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Education Loan for Engineering (B-Tech) Students to Study in India & Abroad

Education Loan for Engineering (B-Tech) Students to Study in India & Abroad

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Explore education loan options for b tech students in India and abroad. Learn about interest rates, eligibility, and repayment plans to finance your engineering studies.

Education loan Engineering
GyanDhan
Gurbani Kaur Suri
Updated on:  03 Nov 2024  | Reviewed By:  Aman  | 7.03K | 20  min read

Going by the popular trends in India, B.Tech (Engineering) is a promising choice for a flourishing career. With a variety of specializations offered, students choose this program for the ample job opportunities and higher salary packages upon graduating. The field in itself is quite diverse and holds a high reputation in India as well as abroad.

 

However, the investment required for this course is equally substantial. An loan for engineering students in such a scenario becomes important. Let’s read in detail and answer the question ‘how to get education loan for b tech?’

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Should you take an education loan? 

How to take education loan for engineering is a question many students ponder. Here's why it's a yes: Education loan is a readily available financing option with several benefits. Most loan products cover 100% of the expenses to study at Indian as well as abroad institutions. With ever-increasing tuition fees, an education loan helps you cover the expenses without the worry of paying large sums of money out of pocket in one go. Some other benefits of an education loan are - 

  • list items Personal / contingency funds can be invested in better schemes earning interest. 
  • list items Tax benefits on education loans help save money, whether you are studying abroad or in India.
  • list items Students can get loan products that are specifically designed to cater to their needs. 
  • list items The repayment for an education loan starts after the moratorium period ends, a period where the borrower does not have to make any payment towards the loan.
  • list items Students who repay their education loans on time, build a solid credit history, which has several benefits. 

You can read about these benefits in detail here

 

Check loan eligibility for study abroad

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Top Engineering Uiversities & Study Costs Abroad 

If you're wondering, 'can I get education loan for engineering', the answer is yes, especially since engineering from Indian institutes is a costly affair. International students are charged a higher tuition fee, which becomes affordable with an education loan for B.Tech students. Some of the top-ranked abroad universities for engineering according to their QS ranking are mentioned below - 

The cost of engineering from abroad will cost students anywhere between INR 25 lakhs to INR 40 lakhs. An education loan, in this case, becomes the easiest method to fund abroad B.Tech for Indian students.

 

Looking for an abroad Education Loan?
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Top Engineering Universities & Study Costs in India

Engineering from Indian institutes is also a costly affair. Students can expect to shell out up to INR 30 lakhs for a top-ranked college. Some of the top colleges and institutes in India are all IIT in different cities, NIT, and Vellore Institute of Technology. Most students won’t be able to pay the fees for their B.Tech without the help of an education loan.

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Key Factors for Choosing a Engineering Student Loan Product 

Choosing the right education loan for engineering students is a bit tricky. Students need to compare the entire features and cost of the loan to find the optimum product. Some of the factors that should be considered are - 

Looking for an abroad Education Loan?
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Types of Education Loan for B.Tech Students

The education loan segment has several different types of lenders in the market, offering varying loan products - 

Students who are unable to pledge collateral or a co-applicant on an education loan for abroad can opt for international lenders.

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Expenses Covered in Loan for Engineering Students

Whether to study in India or abroad, most loan products cover 100% of the expenses incurred. However, there may be a few exceptions. Let’s look at the commonly covered expenses -


India:

  • list items 100% financing - full payable tuition fees to the institute and hostel 
  • list items Examination fees
  • list items Purchase of books, equipment, instruments 
  • list items Travel expenses/expenses on an exchange program 

Abroad:

  • list items Fees payable to the institute and hostel (public banks have a 10% margin money on abroad education loans. Read about margin money.) 
  • list items Examination/Library/Laboratory fees
  • list items Purchase of books/equipment/uniforms
  • list items Caution deposit/building fund/refundable deposit
  • list items Traveling expenses/passage money for abroad universities

 

EMI calculator

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Financing Options for Studing Engineering Abroad

Let’s look at the various education loan schemes available to fund engineering abroad - 

Public Banks:

  • list items SBI Global Ed-Vantage Scheme - SBI offers education loans to students to pursue graduate, postgraduate, professional courses from recognized universities abroad. Students have to pledge collateral and can borrow up to INR 1.5 crore in funds. The value of the collateral is the most important factor in this loan scheme and should be more than the loan amount required. The maximum loan tenure is 15 years. Though students can prepay the loan without any penalty charges. Check out the rate of interest, processing fees, and other details here- SBI Education Loan
  • list items Bank of Baroda - Scholar for Study Abroad - BOB’s scheme is specially designed for students who want to pursue higher studies abroad. The lender has categorized institutes into Listed Universities and Unlisted Universities. The loan amount limit is set at INR 80 lakhs for Listed Universities and Unlisted Universities, the limit is INR 60 lakhs. Students need to pledge collateral at least equal to the loan amount required. Read about the loan product details here- Bank of Baroda Education Loan

Private Banks:

  • list items Axis Bank - One of the largest private banks in India, Axis Bank offers education loans to students to pursue education abroad. The maximum loan amount a student can borrow is INR  40 lakhs without collateral. If a student can pledge collateral, they can borrow a higher loan amount. Since students are not required to pledge collateral, a co-applicant is required to co-sign the loan. One of the most interesting features of the loan product is that for loans up to INR 20 lakhs, the entire processing fee is refundable. For loans above INR 20 lakhs, students only have to pay 0.75% of the (loan amount -INR 20 lakhs), which is only Rs. 750 per lakh above INR 20 lakhs. Read the product details here- Axis Bank Education Loan 
  • list items ICICI Bank - Another private bank that offers instant education loans to students to pursue education abroad. The loan amount that can be borrowed is INR 40 lakhs without collateral. The loan amount limit will be increased if the students pledge collateral. The rate of interest offered starts at 11.5%. Read about the loan details here- ICICI Bank Education Loan

Non-Banking Finance Companies (NBFCs):

Refer to the following for loan details - 

 Lender  Loan Amount Interest Rate Range Processing Fee  Loan Tenure 

Axis

Up to INR 40 lakhs

11.25% - 13%

Loan amount up to INR 20 lakhs - Nil
Above INR 20 lakhs - 0.75% per lakh + GST  

20 Years

InCred

Up to INR 40 lakhs

Up to INR 10 lakh - 12.75% - 16%
Above INR 10 lakhs - 11.75% - 16%  

1% - 1.25% +GST

10 Years

Avanse

 Up to INR 40 lakhs 

Starts at 12.65%

1% - 2% of the loan amount

10 Years

Auxilo

Up to INR 40 lakhs

12.70% - 18%

1% to 2% of the loan amount

10 Years

HDFC Credila

 Up to INR 40 lakhs 

Starts at 11%

1% - 1.5% of the loan amount

10 Years

International lenders - 

If a student is unable to pledge collateral or co-applicant, they can apply for an education loan from international lenders such as Prodigy Finance and MPower Financing. These lenders give out education loans to international students solely based on the student’s profile and their future earning potential. Let’s look at the lender and loan details - 

  • list items Prodigy Finance - The lender offers full tuition fee and living expense coverage. The loan amount is disbursed directly to the university in the currency that is required (USD or EUR). The rate of interest is between APR- 6.7% to 11% with the admin fee ranging from 2.4% to 4%. Read about the loan details here - Prodigy Finance Education Loans: All You Need To Know 
  • list items MPower Financing - The lender offers education loans to students pursuing education in the US and Canada. The loan amount that a student can borrow ranges from $2001 to $50,000. The rate of interest for undergraduate studies is APR - 13.99 percent. Know more about the loan product here - MPower Financing Education Loan: A Complete Guide.

 

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Education Loan Options for B.Tech in India

Lenders have different loan products designed specifically for studies in India. However, most of the loan applications sanctioned by the lenders are for top-ranked colleges in India. There are various public and private lenders offering loans for B.Tech and professional courses.

 

For other middle-tier institutes, students may not be able to find loan approval through traditional lenders and will have to approach marketplaces, such as GyanDhan.  

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How to get an Education Loan for B.Tech? 

How to get education loan for engineering becomes easy with GyanDhan - 

  1. list items Check your loan eligibility on our website. 
  2. list items A dedicated Education Loan Counselor will get in touch with you to discuss various loan products and options according to the needs and requirements. 
  3. list items Apply for the loan on the portal online. 
  4. list items Students will receive a customized document checklist and can upload the required documents on the portal. They can also get the documents picked up from their doorstep. 
  5. list items The lender will verify and evaluate the documents and the application. 
  6. list items Collateral evaluation and legal formalities are completed. 
  7. list items On successful completion, the borrower will receive loan approval and a sanction letter. 

Read Also:

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How can GyanDhan Help Students get an Education Loan for Engineering? 

GyanDhan has tied up with several lenders in the market and can help students get an education loan with ease. The loan process is streamlined so you can get a hassle-free education loan. Your assigned counselor will be available to you throughout the loan process to keep you updated on the loan status. Further, if any problem arises in the loan process, it will be quickly resolved by them. We offer our services free of cost to the students. So, don’t wait, check your loan eligibility and apply for a hassle-free loan.

 

Scholarships

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Frequently Asked Questions

Who is eligible for an education loan for B.Tech in India?
 

Students who have been admitted to a recognized B.Tech program in India are usually eligible for an education loan. They must be Indian citizens and have a stable income from a co-borrower (usually their parent).

What types of education loans are available for B.Tech students?
 

Secured loans require collateral and typically carry lower interest rates. Unsecured loans do not require collateral but may carry higher interest rates. Government schemes such as the Central Sector Interest Subsidy Scheme are also available to economically disadvantaged individuals.

What is the typical repayment period for an education loan for B.Tech?
 

A B.Tech education loan typically has a repayment period of 5 to 15 years, beginning after a moratorium period that lasts the duration of the course plus an additional 6–12 months.

What is the average salary for B.Tech graduates in India?
 

The average starting salary for B.Tech graduates in India varies from INR 3 to INR 6 lakh per year, depending on the institution, specialization, and company hiring.

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