Hyderabad has many popular banks and NBFCs (Non-Banking Financial Companies) that offer education loans. Aspiring students can avail of desired financial assistance to pursue higher education in India or abroad. The government schemes and subsidised interest rates make it highly desirable for students to apply for education loans in Hyderabad. Let’s explore all the important details to help you successfully secure funds by applying with the most trusted lenders in Hyderabad for education loans.
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Overview of Education Loan in Hyderabad
Prominent institutions like the State Bank of India (SBI), HDFC Bank, Axis Bank, ICICI Bank, and specialized lenders like Credila, Avanse, and Auxilo have a strong presence in Hyderabad. These institutions provide education loans to students pursuing higher studies in India or abroad.
You can avail of secured and unsecured loans based on your financial situation. Many lenders offer collateral-free loans up to INR 1 crore at interest rates starting from 10.25% p.a. Most banks have branches in key locations like Banjara Hills, Gachibowli, and Hitech City, ensuring convenience for students and their families.
- Leading lenders often offer region-specific interest rates or discounts, particularly for students from Hyderabad.
- The Telangana government has implemented initiatives that indirectly benefit students. These include subsidized interest rates for economically weaker sections under specific schemes.
Also Read: Planning to study abroad? Check out this blog to understand what happens to your education loan if your visa is rejected. Explore different scenarios and take the necessary steps.
Types of Education Loans in Hyderabad
Education loans in Hyderabad cater to a wide range of needs, from studying in India to pursuing education abroad. These loans are further classified into secured and unsecured loans, depending on the borrower’s profile and requirements. Here’s an in-depth look at the types of education loans available:
Domestic Education Loans (in India)
Domestic education loans are designed for students pursuing higher education within India. These loans typically cover tuition fees, examination and library charges, purchase of books, equipment, and laptops, and accommodation and living expenses (depending on the lender).
| Features | Details |
| Loan Amount | Need-based, if collateral providedUp to INR 7.5 lakhs without collateral |
| Eligible Courses | Undergraduate, postgraduate, and diploma courses recognized by Indian institutions. |
| Key Lenders in Hyderabad | SBI, HDFC Bank, Axis Bank, Canara Bank, Indian Bank |
| Repayment Period | 10–15 years (including a moratorium period). |
International Education Loans (to Study Abroad)
International education loans help students finance their education in foreign universities. These loans are more comprehensive, covering additional expenses like airfare, visa fees, and health insurance.
Many banks provide a list of approved foreign universities for education loans on their official website. It is ideal to check the list and apply accordingly as it increases the chances of loan approval.
| Loan Amount | Need-based, if collateral providedUp to INR 7.5 lakhs without collateral |
| Eligible Courses | Undergraduate, postgraduate, and research programs in recognized institutions abroad. |
| Key Lenders in Hyderabad | SBI,, ICICI Bank, Avanse, Credila, Auxilo. |
| Repayment Period | 10–20 years (longer tenures due to higher loan amounts). |
Secured and Unsecured Loan Options
Education loans in Hyderabad can be broadly categorized into secured and unsecured loans.
Secured education loans require collateral as a guarantee. Some of the accepted collaterals include fixed deposits, property, and government bonds. They offer higher loan amounts, lower interest rates, and flexible repayment tenure as the risk associated with such loans is less. These are best for students applying for high-value international loans.
On the other hand, unsecured loans do not require any collateral. However, they often come with higher interest rates as the Credit Risk Premium (CRP) charged by most lenders is high. Such loans are ideal for students with limited family assets. They offer quick approval and processing due to minimal documentation requirements.
Also Read: Check out the education loans to study abroad by the Odisha government. Know about maximum loan amounts, eligibility criteria etc here.
Top 10 Banks for Education Loans in Hyderabad
When applying for education loans in Hyderabad, you have multiple options. Various public and private lenders offer student loans with competitive interest rates. You can apply for secured loans and unsecured loans based on the course and your financial background. Check out the table below to know the maximum loan amount offered, interest rates, education loan schemes, and other details.
| Banks/ NBFCs | Loan Amount | Interest Rates |
| Telangana Grameen Bank | INR 20 lakhs to need-based finance with enhanced limits on loan schemes | 12% p.a to 13% p.a |
| Lakshmi Vilas Bank | India- Up to INR 10 lakhsAbroad- Up to INR 20 lakhs | 9.65% p.a onwards |
| State Bank of India | INR 1.5 lakhs to INR 1.5 crores | 9.15 % p.a onwards |
| Bank of Baroda | India- Up to 80 lakhsAbroad- Up to INR 1.5 crores | 8.10% p.a onwards |
| Canara Bank | Need-based finance | 10.50% p.a onwards |
| Union Bank of India | Up to INR 1.5 crores | 8.10% p.a to 12.50% p.a |
| HDFC Bank | Up to INR 1.5 crores | 9.55% to 13.25% p.a |
| ICICI Bank | India- Up to INR 1 croreAbroad- Up to INR 3 crores | 9.50% p.a to 14.25% p.a |
| Avanse | Need-based finance | 14.25% p.a (Fixed) |
| HDFC Credila | Need-based finance | 10.25% p.a to 14.00% p.a |
Eligibility Criteria for Education Loans in Hyderabad
To avail of an education loan in Hyderabad, both the student and co-applicant must meet certain criteria. These eligibility conditions can vary slightly between different banks and financial institutions, but the general requirements remain similar across most lenders. Below, we have categorized the eligibility criteria for students, co-applicants, and the courses they are pursuing.
Student Eligibility
The student applying for the education loan must meet the following basic criteria
| Criteria | Details |
| Age Limit | 18 years to 35 years of age (varies by lender and loan type). |
| Indian Nationality | The applicant must be an Indian citizen. |
| Admission to a Recognized Institution | The student should have secured admission to a recognized course (UG, PG, Diploma, or Research) in a recognized university (in India or abroad). |
| Academic Qualifications | The student must have completed 12th grade for undergraduate courses or a bachelor’s degree for postgraduate courses. |
| Course Type | The loan is typically available for full-time courses only, such as engineering, medical, management, etc. |
Co-Applicant Eligibility
In most cases, banks and financial institutions require a co-applicant to support the loan application. The co-applicant is typically a parent, guardian, or spouse.
| Criteria | Details |
| Relationship | The co-applicant must be an immediate family member: parent, sibling, or spouse. |
| Income | The co-applicant should have a stable income (salaried or self-employed) to demonstrate repayment capacity. |
| Age Limit | Co-applicants are usually required to be between 21 years and 60 years of age at the time of application. |
| Credit Score | A good credit score (above 650) is preferred, especially for unsecured loans. |
Course Eligibility
The course being pursued by the student must meet specific criteria for loan approval. Banks and institutions typically have a list of eligible courses for which they will provide loans.
| Criteria | Details |
| Eligibility for Domestic Courses | Courses like Engineering, Medicine, Management, Law, Architecture, etc., are offered by recognized institutions in India. |
| Eligibility for Foreign Studies | Courses like MS, MBA, MTech, etc. at accredited universities abroad (in countries like the USA, UK, Australia, etc.). |
| Vocational Courses | Some lenders may also approve loans for vocational and technical courses depending on the course duration and reputation of the institution. |
Income and Collateral Requirements
Banks and financial institutions have specific income and collateral requirements for education loans, especially when the loan amount is high.
| Loan Type | Collateral Requirement | Income Requirement |
| Up to INR 7.5 Lakhs | No collateral (unsecured loans). | The minimum income of the co-applicant must be INR 2.5 lakhs per annum. |
| Above INR 7.5 Lakhs | Collateral required (property, FD, etc.). | Co-applicant’s income must exceed INR 4-5 lakhs per annum. |
| International Loans | Collateral is generally required. | Proof of income and a good credit score are essential. |
Also Read: Plan smart repayments by checking out this blog on payment plans for student loans. Understand which repayment plan is the best as per your financial needs.
Documents Required for Education Loan in Hyderabad
To apply for an education loan, students and their co-applicants must submit various documents as part of the application process. Below is a list of essential documents that are typically required:
| Document Type | Required Documents |
| Admission Proof | – Admission letter from the institution – Course details and fee structure |
| Academic Records | – Mark sheets of 10th, 12th, and/or undergraduate degree – Entrance exam scores (if applicable) |
| Financial Documents | – Income proof (Salary slip, IT returns, bank statements) – Property documents (for secured loans) – Co-applicant’s financial documents (income tax returns, bank statements) |
| Identity Proof | – Aadhar Card or Passport – Voter ID or Driving license |
| Residence Proof | – Utility bills (electricity, water) or ration card – Aadhar card as proof of residence |
| Other Documents | – Passport-size photographs – Caste certificate (if applicable for subsidies or reserved category students) |
Steps to Apply for an Education Loan in Hyderabad
Applying for an education loan in Hyderabad requires thorough preparation, from researching potential lenders to gathering the necessary documents. By following the steps outlined, you can secure financial support to pursue higher education in India or abroad. Here’s a step-by-step guide on how to apply for an education loan in Hyderabad:
Step 1: Research Lenders
Before applying, research multiple lenders (banks, NBFCs, local banks) to understand their loan products, eligibility criteria, interest rates, and processing times. Compare the terms and conditions of different lenders to find the best option.
| Lender Type | Key Features |
| Nationalized Banks | Lower interest rates, but longer processing times. |
| Private Banks | Quick loan approval and disbursal, but slightly higher interest rates. |
| NBFCs | More flexible terms for international loans, but higher interest rates. |
Step 2: Prepare Documents
Gather all the required documents for both the student and the co-applicant. Ensure that the documents are up-to-date, clear, and complete to avoid delays.
Step 3: Application Submission
Submit the completed loan application form along with the required documents to the lender. Many banks offer the option to apply online through their websites or mobile apps.
Step 4: Loan Processing
Once the application is submitted, the bank or institution will begin processing. They will evaluate the loan application based on:
- Academic performance (for the student).
- Income and credit score (for the co-applicant).
- Eligibility of the course and institution.
Some banks may also conduct a personal discussion or an interview as part of the loan evaluation process.
Step 5: Offer and Sanction Letter
If the loan is approved, the lender will issue an education loan sanction letter, which includes:
- Loan amount.
- Interest rate.
- Repayment terms (moratorium period, tenure).
- Collateral (if applicable).
Make sure to follow up with banks and share all the necessary details and documents to avoid education loan rejection post-sanction.
Step 6: Signing the Agreement
After reviewing the sanction letter, the borrower (student) and the co-applicant will need to sign a loan agreement that outlines the terms and conditions of the loan.
Step 7: Disbursement of Loan
After signing the agreement, lenders disburse the loan amount in stages. For domestic loans, they transfer the funds directly to the educational institution. For international loans, they may send the funds either to the student’s bank account or directly to the institution, depending on their policy.
| Disbursement Stages | Details |
| Tuition Fees | Paid directly to the institution. |
| Living Expenses | Transferred to the student’s account or paid to a hostel. |
| Other Expenses | Travel, visa, and insurance fees, if applicable. |
This was all about education loans in Hyderabad. To learn more about education loans, the best bank accounts for students, forex, or banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your experience with studying abroad.
FAQs
Yes, most banks and NBFCs in Hyderabad offer education loans for studying abroad, covering tuition fees, living expenses, and other costs. The loan amount may vary depending on the institution and course.
For domestic education, you can get up to INR 10 lakhs to 20 lakhs without collateral. For international education, loans can go up to INR 1 to 1.5 crore, depending on the lender and the course.
To be eligible, you must be an Indian citizen aged between 18 and 35 years, have secured admission to a recognized institution, and meet the income criteria of your co-applicant (typically a parent or guardian).
Collateral is generally required for loans above INR 7.5 lakhs. However, for loans up to INR 7.5 lakhs, most banks provide unsecured loans that don’t require any collateral.
You will need documents such as:
– Admission letter from the institution.
– Mark sheets of previous exams.
– Income proof (salary slips or IT returns of the co-applicant).
– Identity proof (Aadhar card, passport).
– Residence proof (electricity bill, Aadhar card).
It generally takes about 10 to 15 days for banks and NBFCs to process an education loan application in Hyderabad. However, it can take longer depending on the documentation and verification process.
Interest rates on education loans in Hyderabad typically range from 8% to 12% depending on the lender, loan amount, and whether it is a domestic or international loan.
A low credit score can affect your loan approval, but you can still get an education loan if you have a co-applicant with a good credit score. Lenders may also require additional documentation or collateral.
Repayment tenures for education loans typically range from 5 to 15 years. A moratorium period (grace period) is usually offered, during which you don’t have to start repaying until after course completion.
Yes, the government offers schemes like the Dr Ambedkar Interest Subsidy Scheme for students from economically weaker sections, reducing the interest burden on education loans. Several public banks also offer subsidized rates for these students.
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