Education Loan for LLB Course 2025: Eligibility, Interest Rates & Best Schemes

Pursuing an LLB degree, whether at a top national law university or a private college, comes with considerable expenses such as tuition fees, books, hostel, moot court travel, coaching for judiciary/CLAT PG, and laptop/device costs. An education loan for LLB in 2025 helps you manage these expenses smoothly and allows you to focus on your legal career instead of financial stress.

In this guide, we’ll walk you through all you need to know about LLB education loans to help you start your law journey with confidence.

Key Takeaways

Education loan for LLB students is available up to ₹40 lakh without collateral and up to ₹1.5–2 crore with collateral, depending on the college and lender.
Interest rates for law student loans start from 7.15% with PSU banks and go up to 16% with private banks and NBFCs.
Repayment for LLB education loan schemes typically begins 6–12 months after course completion.
Bar study loans cover tuition fees, exam fees, hostel, internships, books, travel, laptops, and moot court expenses.
Students can claim tax benefits under Section 80E on the interest paid for LLB education loans.

If you're planning particularly for the BA LLB course, know all about the course, subjects, admission, and salary in this detailed BA LLB guide.

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Education Loan for LLB Interest Rates 2025

Interest rates of bar study loans vary between 7.15% to 16%, depending on the lenders and applicant profiles.

Here are the LLB education loan interest rates for some common lenders:

Bank/NBFC	Interest Rates for LLB (p.a.)
Axis Bank	10.50% onwards
ICICI Bank	10.75% onwards
Bank of Baroda	8.40% onwards
Punjab National Bank (PNB)	8.45% onwards
Canara Bank	8.65% onwards
State Bank of India (SBI)	7.15% onwards
Propelld	11.25% - 16.50%
HDFC Credila	11.75%–13.80%
Avanse Financial Services	11.00%–16.00%

Additional Tips

APR may be higher than the mentioned interest rates, as it includes interest + processing fees + insurance.
Many public sector banks require 5–15% margin money, which increases the upfront cost for students. However, private lenders and NBFCs like Propelld offer 0% margin money, making them a better fit for students looking for full fee coverage.
Female LLB aspirants can benefit from a 0.5% girl-student concession offered by several banks and financial institutions.
Students applying to private law universities with higher fees may find that NBFCs offer higher loan amounts, faster approvals, and easier non-collateral options compared to banks.

Propelld offers transparent, low student loan interest rates starting at ~11%, with no hidden fees and complete upfront pricing. Check our transparent loan pricing.
Before finalising your LLB loan, always compare the total EMI and repayment burden using any online Education Loan EMI calculator.

Eligibility Criteria for Law Student Loans

Banks offering an education loan for LLB have specific eligibility requirements that applicants must meet. Below is a detailed breakdown:

Student Eligibility

Must be an Indian citizen.
Admission into a BA LLB / BBA LLB / BCom LLB / 3-year LLB program.
Entrance score (if applicable): CLAT, LSAT, AILET, SLAT.
Minimum academic performance: 50% in 12th standard.
For abroad programs: IELTS/TOEFL score + confirmed university admission.

Co-Applicant Eligibility

Parent, guardian, spouse, or sibling.
Must have a stable income source (salaried or self-employed).
Minimum CIBIL score of 650 (bank-specific requirement).

Collateral Requirements (For Secured Loans)

Residential property.
Fixed Deposits (FDs), LIC policies, or government bonds.
Non-agricultural land (depending on the lender).

Meeting the eligibility criteria is the first step to applying for an LLB education loan. Now, we will see what documents are required and how to apply for bar student loans.

Education Loan for LLB Course: Documents Checklist

Applying for an education loan for law students in India requires various documents verifying your academic, financial, and personal information. Here are the critical documents needed:

Application Form

Completed loan application
Passport-size photographs
Signature and declaration

KYC Documents

Aadhaar, PAN
Passport (mandatory for abroad)
Address proof (utility bill / rental agreement)

Proof of Admission

Offer/admission letter
Fee structure
Entrance exam score (CLAT/AILET/LSAT)
Mark sheets (10th, 12th, graduation for 3-year LLB)

Income Documents (Co-Applicant)

Salaried

Last 3 months' salary slips
6-month bank statements
Form 16

Self-Employed

ITR (last 3 years)
Business registration proof
Profit & Loss statement and Balance Sheet

Asset Details (For Secured Loans)

Property deed
Tax receipt
Encumbrance certificate
Valuation report

With your paperwork ready, applying for a bar study loan is simple and quick. Here’s the process.

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Get your LLB Loan Approved with just 6 Documents!

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How to Apply for an LLB Education Loan?

You can apply for a B Pharm education loan in India or abroad online and offline, both ways. Typically, banks take around 3–15 days to process applications, while NBFCs may offer faster approval within 24–72 hours.

Here’s the application process:

Online Process

Offline Process

Online Application Process

Visit the official website of the lender and navigate to their education loan section.
Click on “Apply Now” or the relevant option to begin your application.
Choose the appropriate LLB education loan scheme.
Fill out the online form with the required details and upload scanned copies of all required documents.
Submit and note down the registration ID (if generated) to track your loan status.
Wait for the lender to review your application and provide approval and disbursement updates.

Offline Application Process

Visit the nearest branch of your chosen bank.
Get an education loan application form and fill it out with all the required details.
Attach physical copies of all necessary documents and submit the completed application at the branch. Pay the fees, if any.
Attend any in-person verification or interviews if required.
Follow up regularly with the branch for loan updates.
Await approval and loan disbursement from the lender.

LLB Education Loan: Secured vs Unsecured

Unsecured Loan

Secured Loan

Unsecured Loan (Without Collateral)

Loan amount: Up to ₹40–50 lakh
Faster approval timelines
Higher interest rates compared to secured loans
Ideal for private universities and mid-fee NLUs
Offered by:
- IDFC FIRST
- ICICI
- Prodigee
- Auxilo
- Propelld
- Avanse

Secured Loan (With Collateral)

Loan amount: Up to ₹1.5–2 crore
Lower interest rates
Suitable for premium universities like NLSIU, NALSAR, NLUD
Offered by:
- SBI
- Bank of Baroda (BoB)
- Punjab National Bank (PNB)
- Canara Bank

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Not Approved by Banks? We've Got You Covered

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Top Government Schemes for LLB Students

Below are some top government-backed education loan schemes for law students in India:

1. Vidya Lakshmi Portal (VLP): Single-window platform for government-backed education loans.

2. CSIS (Central Sector Interest Subsidy): Interest subsidy during moratorium for EWS students (income less than ₹4.5 lakh).

3. NSCFDC Loan (SC Students): Low-interest loans up to ₹20–40 lakh.

4. NBCFDC Loan (OBC Students): Subsidised loans for economically weaker OBC students.

5. State Minority Loans: Various states offer minority education loans for LLB, like Karnataka, Kerala, and UP.

Scholarships for LLB Students (India and Abroad)

Below is a list of top scholarships given to law students depending upon various factors like awarded based on financial need, academic performance, specific categories, or course/region eligibility, etc.:

Central Sector Scholarship Scheme for College & University Students – Offers annual financial assistance to meritorious LLB students based on Class 12 performance.
National Means-cum-Merit Scholarship – Provides support to economically weaker students who maintain strong academic performance through higher studies.
Aditya Birla Scholarship (Law) – Awards top-performing law students from premier institutions like NLUs for academic excellence and leadership potential.
Indira Gandhi Single Girl Child Scholarship – Grants financial aid to single girl children pursuing undergraduate degrees, including LLB programs.

Not eligible for scholarships and already have a high-interest private LLB loan? You can refinance it to a lower-cost bank or NBFC option after 12 months of repayment. Read our complete guide on education loan refinancing to learn how it works.

Now, let's understand some important factors that significantly affect your law student loans.

Understanding LLB Education Loan Repayment Terms

Repaying your education loan for LLB involves various factors that you should consider before taking the loan:

Moratorium Period

Banks offer a moratorium period where repayment starts 6–12 months after course completion. This period is designed to help graduates secure a job before they begin repayment.

Read the complete guide on the moratorium period for a detailed understanding.

Repayment Tenure

The repayment tenure can vary between 10 and 15 years, depending on the loan amount and the bank's policies. This ensures flexible repayment for those pursuing LLB 3-year programs.

Know the complete repayment rules in India in this guide before applying for an LLB loan.

Prepayment Options

Many banks and NBFCs offer the option of early repayment without any penalties, helping reduce the overall interest burden. You can check Propelld’s education loan prepayment policy for a simple, transparent, and student-friendly option.

Interest Rate Considerations

Fixed vs. floating interest rates can impact the overall cost of the loan. It's essential to understand which option better suits your financial situation.

Compare loan interest rates by Propelld with other lenders to avail an LLB education loan with low rates and maximum features.

What are the ‍Benefits of Getting Education Loan for LLB Students?

Legal education in India is expensive, especially at top law schools. To bridge this financial gap, many students are opting for an education loan for LLB. These loans offer many benefits so students can focus on their studies without worrying about the financial burden.

Here are the advantages of an education loan for LLB 3 years or other law programs:

Full Coverage of Education Expenses

Many education loans for LLB are designed to cover tuition fees and, in some cases, additional expenses such as hostel fees, books, and other academic resources. This allows students to focus entirely on their studies without financial stress.

Flexible Repayment Options

Banks offering education loans for law colleges generally provide a moratorium period, allowing students to begin repayment only after completing their course. This gives graduates time to stabilise their income before EMIs start.

Competitive Interest Rates

Many banks offer education loans for LLB at competitive interest rates, making legal education more affordable. Students admitted to top law colleges may also qualify for lower interest rates based on academic merit.

Tax Benefits

Under Section 80E of the Income Tax Act, the interest paid on education loans for LLB is fully tax-deductible, providing significant financial relief during the repayment period.

Access to Premier Law Colleges

With an education loan for a 3-year LLB program, students can afford admission to premier law schools such as NLU Delhi and other top institutions, enabling access to world-class legal education without financial barriers.

Understanding the benefits of securing an education loan is important in ensuring a smooth academic journey. However, there are some LLB loan concerns as well among the students, as discussed below.

Common Loan Issues Raised by Students Considering LLB

Law students face a unique mix of financial concerns when it comes to a bar study loan. As a result, the same doubts keep surfacing across various online forums, including Reddit threads like r/StudyAbroad, r/LegalAdviceIndia, r/LawSchool, r/IndiaFinance, and r/IndianEducation.

Here are common issues that you should be aware of:

1. If LLB Qualifies for Education Loans

Many students are unsure if banks even treat LLB as an eligible professional program. The confusion becomes bigger for private universities and 3-year LLB courses. However, there are plenty of banks, NBFCs and other lenders that offer an education loan for LLB 3 years.

2. Non-Collateral Loan Limits for LLB

Across forums, the biggest frustration is that even PSUs want collateral for a few lakhs of loan for LLB. However, students fail to understand that this usually happens when their college is unranked or a co-applicant’s income is low.

3. Coverage Concerns

Many law students are confused about whether bar student loans cover hostel + food, internships in metro cities, laptop, books, moot court expenses, and bar exam prep costs. So, the answer is yes. Public banks usually stick to tuition + exam fees, while NBFCs are more flexible with living + coaching expenses.

4. Uneven Treatment of Colleges

Students are confused about how banks judge LLB colleges differently. So, here’s what to know:

Top NLUs: Quick loan sanction, minimal documentation
Private universities: Heavy scrutiny
New law schools: High collateral requirement

5. Eligibility Roadblocks

LLB students need to understand that lenders may frequently reject bar loan applicants due to:

Low co-applicant income
Irregular salary credits
Lack of ITRs
Multiple existing loans in the household

But with us, you will not have to worry about one thing for sure when getting an LLB education loan - Propelld's fast approval policy. You’ll get your loan sanctioned within 48–72 hours!

Key Considerations Before Taking an LLB Education Loan

When securing an education loan for LLB, especially for a 3-year LLB program, it's essential to weigh the following considerations:

Interest Rates

Always compare fixed and floating interest rates, as even a small difference can significantly impact your monthly EMIs and total repayment amount over time.

Prepayment Penalties

Some banks charge penalties for early loan repayment. Check whether your education loan allows penalty-free prepayments to reduce your interest burden.

Co-Borrower Requirement

Most lenders require a co-borrower—usually a parent or guardian—who is legally responsible for repayment if the student is unable to pay.

Government Subsidies

Explore government-backed interest subsidy schemes for students from economically weaker sections, as these can significantly reduce the cost of borrowing.

Loan Amount vs. Course Fees

Ensure the sanctioned loan amount adequately covers tuition fees, living expenses, books, and other academic necessities to avoid funding gaps during your LLB program.

You might want to take a look at this: Education Loan Benefits 2025: India and Abroad

An education loan for LLB, whether for a 3-year LLB or a 5-year integrated program, helps cover tuition, living expenses, and more, allowing you to focus on studies. Whether you're aiming for NLU Delhi or other law colleges in India, understanding the loan process and repayment options is essential.

Compare Propelld interest rates, explore government subsidies, and plan your repayment strategy to ensure a smooth academic journey with your education loan for law colleges.

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FAQs About Education Loan for LLB

Can I get an education loan for an LLB if I have secured admission to a private law college?

Yes, most banks offer education loans for LLBs, even if you have secured admission to a private law college. Banks such as HDFC Bank, ICICI Bank, and SBI provide student loans to students in recognised law colleges across India.

How much can I borrow through an education loan for LLB 3 years?

The loan amount depends on the bank and the college's fee structure. Loan amounts can vary, but some banks offer up to ₹20 lakhs for education loans, depending on the specific circumstances and the bank's policies.

What documents are needed to apply for an education loan for LLB?

To apply for an education loan for LLB, you'll need proof of admission to a recognised law college, your academic records, proof of identity, co-borrower income proof, and, in some cases, collateral if the loan exceeds ₹7.5 lakhs.

Are education loans for LLB available for distance education or online law courses?

No, most banks provide education loans for LLB only for full-time courses at recognised law colleges. Distance education and online law courses are generally not eligible for loans.

Can I apply for an education loan for LLB 3 years if my co-borrower is retired?

Yes, you can apply for an education loan for LLB 3 years with a retired co-borrower, but the bank may require additional proof of income, such as pension details or a fixed deposit.

What is the interest rate for education loans for law colleges?

The interest rate for education loans for law colleges typically ranges between 7.75% and 13%, depending on the bank. Factors such as the loan amount, the co-borrower's income, and whether collateral is provided can influence the rate.

Can I get an education loan for LLB 3 years without providing collateral?

Yes, most banks offer education loans for LLB 3 years without collateral if the loan amount is under ₹7.5 lakhs. For higher amounts, collateral, such as property or fixed deposits, may be required.

How do I repay my education loan for LLB after completing my course?

Repayment for your education loan for LLB often begins between 6 to 12 months after completing your course, but this can vary depending on the bank. You can repay through monthly EMIs for 10 to 15 years, depending on your bank's terms.

Can I prepay my education loan for LLB early?

Yes, most banks allow you to prepay your education loan for LLB early without any penalties. Prepaying can reduce the total interest paid over the loan period.

Are there government subsidies available for LLB education loans?

The Indian government offers subsidies for students from economically weaker sections, such as the Central Scheme for Interest Subsidy (CSIS), although availability and applicability can vary. This can reduce the interest burden on your education loan for law colleges.

Can I apply for an education loan for LLB 3 years while studying abroad?

No, the education loan for LLB 3 years is typically applicable only for students pursuing law degrees in India. However, banks may offer separate loan schemes for studying law abroad.

Do banks offer concessions for female students applying for an education loan for LLB?

Some banks offer lower interest rates for female students applying for an education loan for LLB. For example, SBI's "Scholar Loan" provides special interest rate concessions for female applicants.

Can I cover living expenses with an education loan for law colleges?

Yes, most banks allow students to cover living expenses such as hostel fees, books, and personal expenses in addition to tuition fees through their education loan for law colleges.

Do I need an existing bank account to apply for an education loan for LLB?

No, you do not need an existing account with a bank to apply for an education loan for LLB. However, having a pre-existing relationship with the bank might streamline the loan process.

What happens if I can't repay my education loan for LLB on time?

If you cannot repay your education loan for LLB on time, the bank may charge late payment fees and take legal action to recover the loan, especially if collateral was involved. Communication with the bank is essential if you're facing financial difficulties.

Can I get an education loan for a 5-year integrated LLB (BA LLB / BBA LLB / BCom LLB)?‍

Yes. All major banks and NBFCs fund 5-year integrated law programs as long as the institution is UGC/BCI-recognised.

Does the bank consider my CLAT or LSAT score for loan approval?‍

Some banks consider CLAT/LSAT scores as positive indicators of academic strength and may offer higher loan amounts or quicker approvals for top-ranked admissions.

Can I get an education loan for LLB if my college is not BCI-approved?‍

No. Banks fund only Bar Council of India-approved law programs. Non-recognised colleges are not eligible.

Do lenders finance coaching fees for CLAT PG or AIBE?‍

Typically no. Education loans cover degree programs, not coaching. However, some NBFCs may consider it if bundled with the course.

Is it possible to get a 100% fee coverage loan for LLB?‍

Yes. Many lenders offer full fee coverage, and some also include exam, hostel, and laptop expenses, especially when collateral is provided.

How much margin money is required for an LLB education loan?‍

Public banks may require 5–15% margin, while NBFCs and fintech lenders like Propelld often offer 0% margin options.

What is the minimum income required for the co-applicant for an LLB loan?‍

There is no fixed threshold, but a stable monthly income generally improves approval chances for unsecured loans.

Can I apply for an LLB education loan without visiting the bank physically?‍

Yes. Many lenders, including NBFCs, offer 100% digital processing, including e-signing and online document uploads.

Does the bank check my past academic performance before sanctioning the loan?‍

Yes. Class 12 and graduation marks (for 3-year LLB) play a role in assessing repayment capacity and academic consistency.

Will banks fund LLB colleges with lower placement records?‍

Yes, but unsecured loan approvals may be restricted. Collateral or a stronger co-applicant profile may be required.

Can I shift my existing LLB loan to another bank (loan transfer)?‍

Yes. Education loan refinancing is allowed if you’ve completed at least 6–12 months of repayment or have a clean moratorium record.

Can I request extra funding during the course for internships, moot courts, or conferences?‍

Some banks allow top-up loans for academic events, subject to documentation and lender policies.

Do lenders offer pre-admission sanction letters for LLB?‍

Yes. Pre-sanction letters help students secure admission or show financial readiness during counselling.

Can I apply for LLB education loans jointly with both parents?‍

Yes, if lenders allow. Dual co-applicants strengthen financial eligibility and increase the chances of securing higher loan amounts.

Are part-time or evening LLB programs eligible for education loans?‍

Generally no. Lenders only fund full-time, regular degree programs.

Do banks charge penalties for missing EMIs during the moratorium?‍

No EMIs are charged during the moratorium, but simple interest normally accumulates unless subsidised under CSIS.

Can I get a loan for LLB if my co-applicant has a low credit score?‍

Yes, but lenders may require collateral,an additional guarantor, or a reduced loan amount.

Should I apply for a collateral or a non-collateral loan for LLB?‍

If fees are moderate (₹1–5 lakh), non-collateral loans are common; for higher fees or premium private law schools, collateral loans offer lower interest rates.

Can I refinance my LLB loan with an NBFC for better interest rates?‍

Yes. Many NBFCs like Propelld offer balance transfer options to reduce EMI or extend tenure.

How to Get Education Loan for LLB in 2025 | India & Abroad Guide

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