Loans & EMI7 min readPublished 1 Oct 2026
How to Get an Education Loan for Studies in India and Abroad (Without Collateral)
Planning higher studies in India or abroad? Discover how the government-backed CGFSEL scheme enables collateral-free education loans up to ₹7.5 Lakhs and tax benefits under Section 80E.
Precious Thakur & Banking Research DeskSenior Financial Infrastructure Analyst
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Key Takeaways & Summary
- Under IBA model education loan schemes, loans up to ₹7.5 Lakhs require NO collateral and NO third-party guarantor.
- Repayment begins only after the moratorium period: Course Duration + 1 Year (or 6 months after getting a job).
- Under Section 80E of the Income Tax Act, 100% of interest paid on an education loan is deductible from taxable income for 8 years with NO upper limit!
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Financing a university degree in engineering, medicine, or MBA—either in India or abroad—does not require mortgaging your family home. The Indian Banks Association (IBA) and government credit guarantee schemes make collateral-free education loans accessible to every deserving student.
#Education Loan#Vidya Lakshmi Portal#Collateral Free Loan#Section 80E#Study Abroad
Frequently Asked Questions
What is the maximum collateral-free education loan limit in India?
Under the Credit Guarantee Fund Scheme for Education Loans (CGFSEL), banks provide collateral-free loans up to ₹7.5 Lakhs without any third-party security.