Which expenses will a nationalised bank education loan cover for my study abroad plan?
A nationalised bank education loan is meant for education only. It typically covers tuition and accommodation, exam, library and laboratory fees, books and equipment, a computer, deposits, travel, a two-wheeler up to Rs. 50,000, and other reasonable course costs, but not personal expenses.
A nationalised bank loan is sanctioned only for education, so it will not cover your personal expenses. Beyond tuition and accommodation, it usually extends to several course-related costs.
What the Loan Can Cover
| Expense category | Examples |
|---|---|
| Core fees | Tuition and accommodation fees |
| Academic fees | Examination, library and laboratory fees |
| Study items | Books, equipment, instruments, uniforms, and a computer essential for the course |
| Deposits | Caution deposit, building fund, refundable deposit |
| Travel | Travel expenses or passage money for going abroad |
| Vehicle | A two-wheeler costing up to Rs. 50,000 |
Other Costs and Limits
Other reasonable expenses needed to finish the course, such as study tours and project work, can also be included. Personal expenses are not covered. Exact limits and eligible items vary by bank, so check with your lender.
My Advice
Ask your bank for a written list of eligible expenses before you apply. Build your budget around the categories above and keep receipts for every course-related cost so claims are easier.
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