Is the interest rate high for non-collateral education loans and what are the criteria for eligibility?
Yes, interest rates for non-collateral (unsecured) education loans in India are typically higher than those for secured loans.
- Interest rate: Usually ranges from 9% to 16% per annum, depending on the lender, loan amount, and your profile.
- Eligibility:
- Indian citizenship
- Age 18 - 35 years (typical)
- Admission to a recognized full-time course (India or abroad)
- Good academic record (minimum marks vary by lender)
- Co-applicant (usually a parent/guardian) with stable income and good credit history
- Proof of co-applicant’s regular income
- Course must be job-oriented and recognized by relevant authorities
- Loan amounts above ₹7.5 lakh may require collateral
These criteria and rates are subject to change and can differ by lender.
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