Students in Chandigarh increasingly rely on education loans to fund overseas studies. In 2024, over 7.6 lakh Indian students pursued higher education abroad, with Chandigarh leading the country in outbound student mobility, registering 10,150 students per one lakh population between 2016 and 2021.
Rising tuition fees and living costs make a dedicated abroad education loan in Chandigarh essential for covering tuition, travel, and accommodation. This guide explains the best banks, interest rates, documents, and eligibility so you can secure funds without delays or hidden costs.
Key Takeaways
- Loan Amounts & Coverage: Students in Chandigarh typically require ₹40–45 lakh for overseas studies, covering tuition, living, travel, and related expenses.
- Secured vs. Unsecured Loans: Secured loans offer higher amounts at lower interest rates with collateral, while unsecured loans provide faster approval with slightly higher rates.
- Top Lenders: Major banks like SBI, ICICI, Axis, and NBFCs such as Auxilo, Avanse, and Propelld cater to both domestic and international education financing.
- Documentation & Eligibility: Complete student, co-applicant, and collateral documents (if applicable) are essential; age, academic record, and the co-applicant’s credit score are critical for approval.
- Propelld Advantage: Platforms like Propelld simplify the process with digital applications, quick approvals, and collateral-free loan options, helping students secure funds efficiently.
Best Banks For Education Loan in Chandigarh
Several banks and Non-Banking Financial Companies (NBFCs) offer tailored loan products to meet these needs. Below is a comparative overview:
For Studies in India
Education Loan for Abroad Studies from Chandigarh
Want to know the step-by-step process for securing an education loan for abroad studies? Read How to Get an Education Loan for Abroad Studies in 2024.
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Current Education loan interest rates in Chandigarh (2025)
Education loan interest rates in India vary based on the type of course (domestic or international), the lender, and whether the loan is secured or unsecured. As of 2025, here are the prevailing interest rates:
a. Domestic Education Loan Rates
- State Bank of India (SBI): Offers interest rates starting from 7.50% p.a., with a 0.50% concession for female students.
- Bank of Baroda (BOB): Provides rates ranging from 7.10% to 10.70% p.a., depending on the loan amount and scheme.
- Punjab National Bank (PNB): Offers rates between 4.00% and 11.85% p.a., with nil processing fees for domestic studies.
- HDFC Bank: Provides loans at 10.50% p.a. onwards, with nil processing fees for loans up to ₹7.5 lakh.
- ICICI Bank: Offers rates starting from 9.50% p.a., with processing fees up to 2%.
b. Overseas Education Loan Rates
- State Bank of India (SBI): Provides loans with interest rates ranging from 9.15% to 11.15% p.a., with a 0.50% concession for female students.
- Bank of Baroda (BOB): Offers rates between 9.20% and 11.70% p.a., depending on the loan amount and scheme.
- Punjab National Bank (PNB): Provides rates between 9.30% and 10.80% p.a. under the Special Union Education Loan Scheme for premier institutes abroad.
- HDFC Bank: Offers loans at 10.50% p.a. onwards, with nil processing fees for loans up to ₹7.5 lakh.
- ICICI Bank: Provides loans with interest rates starting from 9.50% p.a., with processing fees up to 2%.
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Documents Required For Education Loan in Chandigarh
Below is a comprehensive checklist categorised by applicant type and loan security:
For Applicants (Students)
1. Personal Identification & Address Proofs:
- Identity Proof: Aadhaar Card, PAN Card, Passport, Voter ID, or Driving License.
- Address Proof: Aadhaar Card, Passport, Voter ID, or recent utility bills (electricity, water, gas).
- Photographs: 2–4 recent passport-sized photos.
2. Academic Documents:
- Class 10 & 12 Mark Sheets: Original and copies.
- Graduation Transcripts: For postgraduate applicants.
- Entrance Exam Scores: GRE, GMAT, TOEFL, IELTS, etc., if applicable.
- Admission Letter: Offer letter from the institution, including the fee structure.
3. Financial Documents:
- Bank Statements: Last 6–8 months of the student's bank account.
- Income Proof: If applicable, details of any personal income.
For Co-applicants (Usually Parents or Guardians)
1. Personal Identification & Address Proofs:
- Identity Proof: Aadhaar Card, PAN Card, Passport, Voter ID, or Driving License.
- Address Proof: Aadhaar Card, Passport, Voter ID, or recent utility bills.
- Photographs: 2–4 recent passport-sized photos.
2. Financial Documents:
- Salaried Co-applicants:
- Income Proof: Latest 2 salary slips and Form 16.
- Bank Statements: Last 6 months of the salary account.
- Self-employed Co-applicants:
- Income Proof: Last 2 years' Income Tax Returns (ITR) and audited balance sheets.
- Bank Statements: Last 6 months of the business account.
For Collateral (If Applicable)
1. Property Documents:
- Title Deed: Proof of ownership.
- Valuation Report: Conducted by a certified valuer.
- Encumbrance Certificate: Indicating the property is free from legal dues.
- No Objection Certificate (NOC): From the housing society or local authority.
- Tax Receipts: Recent property tax receipts.
2. Additional Documents:
- Bank Statements: Last 6 months of the co-applicant's bank account.
- Income Proof: As applicable to the co-applicant.
Looking for the best education loans available for Indian students? Explore 5 Best Education Loans in India: Complete 2025 Guide! for comprehensive options.
Secured and Unsecured Education Loan in Chandigarh
Choosing between a secured and an unsecured education loan decides how much you can borrow, the interest rate, and how quickly you get funds. Read below to see which option fits your needs.
Secured Education Loan
Ideal for students who can pledge property or other assets for a larger loan at lower rates.
Key features:
- Requires collateral such as residential/commercial property, fixed deposit, life insurance policy, or government bonds.
- Higher loan amounts – public banks like SBI, Bank of Baroda, and Union Bank typically approve up to about ₹1.5 crore for overseas studies.
- Lower interest rates compared to unsecured loans, with flexible repayment up to 10–15 years.
- Longer processing time due to property verification and valuation.
- Suitable for expensive courses abroad or when you want to minimise EMI costs.
Unsecured Education Loan
Best for students who need quick approval or lack collateral but can show strong academics or a co-applicant with good income.
Key features:
- No collateral required; approval depends on the applicant’s academic profile and the co-applicant’s credit/income.
- Chandigarh options include IDFC First, ICICI, Axis, HDFC Credila, Auxilo, InCred, Avanse, and fintech lenders like Propelld.
- Typical limits: ₹40–75 lakh for abroad studies, occasionally higher for premier universities.
- Interest rates are a few percentage points above secured loans; repayment periods are slightly shorter.
- Fast processing since there is no property evaluation.
- Global lenders like Prodigy Finance and MPower Financing offer completely collateral-free loans without an Indian co-applicant, focusing on university and future earning potential.
Looking for collateral-free education loans for your overseas studies? Check out Education Loan Without Collateral for Abroad: Lenders & ROI.
Eligibility for Education Loan in Chandigarh
You must meet basic age, admission, and financial conditions to qualify.
Key requirements:
- Indian citizenship with a confirmed admission letter from a recognised university or professional course in India or abroad.
- Academic merit: Most banks require admission through a recognised entrance exam or merit list.
- Age & co-borrower: Students 18–35 years can apply; minors need a parent/guardian as co-borrower.
- Financial background: For unsecured loans, the co-applicant’s income and credit score are critical. Banks typically expect a CIBIL score of 650+ for parents/guardians.
- Course type: Full-time graduation, post-graduation, or professional/technical diplomas are eligible. Short certificate courses usually need special approval.
- Collateral is required if opting for a secured loan, property or acceptable financial security with a clear title.
Strong academic records and a recognised university can improve your loan amount and reduce interest.
Step-by-Step Application Process
Applying from Chandigarh follows a digital-first flow for most lenders.
- Shortlist lenders
Compare rates, limits, and secured vs unsecured options (banks, NBFCs, and platforms like Propelld).
- Gather documents
Admission letter, ID/address proofs, academic records, income proofs, and property papers (if collateral).
- Apply online/offline
Most banks and NBFCs accept applications via their portal or through aggregators such as Propelld and GyanDhan.
- Credit and property evaluation
For unsecured loans, lenders assess the co-applicant’s credit. For secured loans, property valuation and legal checks occur.
- Sanction & agreement
Once approved, sign the sanction letter and loan agreement.
- Disbursement
Funds are sent directly to the educational institution or as per the approved schedule.
Average processing time: 3–7 working days for unsecured loans; 2–3 weeks for secured loans due to property checks.
Curious about the financial benefits and tax advantages of education loans? Understand more about Education Loan Benefits in India and Abroad 2025.
Repayment & Moratorium Options
Most Chandigarh lenders provide a moratorium covering the study period plus 6–12 months.
- Interest during study
Simple interest or partial EMI is usually payable; some NBFCs allow full deferment.
- Repayment tenure
Ranges from 7 to 15 years, depending on the loan amount and lender policy.
- Flexible plans
Propelld offers Income Share Agreements where repayment starts only after securing a job, and banks like SBI give a 6–12 month grace period after course completion.
- Prepayment
Most public banks allow penalty-free prepayment after the moratorium.
Choosing a longer tenure lowers EMIs but increases total interest paid; calculate carefully using the lender’s EMI calculator.
Education loans in Chandigarh now cover almost every student's need, whether you prefer a secured loan for lower rates or an unsecured loan for faster approval. From public banks to private NBFCs and global lenders, the options are wide, but choosing the right one can be confusing and time-consuming.
Propelld simplifies this process. With 100% digital applications, quick approvals (often within 24–48 hours), and collateral-free options, it’s designed for students who want funding without the usual paperwork or long waits.
Ready to explore your options? Check Your Education Loan Eligibility with Propelld – Free & Instant!
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