Are there special personal loans for students?

Students who need financial help for their studies have loan options created just for them. While personal loans are unsecured and can be used for many things which includes paying for education—they aren’t made specifically for students. Instead, education loans exist to meet the unique needs of those pursuing higher education, whether in India or overseas.

Education loans offer features that make them a better fit for students. These loans usually have lower interest rates, give longer time frames to repay, and often allow for flexible repayment that begins only after the course is finished or once the student finds a job.

Many education loans do not require collateral for amounts up to a certain limit, making them more accessible for students from a variety of financial backgrounds. The government has also introduced schemes such as the Pradhan Mantri Vidyalaxmi (PM-Vidyalaxmi), which provides collateral-free and guarantor-free loans to meritorious students admitted to top higher education institutions. Under this scheme, students from families with annual incomes up to ₹8 lakhs may receive an interest subsidy, and those from economically weaker sections can benefit from full interest subvention during the moratorium period.

Indian citizenship, enrolment in an approved program, and, usually, a co-applicant—such as a parent or guardian—are prerequisites for eligibility for these loans. Education loans continue to be the best option because of their student-friendly terms, government-backed support, and emphasis on facilitating access to high-quality education, even though students who meet the eligibility requirements may technically apply for a regular personal loan.