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NBFC Education Loan in India: Lenders, Interest Rates and How to Apply

Post Date:- June 3, 2025
Author:- Shiva Krishna HR

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Table of contents

Key Features of NBFC Education Loan

NBFC Education Loan Interest Rates and the Top Lenders

Eligibility Criteria for NBFC Education Loan

NBFC Education Loan: Documents Needed

How to Apply for an NBFC Education Loan

Conclusion

Banks and Non-Banking Financial Companies (NBFCs) are the major providers of education loans in India. Wondering what NBFCs are? NBFCs are financial institutions regulated by the Reserve Bank of India (RBI), but unlike banks, they do not hold a banking license. However, they are authorized by the RBI to offer education loans. An NBFC education loan can support your academic journey, especially if you plan to study abroad. Several NBFCs offer study loans that help bridge the gap between you and your educational aspirations. While both banks and NBFCs have their own advantages, choosing between them is an important decision when applying for an education loan.

In this blog, you will explore NBFC education loan in India: lenders, interest rates, and how to apply for such a loan. This comprehensive guide will give you a clear picture of which loan option is the best for you. By the end of the guide, you can make an informed decision about funding your abroad education.

Key Features of NBFC Education Loan

Non-banking finance companies offer study loans to pursue higher studies abroad. Education loan NBFC differs from banks. The table below outlines its key features:

Particulars	Details
Loan Amount	Vary between Rs. 50,000 to Rs. 50 lakhs or above
Coverage	Tuition charges, costs of living, travel expenses, etc
Moratorium	6 – 12 Months
Interest Rates	Varies between 8% to 16%
Collateral	Both collateral and non-collateral loans are available
Processing Charges	1% of the loan amount
Repayment Tenure	Somewhere between 10-15 years

NBFC Education Loan Interest Rates and the Top Lenders

The table below outlines the top non-banking finance companies in India, the loan amount, the NBFC loan interest rates, processing charges, and repayment options:

Bank	Loan	Interest Rate	Processing Fees	Repayment During Course	Repayment Tenure
Avanse Education Loans	Up to Rs. 60 Lakhs	12.5% – 13.5% p.a	0.5% – 2%	SI / PSI	12 Years
HDFC Credila Education Loans	Up to Rs. 80 Lakhs	11.5% – 13.5% p.a	0.5% – 2%	SI / PSI	12 Years
Auxilo Education Loans	Up to Rs. 50 Lakhs	12.5% – 13.5% p.a	0.5% – 2%	SI / PSI	10 Years
InCred Education Loans	Up to Rs. 65 Lakhs	12.5% – 13.5% p.a	0.5% – 2%	SI / PSI	10 Years
Bajaj Finance	Up to Rs. 50 Lakhs	13% – 15% p.a	1% – 2%	SI / PSI	10 Years
Shriram Finance	Up to Rs. 30 Lakhs	12% – 14% p.a	1% – 2%	SI / PSI	7 Years
Muthoot Finance	Up to Rs. 25 Lakhs	11% – 14% p.a	0.5% – 2%	SI	10 Years
Mahindra Finance	Up to Rs. 30 Lakhs	12% – 14% p.a	1% – 2%	SI	10 Years
Tata Capital	Up to Rs. 75 Lakhs	11.50% to 12.75%	1% + GST	SI	13 Years

Eligibility Criteria for NBFC Education Loan

Like banks, all non-banking finance companies require you to meet certain eligibility criteria. As a student and applicant, you should meet the following prerequisites to qualify for an NBFC education loan in India:

You should be a citizen of India.
Your age should be between 18 to 35 years.
You should have an excellent academic record.
You should have a letter of acceptance from a recognised institution overseas.
You should have a co-signer with a stable income source and excellent credit history.
You should have scored well in language proficiency tests such as IELTS, TOEFL, and CELTA or standardised exams like GRE, GMAT, etc.

NBFC Education Loan: Documents Needed

The paperwork process required for a study loan from a non-banking finance company ranges from lender to lender. However, the general documents needed for an education loan NBFC are listed below:

For Borrowers

Proof of Identity: PAN/ Passport/ Driver’s License/ Voter ID card or any other Identity card issued by the government-
Education loan application form
Proof of Residential Address: Recent copies of utility bills such as telephone gas, water, etc/ Driving license/ Ration Card/Aadhaar Card
Past academic records such as 10th, 12th, and UG standard mark sheet
Entrance exam results (e.g. GMAT, GRE, TOEFL, etc.)
Admission Proof: A letter of acceptance from a recognised global university
Statement of expenses
2 passport-size photographs
Loan account statement of one year (if applicable)
Student’s bank account statement (if applicable)

Co-Borrowers

Proof of Identity: PAN/ Passport/ Driver’s License/ Voter ID card or any other Identity card issued by the government-
Proof of Residential Address: Recent copies of utility bills such as telephone gas, water, etc/ Driving license/ Ration Card/Aadhaar Card
2 passport-size photographs
Bank account statement for the past 6 months

Proof of Income for Salaried Co-Signer/ Guarantor

Proof of Income for Self-Employed Co-Signer/ Guarantor

Proof of business address
Previous 2 years income tax returns
TDS certificate
Qualification certificate
Past 6 months’ bank account statement
Parent/ guardian/ other co-borrowers’ brief statement of assets and liabilities

How to Apply for an NBFC Education Loan

Now that you are aware of the eligibility requirements and documents required to avail of an NBFC education loan in India, let’s quickly take a look at the application process:

Visit Qck Loans' official portal and use our free tool to check your eligibility.
Our expert loan counsellor will reach out to you and guide you on choosing the right loan option.
Navigate to your preferred loan provider’s website.
Locate the application form and fill in your details.
Attach the necessary documents and review everything
Submit your application form and documents.
The lender will go through your application and documents. After verification, your loan will be approved.

Conclusion

NBFC study loans provide an alternative financing option for pursuing higher studies. These types of loans meet the needs of borrowers who may not be eligible for conventional loans from banks and other financial institutions or funding sponsored by the government. While exploring various options for study loans, considering the terms and conditions associated with an NBFC education loan is essential. This includes additional fees like processing charges, prepayment fees, and penalty charges. Familiarizing yourself with these factors and comparing them with different lenders will help you make an informed decision and select the best loan that suits your needs.

When considering study loans from NBFCs, Qck loans offer a smooth and transparent process, making the loan application and disbursement hassle-free. And the best part? We do not charge any processing fee. Our partner Career Gyan offers guidance on the application and visa process, choosing the right university and course, accommodation, travel, etc. Connect with us today and embark on your journey!

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