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Education Loan in Chennai

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Brinda Khurana
Brinda Khurana

Study Abroad Expert

Updated on:  22 Nov 2024 | 
Reviewed By:  Aman  
| 791 | 56  min read

If you are a student in Chennai who is thinking of taking out a loan to fund your education in Chennai or elsewhere in India or abroad, this information will be extremely valuable to you. The average education loan amount required by students in Chennai to study within India is around INR 15 lakhs while studying abroad is around INR 45 lakhs. The interest rates for education loans in Chennai for studies in India range from 8.5% to 13.5%. For abroad studies secured education loan rate of interest ranges between 9.25% - 12.5% whereas unsecured education loan rate of interest ranges between 9.75% - 13.5% depending on the loan type and lender. 

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Best Banks for Education Loan in Chennai for Studies in India 

Bank Name  Loan Amount  Processing Fee

State Bank of India 

Up to INR 50 lakh

Nil - INR 10,000+Tax 

Axis Bank 

Up to INR 75 lakh (unsecured) 

Up to 2% of the amount+GST 

ICICI Bank 

Up to INR 1 crore 

Up to 2% of the amount +GST

IDFC First 

Up to INR 30 lakh (unsecured) 

Up to 1.5% of the amount 

UBI 

Up to INR 1.5 cr (secured) 

Up to INR 40 lakh (unsecured)

INR 5000 (refundable) 

HDFC Credila 

Up to INR 40 lakh 

1% + GST 

Auxilo 

Up to INR 65 lakh 

Up to 2% of the sanctioned loan amount 

InCred 

Up to INR 60 lakh

0.75% - 1% of the sanctioned loan amount

BOB 

INR 7.5 lakh - INR 1.5 cr 

1% (max. INR 10,000) 

Check Your Education Loan Eligibility

Click Here
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Best Banks for Education Loan in Chennai for Abroad Studies

Bank Name  Loan Amount  Processing Fee

State Bank of India

Up to INR 1.5 cr with collateral 

INR 10,000

Axis Bank

Prime A - INR 1 cr

Prime B - INR 40 lakh 

0.75% on the sanctioned loan amount 

ICICI Bank 

Up to INR 2 cr (secured) 

Up to INR 1 cr (unsecured) 

Up to 0.75% to 1% + GST 

IDFC First Bank

Up to INR 75 lakh without collateral 

Up to 1.5% of the sanctioned loan amount 

Union Bank of India 

Up to INR 2 cr (secured) 

Up to INR 40 lakh (unsecured) 

INR 5000

HDFC Credila 

Up to INR 75 lakh 

0.5% - 1% 

Avanse 

Up to INR 75 lakh 

1% - 1.5% 

Auxilo 

Up to INR 65 lakh 

0.5% - 1.5% 

InCred 

Up to INR 80 lakh 

1% - 2% 

MPower Financing

Up to 100,000 USD 

5% (adjusted in the loan amount) 

Prodigy Finance 

Up to 100% cost to study 

Up to 5%, added to loan amount*

Bank of Baroda 

Up to 1.5 cr with collateral 

INR 10,000 + GST 

*Note: Upon loan approval, students are required to pay an upfront fee of $100 to receive their sanction letter.

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Documents Required for Availing an Unsecured Education Loan in Chennai 

Student Documents 

  • list items Acceptance Letter: A copy of the acceptance letter from the educational institution confirming the student's admission.
  • list items Academic records include transcripts, certificates, and school leaving certificates that validate the student's educational qualifications.
  • list items Fee Structure: A full summary of the course fees, including tuition, examination, and hostel fees where appropriate.
  • list items Age Proof: Valid documentation proving the student's age, such as a birth certificate, passport, or Adhaar card.
  • list items Identification Proof: Identification documents such as an Aadhar card, PAN card, passport, or driver's license are used to verify the student's identification.
  • list items A valid test score for competitive tests such as IELTS, TOEFL, GRE, and GMAT.
  • list items Address Proof: Documents that confirm the student's residential address, such as an Aadhar card, voter ID, utility bills, or a rental agreement.
  • list items Passport-size Photographs: Recent images of the student.

    • Co-applicant Documents 

  • list items Identity Proof: A valid identification document for the co-applicant(s) (parent/guardian), such as an Aadhar card, PAN card, passport, or driver's licence.
  • list items Address Proof: Documents that confirm the co-applicant's residential address, such as an Aadhaar card, voter ID, utility bills, or a rental agreement.
  • list items Income Proof: Documents that show the co-applicant(s)' financial capabilities, such as salary slips (3 months), income tax returns (2 years), bank statements (6 months), or other relevant documents.
  • list items Relationship Proof: paperwork that establishes the student and co-applicant's relationship, such as birth certificates or legal paperwork.
  • list items Passport-size Photographs: Recent images of the co-applicant(s).

    • Other Documents 

  • list items Loan Application Form: A loan application form completed and signed by the applicant. 
  • list items Gap certificate: A letter outlining the gap (if any) between your previous degree and the course you are now pursuing.
  • list items Additional supporting documents may include guarantor documents, academic references, or course-specific documentation as specified by our staff.
  • list items Invoice: An invoice for expenses such as airfare, laptops, and stationery.

    • Check Your Education Loan Eligibility

    Click Here
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    Documents Required for Availing Secured Education Loan in Chennai 

  • list items Property Ownership Proof: Documents that establish ownership of the collateral property, such as a sale deed, property registration documents, or a possession certificate.
  • list items Encumbrance Certificate: A document issued by the relevant authority certifying that the collateral property is free of all legal and financial commitments.
  • list items The property title deed is a legal document that proves the collateral property's ownership rights.
  • list items A property valuation report is an official report prepared by an accredited valuer that estimates the collateral property's current market value.
  • list items A No Objection Certificate (NOC) from the housing society or association stating that the collateral property may be utilized as loan security.
  • list items Land Records: Documents proving the ownership of the land on which the collateral property is built, such as land registration documents, survey maps, or revenue records.
  • list items Possession Certificate: A certificate issued by the relevant authority certifying the possession of the collateral property.
  • list items Allotment Letter: An allotment letter from a government authority such as CMDA must be presented for Chennai.
    • Sprinkles

    Education Loan Interest Rates in Chennai for Studies in India 

    Bank Name  Interest Rate  Interest Rate Concession 

    State Bank of India 

    Starts from 8.30% 

    0.60% Business strategy discount 0.50% - for female students 

    0.50% - Rinn Raksha 

    Axis Bank 

    Starts from 11.5% 

    0.5% - 2% 

    ICICI Bank 

    Starts from 10.5% -11% 

    0.5% - 2% 

    IDFC First 

    Starts from 8.5% - 10% 

    0.5% - 2% 

    UBI 

    Starts from 11.15% 

    0.5% for female students

    1% if the SI is paid in full 

    HDFC Credila 

    Starts from 10.25% - 12.75% 

    		 -

    Auxilo 

    Starts from 11% - 13.5% 

    0.5% - 2% 

    InCred 

    Starts from 11% - 13.5% 

    0.5% - 2% 

    BOB 

    Starts from 8.85% 

    0.5% 
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    Education Loan Interest Rates in Chennai for Abroad Studies 

    Bank Name  Interest Rate  Interest Rate Concession 

    State Bank of India 

    Starts from 10.15% 

    0.5% concession in interest for female students 

    0.5% - Rinn Raksha 

    Axis 

    9.99% - 12.5% 

    		 -

    ICICI 

    10.25% - 12.5% 

    		 -

    IDFC First 

    9.5%-11% (secured) 

    11%-13% (unsecured) 

    		 -

    UBI 

    9.25% - 9.75% 

    		 -

    HDFC Credila 

    10.25% - 12.75% 

    		 -

    Avanse 

    10.75% - 13% 

    		 -

    Auxilo 

    11.5% - 13% 

    		 -

    InCred 

    11.85% - 13.25% 

    		 -

    MPower 

    12.99% - 15.99% 

    -

    Prodigy 

    11.5% - 13.5% 

    -

    BOB 

    9.7% (fixed) 

    0.20% concession in interest for female applicants of non-premier institutes

    Calculate your Education Loan EMI

    Click Here
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    Education Loan Features Offered by Banks or NBFCs in Chennai 

    Expenses Covered 

    Education loans in Chennai typically cover tuition, test fees, and other educational expenses such as hostel fees, books, and equipment. Some loans may also cover living expenditures such as housing and food. It is critical to thoroughly examine the loan terms and conditions to determine what expenses are covered in education loan. The lender may have certain rules or limits regarding how the loan might be used.

    Moratorium Period

    The moratorium period for an education loan is a set period of time during which the borrower is not obligated to make any loan payments. The moratorium period normally encompasses the course duration and might last from 6 months to a year after completion, depending on the lender's rules.

    Loan Margin 

    It shows the percentage of overall educational expenses that the borrower must cover on their own. It refers to the portion of the expenses that the loan does not cover and must be carried by the borrower or their family. The loan margin demonstrates the borrower's commitment and responsibility to their education and serves as a financial investment in their academic endeavours.

    Collateral Margin 

    If a borrower chooses a secured education loan with collateral, the collateral margin is the difference between the market value of the collateral provided by the borrower and the loan amount approved by the lender. It acts as a buffer to safeguard the lender in the event of a decrease in the collateral's value, ensuring that the collateral is sufficient to cover the loan.

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    Suitable Collateral for Education Loan in Chennai 

  • list items Residential properties, such as apartments, homes, or plots, can serve as collateral. The property should have good titles and be free of legal problems.
  • list items Commercial properties can be used as collateral for school loans. Similar to residential properties, unambiguous ownership and legal compliance are required.
  • list items Fixed deposits (FDs) with banks can be used as collateral. The loan amount is typically a percentage or total value of the FD.
  • list items The surrender value of life insurance can be used as collateral. The loan amount is often a proportion of the policy value.
  • list items National Savings Bonds and other government-backed securities can be used as collateral for school loans.
  • list items Land or agricultural property can be used as collateral for school loans, as long as it meets the lender's requirements and is free of any legal encumbrances. 

    • In Chennai and exploring education loan options? GyanDhan is your go-to platform, offering a pathway to secure financing for your higher studies in India or abroad. Our education loan experts help you in securing high loan amounts under favourable terms with a track record of higher loan approval rates. We also assist with pre-visa loan disbursement, crucial for your visa application. Best of all? Our expert, end-to-end service comes at absolutely no extra cost to you. Check your loan eligibility on GyanDhan now and take the first step towards realizing your academic dreams.

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