How to Get an Education Loan for MCom in 2025 | Complete Student Guide

FAQs on Education Loan for MCom

What type of education loans are available specifically for MCom programmes in India?‍

Many banks offer loans tailored explicitly for postgraduate programs like MCom, covering tuition, living expenses, books, and project costs at recognised institutions. Propelld, for instance, has specialised options suited for commerce students.

Is MCom covered under the education loan eligibility criteria for all banks?‍

Most banks consider MCom a recognised postgraduate programme for loan eligibility, provided the institution is approved by bodies like UGC or AICTE.

Can students pursuing an MCom in India access the same loan terms as those studying abroad?‍

No, loan terms often differ for domestic and international education. Loans for MCom programmes abroad may include higher amounts and different interest rates, typically 1-3% higher than domestic rates.

Are there any special loan terms for MCom students applying to specific universities?‍

Some banks offer preferential terms for top-ranked institutions. Check if your MCom college has any tie-ups with banks that offer lower interest rates or exclusive loan benefits.

Is there a moratorium period for MCom students, and how does it work?‍

Yes, a moratorium period is usually offered, covering the study duration plus 6–12 months after course completion. This grace period allows MCom students to find employment before starting repayment.

Can I apply for a loan if I’m pursuing a part-time or distance MCom course?‍

While many banks prefer full-time courses, some may offer loans for part-time or distance MCom courses if the institution is UGC-recognised. Check specific lender policies.

Do banks provide loans for integrated MCom courses?‍

Some banks offer loans for integrated BCom-MCom courses, provided the students meet the eligibility criteria for recognised institutions and the course duration.

How does Propelld support students specifically in commerce-related fields like MCom?

Propelld offers customised loan options for commerce students, understands the needs of MCom courses, and provides flexible repayment options that are aligned with expected career outcomes.

What is the typical loan amount for an MCom course in India?‍

Most banks offer loans up to Rs. 10 lakh for MCom courses in India, though the amount can vary based on course costs and institutional reputation.

Is there any difference in the co-applicant requirements for an education loan for MCom?‍

Most MCom education loans require a co-applicant, usually a parent or guardian, as additional financial security.

Are interest subsidies available for MCom loans in India?‍

Yes, some government and bank-specific schemes offer interest subsidies for postgraduate programmes. Check eligibility under schemes like the Central Government Interest Subsidy Scheme if you meet the income requirements.

How does having an MCom impact my loan eligibility for further education?‍

If you’ve already taken an MCom loan and are looking to pursue further studies, some banks may allow you to extend or refinance your loan, depending on your repayment history.

What are the repayment options specific to MCom graduates?‍

Banks offer flexible repayment terms for MCom students, often allowing EMIs to start after a moratorium period. Propelld, for example, tailors repayment plans to match job market conditions for commerce graduates.

What is the advantage of using an education loan for MCom over personal savings?‍

Education loans allow for a manageable repayment structure and potential tax benefits under Section 80E, making them an effective way to finance an MCom programme without depleting personal savings.

Can an MCom student transfer their loan to another bank for lower interest rates?‍

Yes, some banks offer a loan transfer facility, allowing students to refinance their loans for a better interest rate or more favourable terms.

What factors can improve an MCom student’s loan approval chances?‍

A high academic record, secured admission to a top-tier institution, and a financially stable co-applicant can all enhance the odds of approval for an MCom education loan.

Are MCom education loans considered professional postgraduate loans?

Yes, lenders categorise MCom under higher-education professional programmes, enabling students to access flexible repayment schedules and often better terms.

Can I get a collateral-free education loan for MCom?

Most banks and NBFCs offer collateral-free loans up to a certain limit, typically between ₹7.5 lakh and ₹10 lakh, depending on the institution’s reputation and the co-applicant’s income profile.

Do private lenders offer better loan terms for MCom compared to public banks?

Private lenders and NBFCs may offer quicker processing, relaxed documentation, and customised repayment options, while public banks may offer lower interest rates but require stricter eligibility and collateral conditions.

What expenses are covered under an MCom education loan?

Loans generally include tuition fees, exam and library charges, project expenses, books, laptop purchases, accommodation, travel, and other essential academic costs.

Does the reputation of the MCom college affect loan approval?

Yes, students admitted to well-known universities or NAAC-accredited colleges often receive faster approvals, higher loan amounts, and lower interest rates due to perceived lower risk.

Can students get an education loan for online or distance-learning MCom programmes?

Some banks and NBFCs approve loans for UGC-recognised online or distance-learning MCom courses, but the availability may vary by lender.

Are there special loan schemes for MCom students from tier-1 commerce colleges?

Yes, institutions with bank tie-ups or strong academic rankings often come with preferential loan schemes such as lower interest rates, relaxed collateral norms, or higher loan ceilings.

Do lenders offer pre-admission education loans for MCom applicants?

A few lenders provide pre-admission sanction letters that help secure admission or visas for abroad programmes. The final loan approval is issued after confirming admission.

What documents are required for an MCom education loan application?

Common documents include admission proof, fee structure, ID/address proof, academic records, co-applicant income documents, bank statements, photos, and collateral papers if applicable.

How long does it take to get loan approval for an MCom programme?

Public banks may take 5–15 working days, while private lenders or NBFCs like Propelld often process applications within 24–72 hours, depending on the profile completeness.

Can loan disbursement be made semester-wise for MCom courses?

Yes, lenders generally disburse funds semester-wise or year-wise, directly to the institution in sync with the fee schedule.

How does the moratorium period benefit MCom students?

During the moratorium, students are not required to pay EMIs. Some lenders allow full deferment, while others require simple interest or partial interest payments.

Can students pay only partial interest during the MCom course?

Many lenders allow flexible in-course repayment options—full interest, partial interest, or EMIs after course completion.

Are education loan tax benefits available for MCom studies?

Yes, interest paid on an education loan qualifies for tax deduction under Section 80E of the Income Tax Act for up to 8 years, regardless of the loan amount.

Can I refinance or transfer my MCom education loan to another bank?

Loan refinancing is possible if another bank offers a lower interest rate or a longer repayment term. The borrower must fulfil the new lender’s eligibility criteria.

What happens if I discontinue or drop out of the MCom programme after taking a loan?

Lenders reassess the situation, and repayment typically begins immediately or after a short grace period. Some banks may demand repayment sooner since academic progress is linked to loan terms.

Do banks offer top-up loans for additional MCom expenses?

Students who need extra funds for projects, study tours, or extended semesters may request a top-up, subject to repayment capacity and lender approval.

Can I take a loan for an MCom specialisation such as Finance, Taxation, or Accounting?

Yes, specialisations do not affect eligibility. What matters is that the MCom programme is recognised and the student meets lender criteria.

Is income proof required if my co-applicant is self-employed?

Yes. Self-employed co-applicants must submit ITRs, GST filings (if applicable), business bank statements, and financial statements.

Can MCom students with low family income still get education loans?

Yes, students from low-income families may qualify for government subsidy schemes or collateral-free loans if they have strong academic records and admission to recognised institutions.

Are women students offered lower interest rates for MCom loans?

Some banks run special schemes offering a 0.50% concession for female students pursuing postgraduate studies.

What is the typical repayment tenure for an MCom education loan?

Repayment tenures usually range from 5 to 15 years, depending on the lender, loan amount, and whether the loan is secured or unsecured.

Can I get customised repayment plans for MCom loan?

Yes, NBFCs like Propelld typically offer flexible repayment schedules, customised EMI structures, and options aligned with a commerce student’s expected earning potential.

Does my credit score matter when applying for an MCom education loan?

Yes, a strong credit score for the co-applicant increases approval chances, lowers interest rates, and may allow for higher loan amounts.

Can an MCom student apply for an education loan without a co-applicant?

Most lenders require a co-applicant, but certain NBFCs may approve loans without one for working professionals with stable income.

Will an education loan affect my chances of getting loans in the future?

No, if repaid on time, it strengthens your credit profile. Defaults or delays, however, can affect future loan eligibility.

What if the cost of my MCom programme exceeds the standard loan limit?

You may opt for a secured loan or approach private lenders who offer higher unsecured loan limits depending on your profile.

Can NRIs or OCI students get an education loan for MCom in India?

Some banks offer education loans to NRI/OCI applicants if they have a resident Indian co-applicant and study at an approved institution.

Are scholarships considered when applying for an MCom loan?

Yes, scholarships or grants reduce the loan amount requirement. Lenders typically adjust the sanctioned amount accordingly.

Can I get an education loan to pursue an MCom from a private university?

Yes, as long as the institution is UGC-recognised or accredited. However, interest rates and loan limits may vary based on perceived institution quality.