depending on the program.
Key Considerations for Choosing a Student Loan
Interest Rate: Lower interest rates reduce long-term repayment burden.
Collateral Requirement: Collateral-free loans are easier for most students to access.
Repayment Terms: Check moratorium periods, flexible EMI options, and prepayment rules.
Eligibility & Documentation: Ensure you meet the criteria and have necessary documents ready.
Conclusion
2025 offers students in India a variety of loan options to fund higher education, from fully interest-free state schemes to traditional and private bank loans. Careful evaluation of interest rates, repayment terms, and eligibility ensures students can access education without financial stress.
FAQ Section
Q1. What is the Bihar Student Credit Card (SCC) scheme?
A state-run program providing fully interest-free education loans to eligible students pursuing higher education.
Q2. Can students get loans without collateral?
Yes, many government and bank schemes provide collateral-free loans up to certain limits (typically ₹4–7.5 lakh).
Q3. Are private bank loans suitable for studying abroad?
Yes, private banks often offer loans for international education with flexible repayment options.
Q4. How do FinTech education loans differ from traditional loans?
They provide faster approval, minimal documentation, and digital application processes, but may have higher interest rates.
Q5. Should students rely only on loans to fund education?
It’s advisable to combine scholarships, grants, and loans to minimize debt and reduce financial burden.
Published on : 17th September
Published by : SMITA
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