Education Loan for Commercial Pilot License

Many people aspire to be commercial pilots, but the costs of commercial pilot training can be highly expensive. A pilot training program generally costs between INR 30 Lakh to INR 50 Lakh annually, depending on the institute and country. Fortunately, several education loan options are available to help aspiring pilots finance their training. To learn more about education loan for pilot training in India and abroad, read the full blog as it will help you to understand the different education loan options available for commercial pilot license training programs along with top institutes in India and abroad.

Education Loan for Pilot Training in India

If you want to be a pilot in India, then you might face the challenge of financing the high cost of your training. The average cost of obtaining a commercial pilot license from a DGCA-accredited flight training school is between INR 35 and INR 40 Lakh. However, with an education loan for commercial pilot training in India, you can pursue your dreams without worrying about finances.

Around 90% of the students who aspire to be pilots in India rely on education loans to cover the expense of their training. Those who are willing to enter this profession should take advantage of this financial opportunity since there is an increasing demand for pilots all over the world. Pilot training loans make it easier to help you in achieving your dream of flying. You can borrow up to INR 1.5 crores. Loans for pilot training are flexible and allow you to repay in a way that is convenient for you, assisting you in your goal of becoming a pilot.

Accepted collateral for pilot training loans include liquid security such as a life insurance corporation policy, a fixed deposit, government bonds, or immovable property such as non-agricultural land, agricultural land, a house, or a flat.

Top 10 Pilot Training Institutes in India

Below are listed the top 10 institutes for pilot training courses in India. 

Eligibility Criteria for Education Loan for Pilot Training in India

To enroll in pilot training in India, applicants must fulfill the following eligibility criteria -

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  Candidates must be at least 17 years old to begin training, and 21 years old to apply for a commercial pilot license.
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  Pilots must meet the DGCA's minimum medical standards, which include good eyesight, hearing, and physical health.
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  To pursue pilot training in India, aspiring pilots must have completed Class XII in any subject, including English, Maths, and Physics.
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  All aviation communications are conducted in English, so pilots must be fluent in speaking, reading, and writing.
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  Obtaining a pilot's license is an expensive process, and aspiring pilots must have enough money to cover the costs of flight training, exams, and other associated expenses.
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  Becoming a pilot requires a significant amount of time, effort, and dedication, and aspiring pilots must have a genuine interest in aviation and a commitment to pursuing their dreams.

Pursuing pilot training in India involves a combination of physical and mental excellence, education, financial resources, and a strong passion for aviation. Before embarking on this journey, aspiring pilots must carefully consider the following prerequisites.

Education Loan for Pilot Training Abroad 

The average cost of pilot training abroad in countries such as the United States, the United Kingdom, Canada, and Australia ranges between INR 40 Lakh and INR 80 Lakh, but with education loans, aspiring pilots can borrow up to INR 1.5 cr to cover their training costs. Education loans for pilot training abroad are a wise financial decision for aspiring pilots because they offer flexible repayment options, direct loan disbursement to the training academy, and the ability to study at top aviation schools around the world.

Top 10 Pilot Training Institutes Abroad 

Below are listed the top 10 institutes from across the world to study pilot training. 

Top Education Loan Lenders for Pilot Training

To help you choose the right education loan for your CPL, here’s a comparison of major lenders and their education loan options.

To help make your decision easier when choosing the best education loan for a CPL, we will discuss the two most prominent lenders: BOB and Tata Capital. These two lenders are known for offering education loans specifically for pilot training, providing attractive loan amounts, competitive interest rates, and flexible repayment options.

Bank of Baroda Education Loan for CPL

The Bank of Baroda provides aspiring pilots with a loan amount of up to INR 1.5 crore, which covers the significant costs associated with CPL training. The interest rate on these loans ranges from 8.55% to 10.55%, making BOB one of the more affordable lenders for CPL aspirants. BOB covers 100% of the expenses, meaning that it covers all the expenses related to this course. Additionally, during the moratorium period, students also enjoy a full deferral on repayments, meaning they won’t have to start paying back the loan until after the completion of their course.

Eligibility Criteria: 

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  Only applicable for Master's or Postgraduate Diploma courses.
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  Certificate and Undergraduate Diploma courses are not eligible.
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  Suitable for advanced aviation-related degrees like Master's in Aeronautical Engineering or similar programs.

Tata Capital Education Loan for CPL

Tata Capital offers an education loan of up to INR 50 lakh for students aiming to complete their CPL training. The interest rate for Tata Capital loans ranges from 12% to 12.5%. Tata Capital can finance the student’s entire course cost through the loan. Repayments during the moratorium period are structured as Equated Monthly Installments (EMIs), which means students must start paying a fixed amount each month even during their studies.

Eligibility Criteria:

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  Open to a wide range of courses, including:
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  Certificate programs.
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  Diploma programs.
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  Degree courses.
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  Suitable for students pursuing diverse aviation-related training options.

Important Factors to Consider Choosing an Education Loan for CPL

When choosing an education loan lender applicants must consider the following factors -

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  Loan to Value Ratio: Lenders such as HDFC Credila and Avanse, finance up to 100% of the expenses, which can help cover additional expenses like living costs, travel, and study material.

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  Moratorium Period: Choosing a lender with a full moratorium can ease financial pressure during training, but this may result in a slightly higher total interest payable after the course. Generally, lenders offer a moratorium period of course period plus 12 months.

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  Collateral Requirements: BOB and Tata Capital, like most banks, require collateral for higher loan amounts. If you do not have substantial assets to pledge, considering lenders with lower collateral requirements might be essential.

How to Apply for a Commercial Pilot License (CPL) Education Loan?

To apply for a CPL Education Loan, applicants need to follow the steps mentioned below -

Step 1 - Check your education loan eligibility.

Step 2 - Complete the application form

Step 3 - Submit the required documents

Step 4 - The lender will verify your documents and approve or deny your application.

Step 5 - The lender will provide you with the sanction letter and disburse the loan amount.

Documents Required for Education Loan for Pilot Training

Documents required for pilot training are different for public and private banks or financial institutions in India. Some of the commonly required documents are:

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  Application form and education loan form filled out through the lender's platform
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  KYC details of the applicant and co-applicant/guarantor
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  Proof of identity like a PAN card or passport
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  Address proof like Aadhar card, passport, electricity bill, etc.
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  Bank account statements or salary slips for the last 6 months
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  Proof of admission in the pilot training course
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  Proof of assets and liabilities
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  Income documents for co-applicants like Form 16, salary slips, income tax returns, etc.
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  Other documents like affidavits, declarations, previous loan statements, etc.
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  Collateral documents, if required

Scholarships Available for Pilot Training

The cost of pursuing courses in aviation comes with a high cost. To cater to these high costs education loans and scholarships are the best possible option.

Below are some scholarships available for commercial pilot training courses -

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  Education Future International Scholarship
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  HEST 2024- Higher Education Scholarship Test For Indian Students
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  John M. Azarian Memorial Armenian Youth Scholarship
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  Asian Development Bank-Japan Scholarship Program (ADB-JSP)
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  Global Citizen Scholarship
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  Royal Business Bank Scholarship Program
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  Thomas Wall Trust Grants For Individuals 2024
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  Fulbright Foreign Student Program In USA 2024
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  J. N. Tata Endowment Loan Scholarship 2024
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  Ambedkar Overseas Vidya Nidhi Scholarships For SC Students 2024
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  Aga Khan Foundation’s International Scholarship Programme (ISP) 2024

Advantages of Taking an Education Loan for Pilot Training

If you aspire to be a commercial pilot, facing financial constraint, then taking a pilot training loans would be the right decision for you. Student loan for pilot training in India offers numerous advantages like making these high-quality training programs accessible. These loans cover comprehensive expenses, including tuition, travel expense, and living costs, with tax benefits under Section 80E and also offers flexible repayment options.

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  Coverage of Comprehensive Expenses - Loans for pilot training in India not only covers just tuition fees but it also takes care of additional expenses like living expenses, travel expense, etc.

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  Flexible Repayment Options - Pilot training loans come with flexible repayment options that includes moratorium periods which allows you to focus on completing your training before actually stressing about repayments.

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  Tax Benefits - Under Section 80E of the Income Tax Act in India, you can also claim deductions on the interest paid for education loan for pilot training that will help you in reducing your financial burden.

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  Extended Period - Pilot training loans allows borrowers to repay loan over a longer period, that generally extends up to 15 years, so that student can focus on their education without stressing about their budget.

Expenses Covered Under an Education Loan for Pilot Training

This section will help you learn about what are the expenses that are being covered by banks under an education loan pilot training.

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  Tuition Fees - Pilot training loans covers tuition fee that is the cost of enrollment in the pilot program.

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  Living Expenses - Pilot training loans covers the cost of living.

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  Examination and Licensing Fees - The costs for exams like DGCA or FAA certifications and obtaining a pilot’s license are also been taken care of under pilot training loans. However, you must request your lender separately to cover these expenses under your loan.

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  Health Insurance - Health insurance is mandatory for students who flies abroad for their education. The cost of the required health insurance during the course of study is included in the education loan coverage.

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  Travel Costs - You can request your lender to cover the cost of your travel expense also.

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  Miscellaneous Expenses - Other costs like visa fees (for overseas training), medical check-ups, and program-specific requirements can also be inluded under your loan. Hoever, you are required to request your lender separately to cover these additional expenses.

The Pros and Cons of Loan for Pilot Training in India

When exploring financing options for pilot training, it’s essential to evaluate whether they align with your goals and financial situation. Below are the main options that are available for the students and their pros and cons.

Choosing the right lender for your Commercial Pilot License loan depends on several factors, including interest rates, moratorium periods, and collateral requirements. Both Bank of Baroda and Tata Capital offer competitive loan options, but understanding the fine print is essential for making the best decision. If you are wondering how to choose the best lender for your education abroad then connect with GyanDhan today. Our team of experts will carefully evaluate your profile and compare different lenders for you. Further, you can explore these options carefully and pick the one that aligns with your financial situation and educational goals. Check your loan eligibility to start now.

Frequently Asked Questions