What are the education loan options available, and what are the differences between collateral and non-collateral loans?
Education loans in India are mainly of two types: secured (with collateral) and unsecured (without collateral).
- Secured loans require you to pledge an asset (like property or fixed deposit) as collateral. These usually offer a higher loan amount (up to ₹1.5 - 3 crore), lower interest rates (typically 8.65% - 10.5%/year), and longer repayment tenures (up to 15 years). Processing may take longer due to collateral checks.
- Unsecured loans do not require collateral. They generally have lower loan limits (up to ₹7.5 lakh in public banks, up to ₹1 crore in private banks), higher interest rates (10% - 14%/year), and shorter repayment periods (7 - 10 years). Processing is faster with less paperwork.
The best option depends on your financial situation and whether you can provide collateral. If you need help choosing, your LeapScholar counsellor can guide you further.
What will studying in the USA actually cost you?
Tuition, living costs and loan options in one clear plan you can show your parents.
More Cost & living questions
- What is the lowest undergraduate tuition fee I can expect to pay at a Canadian university for the 2026 academic year?
- How much would I pay in first-year tuition for the International MBA program at York University, Toronto?
- How much monthly rent should I expect to pay for accommodation in Austria as an international student?
- If I get an education loan, can I proceed with the application after the loan amount is clear?
- Is it better to spend 12 lakhs in India or go abroad for higher studies in Germany for a Master's?
- Does the agency provide end-to-end services including visa, loan guidance, and accommodation?
- Do I need to show living expenses in my bank account for visa purposes, and can I withdraw it after reaching Ireland?
- How do I get an education loan for an MBA abroad as an Indian student?
More USA questions
- What are the chances of getting a conditional offer letter requiring IELTS even if I have a good 12th standard score?
- Which universities in the USA offer MS Engineering Management for a B.Tech Automotive Engineering graduate, Duolingo 120 and ₹80 lakhs budget?
- Which is more suitable for my son's master's education: Dubai or the USA, considering cost, location, program variety, post-study work options, and pathways to permanent residency?
- How much extra should I keep aside for unexpected costs during my MS in the USA?
- By when do I need to submit my application for most UG and PG courses at UCLA?
- Can you track an Employment Pass application on the MOM portal when your employer files it?
- Can I apply for an education loan up to 30 to 35 lakhs or 30 to 40 lakhs budget?
- What are the visa application chances and procedures for USA compared to Australia?