When planning for higher education, it’s crucial to understand the expenses covered under education loans. While loans typically cover tuition fees and academic-related costs, many overlook the inclusion of living expenses. Whether you’re studying in India or abroad, knowing which living costs—such as accommodation, food, and transportation—are eligible for financing is important. Let’s explore the details of living expenses covered by education loans and how to plan your finances effectively.
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Expenses Covered Under Education Loans
An education loan in India is crafted to cover essential academic and living expenses. These loans typically cover tuition fees, accommodation, textbooks, stationery, and other study materials.
Some loans also extend coverage for student travel insurance, health insurance, and other miscellaneous costs like library fees, lab charges, and student union fees.
However, these provisions may vary depending on the lending institution, so it’s crucial to check the specific terms and conditions set by the bank or financial institution. Here’s the list of costs covered in education loans in India, including living expenses-
Also Read: Find out how much education loan you can get for pursuing higher education in India and abroad. Explore factors like family income and creditworthiness.
Tuition Fees
One of the most obvious and significant expenses covered under education loans is tuition fees. Whether you’re pursuing a Bachelor’s, Master’s, or PhD, the loan can be used to pay your tuition fees for the entire course duration.
This ensures that the cost of your academic program is fully taken care of, allowing you to focus solely on your studies.
Living Expenses
Other major expenses covered under education loans in India are living expenses. Education loans are designed to help you manage your daily expenses for living. This includes rent, groceries, transportation, and other day-to-day living costs.
The amount is adjusted based on the destination country, as some countries have a higher cost of living than others. By including these expenses in your education loan, you can avoid the financial stress of managing these costs while focusing on your academics.
Study Materials
Your education journey requires more than just tuition fees. Study materials like textbooks, reference books, stationery, and even costs associated with projects or research. Many banks cover these expenses under education loans. This ensures you have the resources you need to succeed in your studies without the added financial burden.
Travel Expenses
Travel can be one of the most significant costs when studying abroad. Some banks provide the option to include your travel expenses in the education loan, such as flights to your destination country and back. However, this isn’t always standard, so you may need to specifically request this option.
Health and Travel Insurance
Studying abroad or in India also means staying away from home for extended periods, and health and travel insurance are vital. Many lenders include health insurance coverage as part of the loan, giving you financial protection in case of medical emergencies.
This also includes coverage for travel-related risks, ensuring that you are protected throughout your stay.
Miscellaneous Expenses
In addition to the primary expenses, various smaller, yet necessary, costs are often covered under an education loan. This includes visa application fees, student union fees, library charges, and lab fees. These expenses can easily pile up, and it’s important to know that they can be part of your loan package, providing much-needed financial support.
Also Read: Planning to study abroad? Learn how to get an education loan to study abroad and cover tuition fees and living expenses.
Expenses Not Covered Under Education Loans
While education loans can cover a wide range of expenses for those pursuing higher education, there are some costs that are not included. Typically, pre-admission expenses such as entrance exam fees, college application fees, and the cost of obtaining a study visa are not covered by these loans.
Additionally, personal expenses like pocket money, non-education-related travel, and entertainment costs are also excluded. You need to budget for these costs separately to avoid any financial surprises during your education journey.
List of Banks that Cover Living Expenses in India
Many banks in India offer education loans that cover living expenses for students pursuing higher education. Some of these banks are the State Bank of India, Punjab National Bank, HDFC Bank, ICICI Bank, Axis Bank, etc.
These banks typically include living expenses, accommodation, and other day-to-day costs as part of the loan amount, in addition to tuition fees. However, the specific amount that can be covered varies depending on the bank, the location of the institution, and the course duration.
| Banks | Expenses Covered under Education Loan |
| State Bank of India | Tuition fees, hostel and boarding expenses, examination, library, and laboratory fees purchase of books, equipment, instruments, and uniforms, caution deposit/building fund, travel expenses (abroad), purchase of computers for the course, project work, and study tours, thesis costs, insurance premium |
| HDFC Bank | Tuition fees, library and laboratory fees, purchase of books, study materials, and equipment, travel expenses for studies abroad, computer purchase essential for the course, student insurance premium, study tours and field projects |
| Canara Bank | Payment of course fees, purchase of books, equipment, instruments, uniform, payment of hostel fees, examination fees, study tools, and passage expenses, (for study abroad). |
| ICICI Bank | Tuition fees and living expenses. hostel fees and travel expenses. examination, laboratory, library fees, books, uniforms, equipment, and instruments |
| Axis Bank | 100% of educational expenses, encompassing course fees, living expenses, and travel costs. |
This was all about the expenses covered under education loans. To learn more about education loans, the best bank accounts for students, forex, 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
Education loans typically cover tuition fees, library and laboratory fees, study materials, books, travel expenses, purchase of computers, student insurance, and other course-related expenses.
Pre-admission costs like entrance exam fees, application fees, and study visa costs are generally not covered by education loans.
Yes, education loans can cover living expenses, including rent, food, and transportation, but the amount varies depending on the lender and course duration.
Yes, education loans may cover the purchase of a laptop if it is necessary for completing the course. This is typically approved by the lender.
Education loans can cover tuition fees, books, lab fees, hostel fees, travel expenses, computers, insurance, and other essential course-related expenses.
ICICI education loans cover living expenses, including accommodation, food, and transportation, based on the student’s estimate and the loan amount.
Yes, SBI education loans do cover living expenses, but only under specific conditions. If the student makes their own boarding and lodging arrangements, the loan can fund these expenses within reasonable limits.
Yes, education loans can cover rent if it is part of the living expenses for students pursuing higher education.
No, personal expenses unrelated to the course, such as entertainment or non-educational activities, are not covered under education loans.
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