Home
/
All Blogs
/
Edu Loan for PhD

Education Loan for PhD: Banks, Eligibility and Collateral

Written By
Vaishali Pandey
&
Reviewed By
Updated On:
Jul 4, 2025
|
5 Minutes
mins read
Vaishali Pandey
•
Updated On:
Jul 4, 2025

Get Education Loan

2 Days Disbursement. 3 Steps Process. 4 Docs to Submit

Thanks! We will reach out to you shortly.
Oops! Something went wrong while submitting the form.
Apply Now

Table of Contents

Table of Contents

Heading 2
Heading 2
This is also a heading
This is a heading
Latest Updates
Edu Loan Without Collateral
UCO Bank Edu Loan
Dual Bank Edu Loan India

Apply Education Loan

Up to Rs. 50 Lakhs for 10 Years.
10X Faster.

Thanks! We will reach out to you shortly.
Oops! Something went wrong while submitting the form.
Apply Now

While getting a PhD is an excellent investment in your future, it may also be costly. Fortunately, there are many options for education loans for PhD students in India. 

In this article, you can learn more about the education loan for PhD in India and overseas, the education loan for PhD interest rate, and other details such as collateral requirements and popular banks.

‍

Education Loan for PhD in India: Key Highlights

Depending on the lender's terms and the student's financial circumstances, students can get an education loan for PhD in India with or without collateral.  

Education Loan for PhD in India: Key Highlights
Category Details
Limit of loan amount • Up to Rs.40 lakh unsecured
• Up to Rs.2 crores secured
Expenses covered by the loan Academic:
• Examination, Library, or Laboratory fees
• Tuition and Fees payable to the institute
• Living expenses, including hostel fees
• Purchase of books, Equipment, or Uniforms

Additional:
• Overseas Insurance
• Travel expenses
• Purchase of computers or laptops
• Cost of health insurance
Moratorium Period Duration of the course plus 12 months
Interest rate • Collateralised: Starts from 8.55% approximately
• Non-Collateralised: Starts from 9.55% approximately
Repayment Duration 15 years, including the moratorium period
Co-applicant Parents, spouse, siblings, and parent-in-law
Value of collateral • Liquid security: 1.1 times the requested loan amount
• Immovable property: 1.25 times the requested loan amount

‍

Eligibility for Education Loan for PhD

The standard qualifying requirements for an education loan for PhD from various banks are listed below:

Criteria Details
Citizenship Indian
Program Full-time PhD in a recognised university or institution in India
Age Limit 18 to 35 years
Minimum Qualification Graduation degree

If you're looking for the best financial options to fund your PhD, check out the best education loans in India to compare rates and terms

‍

Overview: Education Loan for PhD Abroad 

While pursuing a PhD abroad might provide students with invaluable experiences, it also comes with a hefty price tag. Many students look to education loan for PhD abroad to lessen this load. 

Overview: Education Loan for PhD Abroad 
Category Details
Limit of loan amount • Up to Rs.75 lakh without collateral
• Up to Rs.1.5 crores with collateral
Expenses covered by the loan Academic:
• Course tuition fee
• Cost of books, uniforms, and equipment
• Examination fees
• Library and laboratory charges
• Living expenses, including the accommodation fee

Additional:
• Cost of laptop or computer
• Travel expenses
• Cost of medical insurance premium
• Premium of overseas insurance
Moratorium Period The total duration of the course plus one year
Interest rate • Collateralised: Starts from 8.55% approximately
• Non-Collateralised: Starts from 9.55% approximately
Repayment Duration The moratorium period of 24 months
Co-applicant Parents, spouse, siblings, and parents-in-law
Repayment Policies • If the university is included in the prime list, then payment of interest is optional
• If the university is not on the prime list, then simple interest will have to be paid

Many PhD students choose to study abroad, where educational loans can differ. For students considering international universities, explore the education loan for abroad studies to help finance your education.

‍

Eligibility for Education loan for PHd Abroad

Here are the eligibility criteria for PhD education loans abroad for Indian students:

  1. Indian citizenship
  2. Good credit history
  3. Meet the minimum age requirement for the loan
  4. Confirmed admission to a recognised university abroad
  5. Good academic record
  6. Stable income or source of income for loan repayment

‍

Get Education Loan for Any College. 100% Fees Financed. Check out Propelld Education Loan

‍

Types of Education Loan for PhD 

You can take two types of education loan for PhD. Let’s compare both of them: 

Criteria Secured Education Loan Unsecured Education Loan
Collateral Requirement Requires collateral, such as property, fixed deposits, or assets No collateral required, some banks might require a co-applicant
Loan Amount Higher loan amount depending on the value of collateral Typically offers lower loan amounts
Interest Rates Lower interest rates due to collateral Higher interest rates due to increased risk
Eligibility Based on the value of collateral and academic background Based on credit score, financial standing, and academic background
Loan Approval Time Longer approval process due to collateral evaluation Faster approval process
Repayment Tenure Flexible and longer tenure (up to 15 years or more) Shorter repayment tenure (usually up to 7 years)
Risk Lower risk for lenders, as collateral is involved Higher risk for lenders
Preferred by Lenders Preferred for high loan amounts (e.g., overseas studies) Preferred for lower amounts (e.g., domestic education)
Eligibility for Government Schemes Eligible for interest subsidy schemes (if collateral meets criteria) May not always qualify for government schemes

If you're looking for the best financial options to fund your PhD, check out the best education loans in India to compare rates and terms.

Co-Applicant for Education Loan for PhD 

If you are taking a collateral-free loan, you will need a co-applicant with the following requirements to take the education loan for PhD in India with you: 

Aspect Details
Loan Type Without collateral
Co-applicant Requirement Required
Co-applicant Relationship Close family member (e.g., parent or spouse)
Co-applicant Credit History Must be good
Co-applicant Income Must be stable
Co-applicant Responsibility Responsible for repaying the loan if the student is unable
Co-applicant Information Required Personal and financial information, including proof of income
Potential Additional Requirement Co-applicant may need to provide collateral (e.g., property or investments)
Important Note The co-applicant is equally responsible for loan repayment and should carefully consider terms and the student’s ability to repay

Explore the top banks that give out education loans without collateral in 2024!

‍

Collaterals Accepted for Education Loan for PhD

The education loan for PhD interest rate is lesser for education loans with collateral than for loans without collateral. Here are the assets that can be used as a collateral for taking an education loan: 

Aspect Details
Collateral Requirement Immovable property:
- Flat
- Non-agricultural land
- House

Liquid securities:
- Fixed Deposit
- Government bonds
- LIC policy (Insurance policies)
Value of Collateral Liquid security: Minimum 1.1 times the requested loan amount

Immovable property: Minimum 1.25 times the requested loan amount

‍

‍

Documents for Education Loan for PhD Students in India 

Here are the documents you will need for applying to an education loan for PhD in India:

Category Required Documents
Basic Documents • Education loan form provided by the lender
• Bank account statement for the last six months with co-signer signature
• One year of salary credit (for salaried co-borrower)
• One year of business transactions, self-attested documents, and liability and personal asset statement (for self-employed co-borrower)
• Identification proof (PAN card and passport)
Residential Proof (any one) • Aadhar Card
• Voter ID
• Passport of the applicant
• Electricity bill
• Telephone bill
• Ration card
• Bank account statement
Note: Provide two different address proofs if current and permanent addresses differ
Academic Documents • Print out the university ranking form
• Scorecard of IELTS, GMAT, or GRE
• Marksheets and certifications (10th, 12th, and degree)
• Fee structure of the course
• Proof of enrollment into the institution or university
Income Documents (Co-applicant) Salaried:
• Previous two years' ITR
• Salary slips of last three months
• Previous two years' Form 16
• ID card of the employer

Self-employed:
• Last three years' profit and loss account and balance sheet
• Address proof of the business
• Previous three years' ITR
Other Documents • Letter confirming extra amount coverage by co-applicant
• Advance transaction receipts
• Invoice for expenses (travel, laptop)
• Previous year loan statement (if applicable)
• Letter explaining lack of income tax return (if applicable)
• Letter on Rs. 100 stamp paper explaining gaps in the loan application
Collateral Documents • Gift Deed, Will, or Registered Sale Agreement
• Property Title deed
• Current electricity bill and newest property tax bill with the same address
• Link documents for 30 years or Past chain of sale deed establishing title or EC
• Previous sale deed (if the property has been owned for more than 30 years)
• Original receipt of registration
• Letter of allotment by authorised government authorities (if applicable)

Know the documents required to apply for an education loan and their details!

‍

‍Minimal Documentation. Higher Chances of Approval. Easy Online Processes. Check Your Eligibility.

‍

Education Loan for PhD : Interest Rate & Other Details 

The interest rate for education loans for PhDs differs across various lenders. You can expect a minimum interest rate of 8.5% and it can increase till 13.7%, depending on the lender.

Below are the interest rates and other details of Education loan for PhD offered by various banks and NBFCs:

Education Loan Schemes Interest Rate Maximum Loan Amount Maximum Tenure Processing Fees
Axis Bank From 13.70% p.a. Rs. 50 lakh Up to 15 years 2% of the loan amount
Bank of Baroda From 8.55 % p.a. Rs. 1.50 crore 15 years No processing charges up to Rs.7.50 lakh; 1% of the loan amount up to Rs.10,000
Canara Bank From 9.25% p.a. Min Rs 7.5 Lakhs, Max- 100% of Collateral Value 15 years 10% of the loan amount
Federal Bank From 12.55% p.a. In India - Rs.10 lakh Abroad - Rs.20 lakh 15 years Nil
HDFC Bank 9.50% Up to Rs.1.5 crore 15 years Up to 1.5% of the loan amount
Propelld 12% onwards Up to 2 Crores 15 Years 1-3% of the Loan Amount

Explore the list of banks with the lowest interest rate on education loans in 2024.

‍

How to Apply for an Education Loan for PhD in India? 

It's easy to apply for an education loan for PhD online. 

Let's take the example of Propelld here: 

The process of applying for an education loan with Propelld is super easy and hassle free

Method of Online Application

Step 1:  Visit Propelld’s official website.

Step 2: Click on “Apply Loan” 

Step 3: Fill in the details of your institute and complete a quick and easy KYC. 

Step 4: The loan amount will be disbursed into the account in a TAT that is 10 times faster than banks. 

While getting an education loan for PhD is easy and straightforward, most banks have a complicated procedure and long processing times. Get the best education loan for students with Propelld!

‍

‍‍Get your Loan Disbursed 10 times Faster than Banks. Apply Now.

‍

Why Propelld? 

Propelld covers 100% of your expenses for any educational course in India. Unlike complex bank application processes offered by other education loan lenders, you can apply simply and straightforwardly. The 100% digital process and unique selection criteria are hassle-free and quick. 

Here are some more benefits of applying for a loan through Propelld Education Loan:

Particulars Details
Max Loan Amount 50 Lakhs
Collateral Not Required
Moratorium Available
Processing Time 10 Times Faster than Banks
Disbursal Time 7 Days
Approval Rate Higher than Other Banks
Special USP Marks Based Approval
% Financed 100% of Fees

Get an Education Loan for PhD from Propelld today!

‍

Related Articles

‍

Are you parent of a JEE/NEET aspirant?

Join the group and get latest updates, expert advice on counselling and college selection. Completely FREE!
Join Now!

Need guidance on funding your MBA College Fees?

Join the group and learn about the ways you can fund your MBA. Completely FREE!
Join Now!

Education Loan for Medical Colleges

MBBS | BDS | BAMS | Bsc Nusring |Or Pay Fees for Any Medical Course in India - Up to. Rs. 50 Lacs

Fund Your Education with Propelld

2 Days Disbursement. 3 Steps Process. 4 Docs to Submit

Thanks! We will reach out to you shortly.
Oops! Something went wrong while submitting the form.
Apply Now

No Collateral Education Loan - 10X Faster than Banks

Available in all top Coaching Institutes
Get Loan

‍

FAQs About Education Loan for PhD 

Who is eligible for an education loan for a PhD in India? 

To qualify, you must be an Indian citizen aged 18 or above and have confirmed admission to a recognised institution. A co-borrower, typically a parent or legal guardian, is also required​.

What expenses does an education loan for PhD cover? 

The loan covers tuition fees, examination and library fees, accommodation, research materials, travel expenses, and sometimes living expenses​.

Are education loans for PhD available without collateral? 

Yes, unsecured loans are available without the need for collateral, but they generally come with higher interest rates compared to secured loans.

What is the difference between secured and unsecured PhD education loans? 

Secured loans require collateral such as property or fixed deposits, offering lower interest rates, while unsecured loans don’t require any assets but have higher interest rates.

Can I apply for a PhD education loan if I am studying abroad? 

Yes, loans are available for PhD studies abroad, with some banks offering coverage up to ₹1.5 crore.

What documents are required for an education loan for PhD? 

Documents include proof of admission, academic certificates, a fee structure, identity proof, and passport-sized photos. The co-borrower must also provide income proof and collateral documents if applicable​.

What is the interest rate for a PhD education loan? 

Interest rates typically range from 8.5% for secured loans to 10-12% for unsecured loans​.

How long is the repayment period for PhD education loans? 

Most loans offer a repayment period of up to 12 years, including a moratorium period (course duration plus 12 months.

Can I prepay my PhD education loan? 

Yes, many financial institutions allow for prepayment, although some may charge prepayment penalties​.

Is there a margin requirement for education loans for PhD? 

For loans above ₹4 lakhs, a margin of 5% for studies in India and 15% for studies abroad may apply​.

Can I get a tax benefit on the interest paid for my PhD education loan? 

Yes, under Section 80E of the Income Tax Act, you can claim a tax deduction on the interest paid on your education loan​.

‍What is the loan approval time for a PhD education loan? 

Most banks convey their decision within 15 working days, provided the application is complete​.

Can I apply online for a PhD education loan? 

Yes, many banks and financial institutions offer the convenience of applying online with electronic submission of documents​.

‍What happens if I miss an EMI payment on my PhD education loan? 

Penalties for missed payments vary but typically include a late fee and penal interest of around 2% per month on overdue instalments​.

Do I need to start repaying the loan while studying? 

Many loans offer a moratorium period where repayment begins after completing the course. Some institutions encourage interest payments during this period to reduce the loan burden​.

What is the role of a co-borrower in a PhD education loan? 

The co-borrower is equally responsible for loan repayment and must meet income and documentation requirements. The co-borrower’s income is critical for loan approval​.

About the Author

s
Vaishali Pandey
Content Marketer
Check out full profile

A banker turned content marketer with expertise in growth-focused content strategies for the finance and digital sectors.  She currently drives data-backed content initiatives at Propelld, through high-impact storytelling.

Before moving into content marketing, Vaishali spent nearly a decade in banking, across their asset and lending divisions and spent almost a decade in finance. An MBA in Marketing and a writer at heart, she finally took up content marketing and now simplifies money talks for the readers.

She is also a certified digital marketer (MICA), combining data-driven insights with creative storytelling to deliver measurable business growth.

Beyond work, Vaishali is a handcrafted brand founder, avid reader, and travel & food blogger, blending creativity and strategy in everything she does.

Text LinkText Link
Read More
Read Less
Check out full profile

Related Articles

Top Colleges

No items found.

Colleges For You

No items found.
Join Group for JEE & NEET Updates
Fund Your Higher Education with Us

Propelld Education Loan

2 Days Disbursal
Collateral Free Loans
10X Faster than Banks
"Propelld’s innovative approach and creative solutions made the daunting task of securing a loan an artful experience."
Tanuj Masiwal
IIM Ahmedabad
Let's Get the Best Offer for You
Thanks! We will reach out to you shortly.
Oops! Something went wrong while submitting the form.