Education Loan for Commercial Pilot License

Many people aspire to be commercial pilots, but the costs of commercial pilot training can be prohibitively 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. Keep reading this blog 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, you may face the daunting task of paying for 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.

More than 90% of aspiring pilots in India rely on education loans to fund their training. With the increasing global demand for pilots, now is an excellent time to take advantage of this financial opportunity. Pilot training loans make it easier to realize your dream of flying. You can borrow up to INR 1.5 crores. They allow you to repay in a way that is convenient for you, assisting you in your goal of becoming a pilot.

Accepted collateral includes 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 - 

• Candidates must be at least 17 years old to begin training, and 21 years old to apply for a commercial pilot license.
• Pilots must meet the DGCA's minimum medical standards, which include good eyesight, hearing, and physical health.
• To pursue pilot training in India, aspiring pilots must have completed Class XII in any subject, including English, Maths, and Physics.
• All aviation communications are conducted in English, so pilots must be fluent in speaking, reading, and writing.
• 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.
• 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: 

• Only applicable for Master's or Postgraduate Diploma courses.
• Certificate and Undergraduate Diploma courses are not eligible.
• 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:

• Open to a wide range of courses, including:

• 
  Certificate programs.
• 
  Diploma programs.
• 
  Degree courses.

• 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 - 

• 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.
• 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. 
• 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:

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

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

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.

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