Education in India is becoming more expensive every year. Many students dream of pursuing higher studies but face financial difficulties. In such cases, an education loan becomes a strong support system. Banks and financial institutions in India provide study loans for various courses. But the big question is – which courses that are usually awarded study loans?
This blog will guide you through the list of courses, eligibility conditions, and practical examples to understand how education loans work.
Why Knowing Eligible Courses Matters?
Not every course qualifies for a study loan. Lenders want assurance that the course has value, can provide good job opportunities, and ensures repayment capacity. That’s why banks focus on certain degree, diploma, and professional courses.
Courses That Are Usually Awarded Study Loans
Here’s a categorized list of courses that usually qualify for education loans:
1. Undergraduate Degree Courses
- B.A. (Bachelor of Arts)
- B.Com (Bachelor of Commerce)
- B.Sc (Bachelor of Science)
- BBA (Bachelor of Business Administration)
- B.E. / B.Tech (Engineering)
- MBBS (Medical)
- LLB (Law)
💡 Example: If a student secures admission to IIT for B.Tech, banks easily approve a loan because engineering has high employability.
2. Postgraduate Degree Courses
- M.A., M.Sc., M.Com
- MBA (Master of Business Administration)
- MD (Doctor of Medicine)
- LLM (Master of Laws)
- M.Ed, M.Phil
💡 Example: An MBA student at IIM can get a loan of ₹10–25 lakhs, depending on the institution and course fees.
3. Doctoral & Research Programs
- PhD in Science, Arts, Commerce, Engineering
- M.Phil leading to research careers
👉 These courses are usually supported if the institution is recognized by UGC/AICTE.
4. Diploma and Certificate Courses
- Engineering Diploma
- Nursing, Teaching, Veterinary
- ITI (Industrial Training Institutes)
- Job-oriented Computer Courses
💡 Example: A 2-year Diploma in Nursing with ₹3 lakhs fees may get 90% coverage under education loan.
5. Professional & Specialized Courses
- Army, Navy, Air-Force Training Courses
- Pilot Training / Aeronautics (recognized by DGCA)
- Animation, Digital Marketing, Data Science
- Foreign language certification
- Soft-skill development programs
6. Skill Development & Short-Term Courses
- National Skill Development Corporation (NSDC) programs
- State Skill Missions courses
- Event Management, AI, Robotics training
These are supported mainly under Government Skill Loan Schemes.
Institutional Recognition – A Key Condition
For a course to be loan-eligible, the institution must be recognized by:
- UGC (University Grants Commission)
- AICTE (All India Council for Technical Education)
- Medical Council of India (MCI) for MBBS/MD
- Directorate General of Civil Aviation (DGCA) for pilot training
- Indian Nursing Council (INC) for nursing
If your course or institution is not approved, the loan may be rejected.
Example Calculation of Study Loan
Suppose a student joins MBA at IIM Bangalore.
- Course Fee (2 years): ₹24 lakhs
- Bank Loan Coverage: 90% = ₹21.6 lakhs
- Margin Money (student contribution): 10% = ₹2.4 lakhs
- Repayment starts after course completion + moratorium period (6–12 months).
💡 If EMI tenure is 10 years with 10% interest:
- EMI ≈ ₹28,400 per month.
This makes it affordable for a student once they start earning ₹1.2–1.5 lakhs per month post-MBA.
Eligibility Conditions for Students
- Age: 18–35 years (varies by lender).
- Admission confirmation letter is mandatory.
- Good academic record increases approval chances.
- Co-applicant (parent/guardian) may be required.
Benefits of Taking an Education Loan
- Reduces burden on family savings.
- Covers tuition fees, hostel charges, books, equipment.
- Tax benefit under Section 80E on interest paid.
- Builds student’s financial responsibility.
Conclusion
Education loans play a vital role in helping students achieve their academic dreams. Most banks support undergraduate, postgraduate, doctoral, diploma, and professional courses, provided they are recognized by the right authorities. By knowing which courses are usually awarded study loans, students and parents can plan their finances better.So, whether it’s engineering, MBA, MBBS, pilot training, or skill-based courses, the right education loan can make higher education affordable and achievable.