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Planning to study in India or abroad but feeling overwhelmed by the cost? You’re not the only one. Every year, thousands of students and families ask themselves the same thing: How will we afford it?
Education today isn’t cheap. Whether it’s a top college in India or a university overseas, the fees, living expenses, and additional costs can add up quickly. That’s why education loans have become such an important tool. But applying for one can feel complicated, especially when terms vary from one bank to another.
This is where the RBI guidelines for education loan come in. Set by the Reserve Bank of India, these rules bring structure, transparency, and fairness to how banks issue education loans both in India and abroad.
In this blog, we’ll break down everything you need to know about the 2025 guidelines. No jargon. No guesswork. Just clear answers to help you make smarter decisions.
The loan is only offered for approved technical, professional, or vocational programs that result in a degree or diploma. Whether you’re studying in India or abroad, the course and institution must be recognized by the bank.
Before you apply, always confirm that your program qualifies under their approved list.
| Study Location | Maximum Loan Amount |
|---|---|
| India | ₹10 lakh |
| Abroad | ₹20 lakh or more |
With tuition costs rising across the board, nearly 15 percent in India and up to 25 percent abroad, education is turning into one of the biggest household expenses. According to recent estimates, over 1.2 million Indian students are expected to apply for education loans this year alone.
The RBI guidelines for education loans aim to simplify this process. They lay out the rules banks must follow, so borrowers are not left in the dark. The guidelines cover things like maximum loan amounts, interest rates, repayment periods, and collateral requirements.
More importantly, they give families peace of mind. When you know exactly what to expect, it becomes easier to plan ahead and avoid unpleasant financial surprises.
Loans for studying overseas follow the same foundation but come with extra steps to ensure proper documentation and financial transparency.
Here’s what to know if you’re heading abroad:
Take Ayushi’s example. Ayushi, a student from Pune, got into a top business school in Toronto. Her tuition fee was ₹18 lakh. Following RBI guidelines, she secured a ₹20 lakh education loan, contributed 15 percent margin money, and added her father as a co-applicant.
With a 12-year repayment plan and a one-year moratorium, the loan covered her costs without putting pressure on her parents.
What could have been overwhelming felt manageable because she had the right support and understood the process.
Education loans don’t have to be scary or unpredictable. The RBI guidelines for education loans in 2025 are designed to take the guesswork out of borrowing. They bring in fairness, structure, and a sense of control, especially important when planning something as big as your education.
And if you’re still unsure where to start, platforms like QCK Loans can help you navigate it all. From comparing loan options to applying with the right documents, they walk you through every step so you can focus on your future, not just the finances.
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