Education Loan in Assam 2025: Interest & Abhinandan Scheme

If you're considering higher education in Assam and wondering how to finance it, consider taking an education loan in Assam. With rising tuition fees and the cost of living, many students are opting for education loans to pursue their academic dreams. And if you're in Assam, the Abhinandan Scheme offers an additional benefit that could help ease your loan repayment.

In this blog, we’ll explain everything you need to know about getting an education loan in Assam and how the Abhinandan Scheme can lighten your financial load.

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Check out this blog for:

Everything about the Abhinandan Scheme, including its benefits, eligibility, and application process.
A step-by-step guide to applying for an education loan in Assam, along with the required documents.
Popular banks & NBFCs offering education loans and their key features.

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What is the Abhinandan Scheme?

The Abhinandan Scheme is an initiative by the Assam Government to help students repay their education loans. It provides a ₹50,000 subsidy on outstanding loans, making higher education more accessible and reducing financial stress for borrowers.

Key Benefits:

Reduces the loan repayment burden for students in Assam.
Encourages higher education by offering financial relief.
Supports students with existing education loans from banks.
Helps families manage education costs more efficiently.

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Abhinandan Scheme Features

If you already have an education loan in Assam, the Abhinandan Scheme could be the perfect complement. Here’s a quick comparison of how they work together:

Parameter	Abhinandan Scheme
Loan Amount	Applicable for loans of up to ₹1 lakh. They are designed to help students with smaller loans, specifically targeting loan balances up to ₹1 lakh.
Collateral Requirement	Under the Abhinandan Scheme, no collateral is required regardless of the loan amount, making it more accessible to students.
Subsidy	Offers a direct subsidy of ₹50,000 on the outstanding loan balance, reducing the financial burden for eligible students.
Repayment Moratorium	The scheme helps reduce loan repayment stress by offering a direct reduction of ₹50,000, thus lowering the monthly repayment amount.
Objective	The main objective is to financially relieve students with education loans by reducing their outstanding loan balance. This encourages higher education without excessive financial strain.
Interest Rates	The Abhinandan Scheme focuses on loan repayment and doesn’t directly affect the interest rate. However, the ₹50,000 subsidy helps reduce the overall loan repayment amount.

Also Read: How to Apply for Education Loan in India- Complete Process

Read to explore the benefits of taking an education loan, helping you assess its value for your academic journey.

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Eligibility for the Abhinandan Scheme

To qualify for the Abhinandan Scheme, you need to meet certain criteria:

1. Permanent Resident of Assam

You must be a permanent resident of Assam to apply.

2. Loan Sanction Date

Your education loan should have been sanctioned before March 31, 2023.

3. Outstanding Loan Amount

Only loans with an outstanding balance of ₹1 lakh or less are eligible for the scheme.

Worried about funding your education? Propelld offers flexible loan options tailored for students like you. Get started with your application today!

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How to Apply for the Abhinandan Scheme?

Applying for the Abhinandan Scheme is simple. Just follow these steps:

Step No.	Action	Description
1	Visit the Official Website	Go to the Assam Government's official portal dedicated to the Abhinandan Scheme.
2	Fill Out the Form	Enter your loan details, personal information, and all other required fields in the application form.
3	Submit Your Application	Upload the necessary supporting documents, such as loan sanction letters, and then submit your form.
4	Wait for Approval	Once submitted, your application will be reviewed, and you will be notified if you qualify for the ₹50,000 subsidy.

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Benefits of the Abhinandan Scheme

The Abhinandan Scheme offers some fantastic benefits for students with education loans in Assam:

1. Substantial Financial Relief

Students receive a one-time subsidy of ₹50,000 on their education loans, easing the repayment burden.

2. Inclusive of Major Banks

The scheme covers loans from all major commercial banks, including Federal Bank and HDFC, as well as regional rural banks like Assam Rural Regional Bank.

3. Encourages Higher Education

By reducing financial constraints, the scheme motivates students to pursue advanced studies. It also reduces dropout rates by ensuring financial issues don’t force students to abandon their education.

4. Promotes Equal Opportunities

The scheme ensures that students from all economic backgrounds have equal access to higher education, fostering educational equality.

This initiative significantly alleviates the financial challenges associated with higher education, making academic pursuits more accessible to students in Assam.

Looking for an education loan with the lowest interest rates? Securing the right loan can make a huge difference in your repayment journey. Discover banks and NBFCs offering the most competitive rates in 2025 and choose the best option for your academic goals.

Check out the complete list here

Apart from the Abhinandan Scheme, there are other regular loans also available in Assam from the banks and NBFCs. Let’s check them out:

Popular Banks Offering Education Loans in Assam

You have several options when it comes to taking an education loan in Assam. Here’s a look at some of the most popular banks offering education loans:

Bank	Loan Amount	Interest Rate	Repayment Period	Moratorium Period	Collateral Requirement	Processing Fees
State Bank of India (SBI)	Up to ₹30 lakhs	8.65% onwards	Up to 15 years	Course duration + 1 year	Required for loans above ₹7.5 lakhs	₹10,000 + GST for loans above ₹20 lakhs
Assam Gramin Vikash Bank	Up to ₹10 lakhs (₹20 lakhs for abroad)	9.85%	10-15 years	Course duration + 6 months	Collateral required for loans above ₹7.5 lakhs	Varies, typically lower in regional banks
Canara Bank	Up to ₹40 lakhs	8.95%	10-15 years	Course duration + 1 year	Collateral required for loans above ₹7.5 lakhs	Up to 1% of the loan amount, negotiable
HDFC Bank	Up to ₹20 lakhs	9.05%	Up to 10 years	Course duration + 6 months	Collateral required for loans above ₹7.5 lakhs	1% of the loan amount, subject to terms
Bank of Baroda	Up to ₹80 lakhs (for studying abroad)	8.75%	10-15 years	Course duration + 1 year	Collateral required for loans above ₹7.5 lakhs	₹10,000 + taxes for higher loan amounts
Punjab National Bank (PNB)	Up to ₹25 lakhs (₹50 lakhs for abroad)	8.70% onwards	Up to 15 years	Course duration + 1 year	Collateral required for loans above ₹7.5 lakhs	₹10,000 processing fee for larger amounts
Union Bank of India	Up to ₹30 lakhs	8.90%	Up to 15 years	Course duration + 1 year	Collateral required for loans above ₹7.5 lakhs	Nominal processing fees, depending on the loan
Axis Bank	Up to ₹75 lakhs (for overseas education)	9.15%	Up to 15 years	Course duration + 6 months	Collateral required for higher loan amounts	Up to 1% of the loan amount
IDBI Bank	Up to ₹20 lakhs (₹30 lakhs for abroad)	8.85%	Up to 10 years	Course duration + 1 year	Collateral required for loans above ₹7.5 lakhs	Nominal processing fees, dependent on loan
Indian Bank	Up to ₹25 lakhs	8.70%	Up to 15 years	Course duration + 1 year	Collateral required for loans above ₹7.5 lakhs	Minimal fees for smaller loan amounts

When choosing the right education loan in Assam, it’s a good idea to compare these banks and see which one offers the most favourable terms for your needs.

Also Read: Lowest Interest Rate on Education Loan in 2024- List of Banks

Propelld makes education accessible. Explore our student-friendly loans designed to fit your unique needs. Apply now to secure your future!

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How to Apply for an Education Loan in Assam?

The process is pretty straightforward if you’re ready to apply for an education loan in Assam. Here’s what you need to do:

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How to Apply for an Education Loan in Assam

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1. Research

Compare different banks and loan terms to find the best education loan in Assam.

2. Visit the Bank

Head to the nearest branch of your chosen bank to start the application process.

3. Fill Out the Application

Complete the loan application form and submit it with the required documents.

4. Provide Documents

Make sure you have everything you need, including proof of admission, ID documents, and income proof.

5. Approval Process

The bank will review your application, and once approved, you’ll receive the loan disbursement.

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Also Read: Education Loan in Jharkhand: Interest Rates and How to Apply?

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Documents You’ll Need for an Education Loan in Assam

Proper documents are essential when applying for an education loan in Assam. Here’s a list of what you’ll need.

Document	Description
Proof of Admission	A letter from the educational institution confirming your admission.
Identity Proof	Aadhar card, voter ID, or passport.
Income Proof	Parents’ or guardians’ income tax returns or salary slips.
Fee Structure	A detailed breakdown of the tuition fees from your college or university.
Collateral Documents	Required if your loan amount is above ₹7.5 lakhs.

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Why Should You Consider an Education Loan in Assam?

‍Pursuing higher education can be expensive, but an education loan in Assam makes it easier by offering financial support with flexible repayment options. Here’s why you should consider one:

1. Reduced Financial Burden

Covers tuition fees, living expenses, and other costs without straining your family’s savings. Repay gradually over time.

2. Opportunities for Global Education

Fulfill your dream of studying abroad with loan options that cover international tuition and living costs.

3. Flexible Repayment Options

Benefit from extended repayment tenures and moratorium periods, allowing you to start repaying after securing a stable job.

4. Government Schemes & Subsidies

Eligible students can access additional benefits like the Abhinandan Scheme, which offers a ₹50,000 subsidy on education loans.

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Common Challenges in Securing an Education Loan in Assam

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While an education loan in Assam can be incredibly helpful, you might face a few challenges along the way. Here’s what to look out for:

Challenge	Description
Lack of Awareness	Many students, particularly in rural areas, must be made aware of the availability of education loans or the procedures to apply for them. This limits their options for financing higher education.
Collateral Requirements	Banks often require collateral for education loans exceeding ₹7.5 lakhs, such as property or fixed deposits, which not all students or their families can provide. This can be a significant barrier to securing a larger loan.
Documentation Issues	Incomplete or missing documents, such as proof of admission, income certificates, or identity verification, can delay the loan approval process, causing students unnecessary stress and delays.
High Interest Rates	Some students may face high interest rates depending on their loan amount, lender, and financial background, making the loan more expensive and increasing the repayment burden.
Limited Access in Rural Areas	Students in remote or rural areas may need help accessing banks or financial institutions offering education loans, limiting their chances of securing funding for higher education.
Co-signer Requirement	Many banks require a cosigner for education loans, especially for higher amounts. If a student's family cannot meet this requirement, it can hinder their chances of obtaining a loan.
Processing Time	The loan approval process can be lengthy, with multiple steps involving the bank’s scrutiny of documents and financial status, delaying students from securing timely funds.
Limited Moratorium Period	While most loans offer a moratorium period (usually course duration + 6 months or one year), more time may be needed for some students to find a stable job and begin repayments comfortably.
Low Credit Score Impact	Students or co-signers with a low credit score may need help to secure loans or face unfavourable loan terms, such as higher interest rates or limited loan amounts.
Restrictions on Overseas Education	Some banks impose stricter conditions for students seeking loans for education abroad, such as higher collateral requirements or limited loan amounts, making it difficult for students to plan to study abroad.

Being prepared and staying organised can help you avoid these pitfalls when applying for your education loan in Assam.

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

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Taking an education loan in Assam can be the stepping stone to achieving your academic and career goals. With the Abhinandan Scheme offering financial relief on loan repayments, you’ll have even more support in making your dreams a reality.

Remember to research your options, choose the best bank for your needs, and don’t forget to apply for the Abhinandan Scheme if you’re eligible. The combination of an education loan in Assam and the Abhinandan Scheme could be just what you need to make higher education more accessible.

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Why Propelld?

The Propelld education loan has the following main benefits.

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

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FAQ on Education Loan in Assam

What is the maximum amount you can borrow through an education loan in Assam?‍

Most banks in Assam offer loans up to ₹30 lakhs or more, depending on the course and whether you're studying in India or abroad.

How does the Abhinandan Scheme reduce the education loan repayment burden?‍

The Abhinandan Scheme provides a one-time subsidy of ₹50,000 on your outstanding education loan, reducing the amount you need to repay.

What documents are required to apply for an education loan in Assam?‍

You will need proof of admission, identity documents (Aadhar card, voter ID, or passport), your parents' income proof, and the course fee structure.

Can rural students apply for education loans in Assam?‍

Many banks, including Assam Gramin Vikash Bank, offer education loans to students from rural areas in Assam.

What are the eligibility criteria for the Abhinandan Scheme?‍

You must be a permanent resident of Assam, your education loan must have been sanctioned before March 31, 2023, and the outstanding loan amount should be ₹1 lakh or less.

Are there any collateral requirements for an education loan in Assam?‍

Collateral is typically required for loans above ₹7.5 lakhs. However, many banks offer loans below this amount without needing collateral.

How long is the repayment tenure for an education loan in Assam?\

Repayment tenures generally range from 5 to 15 years, giving you plenty of time to repay the loan after completing your studies.

Is there a grace period before starting to repay an education loan?‍

Yes, most banks offer a moratorium period, which usually lasts for your course plus six months to 1 year before you need to start repaying.

Can you apply for both an education loan and the Abhinandan Scheme?‍

You can apply for an education loan and, if eligible, receive repayment assistance through the Abhinandan Scheme to reduce your loan burden.

How can students from Assam apply for the Abhinandan Scheme?‍

You can apply for the Abhinandan Scheme by visiting the official website, filling out the application form with loan details, and submitting the required documents.

What is the interest rate for education loans in Assam?‍

Interest rates typically range from 8% to 12%, depending on the bank and the course you’re pursuing.

Is there a tax benefit for repaying an education loan in Assam?‍

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

How do education loans help students pursue international education?‍

Education loans provide financial support for tuition fees, accommodation, and travel, making it easier for students from Assam to study abroad.

What happens if you fail to repay your education loan on time?‍

Paying your education loan can result in penalties, higher interest rates, and a negative impact on your credit score.

Can I prepay an education loan in Assam before the repayment period ends?‍

Yes, most banks allow prepayment of education loans, and some may even offer prepayment without penalties.

Does the Abhinandan Scheme cover loans taken from private banks?‍

Yes, the Abhinandan Scheme covers loans taken from both public and private banks, as long as they meet the eligibility criteria set by the Assam Government.

What is the minimum loan amount one can apply for in Assam?

The minimum education loan amount varies by bank, but typically starts from ₹50,000.

Are there any specific courses eligible for education loans in Assam?

Most professional and technical courses recognized by UGC, AICTE, or other regulatory bodies are eligible.

Can I get an education loan for vocational courses in Assam?

Yes, many banks offer loans for vocational courses, provided they meet the bank's eligibility criteria.

Is a co-applicant mandatory for education loans in Assam?

Yes, a parent or guardian is typically required as a co-applicant.

What is the processing fee for education loans in Assam?

Processing fees vary by bank; some may charge a nominal fee, while others might waive it.

Can I avail of an education loan for part-time courses in Assam?

Generally, education loans are provided for full-time courses, but some banks may consider part-time courses based on their policies.

Are students pursuing distance education eligible for loans in Assam?

Some banks may offer loans for distance education programs from recognized institutions.

What is the margin money requirement for education loans in Assam?

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

Can I get a loan to cover expenses beyond tuition fees in Assam?

Yes, education loans can cover expenses like accommodation, books, and other related costs.

Is there an age limit for applicants seeking education loans in Assam?

While there's no strict age limit, applicants are typically between 16 to 35 years old.

How is the interest rate determined for education loans in Assam?

Interest rates are based on the bank's base rate plus a certain percentage, varying by institution.

Are there any government subsidies available for education loans in Assam?

Yes, schemes like the Abhinandan Education Loan Subsidy provide financial assistance to eligible students.

Can I apply for an education loan before securing admission in Assam?

Most banks require proof of admission before processing the loan application.

What is the role of credit score in obtaining an education loan in Assam?

A good credit score can facilitate loan approval and may result in better interest rates.

Can I transfer my existing education loan to another bank in Assam?

Yes, some banks offer loan transfer options with potentially better terms.

Are there any prepayment penalties for education loans in Assam?

Many banks allow prepayment without penalties, but it's advisable to confirm with your lender.

How does the moratorium period affect interest accrual in Assam?

Interest may accrue during the moratorium period and could be added to the principal amount.

Can I avail of an education loan for studying at non-accredited institutions in Assam?

Loans are typically granted for courses at accredited institutions recognized by relevant authorities.

Is insurance mandatory for education loans in Assam?

Some banks may require loan insurance to cover unforeseen circumstances affecting repayment.

How can I check the status of my education loan application in Assam?

Most banks provide online portals or customer service numbers to track application status.

How can I apply for an education loan in Assam online?

You can apply for an education loan in Assam online by visiting the official website of your preferred bank or NBFC. Most lenders offer a digital application process where you need to fill out an online form, upload necessary documents like admission proof and income details, and submit the application for approval. Some banks also provide doorstep document collection for added convenience.

Education Loans in Assam 2025: Everything You Need to Know

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