Education Loan In Tamil Nadu

Tamil Nadu is one of the most literate states in the country with an average literacy rate of 80.33% as per the survey in 2011. Tamil Nadu also accounts for 21% of the total education loans disbursed by public sector banks between 2013-2014 and 2015-16. With about 100% gross enrollment ratio in primary and higher education, most students opt for loans to satisfy their financing needs for higher studies. The government also conducts education camps to help the students who are planning for higher studies. From public banks (SBI), private banks (Axis Bank, HDFC Credila) to NBFCs such as Auxillo, Avanse and Incred, get loans suited to your needs through Credenc.

Education Loan Provider in Tamil Nadu

Bank Interest Rate(%)
State Bank of India 8.3-10.7%
Axis Bank 10.5-15%
Avanse 12-14.5%
InCred 11.75-14%
Bank Of Baroda 11.25-14%
Bank of Maharashtra 10.15-12.1%


How to get an education loan in Tamil Nadu?

Most public banks and private banks offer low-interest rates on your loan while they look for a strong profile with collateral whereas NBFCs usually offers unsecured loan without security at a higher rate of interest.

With Credenc, getting into your dream school is easy. You can apply for an education loan with online documentation and quick approvals and enjoy low-interest rates and accessible credit funding so that you don't have to compromise with your dreams. Unlike the traditional lenders, we invest in your future rather than assessing you on your past.

For a detailed list of documents, click here.


Geographical Effect

Most of the regions in Tamil Nadu are serviceable for education loans excluding some of the rural areas for their inaccessibility and other conditions. Although some of the banks may limit their service to a certain radius of their headquarters, in which case, we will make sure your application is passed through other major banks and NBFCs and help you get the best rates for your loan.

Coverage & Eligibility


With downstream servicing like employability services, repayment planning, and customer tracking, Credenc offers end to end free servicing that transforms and enhances your entire financial experience. We have partnered with 150+ universities across the country to catalyse finance to students in a more accessible and convenient way.  


Expenses covered under education loan are -

  • Fees payable to school/college/hostel.

  • Examination/Library/Laboratory fees.

  • Purchase of Equipment/Books/Instruments/Uniforms.

  • Purchase of Computer/Laptop if essential for the completion of course.

  • Travel Expenses/ Passage money for studies abroad.

Eligibility Criteria

  • The borrower ought to be an Indian citizen.

  • He/She must have secured admission in the college before disbursement.

An education loan can also be availed before securing admission in a university. NBFCs also provide pre-admission loans on the basis of scorecards of competitive exams like GRE, GMAT, IELTS, TOEFL etc.


It is important to note that public banks have a strict margin policy where they provide financing upto 80-90% of the loan amount. The rest amount has to be paid from your pocket. Whereas NBFCs and private banks offer 100% financing that covers your tuition fees, travel expenses and much more.

Student Loan Interest Rate in Tamil Nadu

  • Nationalised banks charge loan interest between 9% and 14%

  • Private banks offer loan interest at the rate of 11% and 17%

Moreover, the rates of interest also depend upon various factors such as your GRE score, your university and your academic profile.

Education Loan for MBA Students in Tamil Nadu

Some popular universities that offer MBA courses in the city are Indian Institute of Management, Tiruchirappalli; VIT Business School- VIT University, Vellore. Annamalai University and Madras University are two good options for doing a distance education MBA programme. With programs like General MBA, Executive MBA and Distance MBA, an aspirant can opt for a program as per his needs.

MBA aspirants often back out before investing in their MBA program due to their skyrocketing fees. Thus an educational loan can do wonder to help you get the education you deserve.

Education Loan for MBBS Students in Tamil Nadu

Some of the top medical colleges in Tamil Nadu are - Christian Medical College, Vellore; Madras Medical College, Chennai; Stanley Medical College, Chennai;  Coimbatore Medical College, Coimbatore;  Tirunelveli Medical College, Tirunelveli.

You can avail education loan for MBBS upto INR 10 lakh in India and 40 Lakh for abroad studies. Most of the NBFCs also provide loans with no upper limit but requires collateral.

Education Loan for Engineering Students in Tamil Nadu

Tamil Nadu is home to some of the best engineering colleges in India like IIT Madras, Amrita School of Engineering, NIT Tiruchirappalli etc. If a student has secured admission in one of the premier institutions, then getting an education is very easy. Most of the institutions are partnered with several banks to offer financial accessibility to the students. Some of the banks who offer loans for Engineering in Tamil Nadu include State Bank of India, Axis Bank, Punjab National Bank and HDFC Credila. NBFCs like Avanse, Incred and Auxilo are also prevalent on the scene.