Education is a significant investment. You should pick out an education loan in Telangana after going through several schemes and their benefits.
Whether you are looking for an education loan for B.Tech students in Telangana or the best education loan for MBA students in Telangana, this blog has listed several loan schemes and details that will benefit you.
Keep reading to know!
Eligibility Criteria for Applying for an Education Loan in Telangana
To be eligible for an education loan in Telangana, candidates must fulfill specific qualifying requirements:
Eligibility Criteria
Details
Parental or Guardian Representation
A parent or guardian must serve as a co-borrower for students who are minors, ensuring legal and financial responsibility.
Joint Loan Agreement
The loan will name both the parent/guardian and the student, tying them to the repayment obligation.
Admission by Merit
The student must have been accepted based on merit, following a competitive selection process, into an accredited institution in India or outside.
These requirements guarantee that you use the loan amount for approved educational endeavours and that the student has the financial resources to sustain their academic plans. Suggested read: Education loan for MBA in Telangana
Documents Required for Education Loan In Telangana
To apply for an education loan in Hyderabad, here are the documents required:
Category
Applicant
Co-signer
Loan Application Form
Must be fully completed, signed, and accompanied by two photographs
Must be fully completed, signed, and accompanied by two photographs
Proof of Address
Voter ID, telephone bill, electricity bill, ration card, bank account statement, or Aadhar card
Voter ID, telephone bill, electricity bill, ration card, bank account statement, or Aadhar card
Proof of Identity
PAN card and passport
PAN card and passport
Personal Asset and Liability Statement
Follow the bank's specified format
Follow the bank's specified format
Bank Statements
Latest 6-month bank statement (salary or personal)
For self-employed, provide one year’s worth of company transaction statements
Existing Loan Statements
From the previous year, if applicable
Receipts for Advance Payments
For any upfront payments made
Proforma Invoice
If requesting funds for specific items like a trip or laptop
Explanation Letter
If the co-applicant lacks ITRs or has a gap in the applicant's academic or professional profile
Some academic documents are also required from the applicant while applying for an education loan in Hyderabad. They are:
Category
Details
Proof of Admission/Enrollment
The document should confirm the total duration of the program
Course Fee Structure
Include the I-20 form if applying for studies in the USA
Standardised Test Scorecards
GRE, IELTS, or GMAT results
University Ranking
A printout of the university's ranking
Educational MarkSheets and Certificates
Documentation from 10th and 12th grades and any degrees
The co-applicant will have to submit some specific income documents to the bank while applying for an education loan in Hyderabad. They are:
Keep reading if you are wondering how to get an education loan in Telangana. It is a straightforward, simple process:
Apply online by doing the following:
1. Visit the bank's official website.
2. As directed by the bank, complete the online application and upload the required files.
3. Apply after you are confident that all the information is accurate. Following that, you ought to visit the branch to finalise any outstanding documentation and go over the terms and conditions of the loan.
When exploring options for an education loan in Telangana, it's crucial to understand the education loan moratorium period, which provides a grace period during which students are not required to make repayments, allowing them to focus on their studies without immediate financial pressure.
Tips to Increase Approval Chances for an Education Loan
To improve your chances of getting an education loan in Telangana in 2025, follow these tips:
1. Maintain a Strong Academic Record: Banks prefer students with good grades and admission in reputed colleges.
2. Provide Complete Documents: Submit all required documents, including admission letter, ID proofs, income certificates, and collateral details if needed.
3. Choose a Recognized College/University: Loans are easier to approve for government-approved or NAAC-accredited institutions.
4. Opt for a Co-Applicant with Stable Income: Having a parent or guardian with a steady income increases approval probability.
5. Keep Your Credit History Clean: Ensure no pending loans or defaults in co-applicant’s credit history.
6. Apply Early: Start the loan process soon after admission confirmation to allow time for verification and approval.
For students in Telangana exploring financial assistance for higher education, it's beneficial to consider the top banks offering education loans in India, which provide competitive interest rates and flexible repayment options.
Government Schemes For Education Loan in Telangana
Wondering how to get an education loan in Telangana? Specifically for education loan for SC students or for BC education loans in Telangana, there are several schemes you can benefit from.
The Telangana government offers several government schemes for educational loans in Telangana. Some schemes are specifically for education loan for SC students in Telangana or students belonging to BC education loan in Telangana:
Scheme Name
Target Group
Benefits
Coverage
Chief Minister’s Overseas Scholarship Scheme
SC students in Telangana, ST students, and Marginalised Communities
Soft loan up to ₹10 lakh; covers tuition, living, and travel expenses
Higher education abroad
Mahatma Jyotiba Phule Overseas Vidya Nidhi Scheme
SC students in Telangana and ST Students
Soft loan up to ₹20 lakhs with interest subsidy
Postgraduate studies abroad
Dr. Ambedkar Central Sector Scheme
OBC and EBC Students
Interest subsidy on education loans for overseas studies
Studies abroad
CSIS (Central Sector Interest Subsidy)
Economically Weaker Sections
Interest subsidy on education loan for B.Tech students in Telangana and professionals in India
Higher education in India
Please check the latest details and specific eligibility criteria on the official website of the Telangana State Government or consult with your bank to ensure you meet all the requirements for this subsidy.
Expenses Covered by Education Loan in Telangana
It's essential to know the types of expenses that can be covered by an education loan from a bank or non-bank financial institution (NBFC) in Telangana.
Education loans usually cover a wide range of costs necessary to successfully complete your education, both domestically and overseas. Among them are the following.
Expense Type
Description
Tuition Fee
The primary expense for any educational program
Accommodation Fee
Costs associated with housing either on or off-campus
Examination Fee
Fees for exams throughout the study period
Library Fee
Charges for using the academic institution’s library resources
Laboratory Fee
Fees for using the laboratory facilities for science and technology courses
Cost of Books
The required textbooks and other study materials
Miscellaneous Expenses
Other necessary expenses related to education
Travel Tickets
Initial travel costs for students studying abroad
Insurance Premium for Applicant
Includes health and travel insurance for students going abroad
If you are planning to take an education loan in Telangana, it is important to understand the main features. Different banks and NBFCs (Non-Banking Financial Companies) may have different rules, but most follow similar guidelines to make repayment easier for students.
1. Moratorium Period
The moratorium period is the time given before you start repaying your loan.
Public Banks: You get time until your course ends plus 6 months to 1 year. During this period, only simple interest is charged, and you don’t need to pay it immediately.
Private Banks: They add compound interest during the moratorium. You will need to pay this once repayment begins.
NBFCs: Many NBFCs ask you to pay EMIs (including both principal and interest) even during the moratorium period.
2. Loan Margin
The loan margin is the share of expenses you need to pay yourself.
Public Banks: Usually 10%.
Private Banks: Between 5% and 10%, depending on your profile and the loan scheme.
3. Collateral Margin
Collateral is the security you provide to the bank in case you fail to repay the loan. The percentage of loan amount covered by collateral changes from bank to bank.
Top Colleges in Telangana
There are various top colleges in Telangana for which you might want to get an education loan, like:
Education is a significant investment. You should pick out an education loan in Telangana after going through several schemes and their benefits.
Whether you are looking for an education loan for B.Tech students in Telangana or the best education loan for MBA students in Telangana, this blog has listed several loan schemes and details that will benefit you.
Keep reading to know!
Eligibility Criteria for Applying for an Education Loan in Telangana
To be eligible for an education loan in Telangana, candidates must fulfill specific qualifying requirements:
Eligibility Criteria
Details
Parental or Guardian Representation
A parent or guardian must serve as a co-borrower for students who are minors, ensuring legal and financial responsibility.
Joint Loan Agreement
The loan will name both the parent/guardian and the student, tying them to the repayment obligation.
Admission by Merit
The student must have been accepted based on merit, following a competitive selection process, into an accredited institution in India or outside.
These requirements guarantee that you use the loan amount for approved educational endeavours and that the student has the financial resources to sustain their academic plans. Suggested read: Education loan for MBA in Telangana
Documents Required for Education Loan In Telangana
To apply for an education loan in Hyderabad, here are the documents required:
Category
Applicant
Co-signer
Loan Application Form
Must be fully completed, signed, and accompanied by two photographs
Must be fully completed, signed, and accompanied by two photographs
Proof of Address
Voter ID, telephone bill, electricity bill, ration card, bank account statement, or Aadhar card
Voter ID, telephone bill, electricity bill, ration card, bank account statement, or Aadhar card
Proof of Identity
PAN card and passport
PAN card and passport
Personal Asset and Liability Statement
Follow the bank's specified format
Follow the bank's specified format
Bank Statements
Latest 6-month bank statement (salary or personal)
For self-employed, provide one year’s worth of company transaction statements
Existing Loan Statements
From the previous year, if applicable
Receipts for Advance Payments
For any upfront payments made
Proforma Invoice
If requesting funds for specific items like a trip or laptop
Explanation Letter
If the co-applicant lacks ITRs or has a gap in the applicant's academic or professional profile
Some academic documents are also required from the applicant while applying for an education loan in Hyderabad. They are:
Category
Details
Proof of Admission/Enrollment
The document should confirm the total duration of the program
Course Fee Structure
Include the I-20 form if applying for studies in the USA
Standardised Test Scorecards
GRE, IELTS, or GMAT results
University Ranking
A printout of the university's ranking
Educational MarkSheets and Certificates
Documentation from 10th and 12th grades and any degrees
The co-applicant will have to submit some specific income documents to the bank while applying for an education loan in Hyderabad. They are:
Keep reading if you are wondering how to get an education loan in Telangana. It is a straightforward, simple process:
Apply online by doing the following:
1. Visit the bank's official website.
2. As directed by the bank, complete the online application and upload the required files.
3. Apply after you are confident that all the information is accurate. Following that, you ought to visit the branch to finalise any outstanding documentation and go over the terms and conditions of the loan.
When exploring options for an education loan in Telangana, it's crucial to understand the education loan moratorium period, which provides a grace period during which students are not required to make repayments, allowing them to focus on their studies without immediate financial pressure.
Tips to Increase Approval Chances for an Education Loan
To improve your chances of getting an education loan in Telangana in 2025, follow these tips:
1. Maintain a Strong Academic Record: Banks prefer students with good grades and admission in reputed colleges.
2. Provide Complete Documents: Submit all required documents, including admission letter, ID proofs, income certificates, and collateral details if needed.
3. Choose a Recognized College/University: Loans are easier to approve for government-approved or NAAC-accredited institutions.
4. Opt for a Co-Applicant with Stable Income: Having a parent or guardian with a steady income increases approval probability.
5. Keep Your Credit History Clean: Ensure no pending loans or defaults in co-applicant’s credit history.
6. Apply Early: Start the loan process soon after admission confirmation to allow time for verification and approval.
For students in Telangana exploring financial assistance for higher education, it's beneficial to consider the top banks offering education loans in India, which provide competitive interest rates and flexible repayment options.
Government Schemes For Education Loan in Telangana
Wondering how to get an education loan in Telangana? Specifically for education loan for SC students or for BC education loans in Telangana, there are several schemes you can benefit from.
The Telangana government offers several government schemes for educational loans in Telangana. Some schemes are specifically for education loan for SC students in Telangana or students belonging to BC education loan in Telangana:
Scheme Name
Target Group
Benefits
Coverage
Chief Minister’s Overseas Scholarship Scheme
SC students in Telangana, ST students, and Marginalised Communities
Soft loan up to ₹10 lakh; covers tuition, living, and travel expenses
Higher education abroad
Mahatma Jyotiba Phule Overseas Vidya Nidhi Scheme
SC students in Telangana and ST Students
Soft loan up to ₹20 lakhs with interest subsidy
Postgraduate studies abroad
Dr. Ambedkar Central Sector Scheme
OBC and EBC Students
Interest subsidy on education loans for overseas studies
Studies abroad
CSIS (Central Sector Interest Subsidy)
Economically Weaker Sections
Interest subsidy on education loan for B.Tech students in Telangana and professionals in India
Higher education in India
Please check the latest details and specific eligibility criteria on the official website of the Telangana State Government or consult with your bank to ensure you meet all the requirements for this subsidy.
Expenses Covered by Education Loan in Telangana
It's essential to know the types of expenses that can be covered by an education loan from a bank or non-bank financial institution (NBFC) in Telangana.
Education loans usually cover a wide range of costs necessary to successfully complete your education, both domestically and overseas. Among them are the following.
Expense Type
Description
Tuition Fee
The primary expense for any educational program
Accommodation Fee
Costs associated with housing either on or off-campus
Examination Fee
Fees for exams throughout the study period
Library Fee
Charges for using the academic institution’s library resources
Laboratory Fee
Fees for using the laboratory facilities for science and technology courses
Cost of Books
The required textbooks and other study materials
Miscellaneous Expenses
Other necessary expenses related to education
Travel Tickets
Initial travel costs for students studying abroad
Insurance Premium for Applicant
Includes health and travel insurance for students going abroad
If you are planning to take an education loan in Telangana, it is important to understand the main features. Different banks and NBFCs (Non-Banking Financial Companies) may have different rules, but most follow similar guidelines to make repayment easier for students.
1. Moratorium Period
The moratorium period is the time given before you start repaying your loan.
Public Banks: You get time until your course ends plus 6 months to 1 year. During this period, only simple interest is charged, and you don’t need to pay it immediately.
Private Banks: They add compound interest during the moratorium. You will need to pay this once repayment begins.
NBFCs: Many NBFCs ask you to pay EMIs (including both principal and interest) even during the moratorium period.
2. Loan Margin
The loan margin is the share of expenses you need to pay yourself.
Public Banks: Usually 10%.
Private Banks: Between 5% and 10%, depending on your profile and the loan scheme.
3. Collateral Margin
Collateral is the security you provide to the bank in case you fail to repay the loan. The percentage of loan amount covered by collateral changes from bank to bank.
Top Colleges in Telangana
There are various top colleges in Telangana for which you might want to get an education loan, like:
What are the eligibility criteria for availing an education loan in Telangana?
Most banks require the student to be an Indian citizen, have secured admission in a recognised course, and have a co-applicant (usually a parent or guardian) to guarantee the loan.
Which banks offer education loans in Telangana?
Central banks in Telangana, including the State Bank of India (SBI), Andhra Bank, ICICI Bank, and HDFC Bank, offer education loans.
What is the interest rate for education loans in Telangana?
The interest rate varies depending on the bank and the type of course. Typically, it ranges between 8% to 12% per annum.
Can I get an education loan to study abroad in Telangana?
Yes, many banks in Telangana offer education loans for students aspiring to study abroad, covering tuition fees, travel expenses, and other costs.
What documents are required to apply for an education loan in Telangana?
Commonly required documents include an admission letter, fee structure, academic records, identity proof, address proof, and income proof of the co-applicant.
Is there a government subsidy available on education loans in Telangana?
Yes, there are government schemes like the Central Scheme to provide Interest Subsidy (CSIS) on education loans for economically weaker sections.
What is the maximum amount I can borrow as an education loan in Telangana?
The maximum loan amount can vary by bank but typically ranges from ₹10 lakh for studies in India to ₹20 lakh or more for studies abroad.
How can I apply for an education loan in Telangana?
You can apply through the bank’s website or visit the nearest branch with the required documents. Many banks also offer doorstep services for loan applications.
What is the repayment period for education loans in Telangana?
Repayment usually begins 6 months to 1 year after course completion, with a typical repayment period of 5 to 15 years, depending on the loan amount.
Are there any specific education loan schemes for minority communities in Telangana?
The Telangana State Minorities Finance Corporation (TSMFC) provides education loans with interest subsidies for minority students.
Can I get a loan for vocational or skill development courses in Telangana?
Some banks and financial institutions offer education loans for vocational, skill development, and certificate courses.
What is the process for loan disbursement in Telangana?
Once the loan is approved, the bank disburses the amount directly to the educational institution based on the fee structure provided.
Are there any collateral requirements for education loans in Telangana?
Loans up to ₹4 lakh generally do not require collateral, while loans above this amount may require a guarantor or collateral security.
Can I prepay my education loan in Telangana without penalties?
Most banks allow education loan prepayment without penalties, but it’s best to check your bank's specific terms and conditions.
What should I do if my education loan application is rejected in Telangana?
If the bank rejects your educational loan application, review the reasons provided by the bank, improve your application, and consider reapplying or exploring loans from other banks.
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.
With 24+ years of leadership experience in financial services, Manoj has worked across diverse roles—from CEO of a publicly listed NBFC to Head of Sales and Corporate Strategy Lead. He carries a grassroots understanding of lending, education financing, and customer needs.
He currently serves as the Chief Business Officer for Higher Education at Propelld, where he drives growth in education lending through sales leadership, credit oversight, and innovative product design.
Throughout his career, Manoj has held CXO and strategic leadership roles, including CEO of a listed NBFC and Business Head at DHFL Pramerica Life Insurance, overseeing large-scale sales operations, credit, and compliance. His 12+ years in corporate strategy combined with 8+ years in frontline sales give him a 360-degree view of financial services, from ground level execution to high-level strategic planning.
Passionate about building scalable lending businesses, Manoj is known for his ability to anticipate market trends, optimize operational efficiency, and drive sustainable growth in the education finance sector. He also writes actively about these.
Outside work, Manoj is passionate about reading, writing blogs, playing the guitar, cricket, and paragliding.
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