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How to Get an Education Loan for IIT Students (2024 Guide)

Written By
Raghuvamshi Kanukruthi
&
Reviewed By
Updated On:
Sep 15, 2025
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5 Minutes
mins read
Raghuvamshi Kanukruthi
Updated On:
Sep 15, 2025

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Education Loan for IIT Students

IIT students can get education loans with low interest rates, flexible repayment, and no collateral for many schemes. These loans cover tuition, hostel, and other academic expenses

With high salary packages and placement offers, IITs in India offer all of its students an opportunity to create a secure future and lucrative careers of their choice. Students at the top IITs often receive salary packages between INR 20 lakh and INR 1 crore annually, whereas students at other IITs typically receive packages between INR 20 lakh and INR 50 lakh. However, the cost of these top schools can deter many students.

Those who cannot pay their tuition fees or expenses related to their education can avail of an education loan for IIT students to fund it all. It helps qualified students achieve their academic goals without financial restraints. If you are still wondering, 'Do IIT students get education loan?', the answer is yes. Let's discuss the features and eligibility of the education loan for IIT students, along with the application process.

IIT Education Loan Key Points

  • IIT education loans cover tuition, hostel, and academic costs, helping students manage the ₹8–10 lakh fee burden. These loans often come with low interest, flexible repayment, and no collateral, making IIT education accessible to more students.
  • Top loan providers include SBI (up to ₹50L without collateral) and ICICI (up to ₹1 Cr). Propelld also offers tailored, fully digital loan options designed specifically for IIT aspirants.
  • Interest rates range from 7.20% to 11.60%, with repayment tenures of up to 15 years. Loan amounts vary by lender, typically between ₹40–50 lakhs, going up to ₹1 crore for eligible applicants.
  • Eligibility includes Indian citizenship and confirmed IIT admission. Students must also meet academic, age, and income criteria. High loan amounts may require a co-applicant or collateral based on lender policy.
  • Apply online or at bank branches with key documents like admission letter, financial proof, and academic records. Compare interest rates and terms across lenders to get the most cost-effective loan offer.

Overview of IITs in India

Engineering, science, architecture, and design are some of the areas where the Indian Institutes of Technology (IITs) are most well-known for their top-notch teaching. These schools are also recognized for the ground-breaking ways they push the boundaries of knowledge in their pursuit of academic achievement.

IITs shine when it comes to the incredible career opportunities and placement services they offer their students. If you are thinking 'can I study in IIT for free?', the answer is no. Students should expect to pay anything from Rs 8-10 lakh for the whole program at IITs. This changes from institute to institute.

Types of Education Loans Available for IIT Students

Education loans specifically designed for Indian Institutes of Technology (IIT) students are essential in supporting their academic endeavors. This is because they pay for a variety of costs related to pursuing a higher education. In order to assist students in paying for their studies at IITs, banks and other financial organizations are offering these loans with particular terms and features. The main categories of student loans that IIT students can apply for are as follows:

  • Government Programmes: Banks such as the State Bank of India (SBI) provide tailored lending programs like the SBI Scholar Lending Scheme for IITs. It offers flexible repayment choices and up to 50 lakhs without collateral. 
  • Private Financial Institutions: Private lenders such as ICICI Bank offer education loans to students between the ages of 18 and 35. These loans are sanctioned based on academic progress, GPA, and confirmation of admission to reputable institutions or universities in India or overseas.

Before selecting a financing option, students should review the types of education loans for IITs that include both government schemes and private lender support tailored for premier institutions.

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Education Loan for IIT Students: Interest Rate Overview

Studying at top institutes like the Indian Institutes of Technology (IITs) can be expensive, but education loans make it possible for many students. Both government and private banks offer special loan schemes with low interest rates and easy repayment options for IIT students.

Interest Rates for iit students 

The interest rates for education loans for IIT students usually start at 7.20% and can go up to 11.60% per year, depending on the bank and the loan scheme. Here are a few examples:

To help you compare better, here’s a quick look at the top lenders and their loan terms:

Program

Loan Amount

Rate of Interest

Repayment Tenure

SBI Scholar Scheme for IITs

Up to ₹50 Lakhs

Starts at 8.35%

Up to 15 years

Baroda Education Loan (Premier Institutions)

Up to ₹40 Lakhs

Starts at 8.85%

10–15 years

Union Bank of India

Up to ₹40 Lakhs

Starts at 9.55%

Up to 15 years

HDFC Bank

Up to ₹50 Lakhs

9–11%

Up to 15 years

Canara Bank

Up to ₹40 Lakhs (No collateral)

Starts at 7.75%

Up to 15 years

Punjab National Bank

Up to ₹50 Lakhs

Starts at 8.55%

Up to 15 years

Central Bank of India

Up to ₹50 Lakhs

Starts at 8.30%

Up to 12 years

ICICI Bank

Up to ₹1 Crore

Starts at 9.50%

Up to 15 years

This table gives a clearer view of the interest rate range, loan amounts, and repayment options offered by different banks for IIT students.

Who Can Apply

To get a loan, students must:

  • Be an Indian citizen
  • Have confirmed admission into an IIT
  • Submit documents like admission proof, ID proof, family income proof, and past academic records

Some banks may ask for a co-applicant (like a parent) or collateral depending on the loan amount.

How to Apply

Students can apply for these loans:

  • Online through bank websites
  • At bank branches
  • Through education loan marketplaces

It’s a good idea to compare different banks to find the lowest interest rate and best repayment terms for your IIT course.

Eligibility Criteria for Education Loans for IIT Students

In order to be eligible for an IIT loan, Indian students must fulfill specific requirements. These are a few standard specifications:

  1. Admission into an IIT: Obtain admission to a recognized IIT institution and present the admission letter as verification of enrollment to be admitted into an IIT. This guarantees that you are following an approved course of study.
  2. Indian Citizenship: In order to be qualified for an IIT loan, applicants must be citizens of India.
  3. Age Criteria: Lenders may impose age restrictions on loan candidates. Make sure your age matches the requirements the lender has established.
  4. Academic Requirements: Fulfill the prerequisite academic requirements of the selected course in order to be eligible.  
  5. Financial Statements: Send along your bank statements, income tax returns, and any other pertinent financial records. This demonstrates your ability to make repayments and your financial stability.
  6. Co-applicant or Collateral Details: The requirements of the loan provider for obtaining a loan may require you to furnish collateral or a co-applicant.

Before applying, students can explore the IIT education loan guidelines that highlight key eligibility requirements and applicable categories.

Documents Required for Education Loans for IIT Students

The application process for education loans for IIT students necessitates submitting important documents for identity and educational document verification. The following paperwork must be gathered before submitting an IIT loan application: 

1. Admission Letter: As verification of enrollment, present the official admission letter from an authorized IIT branch. This document contains the necessary information needed to process your loan and verifies your acceptance into the study program.

2. Identity and Address Proof: To prove your identity, present legitimate identity documents, like a passport or Aadhar card. In order to confirm your residence address, you should also provide address verification, such as utility bills or rental agreements.  

3. Academic Records: Provide academic records and certifications from your prior learning institutions. These records attest to your academic standing and your suitability for the selected IIT program. 

4. Cost of Education: Give a thorough explanation of your IIT course's projected cost. Included in this should be living expenditures, health insurance, tuition, and any other pertinent costs. Being able to clearly explain the necessary funds to the lender shows that you are ready and helps them determine how much you need to borrow. 

5. Financial Statements: Please submit your bank statements, income tax returns, and any other pertinent financial records. These documents vouch for your ability to repay debts and stability.

6. Co-Applicant Details: Your parent or guardian may be required by the lender to participate in your IIT loan as a co-applicant. The co-applicant, who is usually a close cousin or family member, will guarantee loan repayment and is therefore required to produce their KYC documentation.

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Application Process for Education Loans for IIT Students

As an IIT student, the application procedure for an education loan is complex. You must know the loan application steps, which are as follows:

Documentation Required

Prior to submitting an application for an education loan, you must have the required paperwork, which usually consists of:

  1. Admission letter from the IIT
  2. Mark sheets and academic records
  3. Income proof and bank statements of parents/guardians
  4. Proof of residence
  5. Passport-size photographs
  6. Any other documents requested by the lender

Online vs. Offline Application

You can apply for education loans online or in person at a branch of most banks and financial organizations. Although online applications are typically more convenient, you might still need to visit the bank to complete the loan procedure and have your documents verified.

Application Scrutiny

Following the submission of your student loan application, the lender will carefully review your supporting documentation and determine your eligibility based on things like your family income, academic standing, and credit history (if any). Follow-up requests for more information or documentation may be part of this procedure.

Loan Approval and Disbursement

The lender will send you a sanction letter that includes information on the loan amount, interest rate, and terms of repayment if your application is accepted. The loan cash will be deposited straight into the IIT's account once you agree to the terms and conditions.

Can You study in IIT for Free?

The answer is a no if you’re wondering, 'can I study in IIT for free, or is education free in IIT? While it is not possible to study at an Indian Institute of Technology (IIT) for free, students can obtain education loans to help fund their studies at these elite universities. Banks and financial institutions frequently issue education loans to pay tuition, living expenses, and other expenditures involved with attending an IIT.

These loans include interest rates that start as low as 8.30% and can rise to 11.50% depending on the lender and the student's financial circumstances. While interest-free education loans are not accessible, some banks may provide interest subsidies or reductions to students from economically disadvantaged families.

The loan amount that students can receive for studying at an IIT varies depending on their degree of study, academic performance, financial background, and the bank's loan policy, with sums ranging from 50 lakhs unsecured to 2 crores with security.

While IITs offer various scholarships and fee waivers, students should still review the IIT BTech tuition fee structure to understand the actual costs involved.

Fund Your Dream of Studying at IIT with Propelld

Getting into an IIT is itself a task that demands dedication and surrender to study. As prestigious and beneficial as this institute is, Propelld knows that it brings a lot of expenses with it. We are dedicated to taking this challenge out by offering you tailored financial solutions to fund your education. On this journey, you will also get access to:

  • Private Student Loans: It will help you cover all your expenses until you complete the program.
  • Seamless Loan Process: Focus on your study without getting into the hassles of documentation and tedious paperwork, as our process is digital.
  • Moratorium: Pay only when you get a job.

Final Takeaways

Attending one of the IITs can be fulfilling but, at the same time, expensive. However, with a student loan, you can cover those expenses without having to worry about them. You must submit all required paperwork, such as financial accounts and academic transcripts when applying for a loan.

Securing an education loan for IITs shouldn't be overwhelming. With high placement potential and subsidized government schemes, the financial burden is easier to manage than it seems. However, it's crucial to compare lenders, check eligibility, and prepare documentation early. For students seeking a fast, hassle-free process, apply through Propelld at Propelld.com designed to meet the unique needs of IIT aspirants. Choosing the right funding path now can shape your academic journey and future success.

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Frequently Asked Questions

Which IIT has the lowest fees?

The fee structure across all IITs (Indian Institutes of Technology) is relatively similar, as they are centrally funded by the Government of India. However, IIT Guwahati and IIT Bhubaneswar are generally considered to have slightly lower fees compared to other IITs.

Can I study in IIT for free?

While IITs do not offer free education, they provide substantial fee waivers and scholarships based on merit and financial need. 

What is the IIT student purchase program?

The IIT student purchase program allows students to purchase laptops, software, and other educational resources at discounted rates from various vendors. 

Is education free in IIT?

No, education at IITs is not entirely free. However, the government heavily subsidizes the tuition fees, making IIT education relatively affordable compared to private institutions. 

Do IIT students get an education loan?

Yes, IIT students are eligible for education loans from various banks and financial institutions. These loans are typically offered at subsidized interest rates and flexible repayment terms to help students finance their education.

Can I get a 100% education loan?

Education loans offer several advantages, including 100% financing that covers course fees and living and travel expenses.

Is education loan interest free?

No, education loan is not interest-free in India. However, student loan without interest is a possibility in India with scholarships and subsidies. You can negate the effect of interest on your education loan by availing 0% interest scholarships or subsidies with Government subsidy schemes.

Raghuvamshi Kanukruthi
Business Head at Propelld.
Check out full profile

Raghu Vamshi Kanukurthi is the Business Head of Domestic Higher Education Lending at Propelld, where he drives sales, credit strategy, and risk management for education loans that empower students from underserved backgrounds.

An IIT Madras alumnus, Raghu brings a multidisciplinary background spanning engineering design, e-commerce logistics, and aquaculture entrepreneurship. He carries an in-depth understanding of loan products and their pricing strategy. This diverse experience shapes his practical, problem-solving approach to lending innovation.

Today, he is passionate about financial inclusion, helping students bridge the gap between ambition and access with hassle-free, student-first education financing solutions.

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