Introduction
To ensure uniformity, accessibility, and affordability in education financing, the Indian Banks’ Association (IBA) has introduced a Model Education Loan Scheme. How Much Education Loan Can I Get? This model is adopted by most public and private banks in India and sets standard guidelines regarding loan eligibility, limits, interest rates, and repayment terms. A common query from students and parents is: How much education loan can you get under the IBA Model Scheme?
In this article, we explore the loan amount limits under the IBA Model Education Loan Scheme, its key features, & how it supports aspiring students to pursue higher education in India & abroad.
What Is the IBA Model Education Loan Scheme?
The IBA Model Scheme for How Much Education Loan Can I Get is a standard framework provided to banks by the Indian Banks’ Association to:
- Maintain uniform lending practices.
- Support courses in India and abroad
This scheme is widely adopted by banks such as SBI, PNB, Canara Bank, Indian Bank, and others.
| Purpose | Maximum Loan Limit |
| For studies in India | Up to ₹10 lakh |
| For studies abroad | Up to ₹20 lakh |
Note: Banks may consider higher loan amounts on a case-by-case basis, especially if collateral is offered and the student is admitted to a reputed institution.
Key Features of the IBA Model Scheme
- Courses Covered: Undergraduate, postgraduate, and professional courses in India and abroad.
- Institutions: Recognized by UGC, AICTE, Government, or accredited international bodies.
- Interest Rates: Generally linked to the repo rate, with a margin set by the bank.
- Collateral Requirement:
Additional Benefits Under the Scheme
- Moratorium Period: Course duration + 12 months
- Margin Money:
- Up to ₹4 lakh: No margin
- Above ₹4 lakh: 5% (India), 15% (abroad)
- Security: Optional for smaller loans; mandatory for higher amounts.
Who Is Eligible?
- Indian nationals with confirmed admission into recognized courses.
- A good academic track record is preferred.
Conclusion
The IBA Model How Much Education Loan Can I Get Scheme serves as a foundational framework for most banks in India, offering loans up to ₹10 lakh for studies in India and ₹20 lakh for studies abroad. While these are standard caps, many banks allow higher amounts with collateral or for students enrolled in top-tier institutions.
By aligning your application with the model scheme’s guidelines—such as course selection, institution recognition, & proper documentation—you can increase your chances of loan approval. For students seeking structured, bank-backed financial support, the IBA scheme remains a reliable & accessible pathway to achieving their educational dreams.