Nainital Bank Education Loan to Study in India: A Complete Guide

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nainital bank education loan to study in India

To help students pursue their higher education without facing financial hurdles, Nainital Bank provides education loans to students for both studying in India and abroad. A student can avail education loan to pursue professional or technical courses. Before applying for an education loan at Nainital Bank it is advisable that an applicant must go through all the important details related to it. Are you also planning to apply for a Nainital Bank education loan to study in India? If your answer is yes to this question, then keep reading this blog further to know important information related to it. 


About Nainital Bank

Founded in 1922, Nainital Bank is a scheduled commercial bank. It was made a subsidiary of the Bank of Baroda in the year 1992 which comes under the Ministry of Finance, Government of India. Nainital Bank has around 170 branches all across India which is why it is present in various states. It provides various services to its customers which include banking, financial and investment services.

Here are some details about the Nainital Bank Education Loan. Read the table below: 

Loan limit Up to INR 75 LakhIn case a student needs a higher amount on the basis of the profile of the applicant and co-applicant the bank will disburse the required loan amount.
Accepted co-applicant Spouse, Sibling, Parents, Parents-in-Law
Expenses Covered Hostel/Accommodation cost, Food, Tuition fee, Examination fee, Lab/Library fee, Books related expenses, Laptop or computer purchase if required, Insurance, Travel expenses, other miscellaneous expenses 
Moratorium Period 1-year post-course duration 
Repayment Duration It depends upon the loan amount taken 10 yrs for loans up to INR 7.5 Lakh
15 yrs for loans above INR 7.5 Lakh
Interest Rate Non Collateralised loan – 12% to 14%
Difference of up to 0.50% if the student has taken a collateral loan 
Female students can get interest concession
Repayment Policy Interest payment in the moratorium period is optional
Eligibility Criteria Indian Nationals can apply for this loan
Value of Collateral (for collateralized loans)125% of the loan amount
Collaterals Accepted FD, land, flat and house

Benefits of Nainital Bank Education Loan

An applicant who has applied for a Nainital Bank education loan gets to take advantage of the following benefits: 

  • No processing fee is charged for a loan amount of up to 10 Lakh.
  • Female students get a concessional rate of interest.
  • No security is required in the loan is less than or equal to 4 Lakh. 
  • If the loan amount is less than or equal to 7.5 lakh then the repayment period is 10 years whereas for a loan amount of more than 7.5 Lakh the repayment period is 15 years. 
  • Depending upon the collateral security coverage the applicant gets a concession ranging between 0.25% to 0.50%. 
  • The wards of the Nainital Bank’s employees get a concession of 0.25% in interest. 

How to Apply for an Education Loan at Nainital Bank?

Listed below are the basic steps that an applicant needs to follow to apply for a Nainital Bank education loan to study in India: 

  • Visit the official website of Nainital Bank and click on the education loan option. 
  • Check out the eligibility criteria and the documents required to apply for the education loan. 
  • Fill out the application form carefully by providing the necessary information. 
  • Once the application is submitted the representative of the bank gets in touch with the applicant for further process. 

Documents Required 

Fill out the application form of the bank carefully by providing all the necessary details and also, ensure that the information provided is correct. The applicant needs to sign the application form and give 2 photographs.

If a student wishes to apply for a Nainital Bank education loan to study in India then they need to provide certain documents which are listed below:  

Documents Required of the Applicant 

  • For identity proof – Pan Card, Aadhar Card 
  • Residence proof – Aadhar Card, Utility Bills (Electricity bill/Telephone bill), VoterID card, Bank account statement, Ration card 
  • Self-attest of personal assets and liability statement.

Documents Required of the Co-Applicant 

The role of a co-applicant is very important while applying for education loans. Read the documents required by the co-applicant to apply for a Nainital Bank education loan to study in India:

  • If the co-applicant is salaried – Bank account statements for the last 6 months 
  • If the co-applicant is self-employed – Business transactions of the last 1 year

Applicant’s Academic Documents 

The applicant needs to provide the following academic documents:

  • Marksheets and certificates of classes 10th, 12th, and college.
  • Proof of admission to a course along with the duration of the course.
  • GRE/GMAT/IELTS scorecard (if applicable) 
  • Fee structure 
  • Ranking of the university 

Also Read: Terms and Conditions for Education Loan for Students 

Calculation of Margin Money for the Loan

Margin money is like a down payment made by an applicant while availing loan which helps in building the trust between the borrower and the lender and also minimizes the risk of the lender. By the loan amount you intend to get, you must pay a loan margin while availing of a loan from Nainital Bank. A 5% lending margin will be used for loans under INR 4 lakh. On the other hand, loans over 4 lahks would have a 15% lending margin. 

Processing Fee 

Processing fee refers to the cost that a bank has to bear which involves administrative and loan sanctioning charges. It is usually a small amount and differs from bank to bank. As for Nainital Bank, there is no processing fee charged to the applicants for a loan amount of up to 10 Lakh. However, if the loan amount exceeds 10 Lakh then there is a processing fee charged by the bank. 

Education Loan Repayment Process 

Students who have availed of Nainital Bank education loans get the option to pay interest in the moratorium period. However, if the student does not want to pay the interest at that time then that is added to the EMIs. The applicant also gets the option to repay the loan early through the following methods: 

  • Opting for a shorter period to repay the loan. 
  • Pre-paying the loan amount.
  • Transferring the loan amount to another bank. 

Also Read: What are the Pros and Cons of Paying-Off Student Loans Early?

Education Loan Insurance 

To cover the loan amount and aid in repayment if the student experiences unanticipated circumstances like a sudden death or incapacity, Nainital Bank requires the applicant to get loan insurance. Nainital Bank’s loan insurance ranges between 1 to 2 percent of the total loan amount. However, since the cost of loan insurance is added to the loan account, students are not required to pay the bank anything upfront. 

Also Read: Things to Know About Student Loan Servicers Before Getting an Education Loan


Q1. Is interest-free on education loans?

Ans. No, education loans in India are not interest-free but students can avail scholarships or subsidies to get financial assistance for pursuing education. 

Q2. Which Banks approve education loans easily? 

Ans. Mentioned below are some of the hassle-free education loan options provided by various banks to students: 
Punjab National Bank Education Loan 
Axis Bank Education Loan 
SBI Bank Education Loan 
Bank of Baroda Education Loan 

Q3. Why do Banks reject education loans? 

Ans. There are several reasons which are why applications for education loans are rejected by banks. Some of these reasons are mentioned below: 
– Unrecognised institute or course
– Inadequate collateral or guarantor 
– Incomplete documentation
– Poor credit score 
– Unsatisfactory academic performance 

This is everything you need to know about Nainital Bank education loans to study in India! Worried about the financial hurdles you are facing for your study abroad dreams? Reach out to Leverage Edu for guidance.

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