Education Loan in Rajasthan 2025

Securing a quality education is crucial to building a bright future, but the rising costs can be a significant barrier. In Rajasthan, the demand for education loans has surged, with students increasingly turning to financial institutions for support. Rajasthan received 51 education loan applications in the recent academic year.

With tuition fees for professional courses escalating, securing an education loan in Rajasthan has become more critical than ever. This article delves into the eligibility criteria and top lenders for education loans in Rajasthan, providing a comprehensive guide to making informed financial decisions.

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Education Loan in Rajasthan: Overview

Education loans have become an essential financial tool for students in Rajasthan who aspire to pursue higher education without immediate financial constraints. In Rajasthan, where education costs have been steadily increasing, these loans help bridge the financial gap for families.

Various types of education loans are available to students in Rajasthan, ranging from loans for domestic education to those for studying abroad.

Also Read: Impact of Budget 2024 on Education Loans in India

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Best Banks for Education Loan in Rajasthan

Bank Name	Scheme Name	Loan Amount - Collateral Required	Processing Fee
SBI	SBI Scholar Loan Scheme	Up to ₹1.5 Crores with collateral	₹10,000 + GST
BOB	Baroda Education Loan to Students of Premier Institutions	Depends on the university	₹10,000 + GST
Karur Vysya Bank	Education Loan Scheme	Up to ₹1.5 Crores with collateral	₹10,000 + GST
Union Bank	Union Bank India Education Loan	Up to ₹2 Crores with collateral	1–2% of the loan amount
Axis Bank	Education loan for study in India	Up to ₹40 Lakhs unsecured	1–2% of the loan amount
IDFC First Bank	Education loan for study in India	Up to ₹50 Lakhs unsecured	1–2% of the loan amount
ICICI Bank	Education loan for study in India	Up to ₹50 Lakhs unsecured	1–2% of the loan amount
Avanse	Education loan for studying in India	Up to ₹60 Lakhs	1–2% of the loan amount
Incred	Education loan for studying in India	Up to ₹1 Crore (secured: no collateral limit, unsecured ~ ₹40–60 Lakhs)	1–2% of the loan amount
Auxilo	Auxilo education loan for studying in India	Up to ₹60 Lakhs	1–2% of the loan amount
Credila	Credila education loan for studying in India	Up to ₹1 Crore	1–2% of the loan amount

When evaluating the best banks for education loans in Rajasthan, it's crucial to understand their education loan moratorium period policies, as these can significantly impact your repayment schedule and financial planning.

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Best Banks for Education Loan in Rajasthan for Studies Abroad

Bank Name	Scheme Name	Loan Amount - Collateral Required	Processing Fee
SBI	SBI Scholar Loan Scheme	Up to 1.5 Crores with collateral	10K + GST
BOB	Baroda Scholar	Up to 1.5 Crores with collateral	10K + GST
Karur Vysya Bank	Education Loan Scheme	Up to 1.5 Crores with collateral	10K + GST
Union Bank	Union Bank Abroad Education Loan	Up to 1.5 Crores with collateral	1-2% of loan amount
Axis Bank	Education loan for studying abroad	Up to 40 Lakhs unsecured	1-2% of loan amount
ICICI Bank	Education loan for studying abroad	Up to 50 Lakhs unsecured	1-2% of loan amount
IDFC First Bank	Education loan for studying abroad	Up to 40 Lakhs unsecured	1-2% of loan amount
Avanse	Education loan for studying abroad	Up to 75 Lakhs for studying abroad	1-2% of loan amount
Auxilo	Education loan for studying abroad	Up to 75 Lakhs for studying abroad	1-2% of loan amount
Incred	Education loan for studying abroad	Up to 75 Lakhs for studying abroad	1-2% of loan amount
Credila	Credila education loan for studying abroad	Up to 75 Lakhs for studying abroad	1-2% of loan amount

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Interest Rate for Education Loan in Rajasthan for Studies in India

Bank Name	Interest Rate	Interest Rate Concession
SBI	Starting from 8.35%	0.50% for female students, 0.50% - Rinn Raksha
BOB	Starting from 10.60%	Discounts of up to 2%
Union Bank	Starting from 11.15%	For Female Students - 0.5%, If you pay the SI in total - 1%
Axis Bank	Starting from 11%	Up to 2%
ICICI Bank	Starting from 10.5%	Up to 2%
IDFC First Bank	Starting from 8.5%	Up to 2%
Karur Vysya Bank	Starting from 10%	Up to 2%
Avanse	Starting from 11%	Up to 2%
Incred	Starting from 11%	Up to 2%
Auxilo	Starting from 11%	Up to 2%
Credila	Starting from 11%	Up to 2%

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Interest Rate for Education Loan in Rajasthan for Studies Abroad

Bank Name	Interest rate	Interest rate concession
SBI	Starting from 8.35%	0.50% - for female students, 0.50% - Rinn Raksha
BOB	Starting from 10.60%	up to 2%
Union Bank	Starting from 11.15%	For Female Students - 0.5%, If you pay the SI in total - 1%
Axis Bank	Starting from 11%	up to 2%
ICICI Bank	Starting from 10.5%	up to 2%
IDFC First Bank	Starting from 8.5%	up to 2%
Karur Vysya Bank	Starting from 10%	up to 2%
Avanse	Starting from 11%	up to 2%
Incred	Starting from 11%	up to 2%
Auxilo	Starting from 11%	up to 2%
Credila	Starting from 11%	up to 2%

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Benefits of Education Loan in Rajasthan

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Below are some of the key benefits of availing an education loan in Rajasthan.

1. Affordable Financing for Higher Education
Education loans make higher education more affordable, especially as tuition fees keep rising. They are very helpful for students pursuing costly professional or technical courses like engineering, medicine, or management.

2. Flexible Repayment Options
Most education loans in Rajasthan come with easy and flexible repayment terms. Students usually start repayment after completing their course and finding a job. Banks also provide a moratorium period, which covers the study duration plus an extra 6 to 12 months before repayment begins.

3. Wide Coverage of Educational Expenses
Education loans cover more than just tuition fees. They often include hostel or accommodation charges, books, study materials, equipment, and even travel costs for students going abroad. This ensures complete financial support throughout the study period.

4. Better Career Opportunities
By removing financial barriers, education loans give students access to quality education. This allows them to choose the right course for their career goals, leading to better job prospects and higher earning potential in the future.

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Documents Required For Education Loan in Rajasthan

Category	Documents Required
Student Documents	Identification Documents: Aadhar card, PAN card, and passport Admission Letter: A letter confirming admission to a university Utility Bills: Recent electricity bills or house tax receipts Competitive Exam Scores: Scores from exams like IELTS, TOEFL, GRE, or GMAT (if applicable) Academic Records: 10th, 12th, and degree/diploma certificates Gap Certificate: Required for any gap between degrees Work Experience: A letter detailing work experience (if relevant)
Co-applicant Documents	For Salaried Individuals: Last 3 months of salary slips 6 months of bank statements Company ID Previous 2 years of Form 16 Last 2 years of Income Tax Returns (ITRs) For Self-Employed Individuals: Last 3 years of ITRs Proof of business address 6 months of bank statements Balance sheet and profit & loss account for the previous 3 years
Other Documents	A letter from the co-applicant accepting responsibility for any costs not covered by the loan (format provided by the financial officer) Bank statement detailing financial transactions of both student and co-applicant Invoice for any expenses like travel or a laptop A letter explaining the absence of the co-applicant's income tax return (if applicable) Receipts for any advance payments made Loan statements from the previous year (if relevant) A letter explaining any gaps in education or employment on Rs. 100 stamp paper

Documents Required For Secured Education Loan

Document	Description
No-Objection Certificate (NOC)	Obtained from construction company or housing society in bank's format
Payment Receipts	Proof of payments made to construction firm or previous property owner
Share Certificate	Proof of ownership, especially for properties in cooperative housing societies
Conveyance Deed	Legal document transferring property title
Power of Attorney (POA) Confirmation	Verification of authority given by construction firm
Structural Integrity Report	Assessment of building's physical condition (for old properties)
Commencement Certificate	Proof of adherence to codes and regulations (for new properties)
Builder's Project Documents	Board resolution certificate or POA from builder
Occupancy Certificate	Proof of building's compliance with local regulations (required in Mumbai)
Title Deed or Sale Deed	Proof of ownership
30-year Sale Chain	Documentation of past property transfers

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Types of Education Loans in Rajasthan

Students in Rajasthan can choose from different education loans to fund higher studies. Here are the main types:

1. Domestic Education Loans
For students studying in India. Banks like SBI, PNB, and HDFC offer these loans with interest rates starting at 4% p.a.

2. Overseas Education Loans
For students planning to study abroad. These loans cover tuition, travel, living costs, and insurance. Banks like Bank of Baroda and Axis Bank provide higher loan amounts with flexible repayment.

3. Loans for Professional & Technical Courses
For courses like engineering, medicine, and management. Loan limits are higher due to course costs. Example: SBI offers up to ₹30 lakhs for medical courses with repayment up to 15 years.

4. Government-Sponsored Education Loans
Schemes like CSIS and Dr. Ambedkar Central Sector Scheme give full interest subsidy during the study period for eligible students.

Also Read: Education Loan for Abroad Studies in 2024: A Comprehensive Guide

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Rajasthan Minority Finance & Development Co-operative Corporation Educational Loan Scheme

The Rajasthan Minority Finance & Development Co-operative Corporation (RMFDCC) offers an educational loan scheme to support students from minority communities pursuing higher education.

Here’s an overview of the scheme.

Feature	Details
Maximum Loan Amount	- Up to INR 20 Lakhs (For Studies in India) - Up to INR 30 Lakhs (For Studies Abroad)
Eligible Courses	Professional and Technical Courses (Duration should not exceed 5 Years)
Loan Repayment	Five years after completion of the course
Interest Rate	3% p.a. to 8% p.a.
Moratorium Period	Six months following course completion or employment, whichever comes first

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Family Income Category Under the RMFDCC Educational Loan Scheme

The RMFDCC Educational Loan Scheme offers loans based on family income. The scheme has two credit lines:

Credit Line 1

For families with income below ₹81,000 (rural) or ₹1,03,000 (urban) per year.
Interest rate: 3% per year for both male and female students.

Credit Line 2

For families with income up to ₹6 lakhs per year.
Interest rate: 5% for female students, 8% for male students.
Introduced in September 2014 under the OBC “Creamy Layer” category.

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RMFDCC Educational Loan Scheme: Eligibility Criteria

To qualify for the loan, you must meet specific criteria related to your background, the course you wish to pursue, and your financial status.

Here’s a table highlighting the eligibility criteria.

Eligibility Criterion	Details
Community	The applicant must belong to a notified minority community, which includes Muslims, Christians, Sikhs, Buddhists, Parsis, and others as specified by the RMFDCC.
Residency	The applicant must be a resident of Rajasthan. Proof of residence may be required.
Institution	The educational institution must be recognised and accredited.
Family Income	The applicant's family income should be at most INR 6 lakhs annually.
Admission Proof	Proof of admission to the course or institution is necessary to apply for the loan.
Age Limit	Applicant should be aged between 16 to 32 years.

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RMFDCC Educational Loan Scheme: Documents Required

When applying for the RMFDCC Educational Loan Scheme, you must provide various documents to support your application. These documents are crucial for verifying your eligibility, financial status, and admission details.

Here’s a comprehensive list of the required documents.

1. Proof of Identity (AADHAR Card, Voter ID, or Driver's Licence)

2. Income Certificate

3. Proof of Minority Status

4. Proof of Residence

5. Post Dated Cheques (20 cheques) or instalment wise

6. Self-guarantee deed (INR 500 non-judicial Stamp)

7. Fee Schedule properly signed by an appropriate authority

8. Passport Size Photographs

9. Documents related to the guarantor (parent/guardian), including their ID proof and income details.

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How to Apply for the RMFDCC Educational Loan Scheme

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The application process for the RMFDCC Educational Loan Scheme is completed offline. Here are the detailed steps.

1. Visit the Official Website

Go to the official website of the Department of Minority Affairs & Waqf, Rajasthan.

2. Download the Application Form

Navigate to the ‘Downloads’ tab and select ‘Forms.’
Click on ‘Application for Education Loan’ to download the form.

3. Fill Out the Form

Complete the application form with accurate details.

4. Submit Your Application

Visit the office of the nodal officer for the Department of Minority Affairs & Waqf, Rajasthan.
Submit the completed form along with all required supporting documents.

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Rajasthan Marudhara Gramin Bank Education Loan Scheme

The Rajasthan Marudhara Gramin Bank (RMGB) offers an education loan scheme designed to support students pursuing higher education. This scheme provides financial assistance to cover various educational expenses.

The loan aims to support students from rural and semi-urban areas in Rajasthan, helping them pursue undergraduate, postgraduate, and professional courses in India and abroad.

Feature	Details
Maximum Loan Amount for Indian Students	Up to INR 10.00 Lakhs
For students studying overseas	Up to INR 20 Lakhs

Also Read: Apply for a Student Loan in India for UG Program

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Rajasthan State Co-operative Bank (RSCB) Education Loan Scheme

The Rajasthan State Co-operative Bank (RSCB) provides educational loans to support students in pursuing higher education. This scheme aims to make quality education more accessible by offering financial assistance for various academic programs.

Here’s a detailed overview of key features of the RSCB Education Loan Scheme.

Feature	Detail
Loan Amount	- Up to INR 6 lakhs (Studies in India) - Up to INR 10 lakhs (Studies Abroad)
Moratorium Period	Course period plus 1 Year
Tenure	Up to 5 Years
Coverage	90% of the tuition, living expenses, and other costs are covered.

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RSCB Educational Loan Scheme: Eligibility Criteria

To be eligible for this scheme, both the applicant and the co-applicant must meet specific requirements. Below is a detailed breakdown of the eligibility criteria.

Criteria	Details
Applicant Residency	Must be a resident of Rajasthan.
Co-applicant Requirement	Co-applicant can be one of the following: - Father - Mother - Guardian
Co-applicant Employment Status	Co-applicants can be either: - Salaried individual - Self-employed individual
Guarantee Requirement	Two guarantors are required to secure the loan.

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RSCB Educational Loan Scheme: Documents Required

When applying for the RSCB Educational Loan Scheme, you must provide certain documents supporting your application. These documents help verify your identity, residency, financial status, and educational details.

Here’s a list of the required documents.

1. An application that is fully completed and signed

2. Any document serving as identification and age proof (such as a voter ID card, passport, valid driver's licence, or Pan card)

3. Proof of Address and Signature: Any document (Voter ID card, valid driver's licence, valid passport, utility bill (no older than two months for electricity, phone, and mobile)

4. Bank statement (monthly statement no older than three months)

5. Connection Proof with the Co-Applicant

6. Recent Passport-size pictures

7. The applicant's proof of education includes Mark sheets from regular classes, such as 10th, 12th, diploma, graduation, etc.

8. Admission evidence verifying the applicant's admission, the tuition cost, the course fee specifics, the course's length, etc.

9. Proof of guarantee documentation

10. Passport Copy

11. Mark sheets or certificates obtained from qualifying exams such as the GRE, GMAT, SAT, TOEFL, and other English proficiency assessments.

12. Form 16 and recent salary slips (latest six months)

In Rajasthan, education loans have become crucial, providing students with the financial support needed to pursue higher education domestically and abroad. With various schemes such as the RMFDCC, Rajasthan Marudhara Gramin Bank, and Rajasthan State Co-operative Bank offering tailored financial assistance, students can access funds to cover tuition fees, living expenses, and more.