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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 |
Table of Contents
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.
FAQs
Ans. Diploma students can apply for education loans at PNB, SBI, HDFC Bank, Axis Bank, and Bank of Baroda.
Ans. Auxilo, HDFC Credila, InCred, and Avanse offer education loans for diploma courses in India.
Ans. Diploma courses after the 10th, diploma courses after the 12th, graduate diploma courses, and post-graduate diploma courses at recognised colleges/universities/institutions are eligible for education loans.
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