Education Loan for Fashion Designing Guide 2025

FAQs About Education Loan for Fashion Designing

What is an education loan for fashion designing?

An education loan for fashion designing is a financial aid option provided by banks and financial institutions to help students cover the costs of pursuing a fashion design course. It typically includes tuition fees, accommodation, study materials, and other related expenses.

What expenses are covered by an education loan for fashion designing?

An education loan for fashion designing usually covers tuition fees, living expenses, accommodation, travel (for international studies), books, and materials required for your course. Some loans also include project fees and exam costs.

Can I get an education loan for fashion designing if I’m studying abroad?

Yes, many banks and financial institutions offer education loans for fashion designing courses abroad. These loans typically cover higher amounts, including travel expenses and living costs. Be sure to compare interest rates and terms for studying internationally.

What are the typical education loan for fashion designing interest rates in India?

In India, education loan for fashion designing interest rates typically range from 8% to 10%. Some private financial institutions may charge a slightly higher interest rate, especially for students studying abroad.

Do I need collateral for an education loan for fashion designing?

Collateral is required for higher loan amounts, usually above ₹7.5 lakhs, depending on the bank. For smaller amounts, loans may be unsecured, but you’ll need a co-applicant like a parent or guardian to guarantee the loan.

Can I apply for an education loan for fashion designing online?

Yes, most banks and financial institutions allow you to apply for an education loan for fashion designing online. The process typically involves filling out an application form, uploading documents, and waiting for approval.

How do I repay an education loan for fashion designing?

Repayment usually starts after a grace period, which is typically 6-12 months after course completion. You can choose to repay the loan through Equated Monthly Instalments (EMIs) over 7 to 15 years, depending on the loan tenure.

How can I get the best education loan for fashion designing interest rate?

To get the best education loan for fashion designing interest rate, compare offerings from different banks, government schemes, and private lenders. Look for options that offer lower rates, especially those with subsidies or flexible repayment options.

What is the maximum loan amount I can get for fashion designing?

The maximum loan amount varies based on the institution and country of study. Banks like SBI and Bank of Baroda offer loans up to ₹1.5 crore for international studies, while others like Axis Bank and HDFC Credila provide up to ₹50 lakhs for domestic studies.

Is there a moratorium period on education loans for fashion designing?

Yes, most education loans for fashion designing come with a moratorium period, which is a grace period during which you don’t have to start repayment. This period usually lasts until 6-12 months after you complete your course.

Can I avail a government-backed education loan for fashion designing?

Yes, many government schemes like the SBI Global Ed-vantage loan provide financial support for higher education abroad, including fashion designing. These loans generally have lower interest rates and longer repayment terms.

What factors affect the education loan for fashion designing interest rate?

Several factors affect the interest rate, including your credit score, the institution you are attending, loan tenure, the country of study, and whether the loan is secured or unsecured. Banks may also offer lower rates for students with a good academic record.

What is the loan tenure for an education loan for fashion designing?

The loan tenure for an education loan for fashion designing typically ranges between 7 to 15 years. The exact tenure depends on the lender, loan amount, and whether the loan is secured or unsecured.

Do education loans for fashion designing cover material costs?

Yes, many education loans for fashion designing cover material costs, including fabric, software, design tools, and other required resources for your course. Be sure to check with your lender about what is included in your loan.

What happens if I can’t repay my education loan for fashion designing on time?

If you're unable to repay your education loan for fashion designing, it may affect your credit score, and the bank could take legal action to recover the amount. You can discuss restructuring or deferment options with your lender in case of financial difficulties.

Can I take a joint education loan for fashion designing with a co-applicant?

Yes, most education loans for fashion designing require a co-applicant, especially if the loan is unsecured. The co-applicant is usually a parent or guardian, and their income and credit score can influence the loan approval and interest rate.

Can I get an education loan for short-term fashion design courses?‍

Yes, some banks and NBFCs provide loans for certificate or diploma-level fashion design courses, though fashion designing education loan amounts may be smaller, and eligibility criteria may differ from degree-level programs.

Are scholarships considered when applying for a fashion design loan?‍

Yes, banks usually consider scholarships or grants to reduce the loan amount required. This can lower interest and EMI payments.

How long does it take to get an education loan approved for fashion designing?‍

For banks, it typically takes 7–15 working days, while NBFCs or digital lenders can approve within 24–72 hours for eligible candidates.

Can self-employed parents act as co-applicants for the loan?‍

Yes, self-employed parents can be co-applicants. Banks usually require proof of income, ITRs for 2–3 years, and business registration documents.

Do I need a co-applicant for secured education loans?‍

Most secured loans allow flexibility, but lenders may still prefer a co-applicant to reduce risk. It can also improve the loan for fashion designing course terms.

Can education loans cover international travel and visa expenses for fashion courses abroad?‍

Yes, an education loan for fashion design students studying abroad can cover travel, visa fees, accommodation, and even initial living expenses, subject to lender policies.

What documents are required for a fashion designing education loan?‍

Documents include: identity proof, address proof, academic transcripts, admission letter, fee structure, co-applicant financial proof, and collateral documents (if applicable).

Is there a difference in interest rates for domestic vs international fashion courses?‍

Yes, interest rates for international courses are often slightly higher due to higher loan amounts and currency risk, compared to domestic courses.

Can I prepay or foreclose my fashion designing education loan?‍

Yes, most lenders allow prepayment or foreclosure, but terms vary. Some banks offer penalty-free prepayment, while others may charge a small fee.

Do NBFCs offer more flexible fashion design education loans than banks?‍

Often yes. NBFCs like Propelld provide profile-based loans, collateral-free options, and faster approvals, making them suitable for high-value or international fashion courses.

Are there government schemes specifically for fashion designing students?‍

Government-backed schemes generally target professional and technical courses, but some schemes and scholarships do fund fashion design programs, especially abroad.

How is the EMI calculated for a fashion designing education loan?‍

EMI depends on loan amount, interest rate, and tenure. Most banks provide online calculators, which include moratorium periods and flexible repayment options.

Can I switch banks if I find a better loan offer after taking one?‍

Yes, with a loan transfer or balance transfer, you can move your existing education loan to another lender offering lower interest rates or better terms.

Does a fashion design institute’s ranking affect loan approval?‍

Yes, top-ranked or recognised institutes increase lender confidence, potentially giving higher loan amounts or better interest rates for an education loan for NIFT.

Can freelance work income be considered for loan eligibility?‍

Some lenders may consider freelance or project-based income for co-applicants if it is stable and documented through ITRs and bank statements.

Is insurance mandatory for education loans for fashion designing?‍

No, it is not mandatory, but many banks offer optional loan insurance to cover the outstanding loan in case of unforeseen circumstances.

Can students with academic gaps get an education loan for fashion designing?‍

Yes, banks may approve loans for students with gaps if explanations, gap certificates, and co-applicant income are submitted.

What happens if I want to extend my moratorium period?‍

Some banks allow moratorium extensions on case-to-case basis, usually after reviewing the co-applicant's financial stability and the reason for the extension.