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Education Loan in Lucknow

Education Loan in Lucknow: Top Banks, Schemes, Interest Rates & Expenses Guide

Written By
Vaishali Pandey
&
Reviewed By
Shailesh Jain
Updated On:
Sep 26, 2025
|
7
mins read
Vaishali Pandey
Updated On:
Sep 26, 2025

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Planning higher education often comes with one big question: how to fund it. Lucknow, being a hub for students pursuing courses in India and abroad, offers multiple options for education loans ranging from small amounts to up to INR 2 crore

These education loans allow you to focus on your studies while paying back gradually, usually after completing the course. This guide will help you navigate banks, loan types, and interest rates so you can make an informed decision.

Key Takeaways

  • Education loans in Lucknow cater to both domestic and international studies, with loan amounts ranging from small sums to up to INR 2 crore.
  • Loans typically cover tuition fees, hostel costs, examination fees, books, travel expenses, and even insurance premiums, depending on the bank and loan scheme.
  • Interest rates in Lucknow range from 8.3% to 13.5%, with discounts available for female applicants and specific courses.
  • By comparing interest rates, being organised with documentation, and understanding prepayment terms, you can ensure a smoother and faster application process.

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Expenses Covered by Education Loan in Lucknow

Education loans in Lucknow typically cover essential academic expenses for both domestic and international studies. However, the exact coverage depends on the loan scheme, and limits may apply to certain costs. 

Here's a breakdown of everyday costs covered:

Core Expenses:

  • Tuition fees are often paid directly to the university or college.
  • Hostel fees or reasonable off-campus lodging expenses.
  • Charges for academic facilities and exams.

Other Expenses:

  • Costs for required books, course-specific tools, and instruments.
  • Purchase of computers/laptops, typically capped at a percentage of tuition.
  • Caution and refundable deposits, supported by receipts.
  • Travel expenses for studying abroad.
  • Coverage for the borrower's insurance.
  • Study tours, project work, and thesis-related expenses.

Potential Variations:

  • Some banks provide a lump sum for incidental costs, with receipts required for higher amounts.
  • Certain schemes may cover the cost of a two-wheeler for commuting.

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Best Banks in Lucknow for Education Loans (For Indian Studies)

You must choose a bank not just based on loan amount but also on processing fees and prepayment flexibility. Here's a quick comparison of banks catering to students pursuing higher education in India:

Bank Name

Loan Amount

Processing Fee

State Bank of India

Up to INR 50 lakh

Nil - INR 10,000 + Tax

Axis Bank

Up to INR 75 lakh (unsecured)

Up to 2% of the amount + GST

ICICI Bank

Up to INR 1 Cr

Up to 2% of the amount + GST

IDFC First

Up to INR 30 lakh (unsecured)

Up to 1.5% of the amount

Union Bank of India

Up to INR 1.5 Cr (secured), Up to 40 L (unsecured)

INR 5000 (refundable)

HDFC Credila

Up to INR 40 lakh

1% + GST

Auxilo

Up to INR 65 lakh

Up to 2% of the sanctioned amount

InCred

Up to INR 60 lakh

0.75% - 1% of the sanctioned amount

Bank of Baroda

INR 7.5 L - 1.5 Cr

1% (max INR 10,000)

Top Banks Offering Education Loans in Lucknow (For International Studies)

Recently, the number of Indian students studying abroad reached a record high of approximately 1.3 million, a significant increase from the past years, with Canada, the US, and the UK remaining popular destinations. However, international studies often require higher amounts of collateral. 

Here are some of the best options if you are planning to study abroad:

Bank Name

Loan Amount

Processing Fee

State Bank of India

Up to INR 1.5 Cr (secured)

INR 10,000

Axis Bank

Prime A: INR 1 Cr, Prime B: INR 40 L

0.75% of the sanctioned amount

ICICI Bank

Up to INR 2 Cr (secured), Up to INR 1 Cr (unsecured)

0.75% - 1% + GST

IDFC First Bank

Up to INR 75 L (without collateral)

Up to 1.5% of the sanctioned amount

Union Bank of India

Up to INR 2 Cr (secured), Up to INR 40 L (unsecured)

INR 5000

HDFC Credila

Up to INR 75 L

0.5% - 1%

Avanse

Up to INR 75 L

1% - 1.5%

Auxilo

Up to INR 65 L

0.5% - 1.5%

InCred

Up to INR 80 L

1% - 2%

MPower Financing

Up to 100,000 USD

5% (adjusted in loan amount)

Prodigy Finance

Up to 100% of tuition cost

Up to 5%, added to loan amount*

Bank of Baroda

Up to INR 1.5 Cr (secured)

INR 10,000 + GST

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Other NBFC Banks Without Collateral Loan and Their Offerings

Several NBFCs offer unsecured personal loans, providing quick access to funds without requiring collateral. These loans are typically evaluated based on your income, credit score, and repayment history. While interest rates tend to be higher to mitigate the lender's risk, the approval process is faster, and documentation is minimal. 

Here are some leading NBFCs offering unsecured personal loans in India:

  1. Bajaj Finserv

Offers personal loans up to ₹40 lakh with interest rates ranging from 11% to 38% p.a., depending on eligibility. Known for fast processing and easy applications.

  1. Aditya Birla Capital

Provides loans up to ₹50 lakh with rates starting from 10.99% p.a. Flexible loan tenures of up to 7 years make this a popular option.

  1. Tata Capital

Offers loans up to ₹35 lakh with interest rates starting at 10.99% p.a., and repayment periods of up to 6 years.

  1. HDB Financial Services

Personal loans of up to ₹20 lakh, with interest rates ranging from 17.25% to 36% per annum. Eligibility depends on your income and location.

  1. L&T Finance Holdings

Unsecured personal loans of up to ₹15 lakh, with interest rates starting at 11.50% p.a., and a quick, digital application process.

Planning to study overseas but worried about finances? Don't miss our detailed guide on how to get an education loan for abroad studies.

Documents Required for Education Loans in Lucknow

For an education loan in Lucknow, both the student and co-applicant must provide financial documents, academic records, and identification. Documentation requirements may vary by bank and loan amount, especially when collateral is involved.

Here is a curated list of documents required for secured and unsecured loans in Lucknow:

For Unsecured Education Loans

Category

Document Required

Applicant Documents

  • Proof of admission
  • Class 10, 12, or degree certificates
  • Breakdown of course fees
  • IELTS, TOEFL, GRE, GMAT scores
  • Aadhaar, PAN card, or Passport
  • Recent photos as per the bank's requirements

Co-Applicant Documents

  • Aadhaar, PAN card, or Passport
  • Utility bill, voter ID, etc.
  • IT returns, salary slips, or business financials
  • Documents proving the relationship with the applicant

Other Documents

  • Loan form completed and signed
  • Gap certificate if there's a gap in studies
  • Receipts for travel, books, equipment, etc.

For Secured Education Loans

  • Property ownership proof, like a possession certificate or property registration.
  • Title Deed & Certificate of Encumbrance
  • Property Valuation Report from a certified valuer.
  • No Objection Certificate (NOC) from the housing society.
  • Land documents for land collateral, including registration and survey maps.
  • Letter of Allotment (for Lucknow) from the Lucknow Development Authority (LDA).

Submitting all required documents accurately and ahead of time can speed up your loan processing by 2-3 weeks.

Education Loan Interest Rate in Lucknow

Interest rates depend on collateral, co-applicant income, and the type of course. These rates can vary by approximately 8% to 14%, with female students often enjoying concessions of up to 0.5% to 1%

Here's a glance at specific rates and concessions:

Bank Name

Interest Rate

Concessions

State Bank of India

8.3%

0.5% Rinn Raksha, 0.5% for females

Axis Bank

11.5%

0.5% - 2%

ICICI Bank

10.75%

0.5% for female students

Planning to take an instant loan for higher studies? Ensure you are familiar with the co-applicant rules first. Our guide on 'Who Can Be a Co-Applicant for an Education Loan' breaks down the eligibility and documents required.

How to Make the Most of an Education Loan in Lucknow?

When taking an education loan in Lucknow, understanding the details of the loan terms and strategically figuring out the process can help you save money and time. Here's how you can make the most of your education loan:

  • Compare Interest Rates and Concessions

Different banks offer varying interest rates, with some providing discounts of up to 2% for female applicants or specific courses. Compare options to get the best deal.

  • Choose Co-Applicants Wisely

A strong financial co-applicant (like a parent with a stable income) can help secure a lower interest rate, making the loan more affordable in the long run.

  • Understand Prepayment Terms

Look into prepayment charges before committing to a loan. Some banks allow partial prepayment without penalties, giving you flexibility to reduce your debt early.

  • Be Organised with Documentation

Ensure all necessary documents are ready before applying. Incomplete paperwork can delay your application, so staying ahead of the process can help streamline it.

  • Decide Between Unsecured and Secured Loans

Unsecured loans are processed faster but have lower loan limits, while secured loans offer higher amounts and require collateral. Choose based on your funding needs.

Securing an education loan in Lucknow doesn't have to be overwhelming. By understanding bank offerings, interest rates, required documents, and eligibility, students can focus on their studies without financial stress. Whether you're aiming for a top university in India or an Ivy League abroad, Lucknow offers loan options tailored to your ambitions.

Propelld has you covered with personalised education loans that fit your unique needs. Propelld offers fast digital approvals, study loans of up to ₹50 lakhs, and the ease of zero-collateral requirements. 

Take the first step towards your future—Apply with Propelld today!

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Important FAQs About Education Loan in Lucknow

Can I apply for an education loan in Lucknow if I am planning to study abroad?

Yes, banks in Lucknow offer education loans specifically for studying abroad. You can borrow up to INR 2 crore, depending on the course and university. The loan amount may depend on the policy of your chosen bank and the collateral you provide.

What are the best banks in Lucknow for an education loan with low interest rates?

Banks like State Bank of India (SBI) and Bank of Baroda (BOB) offer competitive interest rates for education loans in Lucknow. SBI starts at 8.3%, and BOB offers loans starting at 8.85%, with discounts for female students.

Is a co-applicant necessary for an education loan in Lucknow?

Yes, most banks in Lucknow require a co-applicant, typically a parent or guardian. The co-applicant's income and financial stability help secure the loan, particularly for unsecured loans.

How do education loans in Lucknow cover living expenses for studying abroad?

Education loans from banks in Lucknow often cover living expenses, including accommodation, food, and travel costs. However, some banks may impose caps, so it’s best to clarify limits when applying.

How can I ensure a smooth and fast education loan disbursement in Lucknow?

To expedite the disbursement process, ensure that all your required documents (admission letter, fee structure, and test scores) are ready and correctly completed. Submit them promptly to avoid delays, especially for collateral verification.

Are there education loan schemes in Lucknow with no collateral for courses in India?

Yes, several banks, including Axis Bank, IDFC First, and HDFC Credila, offer unsecured loans for domestic studies in Lucknow, typically ranging from INR 30-50 lakh. These loans don't require collateral but need a strong financial co-applicant.

What’s the maximum loan amount I can get for a course in Lucknow?

For most banks in Lucknow, the maximum loan amount for domestic studies is INR 50 lakh, and up to INR 2 crore for studying abroad, depending on the loan scheme and collateral offered.

Do I need a good credit score to get an education loan in Lucknow?

Yes, a good credit score (typically 650 or higher) helps secure a loan with favourable terms, especially for unsecured loans. A lower score may lead to higher interest rates or require a stronger co-applicant.

What costs are typically covered by an education loan in Lucknow?

Education loans cover tuition fees, hostel fees, travel expenses (for studying abroad), course materials, and the cost of computers/laptops. Additional costs like insurance premiums and study tours can also be covered, depending on the bank’s policy.

Can I apply for an education loan if I have a gap in my studies?

Yes, a gap in studies can be explained through a gap certificate or a self-declaration. Some banks may require extra documentation or an explanation for the gap, but it won’t necessarily disqualify you from getting a loan.

What is the moratorium period for an education loan in Lucknow?

The moratorium period is the time during which you are not required to make any payments. It usually covers the course duration plus 6 months to 1 year after graduation, giving you time to find a job before repayment starts.

How do I choose between unsecured and secured education loans in Lucknow?

Unsecured loans are quicker and require no collateral, but may have lower limits and higher interest rates. Secured loans offer higher loan amounts and lower interest rates, but they require collateral, such as property or fixed deposits. Choose based on your funding needs and available assets.

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.

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Shailesh Jain
Chartered Accountant, Finance Strategist, Associate Director
Check out full profile

A seasoned Chartered Accountant, Shailesh Jain is a finance and compliance leader specializing in corporate finance, financial operations, and fintech-driven lending models. At Propelld, he scales education loan offerings by shaping financial strategies, optimizing operations, and ensuring regulatory excellence, driving sustainable growth in the edtech and fintech space.

An expert in Fintech & Edtech innovation, Shailesh leverages financial insights to transform education lending, combining analytical rigor with strategic foresight. Previously, he led the finance team at Khatabook, building a new lending venture, and has worked with PwC, ICICI Bank, and Mulberry Silks, gaining strong expertise in audit, risk mitigation, and strategic decision-making.

Passionate about financial innovation, he continues to advance education financing in India, creating efficient, scalable, and compliant lending ecosystems.

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