Students can avail education loans ranging from ₹10 lakh to ₹25 lakh for M.Tech studies. Learn about the loan process, EMI calculation, and government subsidy schemes.
M.Tech Study Loan: If you dream of pursuing an M.Tech degree but are concerned about college fees and other expenses, an education loan can be a viable option. Numerous public and private banks in India offer education loans to students for technical and professional courses like M.Tech.
How much education loan can be availed for M.Tech?
In India, students typically can obtain education loans ranging from ₹10 lakh to ₹15 lakh for an M.Tech course. However, this amount can exceed ₹25 lakh or more if the student intends to study abroad.
Students pursuing M.Tech from reputed institutions (like IITs, NITs, IISc) often receive preferential treatment from public sector banks, including lower interest rates and faster processing.
What expenses does an education loan cover?
- College or university tuition fees
- Hostel and living expenses
- Books, laptops, and other academic materials
- Travel expenses (for students studying abroad)
Lab and library charges
- Insurance and other necessary academic fees
- Required Documents for Education Loan
- College or university admission letter
Details of fee structure
- Student's identity and address proof (Aadhaar card, passport, etc.)
- Previous academic certificates (10th, 12th, Graduation)
- Income proof of parents or guarantor (ITR, salary slip, etc.)
- For loan amounts exceeding ₹7.5 lakh, property or other security may be required.
What will be the EMI burden?
Suppose you take a loan of ₹10 lakh with a 9% annual interest rate. Banks typically offer a moratorium period of 1 to 2 years, during which you don't have to pay EMIs. This period covers your studies and the initial months after securing employment.
Afterward, if you repay the loan over 7 years, your monthly EMI could range from approximately ₹14,000 to ₹16,000. Banks also provide pre-payment options if you wish to repay early, potentially reducing interest costs.
Easy repayment methods
- Prepare to secure employment upon completion of studies to ensure income generation before EMI commencement.
- Supplement income through scholarships, internships, or part-time jobs.
- Utilize ECS or auto-debit facilities for EMI payments to avoid missed installments.
- If job acquisition is delayed, request an extension of the moratorium period from the bank.
What government assistance is available?
Under the Indian government's CGFSEL scheme (Credit Guarantee Fund Scheme for Education Loans), loans up to ₹7.5 lakh can be availed without any collateral. Additionally, some students from families with an annual income below ₹4.5 lakh may receive interest subsidies. This means the government pays the interest during the study period.
How to choose interest rates and banks?
Interest rates vary across banks. Public sector banks (like SBI, Bank of Baroda, PNB) generally offer lower interest rates. Private banks, on the other hand, often provide faster processing but may charge slightly higher interest rates. Approximate interest rates for some major banks are as follows:
SBI: 8.50% - 10%
PNB: 9% - 11%
HDFC Credila: 11% - 13%
Axis Bank: 10.5% - 12.5%
