Pursuing a BTech degree can be an expensive affair in India. But you can get education loan for BTech in India. With top private colleges charging upwards of Rs 10 lakhs in total fees for the 4-year course, most middle-class students require financial assistance.
While scholarships help, education loans form the most viable source for funding BTech studies for many students.
This article provides comprehensive information and a step-by-step process on how to get education loan for BTech from leading banks like SBI, PNB, Axis Bank, etc.
Types of BTech Education Loans
Students can choose from two types of loans for funding their BTech program – secured and unsecured.
Secured Loans
As the name suggests, these loans require some form of collateral security against the loan amount. This can be in the form of property documents, gold, fixed deposits etc. Banks provide larger loan amounts against collateral security.
Unsecured Loans
Unsecured loans do not require any asset security. Banks approve these based on the student’s merit and earning potential. Many banks approve unsecured loans up to Rs 10 lakhs for BTech students. Girl students can get even higher limits under certain schemes.
Eligibility Criteria for BTech Loans
Banks and financial institutions have specific eligibility guidelines for students applying for BTech education loan. These include:
Age
Applicants must be aged between 18 years to 30 years at the time of applying.
Nationality and Residence
Only Indian citizens and residents can apply. Overseas citizens and NRIs have to take separate loans meant exclusively for them.
Academic Background
Applicants must have completed class 12th or equivalent level of education. A minimum of 60% marks in 10th and 12th standards is required. Competitive exam scores like JEE Mains are preferred.
College Admission
Confirmed admission in a full-time engineering program approved by UGC/AICTE is must. Seats secured through management quotas may not be eligible.
Financial Background
A co-applicant is must. Parent, spouse or other earning family members with adequate income can be co-applicant.
Documents Required for BTech Education Loan
Students have to submit standard documents as part of the BTech loan application.
For Students
- Mark sheets of 10th and 12th standards showing minimum 60% marks
- Scorecards of entrance tests – JEE, CET etc.
- College admission letter
- Government ID proof (Aadhaar, passport etc.)
- Address proof
- Bank account statement of last 6 months
- Family income proof
For Co-applicant
- Government ID and address proof
- Updated income tax returns for last 2 years
- Current salary slips and bank statements validating regular income
Expenses Covered Under BTech Loan
A BTech education loan typically covers the following expenses:
- Tuition and academic fees
- Examination and library fees
- Cost of books, supplies and uniforms
- Laptops/personal computers
- Accommodation and boarding charges
- Travel and commuting expenses
- Extra-curricular activity costs
- Any other expense related to completion of the program
Overall costs for pursuing BTech can range between Rs 10-15 lakhs in private colleges and Rs 2-5 lakhs in government institutions. An adequate loan amount should be applied for to cover the entire cost.
Maximum Loan Available for BTech Programs
Most nationalized banks provide education loans of up to Rs 10 lakhs for BTech without any collateral security. Here are the indicative loan limits of major banks:
| Bank | Maximum Loan Available for BTech |
| State Bank of India | Rs 20 lakhs |
| Punjab National Bank | Rs 15 lakhs |
| Bank of Baroda | Rs 25 lakhs |
| Canara Bank | Rs 15 lakhs |
| Union Bank of India | Rs 15 lakhs |
Higher loans are possible if tangible collateral security like property documents are submitted.
Special schemes for girl students allow enhanced limits – for example, Central Sector Interest Subsidy Scheme allows interest-free loans up to Rs 20 lakhs.
Interest Rates on BTech Education Loans
Interest rates vary from 8.5% to 15.5% across various banks and lenders. Girl students and applicants from reserved categories get 1% lower rates in nationalized banks. Additional rebates are applicable on timely servicing of interest during course duration.
As an indicative benchmark, here are the interest rate ranges for BTech loans from major banks:
| Bank | Range of Interest Rates |
| State Bank of India | 8.45% – 10.55% |
| Punjab National Bank | 8.35% – 12.55% |
| Bank of Baroda | 9.15% – 11.55% |
| Canara Bank | 8.95% – 11.05% |
| Union Bank of India | 9.30% – 13.80% |
Thus most leading nationalized banks charge between 8.5% to 12.5% annual interest rates on BTech education loans currently.
How to Apply for BTech Education Loans
Here is a step-by-step process to apply for loans for BTech from various banks:
Shortlist Suitable Banks
Make a list of banks that fund BTech loans on reasonable terms – check loan amount, interest rates, repayment options etc. before shortlisting.
Verify Eligibility Norms
Next, verify that you satisfy all the eligibility conditions related to age, marks, admission status etc. set by the shortlisted banks for BTech loans.
Prepare Documentation
Arrange for all the necessary documents before applying – 10th/12th marksheets, JEE scorecard, college admission letter, Aadhaar card, income proof of co-applicant etc.
Submit Application at Branch
Approach the local branch office of selected bank. Meet the education loan counselor and submit your application with documents. Clarify any doubts.
Or Apply Online
Alternatively, apply online through net banking or the lender’s education loan portal. Provide accurate details and attach scanned copies of documents as required.
Track Status Regularly
Follow up with the bank officials at least once a week to get updates on application status. Submit any further documents promptly if asked.
Option to Apply Through Pradhan Mantri Vidya Lakshmi Portal
The PMVL portal allows students to apply simultaneously to multiple banks for education loans through a single window. You get faster processing and can compare multiple loan offers. The portal also has useful EMI calculators and other tools.
Repayment Options for BTech Loans
Most banks offer the option to start repaying the loan 1 year after completing the course or 6 months after getting a job via EMI mode. The standard repayment duration stretches upto 5-7 years after this moratorium period.
Many lenders allow longer repayment periods of 10-15 years – longer tenure reduces EMI outflow but increases interest payout due to accumulated compounding effect. Hence analyze properly before choosing repayment plan.
Prepaying loan ahead of schedule saves significant interest expenses for students. It helps to start prepaying once your career stabilizes 2-3 years from start of repayment tenure to reduce outflow.
Alternate Funding Options if Loan Application Fails
Despite best efforts, some students face loan rejection due to stringent eligibility norms. Here are some alternatives worth evaluating in such scenarios:
Secured Loans Against Property
Very few lenders reject loans against tangible collateral security like land or house documents. Thus, securitize the loan against an owned property if possible.
Crowdfunding
Many students successfully raise donations/sponsorships from alumni networks, NGOs, social communities through online crowdfunding campaigns.
Part-time Jobs
Look for paid internships in relevant technical domains or take up freelancing projects to self-fund smaller expenses.
Conclusion
Getting an education loan is certainly not easy for BTech aspirants from middle-class backgrounds. However, with the right awareness on loan process, prudent planning and perseverant follow-ups, financing your BTech should definitely be possible with some efforts.
Reach out for assistance whenever in doubt. Most lenders also have dedicated education loan executives to guide applicants. Leverage such services to enhance approval probability. With a structured approach, you should be able to secure funding for your dream BTech education.
