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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.
| 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.
| 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:
- Indian citizenship
- Good credit history
- Meet the minimum age requirement for the loan
- Confirmed admission to a recognised university abroad
- Good academic record
- 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, as seen with HDFC Credila education loan. 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 |
Get a no collateral Education Loan
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, from Bank of India education loan to NBFCs. 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!
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!
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