In today’s time, the cost of BTech education is rising fast. College fees, hostel charges, and study materials all add up. But quality education should never feel out of reach. That is where an education loan becomes helpful. An education loan helps students follow their dreams. It supports higher studies without financial pressure. Many banks and government schemes offer this support. So students can focus on learning, not money worries.
In this guide, you will find clear and useful details. You will learn how to apply for an education loan. Eligibility rules are explained in simple words. Interest rates are also covered for better planning. You will also read about top government schemes. These include PM Vidyalaxmi and SBI education loans. Each option has its own benefits.
Education Loan Schemes at a Glance
| Scheme/Bank | Max Loan Amt. (India) | Collateral-Free Limit | Interest Rate | Key Features |
| PM-Vidyalaxmi (Govt) | ₹10 lakh | ₹10 lakh | 0%/3% (subsidized) | Full interest subsidy for eligible |
| SBI Student Loan | ₹15 lakh | ₹7.5–15 lakh | 8.55%–11.15% | Concession for girls, top colleges |
| PNB Saraswati | ₹10 lakh | ₹7.5 lakh | 8.55%+ | Moratorium on repayment |
| BoB Scholar | ₹10 lakh | ₹7.5–10 lakh | 9.15%+ | Personalized loan tenure |
| NBFC (Credila/Propelld) | ₹10–₹40 lakh | Varies | 10%–15%+ | Fast approval, flexible terms |
Why Do BTech Students Need an Education Loan?
Engineering students in India often face high study costs. BTech fees keep increasing every year. Hostel charges and daily expenses add more burden. Books, travel, and lab work also need money. Because of this, education loans have become very important. They help students continue their studies without stress. Both government and private banks offer education loans. These loans support students in joining their dream colleges.
An education loan reduces financial pressure on families. It allows students to focus fully on their studies. Interest rates are reasonable in most cases. Repayment options are also flexible for engineering students. Education loans make students self reliant. They remove the need to depend fully on family savings. This gives confidence during the study period. The yearly fees of engineering colleges vary a lot. In IITs, NITs, and top private colleges, fees can range from one lakh to ten lakh rupees or more. Apart from tuition, other costs also matter. Hostel, books, lab charges, and travel add to the total expense.
So an education loan is not only for college fees. It helps in managing overall education costs. That is why it plays a key role in higher education planning.
Types of Education Loans for BTech Students
Education loans for BTech students are available in different types in India like government education loan (SBI, PNB, BoB), private banks loans, NBFC (non-banking financial companies) study loan India schemes and special education loan schemes by Narendra Modi government. Collateral-free student loans are also available, which are a popular choice for engineering students. Student loan eligibility is easy, if you have an entrance exam score and an admission letter. Some loans also offer online application options, so you can apply from home.
- Government Education Loans: Like all, SBI, PNB, Bank of Baroda, Canara Bank, etc.
- Private/Non-Banking Financial Companies (NBFCs) Loans: Third-party lenders also offer education loans.
- Education Loan by Government Schemes: Pradhan Mantri Vidyalaxmi (PM-Vidyalaxmi/PMVS) Scheme, myScheme, etc.
- Collateral-Free Loans: It is not necessary to keep property or security in this.
Top Government Schemes & Latest Updates (2025)
In India, education loan schemes by Narendra Modi like Pradhan Mantri Vidyalaxmi Scheme (PMVS), PM-Vidyalaxmi and myScheme are trending. These government schemes offer special benefits to BTech students — like low education loan interest rate, collateral-free education loan up to ₹10 lakh and digital loan application process. Students can select schemes for flagship engineering institutes. The government and government banks, like SBI, update the eligibility and scheme features every year for education loans for BTech students, giving students access to new financial tools.
Pradhan Mantri Vidyalaxmi Scheme (PM-Vidyalaxmi/PMVS)
- Collateral-free & guarantor-free loan can be availed by those taking admission in top 860 institutions.
- 3% interest subvention during moratorium for students from families earning up to ₹8 lakh/year.
- Complete interest subsidy for loans up to ₹10 lakh for families earning below ₹4.5 lakh/year.
- through digital application myScheme portal, bankofmaharashtra
SBI Student Loan for Engineering/BTech
- Loan Amount: Up to ₹15 lakh for Indian studies without collateral below ₹7.5 lakh.
- Interest Rate: Starts at 8.55% (as of Oct 2025), concessional rates for girls.
- Collateral-Free Limit: Up to ₹7.5 lakh generally but for premier listed institutes, higher limit without collateral possible.
- Repayment: Up to 15 years.
- Online Application: You can apply on Bank portal or Vidyalakshmi Portal.
Special Schemes for Backward Classes
- NBCFDC loans with 4% (boys), 3.5% (girls) interest for technical/professional courses.
Interest Rates Comparison Table (2025)
Education loan interest rate varies from bank to bank and NBFC in India. The rate depends on whether you have collateral or not, your college ranking and your family income. SBI student loan, Axis, PNB and NBFC education loans are the main market leaders. As of 2025, interest rates are in the range of 8–15%. Education loan for BTech students without collateral is available at a slightly higher rate but the process is fast and easy. While taking a loan, always compare banks, processing fees, repayment terms and interest rate before applying for a loan online.
| Bank/NBFC | Interest Rate (with Collateral) | Without Collateral | Note |
| State Bank of India | 8.55% – 11.15% | Up to 14% | Collateral-free: up to ₹7.5–15 lakh (select cases) |
| Punjab National Bank | 8.55% | As per college | Concession for girls |
| Bank of Baroda | 9.15% | As per student/college | Schemes for top institutions |
| Axis Bank | 13.7% – 15.2% | 14%+ | Higher rate, more flexibility |
| IDBI Bank | 10.6% – 11.1% | 11%+ | -/- |
| NBFC (Propelld, Credila) | 10% – 15% | 12% – 16% | Easiest process, flexible but higher interest rate |
2025 rates can vary by applicant profile.
Key Features of Education Loans for BTech Students
Education loans for engineering students in India cover tuition, hostel fees, books, travel, insurance and even laptops. There is also a moratorium period – meaning you get a grace period of 6–12 months after the completion of the course, during which repayment does not start. Some government schemes like PMVS, myScheme provide additional interest subsidies. A co-applicant is required for BTech loan (usually a parent/guardian) and if you are a female student, you can also get an interest concession. Overall, student loans in India have become easy, flexible and student-centric.
- Tuition, lab, computer, hostel, insurance and travel expenses covered.
- Interest rate concession for girl students.
- Moratorium/repayment holiday (course duration + 6/12 months grace).
- Longer repayment period (up to 15 years).
- Section 80E income tax benefit on interest paid (no cap on amount/duration).
- For premier institutes, sometimes loans are sanctioned even before joining.
Eligibility Criteria for Education Loan (General)
Education loan eligibility depends on the applicant’s nationality, age (usually 16–35 years), educational record (minimum 50% in 12th) and confirmed BTech admission from a recognized college. Most banks and NBFCs ask for applicant and co-applicant’s income proof, CIBIL score and relevant documents under the main keyword “education loan eligibility”. Students from financially weaker sections are also eligible for schemes like Pradhan Mantri Vidyalaxmi, which offer low interest and easy approval. You can also check your eligibility online before loan application.
- Indian nationality, age 16–35 years at loan disbursement.
- 12th pass from recognized board.
- Secured confirmed admission in BTech from approved college (entrance or merit basis).
- Decent academic record (minimum 50–60%, varies by bank).
- Family income within scheme limits (for subsidized schemes).
Required Documents Checklist
BTech student loan application requires admission letter, fee structure, exam scorecard, identity (Aadhaar/PAN), co-applicant income proof, KYC documents and photographs. While applying for an education loan online, all these documents have to be scanned and uploaded. The engineering loan process is transparent and the requirement can be updated by government schemes. Property documents can also be required for collateral-based loans. The structure of student loans for engineering students in India has been made simple and streamlined, which makes the approval faster.
- Admission letter with cost break-up.
- 10th & 12th marksheets, identity/address proof.
- Income certificate (for subsidy), co-applicant documents (parent/guardian),
- KYC (Aadhaar/PAN), bank passbook, recent photos.
- Collateral property documents (if required).
How to Apply for Education Loan After 12th: Stepwise Guide
- Research & Compare: Interest rate, processing fee, moratorium, institute coverage online compare.
- Shortlist Lender: Choose Govt bank (SBI, BOB), NBFC or PM-Vidyalaxmi Scheme.
- Prepare Documents: Check above checklist, prepare all the documents.
- Apply Online: Fill the form on the Bank website, Vidyalakshmi, myScheme or portal.
- Submit Application: Upload details & documents and go to the branch.
- Verification & Sanction: Bank profile is verified (applicant, co-applicant, CIBIL etc.).
- Loan Disbursement: Amount is directly transferred to the institute/bank account.
Education Loan Without Collateral – How to Get It?
Collateral-free education loan for BTech students is provided by banks like SBI, Axis, BOB. Usually, up to ₹7.5–15 lakh collateral-free loan is available if you have secured admission in a top engineering institute. College reputation, student profile and academic results play an important role in education loans without collateral eligibility. Some NBFCs like Propelled, Credila also offer flexible, non-collateral student loans. Applying for an education loan online process makes very fast approval and money disbursement possible.
- Top banks like SBI, BOB, Axis, ICICI offer collateral-free loans (usually up to ₹7.5–15 lakh) to selected BTech colleges.
- PM-Vidyalaxmi Scheme offers 100% collateral-free loans for QHEI colleges, with a simple online process.
- NBFCs like Propelled and Credila are flexible but usually offer higher interest rates.
- A strong academic record, a reputed institute and a good CIBIL score increase your chances of approval.
Expenses Covered by Education Loan
Education loan for BTech students in India covers tuition fees along with hostel, books, exam fees, travel, insurance and laptop. Student loan for engineering students covers all major college expenses, thus removing financial tension. Expense coverage of every bank varies, so always verify the break-up of tuition plus additional charges. While applying for BTech student loan, its advantage is that you can easily manage academic and living costs, without any extra stress.
- Tuition fees
- Hostel and boarding charges
- Books, uniforms and lab equipment
- Travel (study tours, project work)
- Insurance & computer/laptop
- Caution deposit, library/exam fees, etc.
How to Choose the Best Education Loan?
- Loan Amount: Does it cover the full cost of BTech (fees + hostel + extras) or not?
- Interest Rate & Processing Charge: Compare – see lowest rate, concessional schemes.
- Moratorium & Repayment Tenure: Longer grace period and flexible repayment best.
- Institute Coverage: Extra benefits are available on selected top QHEIs.
- Digital Process: Apply online, fast approval, see processing time.
- Eligibility for Subsidy: Family income, category etc. Check subsidy schemes on that basis.
FAQs
1. Is an education loan easily available for BTech in India?
Yes, if you are admitted to a recognized institute and your documents are complete, getting a loan is usually straightforward.
2. What is the best government education loan?
Pradhan Mantri Vidyalaya Lakshmi (PMVS) 2024 is the main scheme that offers collateral-free, subsidized loans.
3. Which banks offer education loans for BTech?
SBI, PNB, BOB, Canara, Axis, ICICI, IDBI, Karnataka Bank and several NBFCs.
4. How to get a collateral-free loan?
- PMVS is listed in top institutes for admission.
- SBI, BOB me up to ₹7.5–15 lakh (collateral-free).
Strong academic profile.
5. What is the education loan interest rate?
8%–16%, average 10–12% (minor increase in 2025). Rate depends on loan size, collateral and student profile.
6. How to apply online?
- Open an account at your bank or myScheme/Vidyalakshmi portal and fill in the details.
- Scan and upload your documents.
- You can avoid branch visits (mostly a digital process).
7. When does repayment start?
Full course + 6–12 months (moratorium), then EMI through bank/online.
8. Are there tax benefits on education loans?
Yes, there is an unlimited (no cap) income tax deduction on interest payments under Section 80E, for a maximum period of 8 years.
9. Are education loans available for overseas studies?
Yes but generally, higher loan amounts, different eligibility and some extra documentation are required.
10. What if the loan application is rejected?
Try another bank, NBFC or a smaller amount; check documents or improve the co-applicant’s profile.
Conclusion
Education loans for BTech students are essential partners in building your career. With the right scheme, timely application and complete understanding, your engineering dream can become a reality – no matter the fees. If you ever feel financially stuck, bookmark this guide and move forward confidently.
