Education Loan for Diploma Course in India

Any student can avail of an education loan for a diploma course in India from private banks, public banks, and Non-Banking Financial Companies (NBFCs). Loans for diploma programmes are available at low-interest rates as compared to a graduate or a postgraduate degree. Students can select industry-related courses and enrol in interested academic institutions to acquire pertinent skills and gain employment in the related sector. The approval and loan disbursement process for these short-term programmes are very quick and has fewer formalities attached to them. To know more about education loans for a diploma course in India, keep reading this blog.

Type of Education Loan	Education Loans for Diploma Programmes
Eligible Diploma Programmes	Diploma Courses after Class 10.Diploma Courses after Class 12.Graduate Diploma CoursesPostgraduate Diploma Courses
Banks Offering Loans	PNB; SBI; HDFC; Bank of Baroda
NBFCs offering Loans	HDFC Credila; Avanse; InCred; Auxilo

Banks Offering Education Loans for Diploma Courses in India

Any individual opting for a diploma course in academic institutions of India can apply for an education loan for a diploma course in India from Punjab National Bank (PNB), State Bank of India (SBI), Bank of Baroda, Axis Bank, Union Bank of India, and Housing Development Finance Corporation Limited (HDFC) Bank. 

State Bank of India

Students can apply for an education loan for a diploma course in India under the SBI Student Loan Scheme, SBI Scholar Loan Scheme, and SBI Skill Loan Scheme. The details of these loans are mentioned in the table below.

Loan Schemes	Student Loan Scheme	Scholar Loan Scheme	Skill Loan Scheme
Maximum Loan	INR 50 lakh	INR 40 lakh	INR 1.5 lakh
Interest Rate	10.9%	8.30% to 8.80%	10.40%
Moratorium Period	Course tenure+6 months after getting a job; or Course duration+1 year, whichever is earlier	Course duration+12 months	Course duration+6months; or Course duration+12 months
Applicable Institutions	Diploma courses by recognised institutions and Postgraduate Diploma by recognised universities/colleges.	List A, AA, B, & C universities/colleges	National Skill Qualification Framework (NSQF) recognised institutions

Also Read: Documents Required for Education Loan

Bank of Baroda

Bank of Baroda is a nationalised bank that provides education loans for Indian nationals pursuing diploma courses in India under its Baroda Gyan Scheme and Baroda Education Loan to Students of Premier Institutions Scheme. Students availing of loans under these schemes are eligible for tax benefits under section 80 (E) of the Indian IT Act. 

The table consists of the benefits, interest rates, and other details of both loans.

Loan Schemes	Baroda Gyan Scheme	Baroda Education Loan to Students of Premier Institutions Scheme
Maximum Loan	INR 80 lakh	INR 80 lakh
Interest Rate	For Female students: 8.35%; For Male students: 8.85%	6.85% to 8.70%
Loan Tenure	Up to INR 7.5 lakh: More than 10 years; Above INR 7.5 lakh: More than 15 years	Up to INR 7.5 lakh: More than 10 years; Above INR 7.5 lakh: More than 15 years
Moratorium Period	Course tenure+12 months	Course tenure+12 months
Applicable Institutions	AICTE, UGC, State Governments, and Central Government recognised academic institutions.	List A, AA, B, and C Secured and Unsecured Institutions

Union Bank of India

The Union Bank of India offers education loans for students enrolled in diploma courses from recognised institutions in India. The table consists of loan details for diploma students.

Particulars	Details
Maximum Loan	INR 30 lakh
Interest Rate	11.40%
Moratorium Period	Course tenure+12 months

Also Read: Expenses Covered in Education Loan

NBFCs Offering Education Loan for Diploma Course in India

The process of securing an education loan for a diploma course in India from an NBFC is very quick and easy in comparison to banks. These financial institutions offer loans for a wide range of diploma courses. The processing fees are similar to that of banks and there is no margin money for any education loan. 

HDFC Credila

HDFC Credila, a subsidiary company of HDFC Pvt. Ltd., provides loans to students of diploma courses in India. Important details of education loans by this NBFC are as follows:

Particulars	Details
Minimum Loan Amount	INR 1 lakh
Maximum Loan Amount	No cap
Interest Rate	11% to 13%
Maximum Loan Tenure	12 years

Avanse

Avanse, an associate firm of Dewan Housing Finance Loan,  is an education loan providing NBFC. The enterprise offers tailor-made loans that are unavailable at banks. Here are the specific details of loans available by this organisation:

Particulars	Details
Minimum Loan Amount	INR 1 lakh
Maximum Loan Amount	No cap
Interest Rate	11% to 14%
Maximum Loan Tenure	15 years

InCred

InCred, a Mumbai-based NBFC, provides education loans for different diploma programmes in India. The basic features of loans are as follows:

Particulars	Details
Minimum Loan Amount	INR 2 lakh
Maximum Loan Amount	INR 1 cr
Interest Rate	11.55 to 15%
Maximum Loan Tenure	15 years

Auxilo

Education loans for diploma courses at Auxilo are available for students enrolled in recognised colleges and universities in India. The details of the loans are mentioned in the table below.

Particulars	Details
Minimum Loan Amount	INR 1 lakh
Maximum Loan Amount	No cap
Interest Rate	12% to 13.5%
Maximum Loan Tenure	10 years

Eligible Diploma Courses in India for Education Loan 

An education loan for a diploma course in India can be availed for diploma courses after Class 10th, diploma courses after the 12th, graduate diploma courses, and postgraduate diploma courses. Some of the eligible diploma courses are:

• Diploma in Civil Engineering
• Diploma in Electronics & Communication Engineering
• Diploma in Mechanical Engineering
• Diploma in Computer Engineering
• Post Graduate Diploma in Management 
• Diploma in Interior Design
• Diploma in Fashion Design
• Diploma in Journalism & Mass Communication
• Post Graduate Diploma in Journalism
• Post Graduate Diploma in Mass Communication
• Diploma in Banking & Finance
• Post Graduate Diploma in Accountancy
• Diploma in Graphic Design
• Post Graduate Diploma in Computer Application
• Post Graduate Diploma in Obstetrics & Gynaecology
• Diploma in Nautical Science
• Diploma in Health Inspector
• Diploma in Taxation Law
• Diploma in Computer Science

Also Read: Tax Benefits on Securing Education Loan

Education Loan for Diploma Course in India Eligibility

Students pursuing diploma courses in Indian academic institutions must meet the following eligibility criteria. 

• Applicant must be a citizen of India.
• Persons of Indian Origin (PIO) and Overseas Citizens of India (OCIs) can apply for the loan.
• Candidate must have enrolled in a diploma course in India before applying for the education loan. 
• Students need to have a co-applicant or collateral for a loan amount above INR 7.5 lakh.

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